# Prop. Treas. Reg. § 1.6038-2: Information returns required of United States persons with respect to annual accounting periods of certain foreign corporations.

Proposed regulation, not in force. REG-115646-25, 91 FR 55037, published 2026-08-26 <https://www.federalregister.gov/documents/2026/08/26/2026-17365/pro-rata-share-of-subpart-f-income-tested-income-or-tested-loss>. Interprets 26 U.S.C. § 6038.

Par. 9. Section 1.6038-2 is amended by revising paragraphs (f) and (m) to read as follows:

* * * * *

(f) Contents of return. Returns on Form 5471 (or successor form) must contain information prescribed by Form 5471 (or successor form). Such information may include (but is not limited to) the following:

* * * * *

(8) With respect to the outstanding stock of the foreign corporation—

(i) A description of each class of stock,

(ii) The first day of the foreign corporation's annual accounting period and the number of shares of each class of stock outstanding on the first day of the annual accounting period,

(iii) The date and a description of any issuance, redemption, or any other change to the number of shares of any class of stock during the annual accounting period, including the number of shares issued, redeemed, or otherwise changed,

(iv) The balance of each class of stock outstanding during the annual accounting period immediately following any such issuance, redemption, or other change, and

(v) For each person that directly owns (within the meaning of section 958(a)) stock in the foreign corporation and each United States shareholder (as defined in section 951(b), taking into account section 953(c)) that indirectly owns (as described in section 958(a)(2) and determined by treating a domestic partnership in the same manner as a foreign partnership pursuant to § 1.958-1(d)) stock in the foreign corporation, at any time during the annual accounting period:

(A) A description of each class of stock held by each such person (in the case of direct owners) or indirectly owned by each such person (in the case of United States shareholders) at any  time during the annual accounting period,

(B) The number of shares of each class of stock held on the first day of the annual accounting period by each such person (in the case of direct owners) or indirectly owned on the first day of the annual accounting period by each such person (in the case of United States shareholders),

(C) The date and a description of any acquisition, receipt, redemption, disposition, or any other change to the number of any shares of stock held by each such person (in the case of direct owners) or indirectly owned by each such person (in the case of United States shareholders) at any time during the annual accounting period, including the number of shares acquired, received, redeemed, disposed, or otherwise changed, and

(D) The balance of each class of stock held by each such person (in the case of direct owners) or indirectly owned by each such person (in the case of United States shareholders) during the annual accounting period immediately following any such acquisition, receipt, redemption, disposition, or other change.

* * * * *

(m) Applicability dates. This section applies to taxable years of foreign corporations beginning after December 31, 2025. For rules applicable to taxable years of foreign corporations beginning on or before such date, see 26 CFR 1.6038-2 as contained in 26 CFR part 1 edition revised as of April 1, 2026.