Page:United States Statutes at Large Volume 101 Part 2.djvu/1218

 101 STAT. 1330-424

PUBLIC LAW 100-203—DEC. 22, 1987

I '•'

26 USC 56 note.

Reports.

ance company consistent with the calculation of adjusted net book income generally." (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1987. SEC. 10244. CERTAIN INSURANCE SYNDICATES. '! (a) STUDY.—The Secretary of the Treasury (or his delegate) shall conduct a study of the proper Federal income tax treatment of income earned by members of insurance or reinsurance syndicates. Not later than April 1, 1988, the Secretary shall submit a report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate on the results of the study conducted under this subsection, together with such recommendations as he may deem advisable. (b) RENEGOTIATION OF CLOSING AGREEMENT.—Not later than January 1, 1990, the Secretary of the Treasury (or his delegate) shall renegotiate the closing agreement with the underwriters participating in certain insurance or reinsurance syndicates which was signed by the Internal Revenue Service on April 1, 1980, to implement the conclusions reached in the study conducted under subsection (a).

Subtitle C—Estimated Tax Provisions

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SEC. 10301. REVISION OF CORPORATE ESTIMATED TAX PROVISIONS. (a) GENERAL RULE.—Section 6655 (relating to failure by corporation to pay estimated income tax) is amended to read as follows: 26 USC 6655. "SEC. 6655. FAILURE BY CORPORATION TO PAY ESTIMATED INCOME TAX. "(a) ADDITION TO TAX.—Except as otherwise provided in this section, in the case of any underpayment of estimated tsix by a corporation, there shall be added to the tax under chapter 1 for the -•:K'" alii "ibli r taxable year an amount determined by applying— "(1) the underpayment rate established under section 6621, V.? I "(2) to the amount of the underpayment, ,, ..,,^g ' ' "(3) for the period of the underpayment. ' ' " ' "(b) AMOUNT OF UNDERPAYMENT; PERIOD OF UNDERPAYMENT.—For

purposes of subsection (a)— "(1) AMOUNT.—The amount of the underpayment shall be the excess of— ' '(A) the required installment, over "(B) the amount (if any) of the installment paid on or - .a:s before the due date for the installment. "(2)

PERIOD

OF

UNDERPAYMENT.—The

period

of

the

"i underpayment shall run from the due date for the installment I to whichever of the following dates is the earlier— { "(A) the 15th day of the 3rd month following the close of K the taxable year, or t'"(B) with respect to any portion of the underpayment, the date on which such portion is paid. v^ i- "(3) ORDER OP CREDITING PAYMENTS.—For purposes of paraf graph (2)(B), a payment of estimated tax shall be credited 'i against unpaid required installments in the order in which such installments are required to be paid. "(c) NUMBER OF REQUIRED INSTALLMENTS; DUE DATES.—For purposes of this section— -Fs.,:, M i?? • v *i

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