Throwback Rules
Throwback Rules
Definition: Rules that equitably tax the beneficiary of a trust that accumulates all or part of its income (rather than distributing it currently). It is an attempt to tax the beneficiary as if the income had been distributed currently. Irc § 665(b). For taxable years beginning after august 5, 1997, the throwback rules apply only to foreign trusts and certain domestic trusts. Irc § 665(c).
Definition: Rules that equitably tax the beneficiary of a trust that accumulates all or part of its income (rather than distributing it currently). It is an attempt to tax the beneficiary as if the income had been distributed currently. Irc § 665(b). For taxable years beginning after august 5, 1997, the throwback rules apply only to foreign trusts and certain domestic trusts. Irc § 665(c).