§ 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
508
(a), (b), and (c)) and for purposes of this chapter, a trust which is not exempt from taxation under section
501
(a), all of the unexpired interests in which are devoted to one or more of the purposes described in section
170
(c)(2)(B), and for which a deduction was allowed under section
170,
545
(b)(2),
642
(c),
2055,
2106
(a)(2), or
2522 (or the corresponding provisions of prior law), shall be treated as an organization described in section
501
(c)(3). For purposes of section
509
(a)(3)(A), 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
501
(a), not all of the unexpired interests in which are devoted to one or more of the purposes described in section
170
(c)(2)(B), and which has amounts in trust for which a deduction was allowed under section
170,
545
(b)(2),
642
(c),
2055,
2106
(a)(2), or
2522, section
507 (relating to termination of private foundation status), section
508
(e) (relating to governing instruments) to the extent applicable to a trust described in this paragraph, section
4941 (relating to taxes on self-dealing), section
4943 (relating to taxes on excess business holdings) except as provided in subsection (b)(3), section
4944 (relating to investments which jeopardize charitable purpose) except as provided in subsection (b)(3), and section
4945 (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
170
(f)(2)(B),
2055
(e)(2)(B), or
2522
(c)(2)(B),
(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
507 shall be limited to such segregated amounts.
(3)
Sections
4943 and
4944
(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
170
(c)(2)(B), and all amounts in such trust for which a deduction was allowed under section
170,
545
(b)(2),
642
(c),
2055,
2106
(a)(2), or
2522 have an aggregate value not more than 60 percent of the aggregate fair market value of all amounts in such trusts, or
(4)
Section
507
The provisions of section
507
(a) 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
664
(g)(4)) to an employee stock ownership plan (as defined in section
4975
(e)(7)) in a qualified gratuitous transfer (as defined by section
664
(g)).