[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: 26CFR1.643(a)-4]

[Page 56-57]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.643(a)-4  Extraordinary dividends and taxable stock dividends.

    In the case solely of a trust which qualifies under subpart B 
(section 651 and following) as a ``simple trust,'' there are excluded 
from distributable net income extraordinary dividends (whether paid in 
cash or in kind) or taxable stock dividends which are not distributed or 
credited to a beneficiary because the fiduciary in good faith determines 
that under the terms of the governing instrument and applicable local 
law such dividends are allocable

[[Page 57]]

to corpus. See section 665(e), paragraph (b) of Sec. 1.665(e)-1, and 
paragraph (b) of Sec. 1.665(e)-1A for the treatment of such dividends 
upon subsequent distribution.

[T.D. 7204, 37 FR 17134, Aug. 25, 1972]