Internal Revenue Code:Sec. 6046. Returns as to organization or reorganization of foreign corporations and as to acquisitions of their stock

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 B - Information Concerning Transactions With Other Persons
        

Statute

    Sec. 6046. Returns as to organization or reorganization of foreign
        corporations and as to acquisitions of their stock
 
    (a) Requirement of return
      (1) In general
        A return complying with the requirements of subsection (b)
      shall be made by -
          (A) each United States citizen or resident who becomes an
        officer or director of a foreign corporation if a United States
        person (as defined in section 7701(a)(30)) meets the stock
        ownership requirements of paragraph (2) with respect to such
        corporation,
          (B) each United States person -
            (i) who acquires stock which, when added to any stock owned
          on the date of such acquisition, meets the stock ownership
          requirements of paragraph (2) with respect to a foreign
          corporation, or
            (ii) who acquires stock which, without regard to stock
          owned on the date of such acquisition, meets the stock
          ownership requirements of paragraph (2) with respect to a
          foreign corporation,
          (C) each person (not described in subparagraph (B)) who is
        treated as a United States shareholder under section 953(c)
        with respect to a foreign corporation, and
          (D) each person who becomes a United States person while
        meeting the stock ownership requirements of paragraph (2) with
        respect to stock of a foreign corporation.
      In the case of a foreign corporation with respect to which any
      person is treated as a United States shareholder under section
      953(c), subparagraph (A) shall be treated as including a
      reference to each United States person who is an officer or
      director of such corporation.
      (2) Stock ownership requirements
        A person meets the stock ownership requirements of this
      paragraph with respect to any corporation if such person owns 10
      percent or more of -
          (A) the total combined voting power of all classes of stock
        of such corporation entitled to vote, or
          (B) the total value of the stock of such corporation.
    (b) Form and contents of returns
      The returns required by subsection (a) shall be in such form and
    shall set forth, in respect of the foreign corporation, such
    information as the Secretary prescribes by forms or regulations as
    necessary for carrying out the provisions of the income tax laws,
    except that in the case of persons described only in subsection
    (a)(1) the information required shall be limited to the names and
    addresses of persons described in paragraph (2) or (3) of
    subsection (a).
    (c) Ownership of stock
      For purposes of subsection (a), stock owned directly or
    indirectly by a person (including, in the case of an individual,
    stock owned by members of his family) shall be taken into account.
    For purposes of the preceding sentence, the family of an individual
    shall be considered as including only his brothers and sisters
    (whether by the whole or half blood), spouse, ancestors, and lineal
    descendants.
    (d) Time for filing
      Any return required by subsection (a) shall be filed on or before
    the 90th day after the day on which, under any provision of
    subsection (a), the United States citizen, resident, or person
    becomes liable to file such return (or on or before such later day
    as the Secretary may by forms or regulations prescribe).
    (e) Limitation
      No information shall be required to be furnished under this
    section with respect to any foreign corporation unless such
    information was required to be furnished under regulations which
    have been in effect for at least 90 days before the date on which
    the United States citizen, resident, or person becomes liable to
    file a return required under subsection (a).
    (f) Cross reference
          For provisions relating to penalties for violations of this
        section, sections 6679 and 7203.
 

Sources

    (Aug. 16, 1954, ch. 736, 68A Stat. 747; Pub. L. 86-780, Sec. 7(a),
    Sept. 14, 1960, 74 Stat. 1016; Pub. L. 87-834, Sec. 20(b), Oct. 16,
    1962, 76 Stat. 1061; Pub. L. 94-455, title XIX, Sec. 1906(a)(4),
    (b)(13)(A), Oct. 4, 1976, 90 Stat. 1824, 1834; Pub. L. 97-248,
    title III, Sec. 341(a), Sept. 3, 1982, 96 Stat. 635; Pub. L.
    100-647, title I, Sec. 1012(i)(19), Nov. 10, 1988, 102 Stat. 3510;
    Pub. L. 105-34, title XI, Sec. 1146(a), Aug. 5, 1997, 111 Stat.
    986.)
 

