§665 — Definitions applicable to subpart D
39 cases·10 followed·7 distinguished·22 cited—26% support
Statute Text — 26 U.S.C. §665
For purposes of this subpart, the term “undistributed net income” for any taxable year means the amount by which distributable net income of the trust for such taxable year exceeds the sum of—
the amounts for such taxable year specified in paragraphs (1) and (2) of section 661(a), and
the amount of taxes imposed on the trust attributable to such distributable net income.
For purposes of this subpart, except as provided in subsection (c), the term “accumulation distribution” means, for any taxable year of the trust, the amount by which—
the amounts specified in paragraph (2) of section 661(a) for such taxable year, exceed
distributable net income for such year reduced (but not below zero) by the amounts specified in paragraph (1) of section 661(a).
For purposes of section 667 (other than subsection (c) thereof, relating to multiple trusts), 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 21. If the amounts properly paid, credited, or required to be distributed by the trust for the taxable year do not exceed the income of the trust for such year, there shall be no accumulation distribution for such year.
For purposes of this subpart—
In the case of a qualified trust, any distribution in any taxable year beginning after the date of the enactment of this subsection shall be computed without regard to any undistributed net income.
For purposes of this subsection, the term “qualified trust” means any trust other than—
a foreign trust (or, except as provided in regulations, a domestic trust which at any time was a foreign trust), or
a trust created before
March 1, 1984
, unless it is established that the trust would not be aggregated with other trusts under section 643(f) if such section applied to such trust.
For purposes of this subpart—
The term “taxes imposed on the trust” means the amount of the taxes which are imposed for any taxable year of the trust under this chapter (without regard to this subpart or part IV of subchapter A) and which, under regulations prescribed by the Secretary, are properly allocable to the undistributed portions of distributable net income and gains in excess of losses from sales or exchanges of capital assets. The amount determined in the preceding sentence shall be reduced by any amount of such taxes deemed distributed under section 666(b) and (c) to any beneficiary.
In the case of any foreign trust, the term “taxes imposed on the trust” includes the amount, reduced as provided in the last sentence of paragraph (1), of any income, war profits, and excess profits taxes imposed by any foreign country or possession of the United States on such foreign trust which, as determined under paragraph (1), are so properly allocable. Under rules or regulations prescribed by the Secretary, in the case of any foreign trust of which the settlor or another person would be treated as owner of any portion of the trust under subpart E but for section 672(f), the term “taxes imposed on the trust” includes the allocable amount of any income, war profits, and excess profits taxes imposed by any foreign country or possession of the United States on the settlor or such other person in respect of trust income.
For purposes of this subpart—
In the case of a foreign trust created by a United States person, the term “preceding taxable year” does not include any taxable year of the trust to which this part does not apply.
In the case of a preceding taxable year with respect to which a trust qualified, without regard to this subpart, under the provisions of subpart B, for purposes of the application of this subpart to such trust for such taxable year, such trust shall, in accordance with regulations prescribed by the Secretary, be treated as a trust to which subpart C applies.
Treasury Regulations
- Treas. Reg. §Treas. Reg. §1.665(g)-2A Application of separate share rule
- Treas. Reg. §Treas. Reg. §1.665(g)-2A(a) In general.
- Treas. Reg. §Treas. Reg. §1.665(g)-2A(b) Allocation of taxes—undistributed net income.
- Treas. Reg. §Treas. Reg. §1.665(g)-2A(c) Allocation of taxes—undistributed capital gain.
- Treas. Reg. §Treas. Reg. §1.665(g)-2A(d) Termination of a separate share.
- Treas. Reg. §Treas. Reg. §1.665(g)-2A(i) §1.665(g)-2A(i)
39 Citing Cases
Section 6651(a)(1) Addition to,Tax 9 Section 6651(a)(1) imposes an addition to tax for failure to file timely a return .10 The addition to tax under section 665.1(a)(1) does not apply if the failure to file timely is due to reasonable cause and not willful neglect .
