PUBLIC LAW 99-514—OCT. 22, 1986
100 STAT. 2713
SEC. 1403. TAXABLE YEAR OF TRUSTS TO BE CALENDAR YEAR.
(a) IN GENERAL.—Subpart A of part I of subchapter J of chapter 1 (relating to general rules for taxation of estates and trusts) is amended by adding at the end thereof the following new section: "SEC. 645. TAXABLE YEAR OF TRUSTS.
"(a) IN GENERAL.—For purposes of this subtitle, the taxable year of any trust shall be the calendar year. "(b) EXCEPTION FOR TRUSTS EXEMPT FROM TAX AND CHARITABLE
TRUSTS.—Subsection (a) shall not apply to a trust exempt from taxation under section 501(a) or to a trust described in section 4947(a)(1)." (b) CLERICAL AMENDMENT.—The table of sections of subpart A of part I of subchapter J of chapter 1 is amended by adding at the end thereof the following new item: "Sec. 645, Taxable year of trusts." (c) EFFECTIVE DATE; TRANSITION RULE.— (1) EFFECTIVE DATE.—The amendments made by this section
shall apply to taxable years beginning after December 31, 1986. (2) TRANSITION RULE.—With respect to any trust beneficiary who is required to include in gross income amounts under sections 652(a) or 662(a) of the Internal Revenue Code of 1986 in the 1st taxable year of the beneficiary beginning after December 31, 1986, by reason of any short taxable year of the trust required by the amendments made by this section, such income shall be ratably included in the income of the trust beneficiary over the 4-taxable year period beginning with such taxable year. SEC. 1404. TRUSTS AND CERTAIN ESTATES TO MAKE ESTIMATED PAYMENTS OF INCOME TAXES.
(a) IN GENERAL.—Subsection (k) of section 6654 (relating to failure by individual to pay estimated income tax) is amended to read as follows: "(k) TRUSTS AND CERTAIN ESTATES.—This section shall apply to— "(1) any trust, and "(2) any estate with respect to any taxable year ending 2 or more years after the date of the death of the decedent's death." (b) CERTAIN PAYMENTS OF ESTIMATED TAX BY A TRUST.—Section
643 is amended by adding at the end thereof the following new subsection: "(g) CERTAIN PAYMENTS OF ESTIMATED TAX TREATED AS PAID BY BENEFICIARY.—
"(1) IN GENERAL.—In the case of a trust— "(A) the trustee may elect to treat any portion of a payment of estimated tax made by such trust for any taxable year of the trust as a payment made by a beneficiary of such trust, "(B) any amount so treated shall be treated as paid or credited to the beneficiary on the last day of such taxable year, and "(C) for purposes of subtitle F, the amount so treated— "(i) shall not be treated as a payment of estimated tax made by the trust, but "(ii) shall be treated as a payment of estimated tax made by such beneficiary on January 15 following the taxable year.
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