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Form 4970 (2023) Page 2
General Instructions Line 2. Enter any amount from line 1 that accumulation distribution. If the distribution is
represents UNI of a domestic trust accumulated from a foreign trust, see sections 667(d) and
Section references are to the Internal Revenue before you were born or reached age 21. 904(f)(4) for special rules.
Code unless otherwise noted. However, if the multiple trust rule applies, see the Attach the proper form for any credit you
Future Developments instructions for line 4. refigure. The amount determined for items on
For the latest information about developments Line 4. Multiple trust rule. If you received this line is limited to tax law provisions in effect
related to Form 4970 and its instructions, such accumulation distributions from two or more for those years involved.
as legislation enacted after they were published, other trusts that were considered to have been Line 22. For each year entered in Part II, columns
go to www.irs.gov/Form4970. made in any of the earlier tax years in which the (a)–(c), use and attach that year’s Form 4626,
current accumulation distribution is considered Alternative Minimum Tax—Corporations (for
Purpose of Form to have been made, don’t include on line 4 the years prior to 2018); Form 6251, Alternative
A beneficiary of certain domestic trusts (see taxes attributable to the current accumulation Minimum Tax—Individuals; or Schedule I (Form
Who Must File below) uses Form 4970 to figure distribution considered to have been distributed 1041), Alternative Minimum Tax—Estates and
the partial tax on accumulation distributions in the same earlier tax year(s). Trusts, to recompute the AMT for that year.
under section 667. The fiduciary notifies the For this special rule, only count as trusts those Show any change in the AMT below the bottom
beneficiary of an “accumulation distribution” by trusts for which the sum of this accumulation margin of the appropriate form or schedule and
completing Part IV of Schedule J (Form 1041). distribution and any earlier accumulation enter the change on line 22.
If you received a distribution for this tax year distributions from the trust, which are considered Line 28. If estate taxes or generation-skipping
from a trust that accumulated its income instead under section 666(a) to have been distributed in transfer taxes apply to the accumulation
of distributing it each year (and the trust paid the same earlier tax year(s), is $1,000 or more. distribution, reduce the partial tax proportionately
taxes on that income), you must complete Form Foreign trust. If the trust is a foreign trust, see for those taxes. See section 667(b)(6) for the
4970 to compute any additional tax liability. The section 665(d)(2). computation.
trustee must give you a completed Part IV of Line 8. You can determine the number of years Individuals. Include the amount from this line on
Schedule J (Form 1041) so you can complete in which the UNI is deemed to have been Schedule 2 (Form 1040), line 17l.
this form. distributed by counting the “throwback years” Trusts and decedents’ estates. Include the
If you received accumulation distributions from for which there are entries on lines 32 through 36 amount on Form 1041, Schedule G, line 8. Write
more than one trust during the current tax year, of Part IV of Schedule J (Form 1041). These “From Form 4970” and the amount of the tax to
prepare a separate Form 4970 for each trust throwback rules apply even if you wouldn’t have the left of the line 8 entry space.
from which you received an accumulation been entitled to receive a distribution in the Other filers. Add the result to the total tax
distribution. You can arrange the distributions in earlier tax year if the distribution had actually liability before the refundable credits on your
any order you want them considered to have been made then. There can be more than 5 income tax return for the year of the
been made. “throwback years.” accumulation distribution. Attach this form to
Line 11. From the number of years entered on that return.
