[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 771 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 771

 To amend the Internal Revenue Code of 1986 to ensure that charitable 
    beneficiaries of charitable remainder trusts are aware of their 
                       interests in such trusts.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 3, 1993

 Mr. Gibbons introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to ensure that charitable 
    beneficiaries of charitable remainder trusts are aware of their 
                       interests in such trusts.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. REQUIRED NOTICES TO CHARITABLE BENEFICIARIES OF CHARITABLE 
              REMAINDER TRUSTS.

    (a) General Rule.--
            (1) Section 6036 is amended--
                    (A) by striking ``Every receiver'' and inserting 
                ``(a) General Rule.--Every receiver'', and
                    (B) by adding at the end thereof the following new 
                subsection:
    ``(b) Special Rule for Transfers of Remainder Interests Described 
in Section 2055(e)(2)(A).--In the case of an estate claiming a 
charitable contribution deduction for the value of a transfer of a 
remainder interest in property described in section 2055(e)(2)(A), the 
executor or other fiduciary shall provide written notices to each 
organization described in section 2055(a) which has such an interest in 
the time and manner set forth in the following paragraphs:
            ``(1) Qualification notice.--Within 60 days of the date of 
        the executor's qualification, the charitable beneficiary shall 
        be notified of such qualification and such notice shall 
        include--
                    ``(A) the name, address, and date of death of the 
                decedent;
                    ``(B) the name, address, and identification number 
                of each fiduciary of the estate;
                    ``(C) the name and address of each charitable 
                beneficiary;
                    ``(D) a copy of the governing instrument relating 
                to the transfer in trust; and
                    ``(E) a description of the interest to which such 
                charitable organization may be entitled, and any 
                preliminary statements (if required by law) on the 
                financial condition of the estate.
            ``(2) Tax return filing notice.--On or before the due date 
        for the filing of a Federal estate tax return on which a 
        charitable deduction is claimed, the charitable beneficiary 
        shall be notified of such filing and such notice shall 
        include--
                    ``(A) a copy of the pertinent parts of the Federal 
                estate tax return, and
                    ``(B) such other information as may be required by 
                form or regulation.
If any notice is provided to a charitable beneficiary under paragraph 
(1), no notice shall be required to be provided to such beneficiary 
under paragraph (2) unless such beneficiary agrees to reimburse the 
executor or other fiduciary for the reasonable costs of providing such 
notice.''
            (2) Section 6034A is amended by adding at the end thereof 
        the following new subsection:
    ``(c) Annual Notice to Charitable Remainder Beneficiary.--
            ``(1) In general.--The fiduciary of any charitable 
        remainder trust required to file any return under chapter 61 
        for any taxable year shall on or before the date on which such 
        return is required to be filed, furnish each charitable 
        beneficiary--
                    ``(A) a copy of such return (including all 
                schedules), and
                    ``(B) such other information (or deletions) for 
                purposes of carrying out the internal revenue laws as 
                the Secretary may require.
If a fiduciary furnishes the information required under the preceding 
sentence to any charitable beneficiary with respect to any trust 
taxable year, such fiduciary shall not be required to furnish 
information under the preceding sentence to such beneficiary with 
respect to any subsequent trust taxable year unless such beneficiary 
agrees to reimburse such fiduciary for the reasonable costs of 
furnishing such information.
            ``(2) Penalties.--

                                ``For provisions relating to the 
failure to furnish on a timely or complete basis the information 
required under paragraph (1), see section 6652(c).''
    (b) Penalties.--
            (1) Paragraph (2) of section 6652(c) is amended to read as 
        follows:
            ``(2) Returns under section 6034 or 6043(b) and notices 
        under section 6034a(c) or 6036(b).--
                    ``(A) Penalty on organization, trust, or 
                fiduciary.--In the case of--
                            ``(i) a failure to file a return required 
                        under section 6034 (relating to returns by 
                        certain trusts) or section 6043(b) relating to 
                        terminations, etc., of exempt organizations),
                            ``(ii) a failure to furnish any notice 
                        required under section 6034A(c) (relating to 
                        annual notice to charitable remainder 
                        beneficiary), or
                            ``(iii) a failure to furnish any notice 
                        required under section 6036(b) (relating to a 
                        qualification notice or tax return filing 
                        notice),
                on the date and in the manner prescribed therefore 
                (determined with regard to any extension of time for 
                filing), there shall be paid by the organization, 
                trust, or fiduciary failing to file such return (or 
                furnish such notice) $10 for each day during which such 
                failure continues, but the total amount imposed under 
                this subparagraph on any organization, trust, or 
                fiduciary for failure to file any 1 return or furnish 
                any 1 notice) shall not exceed $5,000.
                    ``(B) Managers.--The Secretary may make written 
                demand on an organization, trust, or fiduciary failing 
                to file any return (or furnish any notice) under 
                subparagraph (A) specifying therein a reasonable future 
                date by which such filing (or furnishing) shall be made 
                for purposes of this subparagraph. If such filing (or 
                furnishing) is not made on or before such date, there 
                shall be paid by the person responsible for failing to 
                so file (or furnish) $10 for each day after the 
                expiration of the time specified in the written demand 
                during which such failure continues, but the total 
                amount imposed under this subparagraph on all persons 
                for failure to file any 1 return or furnish any 1 
                notice) shall not exceed $5,000.''
    (c) Effective Date.--
    ``(c) Effective Date.--The amendment made to section 6034A shall 
take effect with respect to returns for taxable years beginning after 
December 31, 1992. The amendment made to section 6036 shall take effect 
for decedents dying after January 6, 1993; Provided, however, That the 
fiduciary or executor of any estate of a decedent dying after December 
31, 1989, which claimed or is claiming a charitable deduction for the 
value of transfer of a remainder interest in property described in 
section 2055(e)(2)(A) shall provide a qualification notice to the 
charitable remainder beneficiary not later than December 31, 1994.''

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