Page:United States Statutes at Large Volume 68A.djvu/865

 CH. 68—ADDITIONS AND PENALTIES

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of the Internal Revenue Code of 1939 shall continue in force with respect to taxable years beginning before January 1, 1955. SEC. 6655. FAILURE BY CORPORATION TO PAY ESTIMATED INCOME TAX. (a) ADDITION TO THE T A X. — I n case of any underpayment of esti-

mated tax by a corporation, except as provided in subsection (d), there shall be added to the tax under chapter 1 for the taxable year an amount determined at the rate of 6 percent per annum upon the amount of the underpayment (determined under subsection (b)) for the period of the underpayment (determined under subsection (c)). (b) AMOUNT OF UNDERPAYMENT.—For purposes of subsection (a), the amount of the underpayment shall be the excess of— (1) The amount of the installment which would be required to be paid if the estimated tax were equal to 70 percent of the tax shown on the return for the taxable year or, if no return was filed, 70 percent of the tax for such year, over (2) The amount, if any, of the installment paid on or before the last date prescribed for payment, (c) P E R I O D OF UNDERPAYMENT.—The period of the underpayment shall run from the date the installment was required to be paid to whichever of the following dates is the earlier— (1) The 15th day of the third month following the close of the taxable year. (2) With respect to any portion of the underpayment, the date on which such portion is paid. For purposes of this paragraph, a payment of estimated tax on the 15th day of the 12th month shall be considered a payment of any previous underpayment only to the extent such payment exceeds the amount of the installment determined under subsection (b)(1) for the 15th day of the 12th month. (d) EXCEPTION.—Notwithstanding the provisions of the preceding subsections, the addition to the tax with respect to any underpayment of any installment shall not be imposed if the total amount of all payments of estimated tax made on or before the last date prescribed for the payment of such installment equals or exceeds the amount which would have been required to be paid on or before such date if the estimated tax were whichever of the following is the lesser— (1) The tax shown on the return of the corporation for the preceding taxable year reduced by $100,000, if a return showing a liability for tax was filed by the corporation for the preceding taxable year and such preceding year was a taxable year of 12 months. (2) An amount equal to the tax computed at the rates applicable to the taxable year but otherwise on the basis of the facts shown on the return of the corporation for, and the law applicable to, the preceding taxable year. (3)(A) an amount equal to 70 percent of the tax for the taxable year computed by placing on an annualized basis the taxable income: (i) for the first 6 months or for the first 8 months of the taxable year, in the case of the installment required to be paid in the ninth month, and (ii) for the first 9 months or for the first 11 months of the taxable year, in the case of the installment required to be paid in the twelfth month. 49012°—54

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§6655 (d)(3)(A) (ii)

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