[Code of Federal Regulations]
[Title 26, Volume 13]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR]

[Page 272-279]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
Procedure and Administration--Table of Contents
 
Sec.  1.6046-1  Returns as to organization or reorganization of foreign 

corporations and as to acquisitions of their stock, on or after January 
1, 1963.

    (a) Officers or directors--(1) When liability arises on January 1, 
1963. Each U.S. citizen or resident who is on January 1, 1963, an 
officer or director of a foreign corporation shall make a return on Form 
959 showing the name, address, and identifying number of each U.S. 
person who, on January 1, 1963, owns 5 percent or more in value of the 
outstanding stock of such foreign corporation.
    (2) When liability arises after January 1, 1963--(i) Requirement of 
return. Each U.S. citizen or resident who is at any time after January 
1, 1963, an officer or director of a foreign corporation shall make a 
return on Form 959 setting forth the information described in 
subdivision (ii) of this subparagraph with respect to each U.S. person 
who, during the time such citizen or resident is such an officer or 
director:
    (a) Acquires (whether in one or more transactions) outstanding stock 
of such corporation which has, or which when added to any such stock 
then owned by him (excluding any stock owned by him on January 1, 1963, 
if on that date he owned 5 percent or more in value of such stock) has, 
a value equal to 5 percent or more in value of the outstanding stock of 
such foreign corporation, or
    (b) Acquires (whether in one or more transactions) an additional 5 
percent or more in value of the outstanding stock of such foreign 
corporation.
    (ii) Information required to be shown on return. The return required 
under subdivision (i) of this subparagraph shall contain the following 
information:
    (a) Name, address, and identifying number of each shareholder with 
respect to whom the return is filed;
    (b) A statement showing that the shareholder is either described in 
subdivision (i)(a) or (i)(b) of this subparagraph; and
    (c) The date on which the shareholder became a person described in 
subdivision (i)(a) or (i)(b) of this subparagraph.
    (3) Application of rules. The provisions of this paragraph may be 
illustrated by the following examples:

    Example (1). A, a United States citizen, is, on January 1, 1963, a 
director of M, a foreign corporation. X, on January 1, 1963, is a United 
States person owning 5 percent in value of the outstanding stock of M 
Corporation. A must file a return under the provisions of subparagraph 
(1) of this paragraph.
    Example (2). The facts are the same as in Example (1) except that X 
owns only 2 percent in value of the outstanding stock of M Corporation 
on January 1, 1963. On July 1, 1963, X acquires 2 percent in value of 
the outstanding stock of M Corporation and on September 1, 1963, he 
acquires an additional 2 percent in value of such stock. The July 1, 
1963, transaction does not give rise to liability to file a return; 
however, A must file a return as a result of the September 1, 1963, 
transaction because X's holdings now exceed 5 percent.
    Example (3). The facts are the same as in Example (2) and, on 
September 15, 1963, X acquires an additional 4 percent in value of the 
outstanding stock of M Corporation (X's total holdings are now 10 
percent). On November 1, 1963, X acquires an additional 2 percent in 
value of the outstanding stock of M Corporation. The September 15, 1963,

[[Page 273]]

transaction does not give rise to liability to file a return since X has 
not acquired 5 percent in value of the outstanding stock of M 
Corporation since A last became liable to file a return. However, A must 
file a return as a result of the November 1, 1963, transaction because X 
has not acquired an additional 5 percent in value of the outstanding 
stock of M Corporation.
    Example (4). The facts are the same as in examples (2) and (3) and, 
in addition, B, a United States citizen, becomes an officer of M 
Corporation on October 1, 1963. B is not required to file a return 
either as a result of the facts set forth in Example (2) or as a result 
of the September 15, 1963, transaction described in Example (3). 
However, B is required to file a return as a result of the November 1, 
1963, transaction described in Example (3) because X has acquired an 
additional 5 percent in value of the outstanding stock of M Corporation 
while B is an officer or director.