Miscellaneous

                                 AMENDMENTS
      1997 - Subsec. (a). Pub. L. 105-34 reenacted heading without
    change and amended text generally.  Prior to amendment, text read
    as follows: ''A return complying with the requirements of
    subsection (b) shall be made by -
        ''(1) each United States citizen or resident who is on January
      1, 1963, an officer or director of a foreign corporation, 5
      percent or more in value of the stock of which is owned by a
      United States person (as defined in section 7701(a)(30)), or who
      becomes such an officer or director at any time after such date,
        ''(2) each United States person who on January 1, 1963, owns 5
      percent or more in value of the stock of a foreign corporation,
      or who, at any time after such date -
          ''(A) acquires stock which, when added to any stock owned on
        January 1, 1963, has a value equal to 5 percent or more of the
        value of the stock of a foreign corporation, or
          ''(B) acquires an additional 5 percent or more in value of
        the stock of a foreign corporation,
        ''(3) each person (not described in paragraph (2)) who, at any
      time after January 1, 1987, is treated as a United States
      shareholder under section 953(c) with respect to a foreign
      corporation, and
        ''(4) each person who at any time after January 1, 1963,
      becomes a United States person while owning 5 percent or more in
      value of the stock of a foreign corporation.
    In the case of a foreign corporation with respect to which any
    person is treated as a United States shareholder under section
    953(c), paragraph (1) shall be treated as including a reference to
    each United States person who is an officer or director of such
    corporation.''
      1988 - Subsec. (a). Pub. L. 100-647, Sec. 1012(i)(19)(C),
    inserted sentence at end relating to foreign corporation with
    respect to which any person is treated as a United States
    shareholder under section 953(c).
      Subsec. (a)(3), (4). Pub. L. 100-647, Sec. 1012(i)(19)(A), added
    par. (3) and redesignated former par. (3) as (4).
      Subsec. (b). Pub. L. 100-647, Sec. 1012(i)(19)(B), substituted
    ''paragraph (2) or (3) of subsection (a)'' for ''subsection
    (a)(2)''.
      1982 - Subsec. (d). Pub. L. 97-248 inserted ''(or on or before
    such later day as the Secretary may by forms or regulations
    prescribe)''.
      1976 - Subsec. (b). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck
    out ''or his delegate'' after ''Secretary''.
      Subsec. (e). Pub. L. 94-455, Sec. 1906(a)(4), struck out
    provisions relating to the requirement for information to be
    furnished in the case of liability to file a return under subsec.
    (a) of this section arising on or after Jan. 1, 1963, and before
    June 1, 1963, under regulations in effect on or before June 1,
    1963.
      1962 - Pub. L. 87-834 substituted ''organization or
    reorganization of foreign corporations and as to acquisitions of
    their stock'' for ''creation or organization, or reorganization, of
    foreign corporations'' in section catchline.
      Subsec. (a). Pub. L. 87-834 amended subsec. (a) generally.  Prior
    to amendment, subsec. (a) read as follows:
      ''(a) General Rule. - On or before the 90th day after the
    creation or organization, or reorganization, of any foreign
    corporation -
        ''(1) Each United States citizen or resident who was an officer
      or director of the corporation at any time within 60 days after
      the creation or organization, or reorganization thereof, and
        ''(2) Each United States shareholder of the corporation by or
      for whom, at any time within 60 days after the creation or
      organization or reorganization of the corporation, 5 percent or
      more in value of the stock of the corporation outstanding was
      owned directly or indirectly (including, in the case of an
      individual, stock owned by members of his family),
    shall make a return in compliance with the provisions of subsection
    (b).''
      Subsec. (b). Pub. L. 87-834 inserted the exception providing that
    in the case of persons described only in subsec. (a)(1) the
    information required shall be limited to the names and addresses of
    persons described in subsec. (a)(2).
      Subsec. (c). Pub. L. 87-834 substituted provisions requiring, for
    purposes of subsec. (a), stock owned directly or indirectly by a
    person (including, in the case of an individual, stock owned by
    members of his family) to be taken into account for provisions
    which defined ''United States shareholder''.
      Subsecs. (d) to (f). Pub. L. 87-834 added subsecs. (d) and (e)
    and redesignated former subsec. (d) as (f) and inserted a reference
    to section 6679 of this title.
      1960 - Pub. L. 86-780 substituted ''Returns as to creation or
    organization, or reorganization, of foreign corporations'' for
    ''Returns as to formation or reorganization of foreign
    corporations'' in section catchline.
      Subsec. (a). Pub. L. 86-780 substituted requirement that returns
    relating to the creation, organization, or reorganization of
    foreign corporations be made by every citizen or resident of the
    United States who was an officer or director of the corporation at
    any time within 60 days after its creation, organization, or
    reorganization, and by every United States shareholder of the
    corporation owning at least 5 percent of its outstanding stock at
    any time within such 60 days for requirement that every attorney,
    accountant, fiduciary, bank, trust company, financial institution,
    or other person, who advises as to the formation or reorganization
    of a foreign corporation, file a return in accordance with
    regulations prescribed by the Secretary of the Treasury or his
    delegate.
      Subsec. (b). Pub. L. 86-780 reenacted the substance of subsec.
    (b), struck out ''to the full extent of the information within the
    possession or knowledge or under the control of the person required
    to make the return'' before ''such information''.
      Subsec. (c). Pub. L. 86-780 inserted the provisions defining
    United States shareholder and members of family and struck out
    provision relating to the making of a return by an attorney-at-law
    with respect to privileged communications.
                      EFFECTIVE DATE OF 1997 AMENDMENT
      Section 1146(b) of Pub. L. 105-34 provided that: ''The amendment
    made by this section (amending this section) shall take effect on
    January 1, 1998.''
                      EFFECTIVE DATE OF 1988 AMENDMENT
      Amendment by Pub. L. 100-647 effective, except as otherwise
    provided, as if included in the provision of the Tax Reform Act of
    1986, Pub. L. 99-514, to which such amendment relates, see section
    1019(a) of Pub. L. 100-647, set out as a note under section 1 of
    this title.
                      EFFECTIVE DATE OF 1982 AMENDMENT
      Section 341(c) of Pub. L. 97-248 provided that: ''The amendments
    made by this section (amending this section and section 6048 of
    this title) shall apply to returns filed after the date of the
    enactment of this Act (Sept. 3, 1982).''
                      EFFECTIVE DATE OF 1962 AMENDMENT
      Section 20(e)(2) of Pub. L. 87-834 provided that: ''The
    amendments made by subsection (b) (amending this section) shall
    take effect on January 1, 1963.''
                      EFFECTIVE DATE OF 1960 AMENDMENT
      Section 8 of Pub. L. 86-780 provided that: ''The amendments made
    by section 7 (amending this section) shall apply only with respect
    to foreign corporations created or organized, or reorganized, after
    the date of the enactment of this Act (Sept. 14, 1960).''
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 964, 6501, 6679 of this
    title.