CODIFICATION OF INTERNAL REVENUE LAWS 66 coupons, checks, or bills of exchange shall obtain a license from the Commissioner and shall be subject to such regulations enabling the Government to obtain the information required under this chapter as the Commissioner, with the approval of the Secretary, shall pre- scribe; and whoever knowingly undertakes to collect such payments without having obtained a license therefor, or without complying with such regulations, shall be guilty of a misdemeanor and shall be fined not more than $5,000 or imprisoned for not more than one year, or both. SEC. 151. FOREIGN PERSONAL HOLDING COMPANIES. For information returns by officers, directors, and large share- holders, with respect to foreign personal holding companies, see sections 338, 339, and 340. For information returns by attorneys, accountants, and so forth, as to formation, and so forth, of foreign corporations, see section 3604. Supplement E-Estates and Trusts SEC. 161 . IMPOSITION OF TAX. (a) APPLICATION OF TAx.- The taxes imposed by this chapter upon individuals shall apply to the income of estates or of any kind of property held in trust, including- (1) Income accumulated in trust for the benefit of unborn or unascertained persons or persons with contingent interests, and in- come accumulated or held for future distribution under the terms of the will or trust; (2) Income which is to be distributed currently by the fiduciary to the beneficiaries, and income collected by a guardian of an in- fant which is to be held or distributed as the court may direct; (3) Income received by estates of deceased persons during the period of administration or settlement of the estate; and (4) Income which, in the discretion of the fiduciary, may be either distributed to the beneficiaries or accumulated. (b) CoMPrTATION AND PAYMENT. -T he tax shall be computed upon the net income of the estate or trust, and shall be paid by the fiduciary, except as provided in section 166 (relating to revocable trusts) and section 167 (relating to income for benefit of the gran- tor). (c) CRoss REFERENCE.- For return made by beneficiary, see section 142. SEC. 162. NET INCOME. The net income of the estate or trust shall be computed in the same manner and on the same basis as in the case of an individual, except that- (a) There shall be allowed as a deduction (in lieu of the deduc- tion for charitable, etc., contributions authorized by section 23 (o)) any part of the gross income, without limitation, which pursuant to the terms of the will or deed creating the trust, is during the taxable year paid or permanently set aside for the purposes and in the manner specified in section 23 (o), or is to be used exclusively for religious, charitable, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals, or for the establishment, acquisition, maintenance or operation of a public cemetery not operated for profit; (b) There shall be allowed as an additional deduction in com- puting the net income of the estate or trust the amount of the income of the estate or trust for its taxable year which is to be distributed currently by the fiduciary to the beneficiaries, and the amount of the income collected by a guardian of an infant which is to be held or distributed as the court may direct, but the amount so allowed as a deduction shall be included in computing the net income of the beneficiaries whether distributed to them or not. Any amount al-
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