Tax on Accumulation Distribution of Foreign Trusts

1. Form 4970FT OMB No. 1545-0192 Tax on Accumulation Distribution of Foreign Trusts 2007 Internal Revenue Service Attach to beneficiary’s tax return. Department of the Treasury ► ► Attachment Sequence No. 73 See instructions on back. B Social security number A Name(s) as shown on return D Employer identification number Name and address of trust C Type of trust (see instructions G F Beneficiary’s date of birth E Enter number of trusts from which you received □ □ accumulation distributions in this tax year………. Foreign ► Domestic H J Enter Applicable Number of Years Form 3520 Filed by Beneficiary Yes ___ No___ I “Default Method” Elected on Form 3520, Part III Schedule A, Page 5: Yes___ No___ of Foreign Trust Existence: _______ Average Income and Determination of Computation Years Part I • 1 Amount of current distribution that is considered distributed in earlier tax years • [from Schedule J (Form 1041NR), Line 37, Column (a)]……………………………………………………………………… _________________ • 2 Distributions of income accumulated before you were born or reached age 21 (See Instructions)…………………………… XXXXXXXX • 3 Enter amount from Line 1……………………………………………………………………………………………............. . _________________ • 4 Taxes imposed on the trust on amounts from Line 3 [from Schedule J (Form 1041NR), Line 37, Column (b)]……………. . _________________ • 5 Total (Add Lines 3 and 4)……………………………………………………………………………………………………… _________________ • 6 Tax exempt interest included on Line 5 [from Schedule J (Form 1041NR), Line 37, Column (c)]…………………….……. _________________ • 7 Taxable part of Line 5 (Subtract Line 6 from Line 5)………………………………………………………………………… ___________________ • 8 Number of trust’s earlier tax years in which amounts on Line 7 are considered distributed…………………………………... _________________ • 9 Average annual amount considered distributed (Divide Line 3 by Line 8)……………………………....... • 10 Multiply Line 9 by .25……………………………………………………………………………………… • 11 Number of earlier tax years to be taken into account (See Instructions)……………………………………………………… _________________ • 12 Average amount for recomputing tax (Divide Line 7 by Line 11). Enter here and in each Column on Line 15……………… • 13 Enter your taxable income before this (a) 2006 (b) 2005 • distribution for the five immediately • preceding tax years……………….… 1 2 3 4 5 6 7 8 9 10 11 12 (c) 2004 (d) 2003 (e) 2002 Tax Attributable to the Accumulation Distribution Part II • Enter the amounts from Line 13, eliminating the highest and lowest • taxable income years……………………………………………………. • Enter amount from Line 12 in each column…………………………….. • Recomputed taxable income (Add Lines 14 and 15)…………………….. • Income tax on amounts on Line 16…………………………………….... • Income tax before credits on Line 14 income amount.…………………. • Additional tax before credits (Subtract Line 18 form Line 17)…………… • Tax credit adjustment……………………………………………………. • Subtract Line 20 from Line 19…………………………………………… • Alternative minimum tax adjustments…………………………………… • Combine Lines 21 and 22………………………………………………… • Add Columns (a), (b), and (c ), Line 23………………………………………………………………………………… • Divide Line 24 amount by 3……………………………………………………………………………………………. • Multiply the amount on Line 25 by the number of years on Line 11…………………………………………………… • Enter the amount from Line 4…………………………………………………………………………………………... • Partial tax attributable to the accumulation distribution (Subtract Line 27 from 26)(If zero or less, enter 0.)…………. (a) (b) (c) 14 14 15 15 16 16 17 17 18 18 19 19 20 20 21 21 22 22 23 23 24 24 25 25 26 26 27 27 28 28 For Paperwork Reduction Active Notice, see back of form. Form 4970FT (2007) JSA 7A6400 2.000 Page 1 of 2

2. Form4970FT 2007 Tax on Accumulation Distribution of Foreign Trusts Part III Calculation of Interest Charge (See Instructions) 29 ______________________ 29 Enter accumulation distribution from Line 1, Part, 1, Page 1, Form 4970FT……………………………………………… Enter tax on total accumulation distribution from Line 28, Part II, Page 1, Form 4970FT………………………………… Enter applicable number of years of the foreign trust’s existence, as applicable. (See Instructions)………………….. Combined interest rate imposed on the total accumulation distribution. (See Instructions)…………………………… Interest Charge. Multiply the amount of Line 30 by the combined interest rate on Line 32…………………………… Tax attributable to accumulation distributions. Add lines 30 and 33. Enter here and as “additional tax” on your 30 30 31 31 32 32 33 _____________________ 33 34 34 income tax return, Form 1040 or 1040NR (from “Form 4970FT”) .…………………………………………………….. Page 2 of 2