Petitioners argue that the Court's statements in Downing, as quoted above, "could be construed as anticipatory of the precise issue before the [Court]." Because the penalties involved in the present cases are readily distinguishable from the additions to tax involved in Downihq, we disagree.
We hold that the expenses that Palmerpaid to move his wife's belongings are not deductible.
ntitled to deduct any of the charitable contributions claimed on Schedule A of his 2005 income tax return; (3) whether petitioner is entitled to deduct any of the miscellaneous expenses claimed on Schedule A of his 2005 income tax return; -and (4) whether petitioner is liable for an addition to tax pursuant to section 6651(a) (1).
Commissioner , Accordingly, we hold that the transaction analogous the .second situation in Rev .
Lukovsky's liabilities for the addition to tax under section 6651(a)(2) for the 2002 and 2005 tax years, but we hold that for the 2004 tax year a genuine issue of material fact as to the sufficiency of the.SFR precludes summary judgment as to the section 6651(a)(2) addition to tax .
1998, 1999, and 2000, respectively ; (2) whether petitioner's gross income must be increased by interest and dividend income of $86, $50, $187, and $119 for taxable years 1996, 1997, 1998, and 1999, respectively ; (3) whether petitioner is liable for the fraudulent failure to file additions to tax pursuant to section 6651(f)' for taxable years 1996 through 2000, or in the alternative, whether petitioner is liable for failure to file additions to tax pursuant to section 6651(a)(1) for taxable yea
- 12 - [*12] The final issue we consider is respondent's determination that petitioner is liable for addition to tax under section 6654. That section imposes an addition to tax "in the case ofany underpayment ofestimated tax by an individual." A taxpayer has an obligation to pay estimated tax for a particular year only ifhe has a "required annual payment" for that year. Sec. 6654(d). A required annual payment generally is equal to the lesser of: (i) 90% ofthe tax shown on the return for the taxa
Respondent has thus carried his burden of production unde r section 7491(c) with respect to the section 6654 addition for the .2001 through 2004 tax years . The section 6654 addition to tax is mandatory unless the taxpayer can place himself within one of the computational exceptions provided for in subsection (e) thereof . Grosshandler v. Commissioner, 75 T .C . 1, 20-21 (1980) . Mr . Adler has not shown that any of the computational exceptions to section 6 .654 applies . Accordingly, we hold th
Respondent also determined and established that petitioner is liable-for additions to tax pursuant to section,665.1(f) for fraudulent failure to file tax returns, relating to the years in issue . See sec . 7454(a) ; Rule.142(b) ; Bradford v . Commissioner , 796. F .2d _303., 307-1308 (9th . Cir . 1986) , .affg . T .C . Memo . 1984-601 ; Clayton v . Commissioner, 102 T .C . 632, 646-647,652-653 (1994) ; Petzoldt v . Commissioner , 92,T .C . 661, 700-701 (1989) . The parties stipulated that petiti
ition to tax for f ilure to file a timely return under section 6651 ( a)(1) for eac year; (4) whether petitioner is liable for an addition to tax for failure to pay his tax liability under section 6651(a)(2) fo r each year in issue ., We hold that he is ; (5) whether petitioner is liable for an ddition to tax for failure to pay estimated tax under section 665 for each year in issue .
We believe that the "Failure to Pay Tax" penalty mentioned in Form 4340 refers to the section 6651(a)(3) addition to tax, not the section 665.1(a)(2) addition to tax .
We believe that the "Failure to Pay Tax" penalty mentioned in Form 4340 refers to the section 6651(a)(3) addition to tax, not the section 665.1(a)(2) addition to tax .
We consider the same factors under section 665 (f) that are considered in imposing the fraud penalty un er section 6663.
