26 USC 6034A - Information to beneficiaries of estates and trusts

(a) General rule 
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)
(1) who receives a distribution from such estate or trust with respect to such taxable year, or
(2) to whom any item with respect to such taxable year is allocated,

a statement containing such information required to be shown on such return as the Secretary may prescribe.

(b) Nominee reporting 
Any person who holds an interest in an estate or trust as a nominee for another person
(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) shall furnish in the manner prescribed by the Secretary to such other person the information provided by the estate or trust under subsection (a).
(c) Beneficiary’s return must be consistent with estate or trust return or Secretary notified of inconsistency 

(1) In general 
A beneficiary of any estate or trust to which subsection (a) applies shall, on such beneficiarys return, treat any reported item in a manner which is consistent with the treatment of such item on the applicable entitys return.
(2) Notification of inconsistent treatment 

(A) In general 
In the case of any reported item, if
(I) the applicable entity has filed a return but the beneficiarys treatment on such beneficiarys return is (or may be) inconsistent with the treatment of the item on the applicable entitys return, or
(II) the applicable entity has not filed a return, and
(ii) the beneficiary files with the Secretary a statement identifying the inconsistency,

paragraph (1) shall not apply to such item.

(B) Beneficiary receiving incorrect information 
A beneficiary shall be treated as having complied with clause (ii) of subparagraph (A) with respect to a reported item if the beneficiary
(i) demonstrates to the satisfaction of the Secretary that the treatment of the reported item on the beneficiarys return is consistent with the treatment of the item on the statement furnished under subsection (a) to the beneficiary by the applicable entity, and
(ii) elects to have this paragraph apply with respect to that item.
(3) Effect of failure to notify 
In any case
(A) described in subparagraph (A)(i)(I) of paragraph (2), and
(B) in which the beneficiary does not comply with subparagraph (A)(ii) of paragraph (2),

any adjustment required to make the treatment of the items by such beneficiary consistent with the treatment of the items on the applicable entitys 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.

(4) Definitions 
For purposes of this subsection
(A) Reported item 
The term reported item means any item for which information is required to be furnished under subsection (a).
(B) Applicable entity 
The term applicable entity means the estate or trust of which the taxpayer is the beneficiary.
(5) Addition to tax for failure to comply with section 
For addition to tax in the case of a beneficiarys negligence in connection with, or disregard of, the requirements of this section, see part II of subchapter A of chapter 68.