Internal Revenue Code:Sec. 6039F. Notice of large gifts received from foreign persons

From TaxAlmanac

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. 6039F. Notice of large gifts received from foreign persons
 
    (a) In general
      If the value of the aggregate foreign gifts received by a United
    States person (other than an organization described in section
    501(c) and exempt from tax under section 501(a)) during any taxable
    year exceeds $10,000, such United States person shall furnish (at
    such time and in such manner as the Secretary shall prescribe) such
    information as the Secretary may prescribe regarding each foreign
    gift received during such year.
    (b) Foreign gift
      For purposes of this section, the term ''foreign gift'' means any
    amount received from a person other than a United States person
    which the recipient treats as a gift or bequest.  Such term shall
    not include any qualified transfer (within the meaning of section
    2503(e)(2)) or any distribution properly disclosed in a return
    under section 6048(c).
    (c) Penalty for failure to file information
      (1) In general
        If a United States person fails to furnish the information
      required by subsection (a) with respect to any foreign gift
      within the time prescribed therefor (including extensions) -
          (A) the tax consequences of the receipt of such gift shall be
        determined by the Secretary, and
          (B) such United States person shall pay (upon notice and
        demand by the Secretary and in the same manner as tax) an
        amount equal to 5 percent of the amount of such foreign gift
        for each month for which the failure continues (not to exceed
        25 percent of such amount in the aggregate).
      (2) Reasonable cause exception
        Paragraph (1) shall not apply to any failure to report a
      foreign gift if the United States person shows that the failure
      is due to reasonable cause and not due to willful neglect.
    (d) Cost-of-living adjustment
      In the case of any taxable year beginning after December 31,
    1996, the $10,000 amount under subsection (a) shall be increased by
    an amount equal to the product of such amount and the
    cost-of-living adjustment for such taxable year under section
    1(f)(3), except that subparagraph (B) thereof shall be applied by
    substituting ''1995'' for ''1992''.
    (e) Regulations
      The Secretary shall prescribe such regulations as may be
    necessary or appropriate to carry out the purposes of this section.
 

Sources

    (Added Pub. L. 104-188, title I, Sec. 1905(a), Aug. 20, 1996, 110
    Stat. 1913.)
 

Amendment of Section

     ADJUSTMENT OF AGGREGATE GIFT THRESHOLD FOR TAX YEARS BEGINNING IN
                                    2002
        For adjustment of aggregate gift threshold for purposes of
      triggering reporting requirement under this section for tax years
      beginning in 2002, see section 3.24 of Revenue Procedure 2001-59,
      set out as a note under section 1 of this title.
 

Codification

                                CODIFICATION
      Another section 6039F was renumbered section 6039G of this title.
 

Miscellaneous

                               EFFECTIVE DATE
      Section 1905(c) of Pub. L. 104-188 provided that: ''The
    amendments made by this section (enacting this section) shall apply
    to amounts received after the date of the enactment of this Act
    (Aug. 20, 1996) in taxable years ending after such date.''