    (b) Returns required of U.S. persons when liability to file arises 
on January 1, 1963. Each U.S. person who, on January 1, 1963, owns 5 
percent or more in value of the outstanding stock of a foreign 
corporation, shall make a return on Form 959 with respect to such 
foreign corporation setting forth the following information:
    (1) The name, address, and identifying number of the shareholder (or 
shareholders) filing the return, and the internal revenue district in 
which such shareholder filed his most recent United States income tax 
return;
    (2) The name, business address, and employer identification number, 
if any, of the foreign corporation, the name of the country under the 
laws of which it is incorporated, and the name of the country in which 
is located its principal place of business;
    (3) The date of organization and, if any, of each reorganization of 
the foreign corporation if such reorganization occurred on or after 
January 1, 1960, while the shareholder owned 5 percent or more in value 
of the outstanding stock of such corporation;
    (4) The name and address of the foreign corporation's statutory or 
resident agent in the country of incorporation;
    (5) The name, address, and identifying number of any branch office 
or agent of the foreign corporation located in the United States;
    (6) If the foreign corporation has filed a United States income tax 
return, or participated in the filing of a consolidated return, for any 
of its last three calendar or fiscal years immediately preceding January 
1, 1963, state each year for which a return was filed (including, in the 
case of a consolidated return, the name of the corporation filing such 
return), the type of form used, the internal revenue office to which it 
was sent, and the amount of tax, if any, paid;
    (7) The name and address of the person (or persons) having custody 
of the books of account and records of the foreign corporation, and the 
location of such books and records if different from such address;
    (8) The names, addresses, and identifying numbers of all United 
States persons who are principal officers (for example, president, vice 
president, secretary, treasurer, and comptroller) or members of the 
board of directors of the foreign corporation as of January 1, 1963;
    (9) A complete description of the principal business activities in 
which the foreign corporation is actually engaged and, if the foreign 
corporation is a member of a group constituting a chain of ownership 
with respect to each unit of which the shareholder owns 5 percent or 
more in value of the outstanding stock, a chart showing the foreign 
corporation's position in the chain of ownership and the percentages of 
ownership;
    (10) The following information prepared in accordance with generally 
accepted accounting principles and in such detail as is customary for 
the corporation's accounting records:
    (i) The corporation's profit and loss statement for the most recent 
complete annual accounting period; and
    (ii) The corporation's balance sheet as of the end of the most 
recent complete annual accounting period;
    (11) A statement showing as of January 1, 1963, the amount and type 
of any indebtedness of the foreign corporation:
    (i) To any United States person owning 5 percent or more in value of 
its stock, or
    (ii) To any other foreign corporation owning 5 percent or more in 
value of the outstanding stock of the foreign corporation with respect 
to which the

[[Page 274]]

return is filed provided that the shareholder filing the return owns 5 
percent or more in value of the outstanding stock of such other foreign 
corporation,

