Undistributed Net Income Law and Legal Definition

According to 26 USCS § 665 [Title 26. Internal Revenue Code; Subtitle A. Income Taxes; Chapter 1. Normal Taxes and Surtaxes; Subchapter J. Estates, Trusts, Beneficiaries, and Decedents; Part I. Estates, Trusts, and Beneficiaries; Subpart D. Treatment of Excess Distributions by Trusts], undistributed net income for any taxable year means “the amount by which the distributable net income of the trust for such taxable year exceeds the sum of-- (1) the amounts for such taxable year specified in paragraphs (1) and (2) of section 661(a) [26 USCS § 661(a)], and (2) the amount of taxes imposed on the trust attributable to such distributable net income.”