[Code of Federal Regulations]
[Title 26, Volume 8]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.642(c)-1]

[Page 20-21]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.642(c)-1  Unlimited deduction for amounts paid for a charitable 
purpose.

    (a) In general. (1) Any part of the gross income of an estate, or 
trust which, pursuant to the terms of the governing instrument is paid 
(or treated under paragraph (b) of this section as paid) during the 
taxable year for a purpose specified in section 170(c) shall be allowed 
as a deduction to such estate or trust in lieu of the limited charitable 
contributions deduction authorized by section 170(a). In applying this 
paragraph without reference to paragraph (b) of this section, a 
deduction shall be allowed for an amount paid during the taxable year in 
respect of gross income received in a previous taxable year, but only if 
no deduction was allowed for any previous taxable year to the estate or 
trust, or in the case of a section 645 election, to a related estate, as 
defined under Sec. 1.645-1(b), for the amount so paid.
    (2) In determining whether an amount is paid for a purpose specified 
in section 170(c)(2) the provisions of section 170(c)(2)(A) shall not be 
taken into account. Thus, an amount paid to a corporation, trust, or 
community chest, fund, or foundation otherwise described in section 
170(c)(2) shall be considered paid for a purpose specified in section 
170(c) even though the corporation, trust, or community chest, fund, or 
foundation is not created or organized in the United States, any State, 
the District of Columbia, or any possession of the United States.
    (3) See section 642(c)(6) and Sec. 1.642(c)-4 for disallowance of a 
deduction under this section to a trust which is, or is treated under 
section 4947(a)(1) as though it were a private foundation (as

[[Page 21]]

defined in section 509(a) and the regulations thereunder) and not exempt 
from taxation under section 501(a).
    (b) Election to treat contributions as paid in preceding taxable 
year--(1) In general. For purposes of determining the deduction allowed 
under paragraph (a) of this section, the fiduciary (as defined in 
section 7701(a)(6)) of an estate or trust may elect under section 
642(c)(1) to treat as paid during the taxable year (whether or not such 
year begins before January 1, 1970) any amount of gross income received 
during such taxable year or any preceding taxable year which is 
otherwise deductible under such paragraph and which is paid after the 
close of such taxable year but on or before the last day of the next 
succeeding taxable year of the estate or trust. The preceding sentence 
applies only in the case of payments actually made in a taxable year 
which is a taxable year beginning after December 31, 1969. No election 
shall be made, however, in respect of any amount which was deducted for 
any previous taxable year or which is deducted for the taxable year in 
which such amount is paid.
    (2) Time for making election. The election under subparagraph (1) of 
this paragraph shall be made not later than the time, including 
extensions thereof, prescribed by law for filing the income tax return 
for the succeeding taxable year. Such election shall, except as provided 
in subparagraph (4) of this paragraph, become irrevocable after the last 
day prescribed for making it. Having made the election for any taxable 
year, the fiduciary may, within the time prescribed for making it, 
revoke the election without the consent of the Commissioner.
    (3) Manner of making the election. The election shall be made by 
filing with the income tax return (or an amended return) for the taxable 
year in which the contribution is treated as paid a statement which:
    (i) States the name and address of the fiduciary,
    (ii) Identifies the estate or trust for which the fiduciary is 
acting,
    (iii) Indicates that the fiduciary is making an election under 
section 642(c)(1) in respect of contributions treated as paid during 
such taxable year,
    (iv) Gives the name and address of each organization to which any 
such contribution is paid, and
    (v) States the amount of each contribution and date of actual 
payment or, if applicable, the total amount of contributions paid to 
each organization during the succeeding taxable year, to be treated as 
paid in the preceding taxable year.
    (4) Revocation of certain elections with consent. An application to 
revoke with the consent of the Commissioner any election made on or 
before June 8, 1970, must be in writing and must be filed not later than 
September 2, 1975.

No consent will be granted to revoke an election for any taxable year 
for which the assessment of a deficiency is prevented by the operation 
of any law or rule of law. If consent to revoke the election is granted, 
the fiduciary must attach a copy of the consent to the return (or 
amended return) for each taxable year affected by the revocation. The 
application must be addressed to the Commissioner of Internal Revenue, 
Washington, DC 20224, and must indicate:
    (i) The name and address of the fiduciary and the estate or trust 
for which he was acting,
    (ii) The taxable year for which the election was made,
    (iii) The office of the district director, or the service center, 
where the return (or amended return) for the year of election was filed, 
and
    (iv) The reason for revoking the election.

[T.D. 7357, 40 FR 23739, June 2, 1975; 40 FR 24361, June 6, 1975; T.D. 
9032, 67 FR 78376, Dec. 24, 2002]