[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: 26CFR1.668(b)-1]

[Page 214]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.668(b)-1  Credit for taxes paid by the trust.

    (a) The taxes imposed on a complex trust for a taxable year which 
would not have been payable by the trust if amounts deemed under section 
666 to have been distributed in the year had in fact been distributed in 
the year are not allowable as a refund to the trust but are allowable as 
a credit against the tax of the beneficiaries to whom the amounts 
described in section 666(a) are distributed.
    (b) The credit to which a beneficiary is entitled under section 
668(b) is allowed for the taxable year in which the accumulation 
distribution (to which the credit relates) is required to be included in 
the gross income of the beneficiary. Any excess over the total tax 
liability of the beneficiary is treated as an overpayment of tax by the 
beneficiary.
    (c) The beneficiary is entitled to a portion of the credit described 
in paragraph (a) of this section in the ratio which the amount of the 
accumulation distribution to him bears to the accumulation distributions 
to all the beneficiaries.