Page:United States Statutes at Large Volume 88 Part 2.djvu/799

 88 STAT. ]

PUBLIC LAW 93-625-JAN. 3, 1975

on February 1 of the immediately succeeding year. An adjustment provided for under this subsection may not be made prior to the expiration of 23 months following the date of any preceding adjustment under this subsection which changes the rate of interest. "'(c) DEFINITION OF P R I M E RATE.—For purposes of subsection (b), the term 'adjusted prime rate charged by banks' means 90 percent of the average predominant prime rate quoted by commercial banks to large businesses, as determined by the Board of Governors of the Federal Reserve System." (2) The following provisions are each amended by striking out "the rate of 6 percent per annum" and inserting in lieu thereof the following: "an annual rate established under section 6621": (A) section 6601(a) (relating to interest on underpayments), (B) section 6602 (relating to interest on erroneous refunds recoverable by suit), (C) section 6611(a) (relating to interest on overpayments), (D) section 6332(c)(1) (relating to interest with respect to failure to surrender property subject to levy), and (E) section 7426(g) (relating to interest on judgments with respect to property wrongfully levied upon). Section 2411(a) of title 28 of the United States Code (relating to interest on judgments for overpayments of tax) is amended by striking out "the rate of 6 per centum per annum" and inserting in lieu thereof: "an annual rate established under section 6621 of the Internal Revenue Code of 1954".

2115

^"^^' P* 2^^'*26 USC 66oi. ^^ "^"^ ^^^'226 USC 66ii. 26 USC 63S2. ^6 USC 7426.

(b) TERMINATION OF R E D U C E D I N T E R E S T R A T E I N CERTAIN C A S E S. —

(1) CERTAIN EXTENSIONS OF TIME.—Section 6601 is amended by

striking out subsection (b) (relating to extensions of time in the case of certain estates) and subsection (j) (relating to extensions of time in the case of certain expropriation less), and by redesignating subsections (c), (d), (e), (f), (g), (h), (i), (k), and (1) as subsections (b), (c), (d), (e), (f), (g), (h), (i), and (j), respectively. (2) DEBT-FINANCED PROPERTY.—Section 514(b)(3)(D) (relating to interest with respect to certain unrelated debt-financed income) is amended by striking out the last sentence.

26 USC 6601.

26 USC 514.

(c) I N C R E A S E I N P E N A L T Y FOR F A I L U R E To P A Y E S T I M A T E D I N C O M E

TAX.—Section 6654(a) (relating to failure by individuals to pay estimated income tax) and sections 6655(a) and (g)(1) (relating to failure by corporations to pay estimated income tax) are each amended by striking out "the rate of 6 percent per annum" and inserting in lieu thereof the following: "an annual rate established under section 6621".

26 USC 6654. 26 USC 6655.

(d) CONFORMING AMENDMENTS.—

(1) Section 6163(c) is amended to read as follows: "(c)

26 USC 6I63.

CROSS REFERENCE.—

"For authority of the Secretary or his delegate to require security in the case of an extension under this section, see section 616.5."

(2) Sections 6166(g) and 6167(e) are each amended by striking out the last sentence. (3) Sections 6166(k) and 6167(h) are each amended by striking out paragraph (1) and by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively. (4) Section 6504(15) is amended by striking out "6601(h)" and inserting in lieu thereof "6601 (g) ". (5) The table of subchapters for chapter 67 is amended by adding at the end thereof the following: "SUBCHAPTER 0. Determination of Interest Rate.".

26 USC 6166, 6167.

26 USC 6504

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