such portion) for any taxable year, the amount of taxes paid or deemed paid by each foreign corporation and foreign subsidiary with respect to which the domestic corporation is required to furnish information during the annual accounting period or periods with respect to which such information is required under such paragraph (2) of subsection (a) shall be reduced by 10 percent. If such failure continues 90 days or more after notice by the Secretary or his delegate to the domestic corporation, then the amount of the reduction under this subsection shall be 10 percent plus an additional 5 percent for each 3-month period, or fraction thereof, during which such failure to furnish information continues after the expiration of such 90-day period. No taxes shall be reduced under this subsection more than once for the same failure. For purposes of this subsection, the time prescribed under paragraph (2) of subsection (a) to furnish information (and the beginning of the 90-day period after notice by the Secretary) shall be treated as being not earlier than the last day on which (as shown to the satisfaction of the Secretary or his delegate) reasonable cause existed for failure to furnish such information. (c) CONTROL, ETC.-For purposes of this section (1) If at any time during its taxable year a domestic corporation owns more than 50 percent of the voting stock of a foreign corporation, it shall be deemed to be in control of such foreign corporation. (2) If at any time during its annual accounting period a foreign corporation owns more than 50 percent of the voting stock of another foreign corporation, such other corporation shall be considered a foreign subsidiary of the corporation owning such stock. (d) ANNUAL ACCOUNTING PERIOD.-For purposes of this section, the annual accounting period of a foreign corporation or of a foreign subsidiary is the annual period on the basis of which such foreign corporation or such foreign subsidiary regularly computes its income in keeping its books. (e) CROSS REFERENCE. For provisions relating to penalties for violations of this section, see section 7203. SEC. 6039. CROSS REFERENCES. (1) For the notice required of persons acting in a fiduciary capacity for taxpayers or for transferees, see sections 6212, 6901 (g), and 6903. (2) For application by executor for determination of tax and discharge from personal liability therefor, see section 2204. (3) For the notice required of taxpayers for redetermination of taxes claimed as credits, see sections 905 (c) and 2016. (4) For exemption certificates required to be furnished to employers by employees, see section 3402 (f) (2), (3), (4), and (5). (5) For receipts, constituting information returns, required to be furnished to employees, see section 6051. (6) For the requirement to print the price of an admission on a ticket, see section 4234. (7) For information required with respect to the redemption of stamps, see section 6805. (8) For the statement required to be filed by a corporation expecting a net operating loss carryback or unused excess profits credit carryback, see section 6164. (9) For the application, which a taxpayer may file for a tentative carry back adjustment of income taxes, see section 6411. Subpart B-Information Concerning Transactions With Other Persons Sec. 6041. Information at source. Sec. 6042. Returns regarding corporate dividends, earnings, and profits. Sec. 6043. Return regarding corporate dissolution or liquidation Sec. 6045. Returns of brokers. Sec. 6046. Returns as to creation or organization, or reorganization, of foreign corporations. SEC. 6041. INFORMATION AT SOURCE. (a) PAYMENTS OF $600 OR MORE.-All persons engaged in a trade or business and making payment in the course of such trade or business to another person, of rent, salaries, wages, premiums, annuities, compensations, remunerations, emoluments, or other fixed or determinable gains, profits, and income (other than payments described in section 6042 (1) or section 6045), of $600 or more in any taxable year, or, in the case of such payments made by the United States, the officers or employees of the United States having information as to such payments and required to make returns in regard thereto by the regulations hereinafter provided for, shall render a true and accurate return to the Secretary or his delegate, under such regulations and in such form and manner and to such extent as may be prescribed by the Secretary or his delegate, setting forth the amount of such gains, profits, and income, and the name and address of the recipient of such payment. (b) COLLECTION OF FOREIGN ITEMS.