# § 6655. Failure by corporation to pay estimated income tax
**(a)** **Addition to tax** Except as otherwise provided in this section, in the case of any underpayment of estimated tax by a corporation, there shall be added to the tax under chapter 1 for the taxable year an amount determined by applying—
**(1)** the underpayment rate established under section 6621,
**(2)** to the amount of the underpayment,
**(3)** for the period of the underpayment.
**(b)** **Amount of underpayment; period of underpayment** For purposes of subsection (a)—
**(1)** **Amount** The amount of the underpayment shall be the excess of—
**(A)** the required installment, over
**(B)** the amount (if any) of the installment paid on or before the due date for the installment.
**(2)** **Period of underpayment** The period of the underpayment shall run from the due date for the installment to whichever of the following dates is the earlier—
**(A)** the 15th day of the 4th month following the close of the taxable year, or
**(B)** with respect to any portion of the underpayment, the date on which such portion is paid.
**(3)** **Order of crediting payments** For purposes of paragraph (2)(B), a payment of estimated tax shall be credited against unpaid required installments in the order in which such installments are required to be paid.
**(c)** **Number of required installments; due dates** For purposes of this section—
**(1)** **Payable in 4 installments** There shall be 4 required installments for each taxable year.
**(2)** **Time for payment of installments**
| In the case of the following required installments: | The due date is: |
| --- | --- |
| 1st | April 15 |
| 2nd | June 15 |
| 3rd | September 15 |
| 4th | December 15. |
**(d)** **Amount of required installments** For purposes of this section—
**(1)** **Amount** Clause (ii) shall not apply if the preceding taxable year was not a taxable year of 12 months, or the corporation did not file a return for such preceding taxable year showing a liability for tax.
**(A)** **In general** Except as otherwise provided in this section, the amount of any required installment shall be 25 percent of the required annual payment.
**(B)** **Required annual payment** Except as otherwise provided in this subsection, the term “required annual payment” means the lesser of—
**(i)** 100 percent of the tax shown on the return for the taxable year (or, if no return is filed, 100 percent of the tax for such year), or
**(ii)** 100 percent of the tax shown on the return of the corporation for the preceding taxable year.
**(2)** **Large corporations required to pay 100 percent of current year tax**
**(A)** **In general** Except as provided in subparagraph (B), clause (ii) of paragraph (1)(B) shall not apply in the case of a large corporation.
**(B)** **May use last year’s tax for 1st installment** Subparagraph (A) shall not apply for purposes of determining the amount of the 1st required installment for any taxable year. Any reduction in such 1st installment by reason of the preceding sentence shall be recaptured by increasing the amount of the next required installment determined under paragraph (1) by the amount of such reduction.
**(e)** **Lower required installment where annualized income installment or adjusted seasonal installment is less than amount determined under subsection (d)**
**(1)** **In general** In the case of any required installment, if the corporation establishes that the annualized income installment or the adjusted seasonal installment is less than the amount determined under subsection (d)(1) (as modified by paragraphs (2) and (3) of subsection (d))—
**(A)** the amount of such required installment shall be the annualized income installment (or, if lesser, the adjusted seasonal installment), and
**(B)** any reduction in a required installment resulting from the application of this paragraph shall be recaptured by increasing the amount of the next required installment determined under subsection (d)(1) (as so modified) by the amount of such reduction (and by increasing subsequent required installments to the extent that the reduction has not previously been recaptured under this subparagraph).
**(2)** **Determination of annualized income installment**
**(A)** **In general** In the case of any required installment, the annualized income installment is the excess (if any) of—
**(i)** an amount equal to the applicable percentage of the tax for the taxable year computed by placing on an annualized basis the taxable income, adjusted financial statement income (as defined in section 56A), and modified taxable income—
**(I)** for the first 3 months of the taxable year, in the case of the 1st required installment,
**(II)** for the first 3 months of the taxable year, in the case of the 2nd required installment,
**(III)** for the first 6 months of the taxable year in the case of the 3rd required installment, and
**(IV)** for the first 9 months of the taxable year, in the case of the 4th required installment, over
**(ii)** the aggregate amount of any prior required installments for the taxable year.
**(B)** **Special rules** For purposes of this paragraph—
**(i)** **Annualization** The taxable income, adjusted financial statement income (as defined in section 56A), and modified taxable income shall be placed on an annualized basis under regulations prescribed by the Secretary.
