Massachusetts General Laws Chapter 62, Section 11A requires resident trustees making payments of income subject to taxation under Chapter 62, to resident beneficiaries of pooled income funds as described in Section 642(c)(5) of the Internal Revenue Code, and charitable remainder annuity trusts or charitable remainder unitrusts as described in Section 664(d) of the Internal Revenue Code, to withhold and deduct Massachusetts income taxes on these payments.

Section 514(b) of the federal Revenue Act of 1978 extends the benefits of pooled income funds and charitable remainder annuity trusts or charitable remainder unitrusts to trusts created before December 31, 1977 and amended or conformed to qualify as such trusts prior to January 1, 1978. Trusts which are so amended or conformed to qualify as pooled income funds or charitable remainder annuity trusts or unitrusts are with the scope of Chapter 62, Section 11A.

Payments from trusts governed by Chapter 62, Section 11A are subject to Massachusetts income tax withholding at the tax rates applicable to the class of income paid. The amount withheld and paid by the trustee is allowed as a credit to the beneficiary toward his Massachusetts income tax liability.

Joyce Hampers
Commissioner of Revenue


February 15, 1980

TIR 80-1