RETURNS RELATING TO THE CANCELLATION OF INDEBTEDNESS BY CERTAIN FINANCIAL ENTITIES.

SEC. 13252. RETURNS RELATING TO THE CANCELLATION OF INDEBTEDNESS BY CERTAIN FINANCIAL ENTITIES. (a) In General.— Subpart B of part III of subchapter A of chapter 61 (relating to information concerning transactions with other persons) is amended by adding at the end thereof the following new section: “SEC. 6050P. RETURNS RELATING TO THE CANCELLATION OF INDEBTEDNESS BY CERTAIN FINANCIAL ENTITIES. “(a) In General.— Any applicable financial entity which discharges (in whole or in part) the indebtedness of any person during any calendar year shall make a return (at such time and in such form as the Secretary may by regulations prescribe) setting forth— “(1) the name, address, and TIN of each person whose indebtedness was discharged during such calendar year, “(2) the date of the discharge and the amount of the indebtedness discharged, and “(3) such other information as the Secretary may prescribe. “(b) Exception.— Subsection (a) shall not apply to any discharge of less than $600. “(c) Definitions and Special Rules.— For purposes of this section— “(1) Applicable financial entity.— The term ‘applicable financial entity’ means— “(A) any financial institution described in section 581 or 591(a) and any credit union, “(B) the Federal Deposit Insurance Corporation, the Resolution Trust Corporation, the National Credit Union Administration, and any other Federal executive agency (as defined in section 6050M), and any successor or subunit of any of the foregoing, and “(C) any other corporation which is a direct or indirect subsidiary of an entity referred to in subparagraph (A) but only if, by virtue of being affiliated with such entity, 107 STAT. 532such other corporation is subject to supervision and examination by a Federal or State agency which regulates entities referred to in subparagraph (A). “(2) Governmental units.— In the case of an entity described in paragraph (1)(B), any return under this section shall be made by the officer or employee appropriately designated for the purpose of making such return. “(d) Statements to Be Furnished to Persons With Respect to Whom Information Is Required To Be Furnished.— Every applicable financial entity required to make a return under subsection (a) shall furnish to each person whose name is required to be set forth in such return a written statement showing— “(1) the name and address of the entity required to make such return, and “(2) the information required to be shown on the return with respect to such person. The written statement required under the preceding sentence shall be furnished to the person on or before January 31 of the year following the calendar year for which the return under subsection (a) was made.” (b) Penalties.— (1) Returns.— Subparagraph (B) of section 6724(d)(1) is amended by inserting after clause (vii) the following new clause (and by redesignating the following clauses accordingly): “(viii) section 6050P (relating to returns relating to the cancellation of indebtedness by certain financial entities),”. (2) Statements.— Paragraph (2) of section 6724(d) is amended by redesignating subparagraphs (P) through (S) as subparagraphs (Q) through (T), respectively, and by inserting after subparagraph (O) the following new subparagraph: “(P) section 6050P(d) (relating to returns relating to the cancellation of indebtedness by certain financial entities),”. (c) Clerical Amendment.— The table of sections for subpart B of part III of subchapter A of chapter 61 is amended by adding at the end thereof the following new item: “Sec. 6050P. Returns relating to the cancellation of indebtedness by certain financial entities. (d) Effective Date.— (1) In general.— Except as provided in paragraph (2), the amendments made by this section shall apply to discharges of indebtedness after December 31, 1993. (2) Governmental entities.— In the case of an entity referred to in section 6050P(c)(1)9B) of the Internal Revenue Code of 1986 (as added by this section), the amendments made by this section shall apply to discharges of indebtedness after the date of the enactment of this Act.