**(ii)** **Applicable percentage**
| In the case of the following required installments: | The applicable percentage is: |
| --- | --- |
| 1st | 25 |
| 2nd | 50 |
| 3rd | 75 |
| 4th | 100. |
**(iii)** **Modified taxable income** The term “modified taxable income” has the meaning given such term by section 59A(c)(1).
**(C)** **Election for different annualization periods**
**(i)** If the taxpayer makes an election under this clause—
**(I)** subclause (I) of subparagraph (A)(i) shall be applied by substituting “2 months” for “3 months”,
**(II)** subclause (II) of subparagraph (A)(i) shall be applied by substituting “4 months” for “3 months”,
**(III)** subclause (III) of subparagraph (A)(i) shall be applied by substituting “7 months” for “6 months”, and
**(IV)** subclause (IV) of subparagraph (A)(i) shall be applied by substituting “10 months” for “9 months”.
**(ii)** If the taxpayer makes an election under this clause—
**(I)** subclause (II) of subparagraph (A)(i) shall be applied by substituting “5 months” for “3 months”,
**(II)** subclause (III) of subparagraph (A)(i) shall be applied by substituting “8 months” for “6 months”, and
**(III)** subclause (IV) of subparagraph (A)(i) shall be applied by substituting “11 months” for “9 months”.
**(iii)** An election under clause (i) or (ii) shall apply to the taxable year for which made and such an election shall be effective only if made on or before the date required for the payment of the first required installment for such taxable year.
**(3)** **Determination of adjusted seasonal installment**
**(A)** **In general** In the case of any required installment, the amount of the adjusted seasonal installment is the excess (if any) of—
**(i)** 100 percent of the amount determined under subparagraph (C), over
**(ii)** the aggregate amount of all prior required installments for the taxable year.
**(B)** **Limitation on application of paragraph** This paragraph shall apply only if the base period percentage for any 6 consecutive months of the taxable year equals or exceeds 70 percent.
**(C)** **Determination of amount** The amount determined under this subparagraph for any installment shall be determined in the following manner—
**(i)** take the taxable income for all months during the taxable year preceding the filing month,
**(ii)** divide such amount by the base period percentage for all months during the taxable year preceding the filing month,
**(iii)** determine the tax on the amount determined under clause (ii), and
**(iv)** multiply the tax computed under clause (iii) by the base period percentage for the filing month and all months during the taxable year preceding the filing month.
**(D)** **Definitions and special rules** For purposes of this paragraph—
**(i)** **Base period percentage** The base period percentage for any period of months shall be the average percent which the taxable income for the corresponding months in each of the 3 preceding taxable years bears to the taxable income for the 3 preceding taxable years.
**(ii)** **Filing month** The term “filing month” means the month in which the installment is required to be paid.
**(iii)** **Reorganization, etc.** The Secretary may by regulations provide for the determination of the base period percentage in the case of reorganizations, new corporations, and other similar circumstances.
**(4)** **Treatment of subpart F income**
**(A)** **In general** Any amounts required to be included in gross income under section 951(a) (and credits properly allocable thereto) shall be taken into account in computing any annualized income installment under paragraph (2) in a manner similar to the manner under which partnership income inclusions (and credits properly allocable thereto) are taken into account.
**(B)** **Prior year safe harbor**
**(i)** **In general** If a taxpayer elects to have this subparagraph apply for any taxable year—
**(I)** subparagraph (A) shall not apply, and
**(II)** for purposes of computing any annualized income installment for such taxable year, the taxpayer shall be treated as having received ratably during such taxable year items of income and credit described in subparagraph (A) in an amount equal to 115 percent of the amount of such items shown on the return of the taxpayer for the preceding taxable year (the second preceding taxable year in the case of the first and second required installments for such taxable year).
