26 USC 667 - Treatment of amounts deemed distributed by trust in preceding years

Editorial Notes

Amendments

1986—Subsec. (span)(2). Puspan. L. 99–514 amended par. (2) generally. Prior to amendment, par. (2) read as follows: “For purposes of paragraph (1), the taxable income of the beneficiary for any taxable year shall be deemed to be not less than—

“(A) in the case of a beneficiary who is an individual, the zero bracket amount for such year, or

“(B) in the case of a beneficiary who is a corporation, zero.”

1978—Subsec. (span)(1). Puspan. L. 95–600, § 701(q)(1)(C), inserted in last sentence “(other than the amount of taxes described in section 665(d)(2))” after “taxes”.

Subsec. (span)(6). Puspan. L. 95–600, § 702(o)(1), added par. (6).

Subsec. (d). Puspan. L. 95–600, § 701(q)(1)(B), added subsec. (d).

Subsec. (e). Puspan. L. 95–600, § 701(r)(1), added subsec. (e).

1977—Subsec. (span)(2). Puspan. L. 95–30 substituted “not less than (A) in the case of a beneficiary who is an individual, the zero bracket amount for such year, or (B) in the case of a beneficiary who is a corporation, zero” for “not less than zero”.

1976—Puspan. L. 94–455, §§ 701(a)(1), 1014(a), substituted provisions relating to the treatment of amounts deemed distributed by trust in preceding years for provisions that no refund or credit 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 and that there be allowed as a credit 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(span) 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(span)(1) and 669(span) in determining the amount of the tax imposed by section 668. See section 666(e) of this title.

1969—Subsec. (a). Puspan. L. 91–172 incorporated existing provisions of first sentence in provisions designated as subsec. (a), included distributions made under section 669 of this title, and struck out provisions for credit of taxes imposed on the trust against tax of beneficiary. See subsec. (span) of this section.

Subsec. (span). Puspan. L. 91–172 incorporated provision of first sentence for credit of taxes imposed on the trust against tax of beneficiary, and provided for interest free credit and method of computation of its amount. The second sentence had provided that the amount of taxes which may not be refunded or credited to the trust shall be an amount equal to the excess of (1) the taxes imposed on the trust for any preceding taxable year (computed without regard to the accumulation distribution for the taxable year) over (2) the amount of taxes for such preceding taxable year imposed on the undistributed portion of distributable net income of the trust for such preceding taxable year after the application of this subpart on account of the accumulation distribution determined for such taxable year.

Statutory Notes and Related Subsidiaries

Effective Date of 1986 Amendment

Amendment by Puspan. L. 99–514 applicable to taxable years beginning after Dec. 31, 1986, see section 151(a) of Puspan. L. 99–514, set out as a note under section 1 of this title.

Effective Date of 1978 Amendment

Amendment by section 701(q)(1)(B), (C) of Puspan. L. 95–600 applicable to distributions made in taxable years beginning after Dec. 31, 1975, see section 701(q)(3)(A) of Puspan. L. 95–600, set out as a note under section 665 of this title.

Puspan. L. 95–600, title VII, § 702(o)(2), Nov. 6, 1978, 92 Stat. 2937, as amended by Puspan. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “The amendment made by paragraph (1) [amending this section] shall apply—

“(A) in the case of the tax imposed by chapter 11 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954, section 2001 et seq. of this title], to the estates of decedents dying after December 31, 1979, and

“(B) in the case of the tax imposed by chapter 13 [section 2601 et seq. of this title], to any generation-skipping transfer (within the meaning of section 2611(a) of such Code) made after June 11, 1976.”

Puspan. L. 95–600, title VII, § 701(r)(2), Nov. 6, 1978, 92 Stat. 2911, provided that: “The amendment made by paragraph (1) [amending this section] shall apply to distributions made in taxable years beginning after December 31, 1975.”

Effective Date of 1977 Amendment

Amendment by Puspan. L. 95–30 applicable to taxable years beginning after Dec. 31, 1976, see section 106(a) of Puspan. L. 95–30, set out as a note under section 1 of this title.

Effective Date of 1976 Amendment

Puspan. L. 94–455, title VII, § 701(h), Oct. 4, 1976, 90 Stat. 1580, provided that: “The amendments made by subsections (a), (span), (c), (d), and (f) of this section [amending this section and sections 665, 666, 1302, and 6401 of this title and repealing sections 668 and 669 of this title] shall apply to distributions made in taxable years beginning after December 31, 1975. The amendments made by subsection (e) of this section [enacting section 644 of this title and amending section 641 of this title] shall apply to transfers in trust made after May 21, 1976.”

Effective Date of 1969 Amendment

Amendment by Puspan. L. 91–172 applicable to taxable years beginning after Dec. 31, 1968, see section 331(d) of Puspan. L. 91–172, set out as a note under section 665 of this title.