Page:United States Statutes at Large Volume 124.djvu/139

 124 STAT. 113 PUBLIC LAW 111–147—MAR. 18, 2010 (b) CONFORMING AMENDMENT.—Subsection (c) of section 6724 is amended by inserting ‘‘or with respect to a return described in section 6011(e)(4)’’ before the end period. (c) EFFECTIVE DATE.—The amendment made by this section shall apply to returns the due date for which (determined without regard to extensions) is after the date of the enactment of this Act. PART IV—PROVISIONS RELATED TO FOREIGN TRUSTS SEC. 531. CLARIFICATIONS WITH RESPECT TO FOREIGN TRUSTS WHICH ARE TREATED AS HAVING A UNITED STATES BENE- FICIARY. (a) IN GENERAL.—Paragraph (1) of section 679(c) is amended by adding at the end the following: ‘‘For purposes of subparagraph (A), an amount shall be treated as accumulated for the benefit of a United States person even if the United States person’s interest in the trust is contingent on a future event.’’. (b) CLARIFICATION REGARDING DISCRETION TO IDENTIFY BENE- FICIARIES.—Subsection (c) of section 679 is amended by adding at the end the following new paragraph: ‘‘(4) SPECIAL RULE IN CASE OF DISCRETION TO IDENTIFY BENEFICIARIES.—For purposes of paragraph (1)(A), if any person has the discretion (by authority given in the trust agreement, by power of appointment, or otherwise) of making a distribution from the trust to, or for the benefit of, any person, such trust shall be treated as having a beneficiary who is a United States person unless— ‘‘(A) the terms of the trust specifically identify the class of persons to whom such distributions may be made, and ‘‘(B) none of those persons are United States persons during the taxable year.’’. (c) CLARIFICATION THAT CERTAIN AGREEMENTS AND UNDER- STANDINGS ARE TERMS OF THE TRUST.—Subsection (c) of section 679, as amended by subsection (b), is amended by adding at the end the following new paragraph: ‘‘(5) CERTAIN AGREEMENTS AND UNDERSTANDINGS TREATED AS TERMS OF THE TRUST.—For purposes of paragraph (1)(A), if any United States person who directly or indirectly transfers property to the trust is directly or indirectly involved in any agreement or understanding (whether written, oral, or other- wise) that may result in the income or corpus of the trust being paid or accumulated to or for the benefit of a United States person, such agreement or understanding shall be treated as a term of the trust.’’. SEC. 532. PRESUMPTION THAT FOREIGN TRUST HAS UNITED STATES BENEFICIARY. (a) IN GENERAL.—Section 679 is amended by redesignating subsection (d) as subsection (e) and inserting after subsection (c) the following new subsection: ‘‘(d) PRESUMPTION THAT FOREIGN TRUST HAS UNITED STATES BENEFICIARY.—If a United States person directly or indirectly trans- fers property to a foreign trust (other than a trust described in 26 USC 6011 note. 26 USC 6724.