[Code of Federal Regulations]
[Title 26, Volume 12]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.1494-1]

[Page 237-238]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.1494-1  Returns; payment and collection of tax.

    (a) Returns and payment. Every person making a transfer described in 
section 1491 shall make a return to the district director on the day on 
which the transfer is made and, unless the transfer is nontaxable under 
section 1492, pay the tax due on such transfer. This return, which shall 
contain, or be verified by, a written declaration that it is made under 
the penalties of perjury, shall be made on Form 926 and shall be filed 
with the district director to whom the transferor's return of income is 
required to be made. The return shall set forth in detail the following 
information:
    (1) Name and address of transferor, and place of organization or 
creation, if a corporation, partnership, or trust.
    (2) Name and address of transferee, place of organization or 
creation, and whether the transferee is a foreign corporation, a foreign 
trust, or a foreign partnership. If the transferee is a foreign trust or 
a foreign partnership, the name and address of the fiduciary and each 
beneficiary, in the case of a trust, or of each partner, in the case of 
a partnership, must be shown.
    (3) Description and amount of stock or securities transferred, the 
date of transfer, and a complete statement showing all the facts 
relating to the transfer, accompanied by a copy of the plan under which 
the transfer was made.
    (4) The fair market value of the stock or securities transferred as 
of the date of transfer, and the adjusted basis provided in section 1011 
for determining gain in the hands of the transferor.
    (5) Whether the transfer was made in pursuance of a plan submitted 
to and approved by the Commissioner as not having as one of its 
principal purposes the avoidance of Federal income taxes. If the plan 
has been so approved, a copy of the Commissioner's letter approving the 
plan shall accompany the return.
    (6) Such other information as may be required by the return form.
    (b) Certificate. (1) If the transferee of the stock or securities, 
the transfer of which is reported in the return, is a foreign 
organization meeting the tests of exemption from income tax provided in 
part I (section 501 and following), subchapter F, chapter 1 of the Code, 
and the transferor on that account claims that no liability for tax is 
imposed by section 1491, such transferor must file with Form 926 a 
certificate establishing the exemption of the transferee under such part 
I. This certificate, which shall contain, or be verified by, a written 
declaration that it is made under the penalties of perjury, shall 
contain complete information showing the character of the transferee, 
the purpose for which it was organized, its actual activities, the 
source of its income and the disposition of such income, whether or not 
any of its income is credited to surplus or may inure to the benefit of 
any private shareholder or individual, and in general all facts relating 
to its operations which affect its right to exemption. To such 
certificate shall be attached a copy of the charter or articles

[[Page 238]]

of incorporation, the by-laws of the organization, and the latest 
financial statement showing the assets, liabilities, receipts, and 
disbursements of the organization.
    (2) If the transferee is a foreign organization which has been held 
to be exempt from income tax under such part I (or corresponding 
provisions of prior law), a copy of the Commissioner's letter so holding 
shall be filed with Form 926 in lieu of the above certificate and 
attachments.
    (c) Assessment and collection. The determination, assessment, and 
collection of the tax and the examination of returns and claims filed 
pursuant to chapter 5 of the Code will be made under such procedure as 
may be prescribed from time to time by the Commissioner.

[T.D. 6500, 25 FR 12082, Nov. 26, 1960]