A trust may claim an income tax deduction under § 642(c) for amounts paid to charity and, in doing so, is required to furnish information under § 6034(b)(1). Reporting requirement under § 6034(b) is satisfied by filing a Form 1041-A, which applies to all trusts claiming a § 642(c) deductions minus two statutory exceptions. There is a class of trusts which properly claim § 642(c) deductions not for directly made charitable contributions but for their allocable share of contributions made by passthrough entities in which the trust holds an interest.  Because of the passthrough nature of the deduction, the trust cannot accumulate any amounts for which it might claim a second deduction in a future year, so the abuses targeted by the § 6034 requirement cannot occur.

On February 19, 2025, the President issued Executive Order 14219, Ensuring Lawful Governance and Implementing the President’s Department of Government Efficiency Deregulatory Initiative (Executive Order 14219). Executive Order 14219 directs agencies to initiate a review process for the identification and removal of certain regulations and other guidance that meet any of the factors set forth in Executive Order 14219. Consistent with the review required by Executive Order 14219, the Treasury Department and the IRS have identified that § 6034(b) filing requirement creates an undue burden by requiring filing a Form 1041-A for trusts claiming only passthrough § 642(c) deductions. These proposed regulations create an exception for those trusts under § 1.6034-1(b).