**(ii)** **Special rule for noncontrolling shareholder**
**(I)** **In general** If a taxpayer making the election under clause (i) is a noncontrolling shareholder of a corporation, clause (i)(II) shall be applied with respect to items of such corporation by substituting “100 percent” for “115 percent”.
**(II)** **Noncontrolling shareholder** For purposes of subclause (I), the term “noncontrolling shareholder” means, with respect to any corporation, a shareholder which (as of the beginning of the taxable year for which the installment is being made) does not own (within the meaning of section 958(a)), and is not treated as owning (within the meaning of section 958(b)), more than 50 percent (by vote or value) of the stock in the corporation.
**(5)** **Treatment of certain REIT dividends**
**(A)** **In general** Any dividend received from a closely held real estate investment trust by any person which owns (after application of subsection (d)(5) of section 856) 10 percent or more (by vote or value) of the stock or beneficial interests in the trust shall be taken into account in computing annualized income installments under paragraph (2) in a manner similar to the manner under which partnership income inclusions are taken into account.
**(B)** **Closely held REIT** For purposes of subparagraph (A), the term “closely held real estate investment trust” means a real estate investment trust with respect to which 5 or fewer persons own (after application of subsection (d)(5) of section 856) 50 percent or more (by vote or value) of the stock or beneficial interests in the trust.
**(f)** **Exception 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) is less than $500.
**(g)** **Definitions and special rules**
**(1)** **Tax** For purposes of this section, the term “tax” means the excess of—
For purposes of the preceding sentence, in the case of a foreign corporation subject to taxation under section 11 or 1201(a), or under subchapter L of chapter 1, the tax imposed by section 881 shall be treated as a tax imposed by section 11.
**(A)** the sum of—
**(i)** the tax imposed by section 11 or subchapter L of chapter 1, whichever applies,
**(ii)** the tax imposed by section 55,
**(iii)** the tax imposed by section 59A, plus
**(iv)** the tax imposed by section 887, over
**(B)** the credits against tax provided by part IV of subchapter A of chapter 1.
**(2)** **Large corporation**
**(A)** **In general** For purposes of this section, the term “large corporation” means any corporation if such corporation (or any predecessor corporation) had taxable income of $1,000,000 or more for any taxable year during the testing period.
**(B)** **Rules for applying subparagraph (A)**
**(i)** **Testing period** For purposes of subparagraph (A), the term “testing period” means the 3 taxable years immediately preceding the taxable year involved.
**(ii)** **Members of controlled group** For purposes of applying subparagraph (A) to any taxable year in the testing period with respect to corporations which are component members of a controlled group of corporations for such taxable year, the $1,000,000 amount specified in subparagraph (A) shall be divided among such members under rules similar to the rules of section 1561.
**(iii)** **Certain carrybacks and carryovers not taken into account** For purposes of subparagraph (A), taxable income shall be determined without regard to any amount carried to the taxable year under section 172 or 1212(a).
**(3)** **Certain tax-exempt organizations** For purposes of this section—
In the case of any organization described in subparagraph (A), subsection (b)(2)(A) shall be applied by substituting “5th month” for “4th month”, subsection (e)(2)(A) shall be applied by substituting “2 months” for “3 months” in clause (i)(I), the election under clause (i) of subsection (e)(2)(C) may be made separately for each installment, and clause (ii) of subsection (e)(2)(C) shall not apply. In the case of a private foundation, subsection (c)(2) shall be applied by substituting “May 15” for “April 15”.
**(A)** Any organization subject to the tax imposed by section 511, and any private foundation, shall be treated as a corporation subject to tax under section 11.
**(B)** Any tax imposed by section 511, and any tax imposed by section 1 or 4940 on a private foundation, shall be treated as a tax imposed by section 11.
**(C)** Any reference to taxable income shall be treated as including a reference to unrelated business taxable income or net investment income (as the case may be).