together with the name, address, and identifying number, if any, of each 
such shareholder or entity;
    (12) A statement, as of January 1, 1963, showing the name, address, 
and identifying number, if any, of each person who is, on January 1, 
1963, a subscriber to the stock of the foreign corporation, and the 
number of shares subscribed to by each;
    (13) A statement showing the number of shares of each class of stock 
of the foreign corporation owned by each shareholder filing the return 
and:
    (i) If such stock was acquired after December 31, 1953, the dates of 
acquisition, the amounts paid or value given therefor, the method of 
acquisition, i.e., by original issue, purchase on open market, direct 
purchase, gift, inheritance, etc., and from whom acquired; or
    (ii) If such stock was acquired before Janaury 1, 1954, a statement 
that such stock was acquired before such date, and the value at which 
such stock is carried on the books of such shareholder;
    (14) A statement showing as of January 1, 1963, the name, address, 
and identifying number of each United States person who owns 5 percent 
or more in value of the outstanding stock of the foreign corporation, 
the classes of stock held, the number of shares of each class held, 
including the name, address, and identifying number, if any, of each 
actual owner if such person is different from the shareholder of record 
and a statement of the nature and amount of the interests of each such 
actual owner; and
    (15) The total number of shares of each class of outstanding stock 
of the foreign corporation (or other data indicating the shareholder's 
percentage of ownership).
    (c) Returns required of U.S. persons when liability to file arises 
after January 1, 1963--(1) U.S. persons required to file. A return on 
Form 959, containing the information required by subparagraph (3) of 
this paragraph, shall be made by each U.S. person when at any time after 
January 1, 1963:
    (i) Such person acquires (whether in one or more transactions) 
outstanding stock of such foreign corporation which has, or which when 
added to any such stock then owned by him (excluding any stock owned by 
him on January 1, 1963, if on that date he owned 5 percent or more in 
value of such stock) has, a value equal to 5 percent or more in value of 
the outstanding stock of such foreign corporation, or
    (ii) Such person, having already acquired the interest referred to 
in paragraph (b) of this section or in subdivision (i) of this 
subparagraph--
    (a) Acquires (whether in one or more transactions) an additional 5 
percent or more in value of the outstanding stock of such foreign 
corporation,
    (b) Owns 5 percent or more in value of the outstanding stock of such 
foreign corporation when such foreign corporation is reorganized (as 
defined in paragraph (f)), or
    (c) Disposes of sufficient stock in such foreign corporation to 
reduce his interest to less than 5 percent in value of the outstanding 
stock of such foreign corporation.

The provisions of this subparagraph may be illustrated by the following 
examples:

    Example (1). On January 15, 1963, A, a United States person, 
acquires 5 percent in value of the outstanding stock of M, a foreign 
corporation. A must file a return under the provisions of this 
subparagraph.
    Example (2). On January 1, 1963, B, a United States person, owns 2 
percent in value of the outstanding stock of M, a foreign corporation. B 
is not required to file a return under the provisions of this section 
because he does not own 5 percent or more in value of the outstanding 
stock of M Corporation. On February 1, 1963, B acquires an additional 3 
percent in value of the outstanding stock of M Corporation. B must file 
a return under the provisions of this subparagraph.
    Example (3). On January 1, 1963, C, a United States person, owns 6 
percent in value of the outstanding stock of M, a foreign corporation. C 
must file a return under the provisions of paragraph (b) of this 
section. On February 1, 1963, C acquires an additional 2 percent in 
value of the outstanding stock of M Corporation in a transaction not 
involving a reorganization. C is not required to file a return under the 
provisions of this subparagraph.
    Example (4). The facts are the same as in Example (3) except that, 
in addition, on April 1, 1963, C acquires 2 percent in value of

[[Page 275]]

the outstanding stock of M Corporation in a transaction not involving a 
reorganization. (C's total holdings are now 10 percent.) C is not 
required to file a return under the provisions of this subparagraph 
because he has not acquired 5 percent or more in value of the 
outstanding stock of M Corporation since he last became liable to file a 
return. On May 1, 1963, C acquires 1 percent in value of the outstanding 
stock of M Corporation. C must file a return under the provisions of 
this subparagraph.
    Example (5). On June 1, 1963, D, a United States person, owns 12 
percent in value of the outstanding stock of M, a foreign corporation. 
Also, on June 1, 1963, M Corporation is reorganized and, as a result of 
such reorganization, D owns only 6 percent of the outstanding stock of 
such foreign corporation. D must file a return under the provisions of 
this subparagraph.
    Example (6). The facts are the same as in Example (5) except that, 
in addition, on November 1, 1970, D donates 2 percent of the outstanding 
stock of M Corporation to a charity. Since D has disposed of sufficient 
stock to reduce his interest in M Corporation to less than 5 percent in 
value of the outstanding stock of such corporation, D must file a return 
under the provisions of this subparagraph.

