This article will briefly review the history of the throwback rules and will then show that the small savings still available through trust accumulations that would result without the operation of the throwback rules do not justify the continuance of these complicated throwback rules. In fact, the tax savings through trust accumulations without the throwback rules can be matched even within the operation of the throwback rules. Finally, this article will show that through a small rate change that may be forthcoming for other reasons, the potential savings through the accumulation of income in trusts may be reduced to such a degree that there can be no real argument against the removal of the throwback rules. In this way, some simplification can be given to an area of tax law that is badly in need of attention.
Cunningham, John R.
"The Trust Throwback Rules: The Solution Remains After the Problem Fades,"
Akron Law Review: Vol. 24
, Article 3.
Available at: http://ideaexchange.uakron.edu/akronlawreview/vol24/iss1/3