Page:United States Statutes at Large Volume 101 Part 2.djvu/1224

 101 STAT. 1330-430

PUBLIC LAW 100-203—DEC. 22, 1987

SEC. 10303. ESTIMATED TAX PENALTIES FOR 1987. 26 USC 6654

(a) D E L A Y

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OF INCREASE IN CURRENT Y E A R

LIABILITY

T E S T FOR

INDIVIDUALS.—Notwithstanding section 1541(c) of the Tax Reform Act of 1986, the amendments made by section 1541 of such Act shall apply only to taxable years beginning after December 31, 1987. (b) CORPORATE PROVISIONS.— (1) RATIFICATION OF SECRETARIAL WAIVER.—The Congress

hereby ratifies the safe harbor provided by paragraph (b) of the Treasury Temporary Regulation 1.6655-2T. 26 USC 6655 note.

(2) CORPORATIONS ALSO MAY USE 1986 TAX TO DETERMINE -^ AMOUNT OF CERTAIN ESTIMATED TAX INSTALLMENTS DUE ON OR BEFORE JUNE 15, 1987.—

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(A) IN GENERAL.—In the case of a large corporation, no addition to tax shall be imposed by section 6655 of the Internal Revenue Code of 1986 with respect to any underpayment of an estimated tax installment to which this subsection applies if no addition would be imposed with respect to such underpayment by reason of section 6655(d)(1) of such Code if such corporation were not a large corporation. The preceding sentence shall apply only to the extent the underpayment is paid on or before the last date prescribed for payment of the most recent installment of estimated tax due on or before September 15, 1987. (B) INSTALLMENT TO WHICH SUBSECTION APPLIES.—This

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subsection applies to any installment of estimated tax for a taxable year beginning after December 31, 1986, which is due on or before June 15, 1987. >-••• (C) LARGE CORPORATION.—For purposes of this subsection, the term "large corporation" has the meaning given such •.r ^ term by section 6655(i)(2) of such Code (as in effect on the day before the date of the enactment of this Act).

Subtitle D—Estate and Gift Tax Provisions PART I—GENERAL PROVISIONS SEC. 10401. 5-YEAR EXTENSION OF EXISTING RATES; PHASEOUT OF BENEFITS OF EXISTING R A T E S AND UNIFIED CREDIT. (a) 5-YEAR EXTENSION OF GRADUATED RATES.—Paragraph (2) of

section 2001(c) (relating to phasein of 50 percent maximum rate) is amended— (1) by striking out "1988" in subparagraph (A) and inserting in lieu thereof '1993", (2) by striking out "in 1984, 1985, 1986, or 1987" in the text of subparagraph (D) and inserting in lieu thereof "after 1983 and before 1993^', and (3) by amending the heading of subparagraph (D) to read as follows: "(D) AFTER 1983 AND BEFORE 1993.—". (b) PHASEOUT OF BENEFITS OF GRADUATED RATES AND UNIFIED CREDIT.—

(1) IN GENERAL.—Subsection (c) of section 2001 is amended by adding at the end thereof the following new paragraph: 5 ^-

"(3) PHASEOUT OF GRADUATED RATES AND UNIFIED CREDIT.—The

'-^^ tentative tax determined under paragraph (1) shall be increased by an amount equal to 5 percent of so much of the amount (with

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