Internal Revenue Code · 26 U.S.C.
§ 666. Accumulation distribution allocated to preceding years
Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 666
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Enacted
- October 16, 1962 by Pub. L. 87–834
- Last amended
- April 1, 1980 by Pub. L. 96–222
- Amendments
- 4 dated changes in the source credit
- Length
- 5 subsections · 705 words · about 3 min to read
- Cross-references
- cites 2; cited by 5 Code sections and 27 other regulations
- Regulations
- 9 issued under this section
In the case of a trust which is subject to subpart C, the amount of the accumulation distribution of such trust for a taxable year shall be deemed to be an amount within the meaning of paragraph (2) of section 661(a) distributed on the last day of each of the preceding taxable years, commencing with the earliest of such years, to the extent that such amount exceeds the total of any undistributed net income for all earlier preceding taxable years. The amount deemed to be distributed in any such preceding taxable year under the preceding sentence shall not exceed the undistributed net income for such preceding taxable year. For purposes of this subsection, undistributed net income for each of such preceding taxable years shall be computed without regard to such accumulation distribution and without regard to any accumulation distribution determined for any succeeding taxable year.
If any portion of an accumulation distribution for any taxable year is deemed under subsection (a) to be an amount within the meaning of paragraph (2) of section 661(a) distributed on the last day of any preceding taxable year, and such portion of such distribution is not less than the undistributed net income for such preceding taxable year, the trust shall be deemed to have distributed on the last day of such preceding taxable year an additional amount within the meaning of paragraph (2) of section 661(a). Such additional amount shall be equal to the taxes (other than the tax imposed by section 55) imposed on the trust for such preceding taxable year attributable to the undistributed net income. For purposes of this subsection, the undistributed net income and the taxes imposed on the trust for such preceding taxable year attributable to such undistributed net income shall be computed without regard to such accumulation distribution and without regard to any accumulation distribution determined for any succeeding taxable year.
If any portion of an accumulation distribution for any taxable year is deemed under subsection (a) to be an amount within the meaning of paragraph (2) of section 661(a) distributed on the last day of any preceding taxable year and such portion of the accumulation distribution is less than the undistributed net income for such preceding taxable year, the trust shall be deemed to have distributed on the last day of such preceding taxable year an additional amount within the meaning of paragraph (2) of section 661(a). Such additional amount shall be equal to the taxes (other than the tax imposed by section 55) imposed on the trust for such taxable year attributable to the undistributed net income multiplied by the ratio of the portion of the accumulation distribution to the undistributed net income of the trust for such year. For purposes of this subsection, the undistributed net income and the taxes imposed on the trust for such preceding taxable year attributable to such undistributed net income shall be computed without regard to the accumulation distribution and without regard to any accumulation distribution determined for any succeeding taxable year.
If adequate records are not available to determine the proper application of this subpart to an amount distributed by a trust, such amount shall be deemed to be an accumulation distribution consisting of undistributed net income earned during the earliest preceding taxable year of the trust in which it can be established that the trust was in existence.
No refund or credit shall be allowed to a trust or a beneficiary of such trust for any preceding taxable year by reason of a distribution deemed to have been made by such trust in such year under this section.
(Aug. 16, 1954, ch. 736, 68A Stat. 224; Pub. L. 87–834, § 7(c), Oct. 16, 1962, 76 Stat. 986; Pub. L. 91–172, title III, § 331(a), Dec. 30, 1969, 83 Stat. 593; Pub. L. 94–455, title VII, § 701(a)(2), Oct. 4, 1976, 90 Stat. 1577; Pub. L. 95–600, title IV, § 421(d), Nov. 6, 1978, 92 Stat. 2875; Pub. L. 96–222, title I, § 104(a)(4)(H)(vi), Apr. 1, 1980, 94 Stat. 218.)
Regulations under this section
Treasury regulations (26 CFR) issued under § 666
- § 1.666(a)-1A Amount allocated.
- § 1.666(b)-1A Total taxes deemed distributed.
- § 1.666(c)-1A Pro rata portion of taxes deemed distributed.
- § 1.666(c)-2A Illustration of the provisions of section 666 (a), (b), and (c).
- § 1.666(d)-1A Information required from trusts.
- § 1.666(a)-1 Amount allocated.
- § 1.666(b)-1 Total taxes deemed distributed.
- § 1.666(c)-1 Pro rata portion of taxes deemed distributed.
- § 1.666(c)-2 Illustration of the provisions of section 666.
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 2 other sections
- § 661(a) Deduction for estates and trusts accumulating income or distributing corpus
- § 55 Alternative minimum tax imposed
Cited by 5 Code sections
- § 164(b)(4)(A)(ii) Taxes
- § 665(d)(1) Definitions applicable to subpart D
- § 667(a) Treatment of amounts deemed distributed by trust in preceding years
- § 668(a)(5) Interest charge on accumulation distributions from foreign trusts
- § 904(f)(4) Limitation on credit
Cited in 27 regulations not issued under it
- § 1.652(b)-1 Character of amounts.
- § 1.665(a)-1 Undistributed net income.
- § 1.665(b)-1 Accumulation distributions of trusts other than certain foreign trusts; in general.
- § 1.665(b)-2 Exclusions from accumulation distributions in the case of trusts (other than a foreign trust created by a U.S. person).
- § 1.665(c)-1 Accumulation distributions of certain foreign trusts; in general.
- § 1.667-1 Denial of refund to trusts.
