Page 432 - Small Business IRS Training Guides

The Settlement Trust may revoke this election by timely-filing an amended income tax return. If the Settlement Trust

disposes of property subject to this election within the first taxable year after the taxable year in which the property was

contributed to the Settlement Trust, the election is voided with respect to the property and the Settlement Trust is required
to pay any tax applicable to the disposition of the property, including interest, as well as an additional tax equal to

10 percent of the amount of the tax. There is a four-year period to assess the tax and interest.

A Native Corporation may elect to deduct contributions to a Settlement Trust for taxable years for which the corporation’s
refund statute has not expired. If the refund statute for a taxable year expires before December 22, 2018, then there is a
one-year waiver of the refund statute.

New IRC § 6039H(e), Reporting Requirements for a Native Corporation

A Native Corporation which has made an election to deduct contributions to a Settlement Trust must furnish a statement
to the Settlement Trust containing:

• the total amount of contributions;

• whether such contribution was in cash;

• for non-cash contributions, the date that such property was acquired by the Native Corporation and the adjusted
basis of such property on the contribution date;

• the date on which each contribution was made to the Settlement Trust; and

• such information as the Secretary determines is necessary for the accurate reporting of income relating to
such contributions.

This new reporting requirement applies to taxable years beginning after December 31, 2016.

73233-102 13821-5 Tax Cuts and Jobs Act