-In the case of collections of items (not payable in the United States) of interest upon the bonds of foreign countries and interest upon the bonds of and dividends from foreign corporations by any person undertaking as a matter of business or for profit the collection of foreign payments of such interest or dividends by means of coupons, checks, or bills of exchange, such person shall make a return according to the forms or regulations prescribed by the Secretary or his delegate, setting forth the amount paid and the name and address of the recipient of each such payment. (c) PAYMENTS OF INTEREST BY CORPORATIONS.-Every corporation making payments of interest, regardless of amounts, shall, when required by regulations of the Secretary or his delegate, make a return according to the forms or regulations prescribed by the Secretary or his delegate, setting forth the amount paid and the name and address of the recipient of each such payment. (d) RECIPIENT TO FURNISH NAME AND ADDRESS.-When necessary to make effective the provisions of this section, the name and address of the recipient of income shall be furnished upon demand of the person paying the income. SEC. 6042. RETURNS REGARDING CORPORATE DIVIDENDS. EARNINGS, AND PROFITS. Every corporation shall, when required by the Secretary or his delegate (1) Make a return of its payments of dividends, stating the name and address of, the number of shares owned by, and the amount of dividends paid to, each shareholder; (2) Furnish to the Secretary or his delegate a statement of such facts as will enable him to determine the portion of the earnings or profits of the corporation (including gains, profits, and income not taxed) accumulated during such periods as the Secretary or his delegate may specify, which have been distributed or ordered to be distributed, respectively, to its shareholders during such taxable years as the Secretary or his delegate may specify; and (3) Furnish to the Secretary or his delegate a statement of its accumulated earnings and profits and the names and addresses of the individuals or shareholders who would be entitled to such accumulated earnings and profits if divided or distributed, and of the amounts that would be payable to each. SEC. 6043. RETURN REGARDING CORPORATE DISSOLUTION LIQUIDATION. Every corporation shall OR (1) Within 30 days after the adoption by the corporation of a resolution or plan for the dissolution of the corporation or for the liquidation of the whole or any part of its capital stock, make a return setting forth the terms of such resolution or plan and such other information as the Secretary or his delegate shall by forms or regulations prescribe; and (2) When required by the Secretary or his delegate, make a return regarding its distributions in liquidation, stating the name and address of, the number and class of shares owned by, and the amount paid to, each shareholder, or, if the distribution is in property other than money, the fair market value (as of the date the distribution is made) of the property distributed to each shareholder. SEC. 6044. RETURNS REGARDING PATRONAGE DIVIDENDS. (a) PAYMENTS OF $100 OR MORE.-Any corporation allocating amounts as patronage dividends, rebates, or refunds (whether in cash, merchandise, capital stock, revolving fund certificates, retain certificates, certificates of indebtedness, letters of advice, or in some other manner that discloses to each patron the amount of such dividend, refund, or rebate) shall make a return showing (1) The name and address of each patron to whom it has made such allocations amounting to $100 or more during the calendar year; and (2) The amount of such allocations to each patron. (b) PAYMENTS REGARDLESS OF AMOUNT.-Îf required by the Secretary or his delegate, any such corporation shall make a return of all patronage dividends, rebates, or refunds made during the calendar year to its patrons. (c) EXCEPTIONS.-This section shall not apply in the case of any corporation (including any cooperative or nonprofit corporation engaged in rural electrification) described in section 501 (c) (12) or (15) which is exempt from tax under section 501 (a), or in the case of any corporation subject to a tax imposed by subchapter L of chapter 1. SEC. 6045. RETURNS OF BROKERS. Every person doing business as a broker shall, when required by the Secretary or his delegate, make a return, in accordance with such regulations as the Secretary or his delegate may prescribe, showing the names of customers for whom such person has transacted any business, with such details regarding the profits and losses and such other information as the Secretary or his delegate may by forms or regulations require with respect to each customer as will enable the Secretary or his delegate to determine the amount of such profits or losses. SEC. 6046. RETURNS AS TO CREATION OR ORGANIZATION, OR REORGANIZATION, OF FOREIGN CORPORATIONS. (a) GENERAL RULE.