592
PUBLIC LAW 91-172-DEC. 30, 1%9
[SSSTAT
Subtitle D—Accumulation T r u s t s, Multiple Trusts, Etc. SEC. 331. TREATMENT OF EXCESS DISTRIBUTIONS BY TRUSTS. 68A Stat. 223; 76 Stat. 986.
(a) IN GENERAL.—Subpart D of part I of subchapter J of chapte 1 is amended to read as follows: ^ ' S U B P A R T D — T R E A T M ENT OF E X C E S S DISTRIBUTIONS BY T R U S T S "Sec. 665. Definitions applicable to subpart D. "Sec. 666. Accumulation distribution allocated to preceding years "Sec. 667. Denial of refund to trusts; authorization of credit to beneficiaries. "Sec. 668. Treatment of amounts deemed distributed in preceding .,, years.
- "
"Sec. 669. Treatment of capital gain deemed distributed in preceding years. "SEC. 665. DEFINITIONS APPLICABLE TO SUBPART D. "
•r-i'-
ITvlTeel^^'
" (a) UNDISTRIBUTED N E T INCOME.—For purposes of this subpart the term 'undistributed net income' for any taxable year means the amount by which the distributable net income of the trust for such taxable year exceeds the sum of— "(1) the amounts for such taxable year specified in paragraphs (1) and (2) of section 661(a), and "(2) the amount of taxes imposed on the trust attributable to such distributable net income. " (b) ACCUMULATION DISTRIBUTION.—For purposes of this subpart, the term 'accumulation distribution' means, for any taxable year of the trust, the amount by which— "(1) the amounts specified in paragraph (2) of section 661(a) for such taxable year, exceed " (2) distributable net income for such year reduced (but not below zero) by the amounts specified in paragraph (1) of section 661(a). "(c) SPECIAL RULE APPLICABLE TO DISTRIBUTIONS BY CERTAIN FOREIGN TRUSTS.—For purposes of this subpart, any amount paid to a
United States person which is from a payor who is not a United States person and which is derived directly or indirectly from a foreign trust created by a United States person shall be deemed in the year of payment to have been directly paid by the foreign trust. " (d) TAXES IMPOSED ON THE TRUST.—For purposes of this subpart, the term 'taxes imposed on the trust' means the amount of the taxes which are imposed for any taxable year of the trust under this chapter (without regard to this subpart) and which, under regulations prescribed by the Secretary or his delegate, are properly allocable to the undistributed portions of distributable net mcome and gains m excess of losses from sales or exchanges of capital assets. The amount determined in the preceding sentence shall be reduced by any amount of such taxes deemed distributed under section 666(b) and (c) or 669 (d) and (e) to any beneficiary. "(e) PRECEDING TAXABLE YEAR.—For. purposes of this subpart— ^ " (1) in the case of a trust (other than a foreign trust created by ^' a United States person), the term 'preceding taxable year' does not include any taxable year of the trust— " (A) which precedes by more than 5 years the ta.xable year of the trust in which an accumulation distribution is made, if it is made in a taxable year beginning before January 1, 1974,
�
