51 78TH CONG., 2D SESS.-CH. 63 -FEB . 25, 1944 without such deductions, the amount of such excess shall not be included in computing the net income of such legatee, heir, or beneficiary under subsection (b) or (c). In cases where the income deductible solely by reason of paragraph (2) or (3) (A) becomes payable to two or more legatees, heirs, or bene- ficiaries, the benefit of such exclusion shall be divided among such legatees, heirs, and beneficiaries, in the proportions in which they share in such income. In any case where the estate or trust is entitled to a deduction by reason of paragraph (1), in the determination of the net income of the estate or trust for the purposes of this paragraph the amount of such deduction shall be determined with the application of paragraph (3) (A)." (b) EFFECTIVE DATE. - The amendment made by subsection (a) shall be effective as if it were a part of section 111 of the Revenue ] Act of 1942 on the date of its enactment. SEC. 134. TRUSTS FOR MAINTENANCE OR SUPPORT OF CERTAIN BENEFICIARIES. (a) INCOME FOR BENFTr OF GRArToR. -Section 167 (relating to income for benefit of grantor) is amended by adding at the end thereof the following subsection: "(c) Income of a trust shall not be considered taxable to the grantor under subsection (a) or any other provision of this chapter merely because such income, in the discretion of another person, the trustee, or the grantor acting as trustee or cotrustee, may be applied or dis- tributed for the support or maintenance of a beneficiary whom the grantor is legally obligated to support or maintain, except to the extent that such income is so applied or distributed. In cases where the amounts so applied or distributed are paid out of corpus or out of other than income for the taxable year, such amounts shall be con- sidered paid out of income to the extent of the income of the trust for such taxable year which is not paid, credited, or to be distributed under section 162 and which is not otherwise taxable to the grantor." (b) TAXABLE YEARS TO WHICH APPLICABLE. - (1) GENERAL RULE.- Except as provided in paragraph (2), the amendments made by subsection (a) shall be applicable with respect to taxable years beginning after December 31, 1942, unless a taxable year of the trust beginning in 1942 ends within a taxable year of the grantor beginning in 1943, in which case, except as provided in paragraph (2), such amendments shall not be appli- cable to such taxable year of the grantor. (2) REROAcrrv: EFFT. - -The amendments made by subsection (a) shall also be applicable with respect to all taxable years to which such amendments are not made applicable under para- graph (1), in the same manner as if such amendments had been a part of the revenue laws applicable to such taxable years, but onlv if there are filed with the Commissioner (in accordance with regulations prescribed by him with the approval of the Sec- retary) at such tune and by such persons as may be prescribed under such regulations, signed consents that there shall be paid, at such time as the Commissioner may prescribe, all of the taxes under Chapter 1 of the Internal Revenue Code or under the corre- sponding provisions of prior revenue laws which would have been paid for the taxable years concerned if such amendments had been a part of the revenue laws applicable to such taxable years. (3) ThnEC NCIES AND OVERPAYMENTS.-The period of limita- tions provided in sections 275 and 276 of the te evenue Code or corresponding provisions of a prior revenue law on 56 Stat. 809. 26 U. S. O., Supp. II, § 162 note. 53 Stat. 68 . 26U.S. 0.§ 167. 63 Stat. 66. 26U. .C. 162; Supp. III §162. Ante, p. 50; post, p. 237. 53Stat.4. 26U.S C. S1-36; Sapp. m, i 3-476. Aste, p. 26 et aeq; poi pp. 231 d Jq;647. 5 Stao 868.7. 36u. s. .
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276 58 STAT.]
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