Page:United States Statutes at Large Volume 74.djvu/166

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PUBLIC LAW 86-459-MAY 13, 1960

[74 S T A T.

SO prorated to any installment the date for payment of which has arrived shall be paid upon notice and demand from the Secretary of the Treasury or his delegate. (3)

EFFECT or DECREASE.—

For treatment of a decrease in the net increase in tax as the result of a redetermination described in paragraph (1)(B), see section 6403 of the Internal Revenue Code of 1954 (relating to overpayment of installment).

26 USC 6403.

(e) SUSPENSION OF INTEREST.—

26 USC 6151.

(1) IN GENERAL.—If an election under subsection (a) applies and there is a net increase in tax (as defined in subsection (b)(2)), no interest shall be imposed on any underpayment (and no interest shall be paid on any overpayment) attributable to such election for the period beginning on the date of such election and ending on the date prescribed by section 6151(a) of the Internal Revenue Code of 1954 for payment of the tax for the taxable year in which the election was made. (2)

26 USC 6601.

N o INTEREST DURING INSTALLMENT PERIOD.—If a n election

under subsection (b) applies, no interest shall be imposed for the period on or after the date fixed for payment of the first installment unless payment of unpaid installments is accelerated under subsection (f) or (g). (3) INTEREST WHERE PAYMENT IS ACCELERATED.—If payment is accelerated under subsection (f) or (g), interest determined in accordance with the provisions of section 6601 of the Internal Revenue Code of 1954 on the entire unpaid tax shall be payable— (A) if payment is accelerated under subsection (f), from the date of notice and demand provided by such subsection to the date such tax is paid, or (B) if payment is accelerated under subsection (g), from the date fixed for paying the unpaid installment to the date such tax is paid. (f)

TERMINATION or INSTALLMENT PAYMENT PRIVILEGE.—The ex-

tension of time provided by this section for payment of tax shall cease to apply, and any unpaid installments shall be paid upon notice and demand from the Secretary of the Treasury or his delegate, if— (1) in the case of a taxpayer who is an individual, he dies or ceases to engage in a trade or business, (2) in the case of a taxpayer who is a partner, the entire interest of such partner is transferred or liquidated or the partnership terminates, or (3) in the case of a taxpayer which is a corporation, the taxpayer ceases to engage in a trade or business, unless the unpaid portion of the tax payable in installments is required to be taken into account by the acquiring corporation under section 5(d). (g) FAILURE TO P A Y INSTALLMENT.—If any installment under this section is not paid on or before the date fixed for its payment by this section (including any extension of time for payment of such installment), the unpaid installments shall be paid upon notice and demand from the Secretary of the Treasury or his delegate. (h) 26 USC 6502.

SUSPENSION OF R U N N I N G OF PERIODS OF LIMITATION.—The

running of the periods of limitation provided by section 6502 of the Internal Revenue Code of 1954 (or corresponding provision of prior law) for the collection of any amount of tax payable in installments under this section shall be suspended for the period of any extension of time for payment granted under this section.

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