# 26 U.S.C. § 671: Trust income, deductions, and credits attributable to grantors and others as substantial owners

Source: OLRC release point 119-134 <https://uscode.house.gov/us/usc/119-134/t26/s671>. Cite pinpoints as 26 U.S.C. § 671(a)(1).

Where it is specified in this subpart that the grantor or another person shall be treated as the owner of any portion of a trust, there shall then be included in computing the taxable income and credits of the grantor or the other person those items of income, deductions, and credits against tax of the trust which are attributable to that portion of the trust to the extent that such items would be taken into account under this chapter in computing taxable income or credits against the tax of an individual. Any remaining portion of the trust shall be subject to subparts A through D. No items of a trust shall be included in computing the taxable income and credits of the grantor or of any other person solely on the grounds of his dominion and control over the trust under section 61 (relating to definition of gross income) or any other provision of this title, except as specified in this subpart.

## Regulations

- [Treas. Reg. § 1.671-1](/26/reg/1.671-1.md): Grantors and others treated as substantial owners; scope. (interprets § 671)
- [Treas. Reg. § 1.671-2](/26/reg/1.671-2.md): Applicable principles. (interprets § 671)
- [Treas. Reg. § 1.671-3](/26/reg/1.671-3.md): Attribution or inclusion of income, deductions, and credits against tax. (interprets § 671)
- [Treas. Reg. § 1.671-4](/26/reg/1.671-4.md): Method of reporting. (interprets § 671)
- [Treas. Reg. § 1.671-5](/26/reg/1.671-5.md): Reporting for widely held fixed investment trusts. (interprets § 671)

## Forms named in the regulations

- [Form 1041](https://www.irs.gov/pub/irs-pdf/f1041.pdf)
- [Form W-9](https://www.irs.gov/pub/irs-pdf/fw9.pdf)
- [Form 1099-DIV](https://www.irs.gov/pub/irs-pdf/f1099div.pdf)
- [Form 1096](https://www.irs.gov/pub/irs-pdf/f1096.pdf)

## Final rules

- [71 FR 78351](https://www.federalregister.gov/documents/2006/12/29/06-9924/reporting-rules-for-widely-held-fixed-investment-trusts) (2006): Reporting Rules for Widely Held Fixed Investment Trusts
- [71 FR 43968](https://www.federalregister.gov/documents/2006/08/03/06-6649/reporting-rules-for-widely-held-fixed-investment-trusts) (2006): Reporting Rules for Widely Held Fixed Investment Trusts
- [71 FR 4002](https://www.federalregister.gov/documents/2006/01/24/06-396/reporting-for-widely-held-fixed-investment-trusts) (2006): Reporting for Widely Held Fixed Investment Trusts
- [67 FR 78371](https://www.federalregister.gov/documents/2002/12/24/02-32149/election-to-treat-trust-as-part-of-an-estate) (2002): Election To Treat Trust as Part of an Estate
- [65 FR 41332](https://www.federalregister.gov/documents/2000/07/05/00-16931/definition-of-grantor) (2000): Definition of Grantor
- [64 FR 43267](https://www.federalregister.gov/documents/1999/08/10/99-19928/inbound-grantor-trusts-with-foreign-grantors) (1999): Inbound Grantor Trusts With Foreign Grantors

## Leading cases

- [Estate of Kanter v. Commissioner, 337 F.3d 833 (7th Cir. 2003)](https://www.courtlistener.com/opinion/782888/estate-of-burton-w-kanter-deceased-joshua-s-kanter-and-naomi-kanter-v/)
- [Edgar v. Commissioner, 56 T.C. 717 (1971)](https://www.courtlistener.com/opinion/4703186/edgar-v-commissioner/)
- [Bixby v. Commissioner, 58 T.C. 757 (1972)](https://www.courtlistener.com/opinion/4703383/bixby-v-commissioner/)

## Proposed regulations (not in force)

- [Prop. Treas. Reg. § 1.671-4](/26/prop/1.671-4_94-17567.md): Method of reporting. (PS-79-93, proposed 1994-07-22)
- [Prop. Treas. Reg. § 1.671-1](/26/prop/1.671-1_96-24864.md): Grantors and others treated as substantial owners; scope. (REG-209826-96, proposed 1996-09-27)
- [Prop. Treas. Reg. § 1.671-2](/26/prop/1.671-2_96-24864.md): Applicable principles (REG-209826-96, proposed 1996-09-27)

## Connections

Cites: § 61 Gross income defined

Cited by: § 170 Charitable, etc., contributions and gifts; § 684 Recognition of gain on certain transfers to certain foreign trusts and estates

## Amendments

- 1954-08-16: [Act Aug. 16, 1954, ch. 736](/26/act/1954-ch736.md), 68A Stat. 226