§ 4947 Application of taxes to certain nonexempt trusts
(a) Application of tax
(1) Charitable trusts
For purposes of part II of subchapter F of chapter 1 (other than section , (b), and (c)) and for purposes of this chapter, a trust which is not exempt from taxation under section , all of the unexpired interests in which are devoted to one or more of the purposes described in section , and for which a deduction was allowed under section , , , , , or (or the corresponding provisions of prior law), shall be treated as an organization described in section . For purposes of section , such a trust shall be treated as if organized on the day on which it first becomes subject to this paragraph.
(2) Split-interest trusts
In the case of a trust which is not exempt from tax under section , not all of the unexpired interests in which are devoted to one or more of the purposes described in section , and which has amounts in trust for which a deduction was allowed under section , , , , , or , section (relating to termination of private foundation status), section (relating to governing instruments) to the extent applicable to a trust described in this paragraph, section (relating to taxes on self-dealing), section (relating to taxes on excess business holdings) except as provided in subsection (b)(3), section (relating to investments which jeopardize charitable purpose) except as provided in subsection (b)(3), and section (relating to taxes on taxable expenditures) shall apply as if such trust were a private foundation. This paragraph shall not apply with respect to—
(A) any amounts payable under the terms of such trust to income beneficiaries, unless a deduction was allowed under section , , or ,
(B) any amounts in trust other than amounts for which a deduction was allowed under section , , , , , or , if such other amounts are segregated from amounts for which no deduction was allowable, or
(C) any amounts transferred in trust before May 27, 1969.
(3) Segregated amounts
For purposes of paragraph (2)(B), a trust with respect to which amounts are segregated shall separately account for the various income, deduction, and other items properly attributable to each of such segregated amounts.
(b) Special rules
(1) Regulations
The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this section.
(2) Limit to segregated amounts
If any amounts in the trust are segregated within the meaning of subsection (a)(2)(B) of this section, the value of the net assets for purposes of subsections (c)(2) and (g) of section shall be limited to such segregated amounts.
(3) Sections 4943 and 4944
Sections and shall not apply to a trust which is described in subsection (a)(2) if—
(A) all the income interest (and none of the remainder interest) of such trust is devoted solely to one or more of the purposes described in section , and all amounts in such trust for which a deduction was allowed under section , , , , , or have an aggregate value not more than 60 percent of the aggregate fair market value of all amounts in such trusts, or
(B) a deduction was allowed under section , , , , , or for amounts payable under the terms of such trust to every remainder beneficiary but not to any income beneficiary.
(4) Section 507
The provisions of section shall not apply to a trust which is described in subsection (a)(2) by reason of a distribution of qualified employer securities (as defined in section ) to an employee stock ownership plan (as defined in section ) in a qualified gratuitous transfer (as defined by section ).
(Added Pub. L. 91–172, title I, § 101(b), Dec. 30, 1969, 83 Stat. 517; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 105–34, title XV, § 1530(c)(9), Aug. 5, 1997, 111 Stat. 1079; Pub. L. 107–16, title V, § 542(e)(4), June 7, 2001, 115 Stat. 85; Pub. L. 108–357, title IV, § 413(c)(30), Oct. 22, 2004, 118 Stat. 1509; Pub. L. 111–312, title III, § 301(a), Dec. 17, 2010, 124 Stat. 3300.)
Operative text only. Editorial notes, amendment history, and effective dates: official OLRC text of § 4947