# Prop. Treas. Reg. § 1.6048-1: Scope.

Proposed regulation, not in force. REG-124850-08, 89 FR 39440, published 2024-05-08 <https://www.federalregister.gov/documents/2024/05/08/2024-09434/transactions-with-foreign-trusts-and-information-reporting-on-transactions-with-foreign-trusts-and>. Interprets 26 U.S.C. § 6048.

Par. 9. Sections 1.6048-1 through 1.6048-7 are added to read as follows:

(a) In general. Sections 1.6048-1 through 1.6048-7 provide rules concerning information that must be reported under section 6048 with respect to foreign trusts. This section provides general definitions for purposes of §§ 1.6048-1 through 1.6048-7. Section 1.6048-2 provides rules requiring a responsible party to provide notice of a reportable event that occurs during the taxable year with respect to a foreign trust. Section 1.6048-3 provides rules applicable to a U.S. owner of a foreign trust to ensure that the trust provides certain information about the trust's activities and operations for the year to the Commissioner and to any U.S. person (within the meaning of section 7701(a)(30)) who is treated as an owner of the trust or who receives a distribution from the trust. Section 1.6048-4 provides rules requiring a U.S. person to report the receipt of a distribution from a foreign trust during the U.S. person's taxable year. Section 1.6048-5 provides exceptions to the rules of §§ 1.6048-2 through 1.6048-4. Section 1.6048-6 provides certain special rules, including rules concerning dual resident taxpayers (within the meaning of § 301.7701(b)-7(a)(1) of this chapter) and dual status taxpayers (described in § 1.6012-1(b)(2)(ii)) who compute their U.S. income tax liability as nonresident aliens for part or all of the taxable year. Section 1.6048-7 provides applicability dates. For civil penalties that apply for failure to comply with the requirements of §§ 1.6048-2 through 1.6048-4, see § 1.6677-1. For penalties that apply to understatements of tax that are attributable to transactions involving undisclosed foreign financial assets, including assets with respect to which information was required to be provided under section 6048 but was not provided, see section 6662(b)(7) and (j). For suspension of the statute of limitations when required information has not been provided under section 6048, see section 6501(c)(8).

(b) Definitions. The following definitions apply for purposes of this section and §§ 1.6048-2 through 1.6048-7:

(1) Executor. The term executor means an executor within the meaning of section 2203.

(2) Foreign person. The term foreign person means any person who is not a U.S. person within the meaning of paragraph (b)(4) of this section.

(3) Foreign trust. The term foreign trust means a foreign trust within the meaning of § 301.7701-7.

(4) Grantor trust. The term grantor trust means a trust or any portion of a trust that is treated as owned by any person under subpart E of part I of subchapter J of chapter 1 of the Internal Revenue Code.

(5) Grantor trust rules. The term grantor trust rules means the rules under subpart E of part I of subchapter J of chapter 1 of the Internal Revenue Code.

(6) Nongrantor trust. The term nongrantor trust means a trust or any portion of a trust that is not treated as owned by any person under subpart E of part I of subchapter J of chapter 1 of the Internal Revenue Code.

(7) U.S. person. The term U.S. person means any person who is a U.S. person within the meaning of section 7701(a)(30) but not including certain dual resident taxpayers and dual status taxpayers as described in § 1.6048-6(a).