I.R.C. § 6050X(a) Requirement Of Reporting
I.R.C. § 6050X(a)(1) In General —
The appropriate official of any government or any entity described in section 162(f)(5) which is involved in a suit or agreement described in paragraph (2) shall make a
return in such form as determined by the Secretary setting forth—
I.R.C. § 6050X(a)(1)(A) —
the amount required to be paid as a result of the suit or agreement to which paragraph
(1) of section 162(f) applies,
I.R.C. § 6050X(a)(1)(B) —
any amount required to be paid as a result of the suit or agreement which constitutes
restitution or remediation of property, and
I.R.C. § 6050X(a)(1)(C) —
any amount required to be paid as a result of the suit or agreement for the purpose
of coming into compliance with any law which was violated or involved in the investigation
or inquiry.
I.R.C. § 6050X(a)(2) Suit Or Agreement Described
I.R.C. § 6050X(a)(2)(A) In General —
A suit or agreement is described in this paragraph if—
I.R.C. § 6050X(a)(2)(A)(i) —
it is—
I.R.C. § 6050X(a)(2)(A)(i)(I) —
a suit with respect to a violation of any law over which the government or entity
has authority and with respect to which there has been a court order, or
I.R.C. § 6050X(a)(2)(A)(i)(II) —
an agreement which is entered into with respect to a violation of any law over which
the government or entity has authority, or with respect to an investigation or inquiry
by the government or entity into the potential violation of any law over which such
government or entity has authority, and
I.R.C. § 6050X(a)(2)(A)(ii) —
the aggregate amount involved in all court orders and agreements with respect to the
violation, investigation, or inquiry is $600 or more.
I.R.C. § 6050X(a)(2)(B) Adjustment Of Reporting Threshold —
The Secretary shall adjust the $600 amount in subparagraph
(A)(ii) as necessary in order to ensure the efficient administration of the internal
revenue laws.
I.R.C. § 6050X(a)(3) Time Of Filing —
The return required under this subsection shall be filed at the time the agreement
is entered into, as determined by the Secretary.
I.R.C. § 6050X(b) Statements To Be Furnished To Individuals Involved In The Settlement —
Every person required to make a return under subsection
(a) shall furnish to each person who is a party to the suit or agreement a written
statement showing—
I.R.C. § 6050X(b)(1) —
the name of the government or entity, and
I.R.C. § 6050X(b)(2) —
the information supplied to the Secretary under subsection (a)(1).
The written statement required under the preceding sentence shall be furnished to
the person at the same time the government or entity provides the Secretary with the
information required under subsection (a).
I.R.C. § 6050X(c) Appropriate Official Defined —
For purposes of this section, the term “appropriate official” means the officer or
employee having control of the suit, investigation, or inquiry or the person appropriately
designated for purposes of this section.
(Added by Pub. L. 115-97, title I, Sec. 13306(b)(1), Dec. 22, 2017, 131 Stat. 2054.)
BACKGROUND NOTES
EFFECTIVE DATE
Effective for amounts paid or incurred on or after the date of the enactment of this
Act [Enacted: Dec. 22, 2017], except for amounts paid or incurred under any binding
order or agreement entered into before such date. Such exception does not apply to
an order or agreement requiring court approval unless the approval was obtained before
such date.
