I
104TH CONGRESS
1ST SESSION
H. R. 32
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
JANUARY 4, 1995
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 Representa-
tives of the United States of America in Congress assembled,
SECTION 1. REQUIRED NOTICES TO CHARITABLE BENE-
FICIARIES 
OF 
CHARITABLE 
REMAINDER
TRUSTS.
(a) GENERAL RULE.—
(1) Section 6036 is amended—
HR 32 IH
(A) by striking ‘‘Every receiver’’ and in-
serting ‘‘(a) GENERAL RULE.—Every receiver’’,
and
(B) by adding at the end thereof the fol-
lowing 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 inter-
est in property described in section 2055(e)(2)(A), the ex-
ecutor or other fiduciary shall provide a written notice to
each organization described in section 2055(a) which has
such an interest in the time and manner set forth in the
following paragraph:
‘‘(1) TAX RETURN FILING NOTICE.—On or be-
fore 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) 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 chari-
table beneficiary;
HR 32 IH
‘‘(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) 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 chari-
table 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 reve-
nue laws as the Secretary may require.
If a fiduciary furnishes the information required under the
preceding sentence to any charitable beneficiary with re-
spect 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 subse-
HR 32 IH
on the date and in the manner prescribed there-
fore (determined with regard to any extension
of time for filing), there shall be paid by the or-
ganization, 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 sub-
paragraph on any organization, trust, or fidu-
ciary 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 furnish-
ing) is not made on or before such date, there
shall be paid by the person responsible for fail-
ing to so file (or furnish) $10 for each day after
the expiration of the time specified in the writ-
ten demand during which such failure contin-
ues, but the total amount imposed under this
subparagraph on all persons for failure to file
HR 32 IH
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, 1994. The
amendment made to section 6036 shall take effect for de-
cedents dying after January 6, 1995; Provided, however,
That the fiduciary or executor of any estate of a decedent
dying after December 31, 1989, which claimed or is claim-
ing 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, 1996.’’
Æ