Internal Revenue Code:Sec. 6037. Return of S corporation

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Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle F - Procedure and Administration
       CHAPTER 61 - INFORMATION AND RETURNS
        Subchapter A - Returns and Records
         PART III - INFORMATION RETURNS
          Subpart A - Information Concerning Persons Subject to Special
                Provisions
         

Statute

    Sec. 6037. Return of S corporation
 
    (a) In general
      Every S corporation shall make a return for each taxable year,
    stating specifically the items of its gross income and the
    deductions allowable by subtitle A, the names and addresses of all
    persons owning stock in the corporation at any time during the
    taxable year, the number of shares of stock owned by each
    shareholder at all times during the taxable year, the amount of
    money and other property distributed by the corporation during the
    taxable year to each shareholder, the date of each such
    distribution, each shareholder's pro rata share of each item of the
    corporation for the taxable year, and such other information, for
    the purpose of carrying out the provisions of subchapter S of
    chapter 1, as the Secretary may by forms and regulations
    prescribe.  Any return filed pursuant to this section shall, for
    purposes of chapter 66 (relating to limitations), be treated as a
    return filed by the corporation under section 6012.
    (b) Copies to shareholders
      Each S corporation required to file a return under subsection (a)
    for any taxable year shall (on or before the day on which the
    return for such taxable year was filed) furnish to each person who
    is a shareholder at any time during such taxable year a copy of
    such information shown on such return as may be required by
    regulations.
    (c) Shareholder's return must be consistent with corporate return
        or Secretary notified of inconsistency
      (1) In general
        A shareholder of an S corporation shall, on such shareholder's
      return, treat a subchapter S item in a manner which is consistent
      with the treatment of such item on the corporate return.
      (2) Notification of inconsistent treatment
        (A) In general
          In the case of any subchapter S item, if -
            (i)(I) the corporation has filed a return but the
          shareholder's treatment on his return is (or may be)
          inconsistent with the treatment of the item on the corporate
          return, or
            (II) the corporation has not filed a return, and
            (ii) the shareholder files with the Secretary a statement
          identifying the inconsistency,
        paragraph (1) shall not apply to such item.
        (B) Shareholder receiving incorrect information
          A shareholder shall be treated as having complied with clause
        (ii) of subparagraph (A) with respect to a subchapter S item if
        the shareholder -
            (i) demonstrates to the satisfaction of the Secretary that
          the treatment of the subchapter S item on the shareholder's
          return is consistent with the treatment of the item on the
          schedule furnished to the shareholder by the corporation, and
            (ii) elects to have this paragraph apply with respect to
          that item.
      (3) Effect of failure to notify
        In any case -
          (A) described in subparagraph (A)(i)(I) of paragraph (2), and
          (B) in which the shareholder does not comply with
        subparagraph (A)(ii) of paragraph (2),
      any adjustment required to make the treatment of the items by
      such shareholder consistent with the treatment of the items on
      the corporate return shall be treated as arising out of
      mathematical or clerical errors and assessed according to section
      6213(b)(1). Paragraph (2) of section 6213(b) shall not apply to
      any assessment referred to in the preceding sentence.
      (4) Subchapter S item
        For purposes of this subsection, the term ''subchapter S item''
      means any item of an S corporation to the extent that regulations
      prescribed by the Secretary provide that, for purposes of this
      subtitle, such item is more appropriately determined at the
      corporation level than at the shareholder level.
      (5) Addition to tax for failure to comply with section
          For addition to tax in the case of a shareholder's negligence
        in connection with, or disregard of, the requirements of this
        section, see part II of subchapter A of chapter 68.
 

Sources

    (Added Pub. L. 85-866, title I, Sec. 64(c), Sept. 2, 1958, 72 Stat.
    1656; amended Pub. L. 94-455, title XIX, Sec. 1906(a)(3),
    (b)(13)(A), Oct. 4, 1976, 90 Stat. 1824, 1834; Pub. L. 97-354, Sec.
    5(a)(39)(A), Oct. 19, 1982, 96 Stat. 1696; Pub. L. 98-369, div.  A,
    title VII, Sec. 714(q)(2), July 18, 1984, 98 Stat. 965; Pub. L.
    104-188, title I, Sec. 1307(c)(2), Aug. 20, 1996, 110 Stat. 1781.)
 

Miscellaneous

                              PRIOR PROVISIONS
      A prior section 6037 was renumbered section 6040 of this title.
                                 AMENDMENTS
      1996 - Subsec. (c). Pub. L. 104-188 added subsec. (c).
      1984 - Pub. L. 98-369 designated existing provisions as subsec.
    (a) and added subsec. (a) heading and subsec. (b).
      1982 - Pub. L. 97-354 substituted ''S corporation'' for
    ''electing small business corporation'' in section catchline,
    substituted ''Every S corporation'' for ''Every electing small
    business corporation (as defined in section 1371(b))'', and
    substituted ''each shareholder's pro rata share of each item of the
    corporation for the taxable year, and such other information'' for
    ''and such other information''.
      1976 - Pub. L. 94-455 substituted ''section 1371(b)'' for
    ''section 1371(a)(2)'' and struck out ''or his delegate'' after
    ''Secretary''.
                      EFFECTIVE DATE OF 1996 AMENDMENT
      Amendment by Pub. L. 104-188 applicable to taxable years
    beginning after Dec. 31, 1996, see section 1317(a) of Pub. L.
    104-188, set out as a note under section 641 of this title.
                      EFFECTIVE DATE OF 1984 AMENDMENT
      Amendment by Pub. L. 98-369 applicable to taxable years beginning
    after Dec. 31, 1984, see section 714(q)(5) of Pub. L. 98-369, set
    out as an Effective Date note under section 6034A of this title.
                      EFFECTIVE DATE OF 1982 AMENDMENT
      Amendment by Pub. L. 97-354 applicable to taxable years beginning
    after Dec. 31, 1982, see section 6(a) of Pub. L. 97-354, set out as
    an Effective Date note under section 1361 of this title.
                               EFFECTIVE DATE
      Section applicable only with respect to taxable years beginning
    after Dec. 31, 1957, see section 64(e) of Pub. L. 85-866, set out
    as an Effective Date of 1958 Amendment note under section 172 of
    this title.
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 6724 of this title.