665.012 (West 1984). The name of every “association” must include either the words “savings association”, “savings bank”, or “savings and loan association”. Fla. Stat. Ann. sec. 665.0211 (West 1984). Chapter 665 also requires associations to invest at least 50 percent of nonliquid assets in real estate loans or interests in home property or pr
On May 30, 2005, respondent assessed petitioner's Federal income tax liability, interest, and additions to tax under section 6651(a)(1) for failure to timely file a return and - 4 - section 665 (a) for failure to pay estimated tax for 2002.3 Respondent issued petitioner n tices ofbalance due for each year, but petitioner failed to remit to respondent t e amounts due.
Application ofthe Section 665.l(a)(1) Addition to Tax for Failure To Timely File Section 6651(a)(1) provides for an addition to tax when a taxpayer fails to file a return on the date prescribed unless he establishes that such failure is due to reasonable cause and not due to willful neglect.
The Estate Is Liable for the Section 6651(a)T1) Addition to T Section 665 (a) (1) , imposes an addition to tax for failing to file a required eturn bysthe pre cribed filing date.
s Further, petitioner; did not spresent any*evidende that his failu e toepay was-due to reasonable cause and not willful neglect Therefore, we, will sustain the additions sto tax under section 665 (a) (2) for petitioner's 2004, 2005,.
On the next 'page, a section ~entitled "Explana,tion of Items" discussed the negligence penalties underssection 665,3(a): Since all or part of the underpayment of tax you,were required to show on your return is due to negligence or intentional disregard of rules and regulations, you are being charged a penalty under »Section 6653(a) of the Internal Revenue Code.
credits, (3) whether she is liable for the section 6651(a)(1) late-filing addition to tax for 2004 and 2005, and (4) whether she is liable for the section 665 4 failure-to-pay-estimated-tax addition to tax for 2005 .
Failure-To Pay Estimated Tax Under Section 665 4 A taxpayer who is either self-employed or an independent contractor .is liable for an addition to tax for failure to pay estimated income tax .
under section 665,1(a)(2) for failure to pay the tax shown on a return and ,a penalty under section 6656 for-failure to make deposit-of taxes . In neither the petition nor the amended petition does petitioner assign error to any addition to tax or penalty, and petitioner does not in its briefs raise any reasonable cause defense . See secs . 6651(a)(2), 6
credits, (3) whether she is liable for the section 6651(a)(1) late-filing addition to tax for 2004 and 2005, and (4) whether she is liable for the section 665 4 failure-to-pay-estimated-tax addition to tax for 2005 .
- 3 - Background Pretrial Proceedings On July 3, 2007,the Internal Revenue Service (IRS) issued` to petitioners David Lee Smith and Mary .Julia Hook notices of deficiency pursuant (cid:127)to section 6212(a),1 determining deficiencies in tax for the .tax years-2001 through~2005, along with additions to tax under section 665.1(a)(1) and penalties under section 6662, totaling $626,756 .
The Commissioner concedes the section 665 4 penalty for 1998 because he didn't offer evidence of Rodriguez's tax liability for 1997 .
He also has not established a casualty, a disaster, or other unusual circumstances for which the imposition of the section 665;4(a) addition to tax would b e against equity or good conscience!.
Had respondent accepted petitioner's qualified offer, petitioner would not have been liable for either the section 665.3 negligence penalty or the section 6621 tax-motivated interest .
Additions to Tax Under Section 665 4 Section 6654 imposes an addition to tax for failure to make timely and sufficient payments for estimated taxes .
he 2000 Form 1040 was referred to three units of respondent, a notice of deficiency was issued to petitioner for the 2000 taxable year in which it was determined that petitioner had failed to file a return and had taxable income of $39,831,5 resulting .in a deficiency of $8,301 and additions to tax under section 6651(a) (1) for failure to file and section 665.4 for failure to pay estimated tax.
The Antideficiency Act prohibits the executive branch from obligating funds not yet appropriated by Congress. Multiyear contracting is an exception to the full- funding rule. A multiyear contract enabled the Government to provide for up to 5 years of requirements without authorized full funding at the awarding of a contract. With a multi