I
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 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—
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(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 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 chari-
table beneficiary shall be notified of such qualifica-
tion 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;
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‘‘(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 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) a copy of the pertinent parts of the
Federal estate tax return, and
‘‘(B) such other information as may be re-
quired 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 bene-
ficiary 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.—
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‘‘(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-
quent trust taxable year unless such beneficiary agrees to
reimburse such fiduciary for the reasonable costs of fur-
nishing such information.
‘‘(2) PENALTIES.—
‘‘For provisions relating to the failure to furnish
on a timely or complete basis the information re-
quired under paragraph (1), see section 6652(c).’’
(b) PENALTIES.—
(1) Paragraph (2) of section 6652(c) is amend-
ed to read as follows:
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‘‘(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 organiza-
tions),
‘‘(ii) a failure to furnish any notice re-
quired under section 6034A(c) (relating to
annual notice to charitable remainder ben-
eficiary), 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 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-