838 INCOME TAX Collection of foreign items . Licenses required for collecting foreign cou- pon s, d ivide nds, etc . Punishment for col- lecting, without a li- cense. Estates and trusts . Imposition of tax . Income of, taxed . Trust acc umulations . Peri odic ally dist rib- uted . Received during ad- ministration . For discretionary dis- tribution . Pay ment by fiduci- ary . Exc eptio ns . Post, p . &i0. Ante, p.833. Net incomes Computed as of in- dividuals . Exceptions . Deduction without limitation of gifts, etc ., under will or trust . Additiona l deduc- tions for current distrv butions by fiduciary . SEVENTIETH CONGRESS . SESS. I . CH. 852 . 1928 . Commissioner may require, as to ea ch of such customers , as wi ll enable the Commissioner to determine whether all income tax due on profits or gains of such customers has been paid . SEC. 151 . COLLECTION OF FOREIGN ITEMS. All persons undertaking as a matter of business or for profit the collection of foreign payments of interest or dividends by means of coupons, checks, or bills of exchange shall obtain a license from the Commissioner and shall be subject to such regulations enabling the Government to obtain the information required under th is title as the Commissioner, with the approval of the Secretary, shall pre- scribe ; and whoever knowingly undertakes to collect such payments without having obtained a license therefor, or without complying with such regu lations, shall be guilty of a misdemeano r and shall be fined not m ore than $5,000 or imprisoned for not mo re than one year, or both . Supplement E-Estates and Trusts SEC . 161 . IMPOSITION OF TAX. (a) Application of tax .-The taxes imposed by this title upon individuals shall apply to the income of estates or of any kind of property held in tru st, including- (1) Income accumulated in trust for the benefit of unborn or unascertained persons or persons with contingent interests, and income accumulated or held for future distribution under the terms of the will or trust ; (2 ) Inco me whic h is to be di stribut ed curr ently by the fiduciary to the beneficiaries, and income collected by a guardian of an infant which is to be held or distributed as the court may direct ; (3 ) Income receive d by est ates of deceased persons during the period of administration or settlement of the estate ; and (4) Income which, in the discretion of the fiduciary, may be either distributed to the beneficiaries or accumulated . (b) Computation and payment .-The tax shall be computed upon the net income of the estate or trust, and shall be paid by the fiduci- ary, except as provided in section 166 (relating to revocable trusts) and section 167 (relating to income for benefit of the grantor) . For return made by beneficiary, see section 143 . SEC . 162 . NET INCOME . The net income of the estate or trust shall be computed in the same manner and on the same basis as in the case of an individual, except that- (a) There shall be allowed as a deduction (in lieu of the deduc- tion for charitable, etc., contributions auth orized by sect ion 23(n)) any part of the gross income, without limitation, which pur- suant to the t erms of the will or deed creatin g the tr ust, is during the taxable year paid or permanently set aside for the purposes and in the manner specified in section 23(n), or is to be used exclusively for religious, charitable, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals, or for the establishment, acquisition, maintenance or operation of a public cemete ry not o perated for prof it ; (b) There shall be allowed as an additional deduction in com- puting the net income of the estate or trust the amount of the income of the estate or trust for its taxable year which is to be distributed currently by the fiduciary to the beneficiaries, and the amount of the income collected by a guardian of an infant which is to be held or
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