PUBLIC LAW 109–280—AUG. 17, 2006
120 STAT. 1065
‘‘SEC. 6034. RETURNS BY CERTAIN TRUSTS.
‘‘(a) SPLIT-INTEREST TRUSTS.—Every trust described in section 4947(a)(2) shall furnish such information with respect to the taxable year as the Secretary may by forms or regulations require. ‘‘(b) TRUSTS CLAIMING CERTAIN CHARITABLE DEDUCTIONS.— ‘‘(1) IN GENERAL.—Every trust not required to file a return under subsection (a) but claiming a deduction under section 642(c) for the taxable year shall furnish such information with respect to such taxable year as the Secretary may by forms or regulations prescribe, including— ‘‘(A) the amount of the deduction taken under section 642(c) within such year, ‘‘(B) the amount paid out within such year which represents amounts for which deductions under section 642(c) have been taken in prior years, ‘‘(C) the amount for which such deductions have been taken in prior years but which has not been paid out at the beginning of such year, ‘‘(D) the amount paid out of principal in the current and prior years for the purposes described in section 642(c), ‘‘(E) the total income of the trust within such year and the expenses attributable thereto, and ‘‘(F) a balance sheet showing the assets, liabilities, and net worth of the trust as of the beginning of such year. ‘‘(2) EXCEPTIONS.—Paragraph (1) shall not apply to a trust for any taxable year if— ‘‘(A) all the net income for such year, determined under the applicable principles of the law of trusts, is required to be distributed currently to the beneficiaries, or ‘‘(B) the trust is described in section 4947(a)(1).’’. (2) INCREASE IN PENALTY RELATING TO FILING OF INFORMATION RETURN BY SPLIT-INTEREST TRUSTS.—Paragraph (2) of section 6652(c) (relating to returns by exempt organizations and by certain trusts) is amended by adding at the end the following new subparagraph: ‘‘(C) SPLIT-INTEREST TRUSTS.—In the case of a trust which is required to file a return under section 6034(a), subparagraphs (A) and (B) of this paragraph shall not apply and paragraph (1) shall apply in the same manner as if such return were required under section 6033, except that— ‘‘(i) the 5 percent limitation in the second sentence of paragraph (1)(A) shall not apply, ‘‘(ii) in the case of any trust with gross income in excess of $250,000, the first sentence of paragraph (1)(A) shall be applied by substituting ‘$100’ for ‘$20’, and the second sentence thereof shall be applied by substituting ‘$50,000’ for ‘$10,000’, and ‘‘(iii) the third sentence of paragraph (1)(A) shall be disregarded. In addition to any penalty imposed on the trust pursuant to this subparagraph, if the person required to file such return knowingly fails to file the return, such penalty shall also be imposed on such person who shall be personally liable for such penalty.’’.
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26 USC 6652.
Applicability.
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