Title 26 — Internal Revenue CodeRelease 119-73not60
§6048 Information with Respect to Certain Foreign Trusts
Title 26 › Subtitle 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 › § 6048
Summary
The responsible party must give the Secretary written notice within 90 days (or later if the Secretary allows) after a reportable event. The notice must say how much money or property was moved to the foreign trust and identify the trust, each trustee, and each beneficiary or class of beneficiaries. "Reportable event" means the creation of a foreign trust, a transfer to a foreign trust (including by death), or a death when the decedent was treated as owner of part of a foreign trust or the trust was included in the estate. Transfers for at least the fair market value are not reportable; non-cash payments are valued at fair market value and certain trusts (those described in sections 402(b), 404(a)(4), 404A, or treated as 501(c)(3)) are excluded. "Responsible party" means the grantor for a new inter vivos trust, the transferor for non-death transfers, and the executor for deaths. A U.S. person who is treated as the owner of any part of a foreign trust for a taxable year must give the Secretary information about the trust and make sure the trust files a full return with an accounting, names a U.S. agent, and gives required information to U.S. owners or recipients. Any U.S. person who gets a distribution from a foreign trust must file a return listing the trust, the total distributions received, and other required information. If records are not provided, the distribution will be treated as an accumulation distribution included in the recipient’s gross income, and for certain penalty rules the number of years used will be half the trust’s age. The Secretary sets timing and form of notices, can treat some U.S. trusts as foreign if they have substantial activity or property abroad, and may suspend or change rules if the United States has no significant tax interest. Rules similar to other specified sections apply where the law says so.
Full Legal Text
Title 26, §6048
Internal Revenue Code — Source: USLM XML via OLRC
(a)(1)On or before the 90th day (or such later day as the Secretary may prescribe) after any reportable event, the responsible party shall provide written notice of such event to the Secretary in accordance with paragraph (2).
(2)The notice required by paragraph (1) shall contain such information as the Secretary may prescribe, including—
(A)the amount of money or other property (if any) transferred to the trust in connection with the reportable event, and
(B)the identity of the trust and of each trustee and beneficiary (or class of beneficiaries) of the trust.
(3)For purposes of this subsection—
(A)The term “reportable event” means—
(i)the creation of any foreign trust by a United States person,
(ii)the transfer of any money or property (directly or indirectly) to a foreign trust by a United States person, including a transfer by reason of death, and
(iii)the death of a citizen or resident of the United States if—
(I)the decedent was treated as the owner of any portion of a foreign trust under the rules of subpart E of part I of subchapter J of chapter 1, or
(II)any portion of a foreign trust was included in the gross estate of the decedent.
(B)(i)Subparagraph (A)(ii) shall not apply to any transfer of property to a trust in exchange for consideration of at least the fair market value of the transferred property. For purposes of the preceding sentence, consideration other than cash shall be taken into account at its fair market value and the rules of section 679(a)(3) shall apply.
(ii)Subparagraph (A) shall not apply with respect to a trust which is—
(I)described in section 402(b), 404(a)(4), or 404A, or
(II)determined by the Secretary to be described in section 501(c)(3).
(4)For purposes of this subsection, the term “responsible party” means—
(A)the grantor in the case of the creation of an inter vivos trust,
(B)the transferor in the case of a reportable event described in paragraph (3)(A)(ii) other than a transfer by reason of death, and
(C)the executor of the decedent’s estate in any other case.
(b)(1)If, at any time during any taxable year of a United States person, such person is treated as the owner of any portion of a foreign trust under the rules of subpart E of part I of subchapter J of chapter 1, such person shall submit such information as the Secretary may prescribe with respect to such trust for such year and shall be responsible to ensure that—
(A)such trust makes a return for such year which sets forth a full and complete accounting of all trust activities and operations for the year, the name of the United States agent for such trust, and such other information as the Secretary may prescribe, and
(B)such trust furnishes such information as the Secretary may prescribe to each United States person (i) who is treated as the owner of any portion of such trust or (ii) who receives (directly or indirectly) any distribution from the trust.
(2)(A)If the rules of this paragraph apply to any foreign trust, the determination of amounts required to be taken into account with respect to such trust by a United States person under the rules of subpart E of part I of subchapter J of chapter 1 shall be determined by the Secretary.
(B)The rules of this paragraph shall apply to any foreign trust to which paragraph (1) applies unless such trust agrees (in such manner, subject to such conditions, and at such time as the Secretary shall prescribe) to authorize a United States person to act as such trust’s limited agent solely for purposes of applying section 7602, 7603, and 7604 with respect to—
(i)any request by the Secretary to examine records or produce testimony related to the proper treatment of amounts required to be taken into account under the rules referred to in subparagraph (A), or
(ii)any summons by the Secretary for such records or testimony.
(C)Rules similar to the rules of paragraphs (2) and (4) of section 6038A(e) shall apply for purposes of this paragraph.
