26 U.S.C. § 6034A

1. (a)The fiduciary of any estate or trust required to file a return under section 6012(a) for any taxable year shall, on or before the date on which such return was required to be filed, furnish to each beneficiary (or nominee thereof)—a statement containing such information required to be shown on such return as the Secretary may prescribe.
   1. (1)who receives a distribution from such estate or trust with respect to such taxable year, or
   2. (2)to whom any item with respect to such taxable year is allocated,
2. (b)Any person who holds an interest in an estate or trust as a nominee for another person—
   1. (1)shall furnish to the estate or trust, in the manner prescribed by the Secretary, the name and address of such other person, and any other information for the taxable year as the Secretary may by form and regulations prescribe, and
   2. (2)shall furnish in the manner prescribed by the Secretary to such other person the information provided by the estate or trust under subsection (a).
3. (c)
   1. (1)A beneficiary of any estate or trust to which subsection (a) applies shall, on such beneficiary’s return, treat any reported item in a manner which is consistent with the treatment of such item on the applicable entity’s return.
   2. (2)
      1. (A)In the case of any reported item, if—paragraph (1) shall not apply to such item.
         1. (i)
            1. (I)the applicable entity has filed a return but the beneficiary’s treatment on such beneficiary’s return is (or may be) inconsistent with the treatment of the item on the applicable entity’s return, or
            2. (II)the applicable entity has not filed a return, and
         2. (ii)the beneficiary files with the Secretary a statement identifying the inconsistency,
      2. (B)A beneficiary shall be treated as having complied with clause (ii) of subparagraph (A) with respect to a reported item if the beneficiary—
         1. (i)demonstrates to the satisfaction of the Secretary that the treatment of the reported item on the beneficiary’s return is consistent with the treatment of the item on the statement furnished under subsection (a) to the beneficiary by the applicable entity, and
         2. (ii)elects to have this paragraph apply with respect to that item.
   3. (3)In any case—any adjustment required to make the treatment of the items by such beneficiary consistent with the treatment of the items on the applicable entity’s return shall be treated as arising out of mathematical or clerical errors and assessed according to section 6213(b)(1). Paragraph (2) of section 6213(b) shall not apply to any assessment referred to in the preceding sentence.
      1. (A)described in subparagraph (A)(i)(I) of paragraph (2), and
      2. (B)in which the beneficiary does not comply with subparagraph (A)(ii) of paragraph (2),
   4. (4)For purposes of this subsection—
      1. (A)The term “reported item” means any item for which information is required to be furnished under subsection (a).
      2. (B)The term “applicable entity” means the estate or trust of which the taxpayer is the beneficiary.
   5. (5)For addition to tax in the case of a beneficiary’s negligence in connection with, or disregard of, the requirements of this section, see part II of subchapter A of chapter 68.