26 USC 6037 - Return of S corporation

(a) In general 
Every S corporation shall make a return for each taxable year, stating specifically the items of its gross income and the deductions allowable by subtitle A, the names and addresses of all persons owning stock in the corporation at any time during the taxable year, the number of shares of stock owned by each shareholder at all times during the taxable year, the amount of money and other property distributed by the corporation during the taxable year to each shareholder, the date of each such distribution, each shareholders pro rata share of each item of the corporation for the taxable year, and such other information, for the purpose of carrying out the provisions of subchapter S of chapter 1, as the Secretary may by forms and regulations prescribe. Any return filed pursuant to this section shall, for purposes of chapter 66 (relating to limitations), be treated as a return filed by the corporation under section 6012.
(b) Copies to shareholders 
Each S corporation required to file a return under subsection (a) for any taxable year shall (on or before the day on which the return for such taxable year was filed) furnish to each person who is a shareholder at any time during such taxable year a copy of such information shown on such return as may be required by regulations.
(c) Shareholder’s return must be consistent with corporate return or Secretary notified of inconsistency 

(1) In general 
A shareholder of an S corporation shall, on such shareholders return, treat a subchapter S item in a manner which is consistent with the treatment of such item on the corporate return.

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(2) Notification of inconsistent treatment 

(A) In general 
In the case of any subchapter S item, if
(i) 
(I) the corporation has filed a return but the shareholders treatment on his return is (or may be) inconsistent with the treatment of the item on the corporate return, or
(II) the corporation has not filed a return, and
(ii) the shareholder files with the Secretary a statement identifying the inconsistency,

paragraph (1) shall not apply to such item.

(B) Shareholder receiving incorrect information 
A shareholder shall be treated as having complied with clause (ii) of subparagraph (A) with respect to a subchapter S item if the shareholder
(i) demonstrates to the satisfaction of the Secretary that the treatment of the subchapter S item on the shareholders return is consistent with the treatment of the item on the schedule furnished to the shareholder by the corporation, and
(ii) elects to have this paragraph apply with respect to that item.
(3) Effect of failure to notify 
In any case

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(A) described in subparagraph (A)(i)(I) of paragraph (2), and
(B) in which the shareholder does not comply with subparagraph (A)(ii) of paragraph (2),

any adjustment required to make the treatment of the items by such shareholder consistent with the treatment of the items on the corporate 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) Subchapter S item 
For purposes of this subsection, the term subchapter S item means any item of an S corporation to the extent that regulations prescribed by the Secretary provide that, for purposes of this subtitle, such item is more appropriately determined at the corporation level than at the shareholder level.
(5) Addition to tax for failure to comply with section 
For addition to tax in the case of a shareholders negligence in connection with, or disregard of, the requirements of this section, see part II of subchapter A of chapter 68.