Page:United States Statutes at Large Volume 83.djvu/622

 594 68A Stat. 220.• >

26 USC 661.

PUBLIC LAW 91-172-DEC. 30, 1969

[33 3^^

of section 661(a) distributed on the last day of any preceding taxabl ^,^^^^ ^^^^ g^^^j^ year, and such portion of such distribution is not "less than theutitlT^ less the uiicli ^ tributed net income for such preceding taxable year, the trust shall be deemed to have distributed on the last day of such preceding tax able year an additional amount within the meaning of paragraph (•;\ of section 661(a). Such additional amount shall be equal to the taxes imposed on the trust for such preceding taxable year attributable to the undistributed net income. For purposes of this subsection the nndistributed net income and the taxes imposed on the trust for such preceding taxable year attributable to such undistributed net income shall be compnted without regard to such accumulation distribution and without regard to any accumulation distribution determined for any succeeding taxable year. "(c)

PRO RATA PORTION or TAXES DEEMED DISTRIBUTP:D.—If anv

portion of an accumulation distribution for any taxable year is deemed under subsection (a) to be an amount within the meaning of paragraph (2) of section 661(a) distributed on the last day of any preceding taxable year and such portion of the accumulation distribution is less than the undistributed net income for such preceding taxable year the trust shall be deemed to have distributed on the last day of snch preceding taxable year an additional amount within the meaning of paragraph (2) of section 661(a). Such additional amount shall be equal to the taxes imposed on the trust for such taxable year attributable to the undistributed net income multiplied by the ratio of the portion of the accimiulation distribution to the undistributed net income of the trust for such year. For purposes of this subsection, the undistributed net income and the taxes imposed on the trust for such preceding taxable year attributable to such undistributed net income shall be computed without regard to the accumulation distribution and without regard to any accumulation distribution determined for any succeeding taxable year. "(d)

RULE W H E N INFORMATION I S NOT AVAILABLE.—If adequate

records are not available to determine the proper application of this subpart to an amount distributed by a trust, such amount shall be deemed to be an accumulation distribution consisting of undistributed net income earned during the earliest preceding taxable year of the trust in which it can be established that the trust was in existence. "SEC. 667. DENIAL OF REFUND TO TRUSTS; AUTHORIZATION OF CREDIT TO BENEFICIARIES. " (a) DENIAL or REFUND TO TRUSTS.—No refund or credit shall be

allowed to a trust for any preceding taxable year by reason of a distribution deemed to have been made by such trust in such year under section 666 or 669. "(b) AUTHORIZATION OF CREDIT TO BENEFICIARY.—There shall be allowed as a credit (without interest) against the tax imposed by this subtitle on the beneficiary an amount equal to the amount of the taxes deemed distributed to such beneficiary by the trust under sections 666 (b) and (c) and 669 (d) and (e) during preceding taxable years of the trust on the last day of which the beneficiary was in being, reduced by the amount of the taxes deemed distributed to such beneficiary for such preceding taxable years to the extent that such taxes are taken into account under sections 668(b)(1) and 669(b) in determining the amount of the tax imposed by section 668. "SEC. 668. TREATMENT OF AMOUNTS DEEMED DISTRIBUTED IN PRECEDING YEARS. " (a) GENERAL RULE.—The total of the amounts which are treated

under sections 666 and 669 as having been distributed by the trust in a preceding taxable year shall be included in the income of a beneficiary

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