**(4)** **Application of section to certain taxes imposed on S corporations** In the case of an S corporation, for purposes of this section—
**(A)** The following taxes shall be treated as imposed by section 11:
**(i)** The tax imposed by section 1374(a).
**(ii)** The tax imposed by section 1375(a).
**(iii)** Any tax for which the S corporation is liable by reason of section 1371(d)(2).
**(B)** Paragraph (2) of subsection (d) shall not apply.
**(C)** Clause (ii) of subsection (d)(1)(B) shall be applied as if it read as follows:
**“(ii)** the sum of—
**“(I)** the amount determined under clause (i) by only taking into account the taxes referred to in clauses (i) and (iii) of subsection (g)(4)(A), and
**“(II)** 100 percent of the tax imposed by section 1375(a) which was shown on the return of the corporation for the preceding taxable year.”
**(D)** The requirement in the last sentence of subsection (d)(1)(B) that the return for the preceding taxable year show a liability for tax shall not apply.
**(E)** Subsection (b)(2)(A) shall be applied by substituting “3rd month” for “4th month”.
**(F)** Any reference in subsection (e) to taxable income shall be treated as including a reference to the net recognized built-in gain or the excess passive income (as the case may be).
**(h)** **Excessive adjustment under section 6425**
**(1)** **Addition to tax** If the amount of an adjustment under section 6425 made before the 15th day of the 4th month following the close of the taxable year is excessive, there shall be added to the tax under chapter 1 for the taxable year an amount determined at the underpayment rate established under section 6621 upon the excessive amount from the date on which the credit is allowed or the refund is paid to such 15th day.
**(2)** **Excessive amount** For purposes of paragraph (1), the excessive amount is equal to the amount of the adjustment or (if smaller) the amount by which—
**(A)** the income tax liability (as defined in section 6425(c)) for the taxable year as shown on the return for the taxable year, exceeds
**(B)** the estimated income tax paid during the taxable year, reduced by the amount of the adjustment.
**(i)** **Fiscal years and short years**
**(1)** **Fiscal years** In applying this section to a taxable year beginning on any date other than January 1, there shall be substituted, for the months specified in this section, the months which correspond thereto.
**(2)** **Short taxable year** This section shall be applied to taxable years of less than 12 months in accordance with regulations prescribed by the Secretary.
**(j)** **Regulations** The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this section.
---
**Source Credit**: (Aug. 16, 1954, ch. 736, 68A Stat. 825; Pub. L. 88–272, title I, § 122(c), Feb. 26, 1964, 78 Stat. 28; Pub. L. 90–364, title I, § 103(c), (d)(2), (e)(1), June 28, 1968, 82 Stat. 262, 264; Pub. L. 93–625, § 7(c), Jan. 3, 1975, 88 Stat. 2115; Pub. L. 94–455, title XIX, § 1906(b)(3)(A)–(C)(i), (13)(A), Oct. 4, 1976, 90 Stat. 1833, 1834; Pub. L. 95–600, title III, § 301(b)(20)(B), Nov. 6, 1978, 92 Stat. 2824; Pub. L. 96–499, title XI, § 1111(a), (b), Dec. 5, 1980, 94 Stat. 2681, 2682; Pub. L. 97–34, title VI, § 601(a)(6)(B), title VII, § 731(a), (b), Aug. 13, 1981, 95 Stat. 336, 346, 347; Pub. L. 97–248, title II, § 234(a), (c), (d), Sept. 3, 1982, 96 Stat. 503, 504; Pub. L. 97–448, title II, § 201(j)(4), Jan. 12, 1983, 96 Stat. 2396; Pub. L. 99–499, title V, § 516(b)(4)(D), Oct. 17, 1986, 100 Stat. 1771; Pub. L. 99–514, title VII, § 701(d)(3), title XV, § 1511(c)(15), Oct. 22, 1986, 100 Stat. 2342, 2745; Pub. L. 100–203, title X, § 10301(a), Dec. 22, 1987, 101 Stat. 1330–424; Pub. L. 100–418, title I, § 1941(b)(6)(B), Aug. 23, 1988, 102 Stat. 1324; Pub. L. 100–647, title II, § 2004(r), title V, § 5001(a), Nov. 10, 1988, 102 Stat. 3609, 3660; Pub. L. 101–239, title VII, §§ 7209(a), 7822(a), Dec. 19, 1989, 103 Stat. 2338, 2424; Pub. L. 101–508, title XI, § 11704(a)(28), Nov. 5, 1990, 104 Stat. 1388–519; Pub. L. 102–227, title II, § 201(a), (b), Dec. 11, 1991, 105 Stat. 1689; Pub. L. 102–244, § 3(a), Feb. 7, 1992, 106 Stat. 4; Pub. L. 102–318, title V, § 512(a), (b), July 3, 1992, 106 Stat. 300; Pub. L. 103–66, title XIII, § 13225(a), (b), Aug. 10, 1993, 107 Stat. 486; Pub. L. 103–465, title VII, § 711(a), Dec. 8, 1994, 108 Stat. 4998; Pub. L. 104–188, title I, § 1703(h), Aug. 20, 1996, 110 Stat. 1876; Pub. L. 105–34, title XIV, § 1461(a), Aug. 5, 1997, 111 Stat. 1057; Pub. L. 106–170, title V, § 571(a), Dec. 17, 1999, 113 Stat. 1950; Pub. L. 106–554, § 1(a)(7) [title III, § 319(21)], Dec. 21, 2000, 114 Stat. 2763, 2763A–647; Pub. L. 113–295, div. A, title II, § 221(a)(12)(K), (114), Dec. 19, 2014, 128 Stat. 4039, 4054; Pub. L. 114–41, title II, § 2006(a)(2)(F), (G), July 31, 2015, 129 Stat. 457; Pub. L. 115–97, title I, §§ 12001(b)(18), (19), 13001(b)(2)(P), 14401(d)(4), Dec. 22, 2017, 131 Stat. 2094, 2097, 2233; Pub. L. 115–141, div. U, title IV, § 401(d)(1)(D)(xx), Mar. 23, 2018, 132 Stat. 1208; Pub. L. 117–169, title I, § 10101(a)(4)(G), (H), Aug. 16, 2022, 136 Stat. 1822.)
## Editorial Notes
### Amendments
2022—Subsec. (e)(2)(A)(i). , inserted “, adjusted financial statement income (as defined in section 56A),” before “and modified taxable income” in introductory provisions.
Subsec. (e)(2)(B)(i). , inserted “, adjusted financial statement income (as defined in section 56A),” before “and modified taxable income”.
Subsec. (g)(1)(A)(ii) to (iv). , added cl. (ii) and redesignated former cls. (ii) and (iii) as (iii) and (iv), respectively.
2018—Subsec. (e)(4). , struck out “and section 936” after “subpart F” in heading.
Subsec. (e)(4)(A). , struck out “936(h) or” before “951(a)”.
2017—Subsec. (e)(2)(A)(i). , inserted “and modified taxable income” after “taxable income” in introductory provisions.
, struck out “and alternative minimum taxable income” after “taxable income” in introductory provisions.
Subsec. (e)(2)(B)(i). , inserted “and modified taxable income” after “taxable income”.
, struck out “and alternative minimum taxable income” after “taxable income”.
Subsec. (e)(2)(B)(iii). , added cl. (iii).
Subsec. (g)(1)(A)(i). , struck out “plus” at end.
, struck out “or 1201(a),” after “section 11”.
, inserted “plus” at end.
Subsec. (g)(1)(A)(ii). , added cl. (ii). Former cl. (ii) redesignated (iii).
, redesignated cl. (iii) as (ii) and struck out former cl. (ii) which read as follows: “the tax imposed by section 55, plus”.
Subsec. (g)(1)(A)(iii). , redesignated cl. (ii) as (iii).
, redesignated cl. (iii) as (ii).
2015—Subsecs. (b)(2)(A), (g)(3). , substituted “4th month” for “3rd month”.
Subsec. (g)(4)(E), (F). , added subpar. (E) and redesignated former subpar. (E) as (F).
Subsec. (h)(1). , substituted “4th month” for “3rd month”.
2014—Subsec. (e)(2)(A)(i), (B)(i). , substituted “taxable income and alternative minimum taxable income” for “taxable income, alternative minimum taxable income, and modified alternative minimum taxable income”.
