Page:United States Statutes at Large Volume 100 Part 3.djvu/143

 PUBLIC LAW 99-509—OCT. 21, 1986

100 STAT. 1951

the Housing and Community Development Act of 1974. The City of 42 USC 530i. Boston shall retain such proceeds in a lump sum and shall be entitled to retain and use all past and future earnings from such proceeds, including any interest.

TITLE VIII—REVENUES, TRADE, AND RELATED PROGRAMS Subtitle A—Revenue Provisions PART I—INCREASES IN CERTAIN PENALTIES SEC. 8001. INCREASE IN PENALTY FOR UNDERPAYMENTS OF TAX DEPOSITS. (a) IN GENERAL.—Subsection (a) of section 6656 of the Internal Revenue Code of 1954 (relating to underpayment of deposits) is amended by striking out "5 percent" and inserting in lieu thereof "10 percent". (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply to penalties assessed after the date of the enactment of this Act. SEC. 8002. INCREASE IN PENALTY FOR SUBSTANTIAL UNDERSTATEMENT OF LIABILITY. (a) IN GENERAL.—Subsection (a) of section 6661 of the Internal Revenue Code of 1954 (relating to substantial understatement of liability) is amended to read as follows: "(a) ADDITION TO TAX.—If there is a substantial understatement of income tax for any taxable year, there shall be added to the tax an amount equal to 25 percent of the amount of any underpayment attributable to such understatement." (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply to penalties assessed after the date of the enactment of this Act. (c) REPEAL OF INCREASE IN PENALTY BY TAX REFORM ACT OF 1986.—Section 1504 of the Tax Reform Act of 1986 (relating to increase in penalty for substantial understatement of liability) is hereby repealed.

Post, p. 2095; 26 USC 6656. 26 USC 6656 "ote.

26 USC 6661.

26 USC 6661 note. 26use666i, 6661 note. ^^*' P ^^'*^

PART II—CERTAIN EXCISE TAX DEPOSITS ACCELERATED SEC. 8011. CERTAIN EXCISE TAX DEPOSITS ACCELERATED. (a) TOBACCO.—

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(1) IN GENERAL.—Paragraph (2) of section 5703(b) of the Internal Revenue Code of 1954 (relating to method of payment of tax) is amended to read as follows: Post, p. 2095; "(2) TIME FOR PAYMENT OP TAXES.— 26 USC 5703. "(A) IN GENERAL.—Except as otherwise provided in this -•'•' paragraph, in the case of taxes on tobacco products and cigarette papers and tubes removed during any semimonthly period under bond for deferred payment of tax, the last day for payment of such taxes shall be the 14th day after the last day of such semimonthly period.

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