PUBLIC LAW 94-455—OCT. 4, 1976
90 STAT. 1577
the t r u s t with respect to which an amount is deonied distributed to a beneficiary under section 666(a) shall be determined without regard to such year. " (4) E F F E C T OF OTHER ACCUMULATION DISTRIBUTIONS.—In com-
p u t i n g the partial tax under paragraph (1) for any beneficiary, the income of such beneficiary for each of his prior taxable years shall include amounts previously deemed distributed to such beneficiary in such year under section 666 as a result of prior accumulation distributions (whether from the same or another t r u s t). "(5)
M U L T I P L E DISTRIBUTIONS I N THE SAME TAXABLE YEAR.—
I n the case of accumulation distributions made from more than one t r u s t which a r e includible in the income of a beneficiary in the same taxable year, the distributions shall be deemed to have been made consecutively in whichever order the beneficiary shall determine. "(c)
SPECIAL RULE FOR M U L T I P L E T R U S T S. —
" (1) IN GENERAL.—If, in the same p r i o r taxable year of the beneficiary in which any part of the accumulation distribution from a t r u s t (hereinafter in this paragraph referred to as ' t h i r d t r u s t ') is deemed under section 666(a) to have been distributed to such beneficiary, some part of prior distributions by each of 2 or more other trusts is deemed under section 666(a) to have been distributed to such beneficiary, then subsections (b) and (c) of section 666 shall not apply with respect to such part of the accumulation distribution from such t h i r d trust. " (2) ACCUMULATION DISTRIBUTIONS FRoar TRUST NOT TAKEN INTO ACCOUNT UNLESS THEY EQUAL OR EXCEED $1,000.—For purposes of
paragraph (1), an accumulation distribution from a trust to a beneficiary shall be taken into account only if such distribution, when added to any p r i o r accumulation distributions from such t r u s t which a r e deemed under section 666(a) to have been dist r i b u t e d to such beneficiary for the same p r i o r taxable year of the beneficiary, equals or exceeds $1,000." (2) Section 666 (relating to accumulation distribution alio- 26 USC 666. cated to preceding years) is amended by adding at the end thereof the following new subsection: " (e) D E N I A L o r R E F U N D TO TRUSTS AND BENEFICIARIES.—No refund
or credit shall be allowed to a t r u s t or a beneficiary of such t r u s t for any preceding taxable year by reason of a distribution deemed to have been made by such trust in such year under this section." (3) Section 668 (relating to treatment of amounts deemed distributed in preceding years) is hereby repealed.
26 USC 668.
(b) INCOME ACCUMUI-4TED BEFORE C H I L D AT'TAINS A G E OF 21 YEARS N O T TO B E S U B J E C T TO THE THROWBACK RULE.—Subsection (b) of
section 665 (defining accumulation distribution) is amended by adding 26 USC 665. a t the end thereof the following new sentence: " For purposes of section 667 (other than subsection (c) thereof, relating to multiple Ante, p. 1575. t r u s t s), the amounts specified in paragraph (2) of section 661(a) shall not include amounts properly paid, credited, or required to be distributed to a beneficiary from a trust (other than a foreign trust) as income accumulated before the birth of such beneficiary or before such beneficiary attains the age of 2 1. " (c) No ACCUMULATION DISTRIBUTION W H E R E DISTRIBUTIONS D o N O T
EXCEED ACCOUNTING INCOME.—Section 665(b) (defining accumulation
distribution), as amended by subsection (b), is amended by a d d i n g a t the end thereof the following new sentence: " I f the amounts properly paid, credited, or required to be distributed by the trust for the taxable
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