[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: 26CFR1.666(b)-1A]

[Page 191]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.666(b)-1A  Total taxes deemed distributed.

    (a) If an accumulation distribution is deemed under Sec. 1.666(a)-
1A to be distributed on the last day of a preceding taxable year and the 
amount is not less than the undistributed net income for such preceding 
taxable year, then an additional amount equal to the ``taxes imposed on 
the trust attributable to the undistributed net income'' (as defined in 
Sec. 1.665(d)-1A(b)) for such preceding taxable year is also deemed 
distributed under section 661(a)(2). For example, a trust has 
undistributed net income of $8,000 for the taxable year 1974. The taxes 
imposed on the trust attributable to the undistributed net income are 
$3,032. During the taxable year 1977, an accumulation distribution of 
$8,000 is made to the beneficiary, which is deemed under Sec. 1.666(a)-
1A to have been distributed on the last day of 1974. The 1977 
accumulation distribution is not less than the 1974 undistributed net 
income. Accordingly, the taxes of $3,032 imposed on the trust 
attributable to the undistributed net income for 1974 are also deemed to 
have been distributed on the last day of 1974. Thus, a total of $11,032 
will be deemed to have been distributed on the last day of 1974.
    (b) For the purpose of paragraph (a) of this section, the 
undistributed net income of any preceding taxable year and the taxes 
imposed on the trust for such preceding taxable year attributable to 
such undistributed net income are computed after taking into account any 
accumulation distributions of taxable years intervening between such 
preceding taxable year and the taxable year. See paragraph (d) of Sec. 
1.666(a)-1A.

[T.D. 7204, 37 FR 17145, Aug. 25, 1972]