Who Must File line 8, subtract any year in which the distribution
Beneficiaries who received an accumulation from column (a), Part IV of Schedule J (Form Paperwork Reduction Act Notice. We ask for
distribution from certain domestic trusts that 1041) is less than the amount on line 10 of Form the information on this form to carry out the
were created before March 1, 1984, must file 4970. If the distribution for each throwback year Internal Revenue laws of the United States. You
Form 4970. For details, see section 665(c). is more than line 10, then enter the same number are required to give us the information. We need
Foreign trust beneficiaries. If you received an on line 11 as you entered on line 8. it to ensure that you are complying with these
accumulation distribution from a foreign trust, Line 13. Enter your taxable incomes for years laws and to allow us to figure and collect the
you must report the distribution and the partial 2018–2022, even if less than 5 years of the trust right amount of tax.
tax on a 2023 Form 3520, Annual Return To had accumulated income after you became 21. You aren’t required to provide the information
Report Transactions With Foreign Trusts and Use the taxable income as reported by you or as requested on a form that is subject to the
Receipt of Certain Foreign Gifts. changed by the IRS. Include in the taxable Paperwork Reduction Act unless the form
Don’t file Form 4970 for distributions from any income amounts considered distributed in that displays a valid OMB control number. Books or
foreign trusts, except to attach it as a worksheet year as a result of prior accumulation records relating to a form or its instructions must
to Form 3520 if those instructions direct you to. distributions, whether from the same or another be retained as long as their contents may
Note: If the accumulation distributions are from a trust, and whether made in an earlier year or the become material in the administration of any
domestic trust that used to be a foreign trust, see current year. Internal Revenue law. Generally, tax returns and
Rev. Rul. 91-6, 1991-1 C.B. 89. If your taxable income as adjusted is less than return information are confidential, as required by
zero, enter zero. section 6103.
Definitions Line 17. Figure the income tax (excluding any The time needed to complete and file this form
Undistributed net income (UNI). UNI is the alternative minimum tax (AMT)) on the income on will vary depending on individual circumstances.
distributable net income (DNI) of the trust for any line 16 using the tax rates in effect for your The estimated burden for individual taxpayers
tax year less (1) the amount of income required particular earlier tax year shown in each of the filing this form is approved under OMB control
to be distributed currently and any other three columns. Use the Tax Rate Schedules, etc., number 1545-0074 and is included in the
amounts properly paid or credited or required to as applicable. You can get the Tax Rate estimates shown in the instructions for their
be distributed to beneficiaries in the tax year and Schedules and prior year forms by downloading individual income tax return. The estimated
(2) the taxes imposed on the trust attributable to them at www.irs.gov. burden for all other taxpayers who file this form is
such DNI. Line 18. Enter your income tax (excluding any shown below.
Accumulation distribution. An accumulation AMT) as originally reported, corrected, or Learning about the
distribution is the excess of amounts properly amended, before reduction for any credits for law or the form . . . . . . . . 13 min.
paid, credited, or required to be distributed your particular earlier year shown in each of the Preparing the form . . . . . . 52 min.
(other than income required to be distributed three columns. Copying, assembling,
currently) over the DNI of the trust reduced by Line 20. Nonrefundable credits that are limited to and sending the form to the IRS . . 20 min.
income required to be distributed currently. tax liability, such as the general business credit, If you have comments concerning the
Generally, except for tax-exempt interest, the may be changed because of an accumulation accuracy of these time estimates or suggestions
distribution loses its character upon distribution distribution. If the total allowable credits for any for making this form simpler, we would be happy
to the beneficiary. See section 667(d) for special of the 3 computation years increase, enter the to hear from you. See the instructions for the tax
rules for foreign trusts. increase on line 20. However, don’t treat as an return with which this form is filed.
increase the part of the credit that was allowable
Specific Instructions as a carryback or carryforward credit in the
Item E—Type of trust. If you received an current or any preceding year other than the
accumulation distribution from a foreign trust, computation year.
see Foreign trust beneficiaries , earlier. Don’t file To refigure these credits, you must consider
this form other than as an attachment to Form changes to the tax before credits for each of the
3520. 3 computation years due to previous
Line 1. For a nonresident alien or foreign accumulation distributions.
corporation, include only the part of the If the accumulation distribution is from a
accumulation distribution that is attributable to domestic trust that paid foreign income taxes,
U.S. sources or is effectively connected with a the limitation on the foreign tax credit under
trade or business carried on in the United States. section 904 is applied separately to the
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