    (2) Shareholders who become U.S. persons. A return on Form 959, 
containing the information required by subparagraph (3) of this 
paragraph, shall be made by each person who at any time after Janaury 1, 
1963, becomes a U.S. person while owning 5 percent or more in value of 
the outstanding stock of such foreign corporation.
    (3) Information required to be shown on return--(i) In general. The 
return on Form 959, required to be filed by persons described in 
subparagraph (1) or (2) of this paragraph, shall set forth the same 
information as is required by the provisions of paragraph (b) of this 
section except that where such provisions require information with 
respect to January 1, 1963, such information shall be furnished with 
respect to the date on which liability arises to file the return 
required under this paragraph.
    (ii) Additional information. In addition to the information required 
under subdivision (i) of this subparagraph, the following information 
shall also be furnished in the return required under this paragraph:
    (a) The date on or after January 1, 1963, if any, on which such 
shareholder (or shareholders) last filed a return under this section 
with respect to the corporation;
    (b) If a return is filed by reason of becoming a United States 
person, the date the shareholder became a United States person;
    (c) If a return is filed by reason of the disposition of stock, the 
date and method of such disposition and the person to whom such 
disposition was made; and
    (d) If a return is filed by reason of the organization or 
reorganization of the foreign corporation on or after January 1, 1963, 
the following information with respect to such organization or 
reorganization:
    (1) A statement showing a detailed list of the classes and kinds of 
assets transferred to the foreign corporation including a description of 
the assets (such as a list of patents, copyrights, stock, securities, 
etc.), the fair market value of each asset transferred (and, if such 
asset is transferred by a United States person, its adjusted basis), the 
date of transfer, the name, address, and identifying number, if any, of 
the owner immediately prior to the transfer, and the consideration paid 
by the foreign corporation for such transfer;
    (2) A statement showing the assets transferred and the notes or 
securities issued by the foreign corporation, the name, address, and 
identifying number, if any, of each person to whom such transfer or 
issue was made, and the consideration paid to the foreign corporation 
for such transfer or issue; and
    (3) An analysis of the changes in the corporation's surplus accounts 
occurring on or after January 1, 1963.
    (iii) Exclusion of information previously furnished. In any case 
where any identical item of information required to be filed under this 
paragraph by a shareholder with respect to a foreign corporation has 
previously been furnished by such shareholder in any return made in 
accordance with the provisions of this section, such shareholder may 
satisfy the requirements of this paragraph by filing Form 959, 
identifying such item of information, the date furnished, and stating 
that it is unchanged.
    (d) Associations, etc. Returns are required to be filed in 
accordance with

[[Page 276]]

