Exit tax on accreted income imposed on certain trusts upon conversion, merger, cancellation or failed dissolution. An exit tax applies to the accreted income of registered charitable or notified trusts and institutions upon events causing loss of eligibility (conversion, cancellation, modification of objects, merger into a non qualifying entity, or failure to transfer assets on dissolution). Accreted income equals aggregate fair market value of total assets on the specified valuation date less liabilities per valuation rules, with statutory exclusions for assets acquired from exempt income, assets existing before registration became effective, and assets transferred to eligible recipients. The tax is additional to regular income tax, payable within a short statutory period, attracts interest if delayed, and designates trustees or certain transferees as assessees in default.