What 26 USC § 6038A - Information Reporting for 25-Percent Foreign-Owned Corporations requires
26 USC § 6038A (enacted by Pub. L. 101-239 and substantially expanded by subsequent statutes including the Tax Cuts and Jobs Act of 2017 amendments related to BEAT) requires domestic corporations that are 25-percent foreign-owned to file Form 5472 and maintain records about related-party transactions: subsection (a) imposes reporting requirements including name, principal place of business, nature of business, and country/countries of organization or residence of each related party; the relationship between the reporting corporation and each related party; and transactions between the reporting corporation and each foreign person which is a related party; the section also requires reporting of base erosion payments under section 59A for BEAT purposes; subsection (b) requires record maintenance in the location, in the manner, and to the extent prescribed in regulations; subsection (c) defines reporting corporation as 25-percent foreign-owned during any taxable year if 25 percent or more of the total voting power or value of the corporation's stock is owned at any time during the taxable year by one foreign person, directly or constructively; subsection (d) provides penalties for failure to furnish information or maintain records: initial $25,000 per taxable year and additional $25,000 per 30-day period of continued noncompliance after 90 days following IRS notice; reasonable cause exception delays penalty accrual when justified.
Pillar: Tax & Transfer Pricing · Authority: United States Congress (Internal Revenue Code; § 6038A added by Pub. L. 101-239, 19 December 1989; substantially amended by Tax Cuts and Jobs Act of 2017, Pub. L. 115-97) · Version: 1.0.0 · Last updated:
Primary source: https://www.law.cornell.edu/uscode/text/26/6038A
SHA-256 integrity: 6e72f457000ccc5d10d0d6f130431d04b300dff9111227fc1798176060013bf1
Primary Citations — 5 traced to source
- 26 USC § 6038A(a) GENERAL RULE: 'If, at any time during a taxable year, a corporation (hereinafter in this section referred to as the reporting corporation) - (1) is a domestic corporation, and (2) is 25-percent foreign-owned, such corporation shall furnish, at such time and in such manner as the Secretary shall by regulations prescribe, the information described in subsection (b) and shall maintain (in the location, in the manner, and to the extent prescribed in regulations) such records as may be appropriate to determine the correct treatment of transactions with related parties as the Secretary shall by regulations prescribe (or shall cause another person to so maintain such records).'
- 26 USC § 6038A(b)(1) REQUIRED INFORMATION: 'The information required to be furnished under subsection (a) shall be such information as the Secretary may prescribe by regulations relating to - (A) the name, principal place of business, nature of business, and country or countries in which organized or resident, of each person which - (i) is a related party to the reporting corporation, and (ii) had any transaction with the reporting corporation during its taxable year, (B) the manner in which the reporting corporation is related to each person referred to in subparagraph (A), and (C) transactions between the reporting corporation and each foreign person which is a related party to the reporting corporation.'
+ 3 more citations (full bibliography, deterministic workflow, actionable schema and crosswalks) included in the vault unlock — $0.01 via Skyfire / L402 / Direct Base USDC.
Access
- Discovery (free): /api/v1/nodes/us-26-usc-6038a-foreign-owned-corporations-reporting.json — 6-field metadata
- Vault (full node): /api/v1/vault/nodes/us-26-usc-6038a-foreign-owned-corporations-reporting.json — full 13-key payload, $0.01 USDC (L402/Skyfire/Direct Base)
- Canonical URL: https://bidda.com/intelligence/us-26-usc-6038a-foreign-owned-corporations-reporting
- Back to registry: Browse all 10,090 compliance nodes