[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(c)-1]

[Page 197-198]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.666(c)-1  Pro rata portion of taxes deemed distributed.

    (a) If an accumulation distribution is deemed under Sec. 1.666(a)-1 
to be distributed on the last day of a preceding taxable year and the 
amount is less than

[[Page 198]]

the undistributed net income for such preceding taxable year, then an 
additional amount is likewise deemed distributed under section 
661(a)(2). The additional amount is equal to the taxes imposed on the 
trust, as defined in Sec. 1.665(d)-1, for such preceding taxable year, 
multiplied by the fraction of which the numerator is the amount of the 
accumulation distribution and the denominator is the undistributed net 
income for such preceding taxable year. See paragraph (b) of example 1 
and paragraphs (c) and (f) of example 2 in Sec. 1.666(c)-2, and 
paragraph (f)(2) of Sec. 1.668(b)-2 for illustrations of this 
paragraph.
    (b) For the purpose of paragraph (a) of this section, the 
undistributed net income of any preceding taxable year is computed 
without regard to the accumulation distribution of the taxable year or 
any taxable year following the taxable year. However, accumulation 
distributions of any taxable years intervening between such preceding 
taxable year and the taxable year are taken into account. See paragraph 
(d) of Sec. 1.666(a)-1, paragraph (c) of example 1 and paragraphs (e) 
and (h) of example 2 in Sec. 1.666(c)-2 and paragraph (f)(5)(iii) of 
Sec. 1.668(b)-2.

[T.D. 6500, 25 FR 11814, Nov. 26, 1960, as amended by T.D. 6989, 34 FR 
741, Jan. 17, 1969]