Returns relating to specified settlement fund payments

(a) In general Subpart B of part III of subchapter A of chapter 61 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: 6050BB. Returns relating to specified settlement fund payments (a) Requirement of reporting Every trustee, administrator, or other fiduciary who makes any specified settlement fund payment (as defined in section 5000E(b)) to any taxpayer during any taxable year shall make a return, according to the forms and regulations prescribed by the Secretary, setting forth— (1) the aggregate amount of such payments received by such taxpayer during such taxable year, and (2) the name and address of such taxpayer. (b) Statements To be furnished with respect to whom information is required Every person required to make a return under subsection (a) shall furnish to each taxpayer whose name is required to be set forth in such return a written statement— (1) showing the identity of the trustee, administrator, or other fiduciary making the specified settlement fund payment, (2) showing the aggregate amount of such payments received by such taxpayer required to be shown on the return, and (3) notifying that such payments are subject to the tax imposed by section 5000E(a). The written statement required under the preceding sentence shall be furnished to the taxpayer on or before January 31 of the year following the taxable year for which the return under subsection (a) was required to be made. (c) Public disclosure of returns The Secretary shall, not later than 1 month following receipt of a return under subsection (a), make such return publicly available (in such form and manner as the Secretary determines appropriate).. (b) Failure To file return with respect to specified settlement fund payments Section 6652 of such Code is amended by adding at the end the following new subsection: (q) Failure To file return with respect to specified settlement fund payments In the case of any failure to make a return required under section 6050BB which contains the information required by such section on the date prescribed therefor, unless it is shown that such failure is due to reasonable cause, there shall be paid (on notice and demand by the Secretary and in the same manner as tax) by the person failing to file such return, an amount equal to $10,000 for each such failure.. (c) Clerical amendment The table of sections for subpart B of part III of subchapter A of chapter 61 of such Code is amended by adding at the end the following new item: Sec. 6050BB. Returns relating to specified settlement fund payments.. (d) Effective dates (1) In general Except as provided by paragraph (2), the amendments made by this section shall apply with respect to amounts paid on or after May 20, 2026. (2) Failure to file return with respect to specified settlement fund payments The amendment made by subsection (b) shall apply with respect to taxable years ending on or after May 20, 2026.