Page:United States Statutes at Large Volume 98 Part 1.djvu/838

 98 STAT. 790

PUBLIC LAW 98-369—JULY 18, 1984

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"In the case of the following The applicable required installments: percentage is: 1st 20 2nd 40 3rd 60 4th 80. "(iii) ADJUSTED SELF-EMPLOYMENT INCOME.—The term

'adjusted self-employment income' means self-employment income (as defined in section 1402(b)); except that section 1402(b) shall be applied by placing wages (within the meaning of section 1402(b)) for months in the taxable year ending before the due date for the installment on an annualized basis consistent with clause (i). "(e) EXCEPTIONS.— "(1) WHERE TAX IS SMALL AMOUNT.—No addition to tax shall

be imposed under subsection (a) for any taxable year if the tax shown on the return for such taxable year (or, if no return is filed, the tax), reduced by the credit allowable under section 31, is less than $500. "(2) WHERE NO TAX LIABILITY FOR PRECEDING TAXABLE YEAR.—

No addition to tax shall be imposed under subsection (a) for any taxable year if^ "(A) the preceding taxable year was a taxable year of 12 months, "(B) the individual did not have any liability for tax for the preceding taxable year, and "(C) the individual was a citizen or resident of the United States throughout the preceding taxable year. "(3) WAIVER IN CERTAIN CASES.—

"(A) IN GENERAL.—No addition to tax shall be imposed under subsection (a) with respect to any underpayment to the extent the Secretary determines that by reason of casualty, disaster, or other unusual circumstances the imposition of such addition to tax would be against equity and good conscience. "(B) NEWLY RETIRED OR DISABLED INDIVIDUALS.—No addition to tax shall be imposed under subsection (a) with respect to any underpayment if the Secretary determines that— "(i) the taxpayer— "(I) retired after having attained age 62, or "(II) became disabled, in the taxable year for which estimated payments were required to be made or in the taxable year preceding such taxable year, and "(ii) such underpayment was due to resisonable cause and not to willful neglect. "(f) TAX COMPUTED AFTER APPLICATION OF CREDITS AGAINST

TAX.—For purposes of this section, the term 'tax' means— 26 USC 1 et seq. "(1) the tax imposed by chapter 1, plus 26 USC 1401 et "(2) the tax imposed by chapter 2, minus ««9"(3) the sum of— "(A) the credits against tax allowed by part IV of subPost, p. 826. chapter A of chapter 1, other than the credit against tax provided by section 31 (relating to tax withheld on wages), plus

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