Page:United States Statutes at Large Volume 68A.djvu/866

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INTERNAL REVENUE CODE OF 1954

(B) For purposes of this paragraph, the taxable income shall be placed on an annualized basis by— (i) multiplying by 12 the taxable income referred to in subparagraph (A), and (ii) dividing the resulting amount by the number of months in the taxable year (6 or 8, or 9 or 11, as the case may be) referred to in subparagraph (A). (e) DEFINITION OF T A X, — For purposes of subsections (b), (d)(2),

and (d)(3), the term " tax " means the excess of— (1) the tax imposed by section 11 or 1201 (a), or subchapter L of chapter 1, whichever is applicable, over (2) the sum of— (A) $100,000, and (B) the credits against tax provided in part IV of subchapter A of chapter 1. (f) SHORT TAXABLE Y E A R. — The application of this section to taxable years of less than 12 months shall be in accordance with regulations prescribed by the Secretary or his delegate. SEC. 6656. FAILURE TO MAKE DEPOSIT OF TAXES.

(a) PENALTY.—In case of failure by any person required by this title or by regulation of the Secretary or his delegate under this title to deposit on the date prescribed therefor any amount of tax imposed by this title in such government depositary as is authorized under section 6302(c) to receive such deposit, unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be imposed upon such person a penalty of 1 percent of the amount of the underpayment if the failure is for not more than 1 month, with an additional 1 percent for each additional month or fraction thereof during which such failure continues, not exceeding 6 percent in the aggregate. For purposes of this subsection, the term "underpayment" means the excess of the amount of the tax required to be so deposited over the amount, if any, thereof deposited on or before the date prescribed therefor. (b) PENALTY N O T IMPOSED AFTER D U E D A T E FOR R E T U R N, — For

purposes of subsection (a), the failure shall be deemed not to continue beyond the last date (determined without regard to any extension of time) prescribed for payment of the tax required to be deposited or beyond the date the tax is paid, whichever is earlier. SEC. 6657. BAD CHECKS.

If any check or money order in payment of any amount receivable under this title is not duly paid, in addition to any other penalties provided by law, there shall be paid as a penalty by the person who tendered such check, upon notice and demand by the Secretary or his delegate, in the same manner as tax, an amount equal to 1 percent of the amount of such check, except that if the amount of such check is less than $500, the penalty under this section shall be $5 or the amount of such check, whichever is the lesser. This section shall not apply if the person tendered such check in good faith and with reasonable cause to believe that it would be duly paid. SEC. 6658. ADDITION TO TAX IN CASE OF JEOPARDY.

If a taxpayer violates or attempts to violate section 6851 (relating to termination of taxable year) there shall, in addition to all other § 6655(d)(3)(B)

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