- § 1.667(b)-1A Authorization of credit to beneficiary for taxes imposed on the trust.
- § 1.668(a)-1A Amounts treated as received in prior taxable years; inclusion in gross income.
- § 1.668(a)-2A Allocation among beneficiaries; in general.
- § 1.668(b)-1A Tax on distribution.
- § 1.668(b)-2A Special rules applicable to section 668.
- § 1.668(b)-3A Computation of the beneficiary's income and tax for a prior taxable year.
- § 1.668(a)-1 Amounts treated as received in prior taxable years; inclusion in gross income.
- § 1.668(a)-2 Allocation among beneficiaries; in general.
- § 1.668(a)-4 Tax attributable to throwback.
- § 1.668(b)-1 Credit for taxes paid by the trust.
- § 1.668(b)-2 Illustration of the provisions of subpart D.
- § 1.669(a)-2 Rules applicable to section 669 computations.
- § 1.669(a)-3 Tax computed by the exact throwback method.
- § 1.669(a)-4 Tax attributable to short-cut throwback method.
- § 1.669(b)-1 Information requirements.
- § 1.665(b)-2A Special rules for accumulation distributions made in taxable years beginning before January 1, 1974.
- § 1.665(d)-1A Taxes imposed on the trust.
- § 1.665(e)-1A Preceding taxable year.
Amendment history
From the source credit and the official notes, newest first.
Where it sits in the Code
- Subtitle A Income Taxes
- Chapter 1 NORMAL TAXES AND SURTAXES
- Subchapter J Estates, Trusts, Beneficiaries, and Decedents
- Part I ESTATES, TRUSTS, AND BENEFICIARIES
- Subpart D Treatment of Excess Distributions by Trusts
Nearby sections
- § 665 Definitions applicable to subpart D
- § 666 Accumulation distribution allocated to preceding years
- § 667 Treatment of amounts deemed distributed by trust in preceding years
- § 668 Interest charge on accumulation distributions from foreign trusts
- § 669 Repealed
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Editorial Notes
Amendments
1980—Subsec. (c). Pub. L. 96–222 inserted “(other than the tax imposed by section 55)” after “equal to the taxes”.
1978—Subsec. (b). Pub. L. 95–600 inserted “(other than the tax imposed by section 55)” after “equal to the taxes”.
1976—Subsec. (e). Pub. L. 94–455 added subsec. (e).
1969—Subsec. (a). Pub. L. 91–172 substituted in first sentence “In the case of a trust which is subject to subpart (C)” for “In the case of a trust (other than a foreign trust created by a United States person) which for a taxable year beginning after December 31, 1953, is subject to subpart (C)”, “for a taxable year” for “for such taxable year”, and “undistributed net income for all earlier preceding taxable years” for “undistributed net incomes for any taxable years intervening between the taxable year with respect to which the accumulation distribution is determined and such preceding taxable year” and in second sentence “for such” for “of such”, inserted in first sentence “, commencing with the earliest of such years,” after “preceding taxable years”, struck out “5” before “preceding taxable years” in first and third sentences and last sentence which read as follows: “In the case of a foreign trust created by a United States person, this subsection shall apply to the preceding taxable years of the trust without regard to any provision of the preceding sentences which would (but for this sentence) limit its application to the 5 preceding taxable years.”
Subsec. (b). Pub. L. 91–172 inserted “attributable to the undistributed net income” after “taxable year” in second sentence and “attributable to such undistributed net income” before “shall be computed” in third sentence.
Subsec. (c). Pub. L. 91–172 inserted “attributable to the undistributed net income” before “multiplied by the ratio” in second sentence and “attributable to such undistributed net income” before “shall be computed” in third sentence.
Subsec. (d). Pub. L. 91–172 added subsec. (d).
1962—Subsec. (a). Pub. L. 87–834 inserted “(other than a foreign trust created by a United States person)” after “In the case of a trust”, and inserted sentence making this subsection applicable, in the case of a foreign trust created by a United States person, to the preceding taxable years of the trust without regard to any provision of the preceding sentences of this subsection which would (but for this sentence) limit its application to the 5 preceding taxable years.
Statutory Notes and Related Subsidiaries
Effective Date of 1980 Amendment
Amendment by Pub. L. 96–222 effective, except as otherwise provided, as if it had been included in the provisions of the Revenue Act of 1978, Pub. L. 95–600, to which such amendment relates, see section 201 of Pub. L. 96–222, set out as a note under section 32 of this title.
Effective Date of 1978 Amendment
Amendment by Pub. L. 95–600 applicable to taxable years beginning after Dec. 31, 1978, see section 421(g) of Pub. L. 95–600, set out as a note under section 5 of this title.
Effective Date of 1976 Amendment
Amendment by Pub. L. 94–455 applicable to distributions made in taxable years beginning after Dec. 31, 1975, see section 701(h) of Pub. L. 94–455, set out as a note under section 667 of this title.
Effective Date of 1969 Amendment
Amendment by Pub. L. 91–172 applicable to taxable years beginning after Dec. 31, 1968, except that for taxable years of a trust beginning before Jan. 1, 1970, first sentence of subsec. (a) not applicable and amount of accumulation distribution stated, see section 331(d)(1), (2)(B) of Pub. L. 91–172, set out as a note under section 665 of this title.
Effective Date of 1962 Amendment
Amendment by Pub. L. 87–834 applicable with respect to distributions made after Dec. 31, 1962, see section 7(j) of Pub. L. 87–834, set out as a note under section 643 of this title.