Sec.
6039F. Notice of large
gifts received from foreign
persons
26 U.S.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.
(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).
(c)
Penalty for failure
to file information.
--
(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) --
(A)
the tax consequences
of the receipt of
such gift shall be
determined by the
Secretary, and
(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).
(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.
(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 (B)
thereof shall be
applied by substituting "1995" for "1992".
(e)
Regulations. --
The
Secretary shall prescribe
such regulations
as may be necessary
or appropriate to
carry out the purposes
of this section.