the provisions of this section with respect to any foreign association, 
foreign joint-stock company, or foreign insurance company, etc., which 
would be considered to be a corporation under Sec.  301.7701-2 of this 
chapter (Regulations on Procedure and Administration). Persons who would 
qualify by the nature of their functions and ownership in such 
associations, etc., as officers, directors, or shareholders thereof will 
be treated as such for purposes of this section without regard to their 
designations under local law.
    (e) Special provisions--(1) Return jointly made. Any two or more 
persons required under paragraph (a) of this section to make a return 
with respect to one or more shareholders of the same corporation, or 
under paragraph (b) or (c) of this section to make a return with respect 
to the same corporation, may in lieu of making several returns, jointly 
make one return.
    (2) Separate return for each corporation. When returns are required 
with respect to more than one foreign corporation, a separate return 
must be made for each corporation.
    (3) Use of power of attorney by officers or directors--(i) In 
general. Any two or more persons required under paragraph (a) of this 
section to make a return with respect to one or more shareholders of the 
same corporation may, by means of one or more duly executed powers of 
attorney, constitute one of their number as attorney in fact for the 
purpose of making such returns or for the purpose of making a joint 
return under subparagraph (1) of this paragraph.
    (ii) Nature of power of attorney. The power of attorney referred to 
in subdivision (i) of this subparagraph shall be limited to the making 
of returns required under paragraph (a) of this section and shall be 
limited to a single calendar year with respect to which such returns are 
required.
    (iii) Manner of execution of power of attorney. The use of technical 
language in the preparation of the power of attorney referred to in 
subdivision (i) of this subparagraph is not necessary. Such power of 
attorney shall be signed by the individual United States citizen or 
resident required to file a return or returns under paragraph (a) of 
this section. Such power of attorney must be acknowledged before a 
notary public or, in lieu thereof, witnessed by two disinterested 
persons. The notarial seal must be affixed unless such seal is not 
required under the laws of the state or country wherein such power of 
attorney is executed.
    (iv) Manner of execution of return under authority of power of 
attorney. A return made under authority of one or more powers of 
attorney referred to in subdivision (i) of this subparagraph shall be 
signed by the attorney in fact for each principal for which such 
attorney in fact is acting. A copy of such one or more powers of 
attorney shall be kept at a convenient and safe location accessible to 
internal revenue officers, and shall at all times be available for 
inspection by such officers.
    (v) Effect on penalties. The fact that a return is made under 
authority of a power of attorney referred to in subdivision (i) of this 
subparagraph shall not affect the principal's liability for penalties 
provided for failure to file a return required under paragraph (a) of 
this section or for filing a false or fraudulent return.
    (4) Persons excepted from filing returns--(i) Return required of 
officer or director under paragraph (a)(1). Notwithstanding paragraph 
(a)(1) of this section, any U.S. citizen or resident required to make a 
return under such paragraph with respect to shareholders of a foreign 
corporation, need not make such return if, on January 1, 1963, three or 
fewer U.S. persons own 95 percent or more in value of the outstanding 
stock of such foreign corporation and file a return or returns with 
respect to such corporation under paragraph (b) of this section.
    (ii) Return required of officer or director under paragraph (a)(2). 
Notwithstanding paragraph (a)(2) of this section, any U.S. citizen or 
resident required to make a return under such paragraph with respect to 
a person acquiring stock of a foreign corporation in an acquisition 
described in subdivision (i)(a) or (b) of such paragraph need not make 
such return, if:
    (a) As a result of such acquisition of stock of such foreign 
corporation, a

[[Page 277]]

