[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)-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(c)-1A  Pro rata portion of 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 less than the undistributed net income for such preceding 
taxable year, then an additional amount is also deemed distributed under 
section 661(a)(2). The additional amount is equal to the ``taxes imposed 
on the trust attributable to the undistributed net income'' (as defined 
in Sec. 1.665(a)-1A(b)) for such preceding taxable year, multiplied by 
a fraction, the numerator of which is the amount of the accumulation 
distribution allocated to such preceding taxable year and the 
denominator of which 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)-2A for illustrations of this paragraph.
    (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 any taxable years intervening between such 
preceding taxable year and the taxable year. See paragraph (d) of Sec. 
1.666(a)-1A and paragraph (c) of example 1 and paragraphs (e) and (h) of 
example 2 in Sec. 1.666(c)-2A.

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