[Code of Federal Regulations]
[Title 26, Volume 8]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.641(a)-0]

[Page 11-12]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1--INCOME TAXES--Table of Contents
 
Sec. 1.641(a)-0  Scope of subchapter J.

    (a) In general. Subchapter J (sections 641 and following), chapter 1 
of the Code, deals with the taxation of income of estates and trusts and 
their beneficiaries, and of income in respect of decedents. Part I of 
subchapter J contains general rules for taxation of estates and trusts 
(subpart A), specific rules relating to trusts which distribute current 
income only (subpart B), estates and trusts which may accumulate income 
or which distribute corpus (subpart C), treatment of excess 
distributions by trusts (subpart D), grantors and other persons treated 
as substantial owners (subpart E), and miscellaneous provisions relating 
to limitations on charitable deductions, income of an estate or trust in 
case of divorce, and taxable years to which the provisions of subchapter 
J are applicable (subpart F). Part I has no application to any 
organization which is not to be classified for tax purposes as a trust 
under the classification rules of

[[Page 12]]

Sec. Sec. 301.7701-2, 301.7701-3, and 301.7701-4 of this chapter 
(Regulations on Procedure and Administration). Part II of subchapter J 
relates to the treatment of income in respect of decedents. However, the 
provisions of subchapter J do not apply to employee trusts subject to 
subchapters D and F, chapter 1 of the Code, and common trust funds 
subject to subchapter H, chapter 1 of the Code.
    (b) Scope of subparts A, B, C, and D. Subparts A, B, C, and D 
(section 641 and following), part I, subchapter J, chapter 1 of the 
Code, relate to the taxation of estates and trusts and their 
beneficiaries. These subparts have no application to any portion of the 
corpus or income of a trust which is to be regarded, within the meaning 
of the Code, as that of the grantor or others treated as its substantial 
owners. See subpart E (section 671 and following), Part I, subchapter J, 
chapter 1 of the Code, and the regulations thereunder for rules for the 
treatment of any portion of a trust where the grantor (or another 
person) is treated as the substantial owner. So-called alimony trusts 
are treated under subparts A, B, C, and D, except to the extent 
otherwise provided in section 71 or section 682. These subparts have no 
application to beneficiaries of nonexempt employees' trusts. See section 
402(b) and the regulations thereunder.
    (c) Multiple trusts. Multiple trusts that have:
    (1) No substantially independent purposes (such as independent 
dispositive purposes),
    (2) The same grantor and substantially the same beneficiary, and
    (3) The avoidance or mitigation of (i) the progressive rates of tax 
(including mitigation as a result of deferral of tax) or (ii) the 
minimum tax for tax preferences imposed by section 56 as their principal 
purpose,

shall be consolidated and treated as one trust for the purposes of 
subchapter J.

[T.D. 6500, 25 FR 11814, Nov. 26, 1960, as amended by T.D. 6989, 34 FR 
731, Jan. 17, 1969; T.D. 7204, 37 FR 17158, Aug. 25, 1972]