-On or before the 90th day after the creation or organization, or reorganization, of any foreign corporation (1) Each United States citizen or resident who was an officer or director of the corporation at any time within 60 days after the creation or organization, or reorganization thereof, and (2) Each United States shareholder of the corporation by or for whom, at any time within 60 days after the creation or organization or reorganization of the corporation, 5 percent or more in value of the stock of the corporation then outstanding was owned directly or indirectly (including, in the case of an individual, stock owned by members of his family), shall make a return in compliance with the provisions of subsection (b). (b) FORM AND CONTENTS OF RETURNS. The returns required by subsection (a) shall be in such form and shall set forth, in respect of the foreign corporation, such information as the Secretary or his delegate prescribes by forms or regulations as necessary for carrying out the provisions of the income tax laws. (c) MEANING OF TERMS.-For the purpose of this section (1) UNITED STATES SHAREHOLDER. The term "United States shareholder" includes a citizen or resident of the United States, a domestic corporation, a domestic partnership or an estate or trust (other than an estate or trust the gross income of which under subtitle A includes only income from sources within the United States). (2) MEMBERS OF FAMILY.-The family of an individual shall be considered as including only his brothers and sisters (whether by the whole or half blood), spouse, ancestors, and lineal descend ants. (d) CROSS REFERENCE. For provisions relating to penalties for violations of this section, see section 7203. Subpart C-Information Regarding Wages Paid Employees Sec. 6051. Receipts for employees. SEC. 6051. RECEIPTS FOR EMPLOYEES. (a) REQUIREMENT.-Every person required to deduct and withhold from an employee a tax under section 3101 or 3402, or who would have been required to deduct and withhold a tax under section 3402 if the employee had claimed no more than one withholding exemption, shall furnish to each such employee in respect of the remuneration paid by such person to such employee during the calendar year, on or before January 31 of the succeeding year, or, if his employment is terminated before the close of such calendar year, on the day on which the last payment of remuneration is made, a written statement showing the following: (1) the name of such person, (2) the name of the employee (and his social security account number if wages as defined in section 3121 (a) have been paid), (3) the total amount of wages as defined in section 3401 (a), (4) the total amount deducted and withheld as tax under section 3402, (5) the total amount of wages as defined in section 3121 (a), and (6) the total amount deducted and withheld as tax under section 3101. In the case of compensation paid for service as a member of a uniformed service, the statement shall show, in lieu of the amount required to be shown by paragraph (5), the total amount of wages as defined in section 3121 (a), computed in accordance with such section and section 3121 (i) (2). (b) SPECIAL RULE AS TO COMPENSATION OF MEMBERS OF ARMED FORCES.-In the case of compensation paid for service as a member of the Armed Forces, the statement required by subsection (a) shall be furnished if any tax was withheld during the calendar year under section 3402, or if any of the compensation paid during such year is includible in gross income under chapter 1, or if during the calendar year any amount was required to be withheld as tax under section 3101. In lieu of the amount required to be shown by paragraph (3) of subsection (a), such statement shall show as wages paid during the calendar year the amount of such compensation paid during the calendar year which is not excluded from gross income under chapter 1 (whether or not such compensation constituted wages as defined in section 3401 (a)). (c) ADDITIONAL REQUIREMENTS.-The statements required to be furnished pursuant to this section in respect of any remuneration shall be furnished at such other times, shall contain such other information, and shall be in such form as the Secretary or his delegate may by regulations prescribe. (d) STATEMENTS TO CONSTITUTE INFORMATION RETURNS.-A duplicate of any statement made pursuant to this section and in accordance with regulations prescribed by the Secretary or his delegate shall, when required by such regulations, be filed with the Secretary or his delegate. PART IV-SIGNING AND VERIFYING OF RETURNS AND OTHER DOCUMENTS Sec. 6061. Signing of returns and other documents. Sec. 6062. Signing of corporation returns. SEC. 6061. SIGNING OF RETURNS AND OTHER DOCUMENTS. Except as otherwise provided by sections 6062 and 6063, any return, statement, or other document required to be made under any provision of the internal revenue laws or regulations shall be signed in accordance with forms or regulations prescribed by the Secretary or his delegate. |