U.S. person files a return as a shareholder under paragraph (c) (1) of 
this section, and
    (b) Immediately after such acquisition of stock, three or fewer U.S. 
persons own 95 percent or more in value of the outstanding stock of such 
foreign corporation.
    (iii) Return required by reason of attribution rules. 
Notwithstanding paragraph (b) or (c) of this section, any person 
required to make a return under such paragraph with respect to a foreign 
corporation need not make such return, if:
    (a) Such person does not directly own an interest in the foreign 
corporation,
    (b) Such person is required to furnish the information solely by 
reason of attribution of stock ownership from a U.S. person under 
paragraph (i) of this section, and
    (c) The person from whom the stock ownership is attributed furnishes 
all of the information required under paragraph (b) or (c) of this 
section of the person to whom such stock ownership is attributed.
    (iv) Return required of officer or director with respect to person 
described in subdivision (iii). Notwithstanding paragraph (a) of this 
section, any U.S citizen or resident required to make a return under 
such paragraph with respect to a person exempted under subdivision (iii) 
of this subparagraph from making a return need not make a return with 
respect to such person.
    (5) Persons excepted from furnishing items of information. Any 
person required to furnish any item of information under paragraph (b) 
or (c) of this section with respect to a foreign corporation, may, if 
such item of information is furnished by another person having an equal 
or greater stock interest (measured in terms of value of such stock) in 
such foreign corporation, satisfy such requirement by filing a statement 
with his return on Form 959 indicating that such liability has been 
satisfied and identifying the return in which such item of information 
was included.
    (f) Meaning of terms. For purposes of this section:
    (1) Acquisition. Stock in a foreign corporation shall be considered 
acquired when a person has an unqualified right to receive such stock 
even though such stock is not actually issued. For example, when under 
the law of a foreign country, all the necessary steps for incorporation 
are completed but stock in the corporation will not be issued within 30 
days, every United States citizen or resident who is an officer or a 
director of such corporation, provided a United States person has an 
interest of 5 percent or more in such corporation, and every such United 
States person shall, within 90 days of the date of incorporation, file 
the returns required under section 6046 and this section. In the case of 
a reorganization, new stock may be acquired, depending on the type of 
reorganization, whether or not any stock certificates are surrendered or 
exchanged or the designation of such stock is altered.
    (2) Reorganization. With respect to a foreign corporation, the term 
``reorganization'' shall mean not only a transaction described in 
section 368(a)(1) and the regulations thereunder but also any other 
transaction or series of transactions which has the same effect.
    (3) U.S. person. For purposes of section 6046 and this section the 
term ``United States person'' has the meaning assigned to it by section 
7701(a)(30) of the Code, except that:
    (i) With respect to a corporation organized under the laws of the 
Commonwealth of Puerto Rico, such term does not include an individual 
who is a bona fide resident of Puerto Rico, if a dividend received by 
such individual during the taxable year from such corporation would, for 
purposes of section 933(1), be treated as income derived from sources 
within Puerto Rico,
    (ii) With respect to a corporation organized under the laws of the 
Virgin Islands, such term does not include an individual who is a bona 
fide resident of the Virgin Islands and whose income tax obligation 
under subtitle A (relating to income taxes) of the Code for the taxable 
year is satisfied pursuant to section 28(a) of the Revised Organic Act 
of the Virgin Islands, approved July 22, 1954 (48 U.S.C. 1642), by 
paying tax on income derived from all sources both within and outside 
the Virgin Islands into the treasury of the Virgin Islands, and

[[Page 278]]

    (iii) With respect to a corporation organized under the laws of any 
possession of the United States (other than Puerto Rico or the Virgin 
Islands), such term does not include an individual who is a bona fide 
resident of such possession and whose income derived from sources within 
any possession of the United States is not, by reason of section 931(a), 
includible in gross income under subtitle A (relating to income taxes) 
of the Code for the taxable year.

The provisions of paragraph (b), (c), or (d), respectively, of Sec.  
1.957-4 shall apply for purposes of determining whether an individual is 
excepted under subdivision (i), (ii), or (iii), respectively, of this 
subparagraph from being a U.S. person with respect to a corporation 
described in such subdivision.
    (4) Applicable Form 959. The Form 959 which shall be used for 
purposes of this section is Form 959 (Revised January 1963) or such 
subsequent revision of such form as may be in use at the time the 
liability to file a return on Form 959 arises.
    (5) Accounting period and taxable year. In the case of a specified 
foreign corporation (as defined in section 898), the taxable year of 
such corporation shall be treated as its annual accounting period.
    (g) Method of reporting. All amounts furnished in returns prescribed 
under this section shall be expressed in United States currency with a 
statement of the exchange rates used. All statements required to be 
submitted on or with returns under this section shall be rendered in the 
English language. For taxable years ending after December 31, 1994, with 
respect to returns filed after December 31, 1995, all amounts furnished 
under paragraph (c) of this section shall be expressed in United States 
dollars computed and translated in conformity with United States 
generally accepted accounting principles. Amounts furnished under 
paragraph (c)(3)(i) of this section shall also be furnished in the 
foreign corporation's functional currency as required on the form. 
Information described in paragraphs (b)(10) and (c)(3) of this section 
shall be submitted in such form or manner as the form shall prescribe. 
If an individual who is a United States person required to make a return 
with respect to a foreign corporation under section 6046 is entitled 
under a treaty to be treated as a nonresident of the United States, and 
if the individual claims this treaty benefit, and if there are no other 
United States persons that are required to furnish information under 
section 6046 with respect to the foreign corporation, then the 
individual may satisfy the requirements of paragraphs (b)(10), (11) and 
(12), (c)(3)(ii)(d), and (g) of this section by filing the audited 
foreign financial statements of the foreign corporation with the 
individual's return required under section 6046.
    (h) Actual ownership of stock. If any shareholder, referred to in 
this section, is not the actual owner of the stock of the foreign 
corporation, the information required under this section shall be 
furnished in the name of and by such actual owner. For example, in the 
case of stock held by a nominee, the information required under this 
section shall be furnished by the actual owner of such stock.
    (i) Constructive ownership of stock--(1) In general. Stock owned 
directly or indirectly by or for a foreign corporation or a foreign 
partnership shall be considered as being owned proportionately by its 
shareholders or partners. Thus, any United States person who is a member 
of a nonresident foreign partnership which becomes a shareholder in a 
foreign corporation shall be considered to be a shareholder in such 
foreign corporation to the extent of his proportionate share in such 
partnership.
    (2) Members of family. An individual shall be considered as owning 
the stock owned directly or indirectly by or for his brothers and 
sisters (whether by the whole or half blood), his spouse, his ancestors, 
and his lineal descendants. However, when stock is treated as owned by 
an individual under the rule provided in this subparagraph, it shall not 
be treated as owned by him for the purpose of again applying such rule 
in order to make another the constructive owner of such stock. The 
provisions of this subparagraph may be illustrated by the following 
example:

    Example. H, W, and HF are United States citizens. W, wife of H, owns 
20 percent of the

[[Page 279]]

value of the outstanding stock of X, a foreign corporation. X 
Corporation owns 90 percent of the value of the outstanding stock of Y 
Corporation, a foreign corporation. Y Corporation becomes the owner of 
50 percent of the value of the outstanding stock of each of two newly 
organized foreign corporations, M and N. In applying the ``members of 
family'' rule, H is considered to own 20 percent of the value of the 
outstanding stock of X Corporation, and 18 percent of the value of the 
outstanding stock of Y Corporation, and 9 percent of M Corporation and N 
Corporation. However, HF, the father of H, is not considered to own 
stock of X, Y, M, or N since his son, H, is not treated as the owner of 
such stock for purposes of again applying the ``members of family'' 
rule.

    (j) Time and place for filing return--(1) Time for filing. Any 
return required by section 6046 and this section shall be filed on or 
before the 90th day after the date on which a United States citizen, 
resident, or person becomes liable to file such return under any 
provision of section 6046(a) and of paragraph (a), (b), or (c) of this 
section. With respect to returns filed after September 3, 1982, such 
return shall be filed on or before such later date (if any) as may be 
authorized by the return form. The Director of the Internal Revenue 
Service Center where the return is required to be filed is authorized to 
grant reasonable extensions of time for filing returns under section 
6046 and this section in accordance with the applicable provisions of 
section 6081(a) and Sec.  1.6081-1.
    (2) Place for filing. Returns required by section 6046 and this 
section shall be filed with the Internal Revenue Service Center 
designated in the instructions of the applicable form.
    (k) Penalties. (1) For criminal penalties for failure to file a 
return and filing a false or fraudulent return, see sections 7203, 7206, 
and 7207.
    (2) For civil penalty for failure to file return, or failure to show 
information required on a return, under this section, see section 6679.

(Approved by the Office of Management and Budget under control number 
1545-0794)

[T.D. 6623, 27 FR 11882, Dec. 1, 1962, as amended by T.D. 6997, 34 FR 
932, Jan. 22, 1969; T.D. 7322, 39 FR 30932, Aug. 27, 1974; T.D. 7925, 48 
FR 55454, Dec. 13, 1983; T.D. 8573, 59 FR 64302, Dec. 14, 1994; T.D. 
8733, 62 FR 53385, Oct. 14, 1997]