(c)(1)If any United States person receives (directly or indirectly) during any taxable year of such person any distribution from a foreign trust, such person shall make a return with respect to such trust for such year which includes—
(A)the name of such trust,
(B)the aggregate amount of the distributions so received from such trust during such taxable year, and
(C)such other information as the Secretary may prescribe.
(2)(A)If adequate records are not provided to the Secretary to determine the proper treatment of any distribution from a foreign trust, such distribution shall be treated as an accumulation distribution includible in the gross income of the distributee under chapter 1. To the extent provided in regulations, the preceding sentence shall not apply if the foreign trust elects to be subject to rules similar to the rules of subsection (b)(2)(B).
(B)For purposes of applying section 668 in a case to which subparagraph (A) applies, the applicable number of years for purposes of section 668(a) shall be ½ of the number of years the trust has been in existence.
(d)(1)For purposes of this section, in determining whether a United States person makes a transfer to, or receives a distribution from, a foreign trust, the fact that a portion of such trust is treated as owned by another person under the rules of subpart E of part I of subchapter J of chapter 1 shall be disregarded.
(2)To the extent provided in regulations, a trust which is a United States person shall be treated as a foreign trust for purposes of this section and section 6677 if such trust has substantial activities, or holds substantial property, outside the United States.
(3)Any notice or return required under this section shall be made at such time and in such manner as the Secretary shall prescribe.
(4)The Secretary is authorized to suspend or modify any requirement of this section if the Secretary determines that the United States has no significant tax interest in obtaining the required information.
(5)Rules similar to the rules of section 6034A(c) shall apply to items reported by a trust under subsection (b)(1)(B) and to United States persons referred to in such subsection.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
2010—Subsec. (b)(1). Pub. L. 111–147 inserted “shall submit such information as the Secretary may prescribe with respect to such trust for such year and” before “shall be responsible to ensure” in introductory provisions. 1997—Subsec. (b). Pub. L. 105–34, § 1601(i)(1), substituted “owner” for “grantor” in heading. Subsec. (d)(5). Pub. L. 105–34, § 1027(b), added par. (5). 1996—Pub. L. 104–188 amended section generally, substituting provisions calling for improved information reporting on foreign trusts for provisions calling for the filing of returns as to foreign trusts, prescribing the form and contents of such returns, and requiring annual returns for foreign trusts with one or more United States beneficiaries. 1982—Subsec. (a). Pub. L. 97–248 inserted “(or on or before such later day as the Secretary may by
Regulations
prescribe)” after “the 90th day”. 1976—Pub. L. 94–455, § 1013(e)(4), struck out “creation of or transfer to” after “Returns as to” in section catchline. Subsec. (b). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”. Subsecs. (c), (d). Pub. L. 94–455, § 1013(d)(1), (e)(3), added subsec. (c), redesignated former subsec. (c) as (d), and in subsec. (d) struck out cross reference to section 643(d) for definition of “foreign trust created by a United States person”.
Statutory Notes and Related Subsidiaries
Effective Date
of 2010 Amendment Pub. L. 111–147, title V, § 534(b), Mar. 18, 2010, 124 Stat. 115, provided that: “The amendment made by this section [amending this section] shall apply to taxable years beginning after the date of the enactment of this Act [Mar. 18, 2010].”
Effective Date
of 1997 AmendmentAmendment by section 1027(b) of Pub. L. 105–34 applicable to returns of beneficiaries and owners filed after Aug. 5, 1997, see section 1027(c) of Pub. L. 105–34, set out as a note under section 6034A of this title. Amendment by section 1601(i)(1) of Pub. L. 105–34 effective as if included in the provisions of the Small Business Job Protection Act of 1996, Pub. L. 104–188, to which it relates, see section 1601(j) of Pub. L. 105–34, set out as a note under section 23 of this title.
Effective Date
of 1996 Amendment Pub. L. 104–188, title I, § 1901(d), Aug. 20, 1996, 110 Stat. 1908, provided that: “(1) Reportable events.—To the extent related to subsection (a) of section 6048 of the Internal Revenue Code of 1986, as amended by this section, the
Amendments
made by this section [amending this section and section 6677 and 6724 of this title] shall apply to reportable events (as defined in such section 6048) occurring after the date of the enactment of this Act [Aug. 20, 1996]. “(2) Grantor trust reporting.—To the extent related to subsection (b) of such section 6048, the
Amendments
made by this section shall apply to taxable years of United States persons beginning after December 31, 1995. “(3) Reporting by united states beneficiaries.—To the extent related to subsection (c) of such section 6048, the
Amendments
made by this section shall apply to distributions received after the date of the enactment of this Act.”
Effective Date
of 1982 AmendmentAmendment by Pub. L. 97–248 applicable to returns filed after Sept. 3, 1982, see section 341(c) of Pub. L. 97–248, set out as a note under section 6046 of this title.
Reference
Citations & Metadata
Citation
26 U.S.C. § 6048
Title 26 — Internal Revenue Code
Last Updated
Apr 5, 2026
Release point: 119-73not60