I.R.C. § 6039F(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.
I.R.C. § 6039F(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).
I.R.C. § 6039F(c) Penalty For Failure To File Information
I.R.C. § 6039F(c)(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)--
I.R.C. § 6039F(c)(1)(A) —
the tax consequences of the receipt of such gift shall be determined by the Secretary, and
I.R.C. § 6039F(c)(1)(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).
I.R.C. § 6039F(c)(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.
I.R.C. § 6039F(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 (A)(ii) thereof shall be applied by substituting “1995” for “2016”.
I.R.C. § 6039F(e) Regulations —
The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section.
(Added Pub. L. 104-188, title I, Sec. 1905(a), Aug. 20, 1996, 110 Stat. 1755; Amended Pub. L. 105-34, title XVI, Sec. 1602(h)(1), Aug. 5, 1997, 111 Stat 788; Pub. L. 115-97, title I, Sec. 11002(d)(13), Dec. 22, 2017, 131 Stat. 2054.)
2017 - Subsec. (d). Pub. L. 115-97, Sec. 11002(d)(13), amended subsec. (d) by substituting “subparagraph (A)(ii) thereof shall be applied by substituting ‘1995' or ‘2016'” for “subparagraph (B) thereof shall be applied by substituting ‘1995’ for ‘1992'”.
EFFECTIVE DATE OF 2017 AMENDMENT
Amendments by Section 11002(d)(13) of Pub. L 115-97 effective for taxable years beginning after December 31, 2017.
Section 1905(c) of Pub. L. 104-188 provided that: “The amendments made by 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.”
A prior Section 6039F, added by Pub. L. 104-191, sec. 512, Aug. 21, 1996, was redesignated as Section 6039G.