[Code of Federal Regulations]
[Title 26, Volume 8]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.669(c)-3A]

[Page 226]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.669(c)-3A  Information requirements with respect to beneficiary.

    (a) Information to be supplied by beneficiary--(1) Use of exact 
method. The beneficiary must supply the information required by 
subparagraph (3) of Sec. 1.668(b)-4A(a) for any prior taxable year for 
which a recomputation is required under either the exact method or the 
short-cut method. Such information shall be filed with the beneficiary's 
return for the year in which the tax under section 668(a)(3) is imposed.
    (2) Failure to furnish. If the beneficiary fails to furnish the 
information required by this paragraph for any prior year involved in 
the exact method, he may not use such method and the tax computed under 
paragraph (c) of Sec. 1.669(b)-1A (the short-cut method) shall be 
deemed to be the amount of partial tax imposed by section 668(a)(3). 
See, however, paragraph (b) of this section for an exception to this 
rule where the short-cut method is not permitted. If he cannot furnish 
the information required for a prior year involved in the short-cut 
method, such year will be recomputed on the basis of the best 
information available.
    (b) Exception. If, by reason of Sec. 1.669(b)-1A(e), the 
beneficiary may not compute the partial tax on the capital gain 
distribution under Sec. 1.669(b)-1A(c) (the short-cut method), the 
provisions of subparagraph (2) of paragraph (a) of this section shall 
not apply. In such case, if the beneficiary fails to provide the 
information required by Sec. 1.668(b)-4A(a)(3) for any prior taxable 
year, the district director shall, by utilizing whatever information is 
available to him (including information supplied by the beneficiary), 
determine the beneficiary's income and related expenses for such prior 
taxable year.

[T.D. 7204, 37 FR 17156, Aug. 25, 1972]