110 STAT. 1906
PUBLIC LAW 104-188—AUG. 20, 1996
is treated as the owner of any portion of such trust or
(ii) who receives (directly or indirectly) any distribution
from the trust.
" (2) TRUSTS NOT HAVING UNITED STATES AGENT.—
"(A) IN GENERAL. — If the rules of this paragraph apply
to any foreign trust, the determination of amounts required
to be taken into account with respect to such trust by
a United States person under the rules of subpart E of
part I of subchapter J of chapter 1 shall be determined
by the Secretary.
"(B) UNITED STATES AGENT REQUIRED. —The rules of
this paragraph shall apply to any foreign trust to which
paragraph (1) applies unless such trust agrees (in such
manner, subject to such conditions, and at such time as
the Secretary shall prescribe) to authorize a United States
person to act as such trust's limited agent solely for purposes of applying sections 7602, 7603, and 7604 with
respect to—
"(i) any request by the Secretary to examine
records or produce testimony related to the proper
treatment of amounts required to be taken into account
under the rules referred to in subparagraph (A), or
"(ii) any summons by the Secretary for such
records or testimony.
The appearance of persons or production of records by
reason of a United States person being such an agent
shall not subject such persons or records to legal process
for any purpose other than determining the correct treatment under this title of the amounts required to be taken
into account under the rules referred to in subparagraph
(A). A foreign trust which appoints an agent described
in this subparagraph shall not be considered to have an
office or a permanent establishment in the United States,
or to be engaged in a trade or business in the United
States, solely because of the activities of such agent pursuant to this subsection.
"(C) OTHER RULES TO APPLY.—Rules similar to the
rules of paragraphs (2) and (4) of section 6038A(e) shall
apply for purposes of this paragraph.
" (c) REPORTING BY UNITED STATES BENEFICIARIES OF FOREIGN
TRUSTS.—
"(1) IN GENERAL. — If any United States person receives
(directly or indirectly) during any taxable year of such person
any distribution from a foreign trust, such person shall make
a return with respect to such trust for such year which includes—
"(A) the name of such trust,
"(B) the aggregate amount of the distributions so
received from such trust during such taxable year, and
"(C) such other information as the Secretary may
prescribe.
"(2) INCLUSION IN INCOME IF RECORDS NOT PROVIDED. —
"(A) IN GENERAL. — If adequate records are not provided
to the Secretary to determine the proper treatment of any
distribution from a foreign trust, such distribution shall
be treated as an accumulation distribution includible in
the gross income of the distributee under chapter 1. To
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