Subsec. (e)(2)(B)(iii). , struck out cl. (iii). Text read as follows: “The term ‘modified alternative minimum taxable income’ has the meaning given to such term by section 59A(b).”
Subsec. (g)(1)(A)(ii) to (iv). , inserted “plus” at end of cl. (ii), redesignated cl. (iv) as (iii), and struck out former cl. (iii) which read as follows: “the tax imposed by section 59A, plus”.
Subsec. (g)(4)(A)(i). , struck out “(or the corresponding provisions of prior law)” before period at end.
2000—Subsec. (e)(5)(A), (B). substituted “subsection (d)(5)” for “subsections (d)(5) and ()(3)(B)”.
1999—Subsec. (e)(5). added par. (5).
1997—Subsec. (g)(3). inserted at end “In the case of a private foundation, subsection (c)(2) shall be applied by substituting ‘May 15’ for ‘April 15’.”
1996—Subsec. (g)(3). , in closing provisions, substituted “, subsection (e)(2)(A) shall be applied by substituting ‘2 months’ for ‘3 months’ in clause (i)(I), the election under clause (i) of subsection (e)(2)(C) may be made separately for each installment, and clause (ii) of subsection (e)(2)(C) shall not apply.” for “, and, except in the case of an election under subsection (e)(2)(C), subsection (e)(2)(A) shall be applied by substituting ‘2 months’ for ‘3 months’ and in clause (i)(I), by substituting ‘4 months’ for ‘5 months’ in clause (i)(II), by substituting ‘7 months’ for ‘8 months’ in clause (i)(III), and by substituting ‘10 months’ for ‘11 months’ in clause (i)(IV).”
1994—Subsec. (e)(4). added par. (4).
1993—Subsec. (d)(1)(B)(i). , substituted “100 percent” for “91 percent” in two places.
Subsec. (d)(2). , substituted “100 percent” for “91 percent” in heading.
Subsec. (d)(3). , struck out heading and text of par. (3). Text read as follows: “In the case of any taxable year beginning after , and before 1997—
“(A) paragraph (1)(B)(i) and subsection (e)(3)(A)(i) shall be applied by substituting ‘97 percent’ for ‘91 percent’ each place it appears, and
“(B) the table contained in subsection (e)(2)(B)(ii) shall be applied by substituting ‘24.25’, ‘48.50’, ‘72.75’, and ‘97’ for ‘22.75’, ‘45.50’, ‘68.25’, and ‘91.00’, respectively.”
Subsec. (e)(2)(A)(i)(II). , struck out “or for the first 5 months” after “3 months”.
Subsec. (e)(2)(A)(i)(III). , struck out “or for the first 8 months” after “6 months”.
Subsec. (e)(2)(A)(i)(IV). , struck out “or for the first 11 months” after “9 months”.
Subsec. (e)(2)(B)(ii). , in table, substituted applicable percentages of 25, 50, 75, and 100 for 22.75, 45.50, 68.25, and 91.00, respectively, in 1st, 2nd, 3rd, and 4th installments.
Subsec. (e)(2)(C). , added subpar. (C).
Subsec. (e)(3)(A)(i). , substituted “100 percent” for “91 percent”.
Subsec. (g)(3). , substituted “and, except in the case of an election under subsection (e)(2)(C), subsection (e)(2)(A)” for “and subsection (e)(2)(A)” in last sentence.
1992—Subsec. (d)(1)(B)(i). , substituted “91 percent” for “90 percent” in two places.
Subsec. (d)(2). , substituted “91 percent” for “90 percent” in heading.
Subsec. (d)(3). , added par. (3) and struck out former par. (3) which related to temporary increase in amount of installment method based on current tax year for taxable years beginning after 1991 and before 1997.
Subsec. (d)(3)(A). , amended table generally, substituting a single entry “1993 through 1996 . . . . . 95” for former arrangement under which years after 1992 were covered by two table entries: “1993 or 1994 . . . . . 94” and “1995 or 1996 . . . . . 95”.
Subsec. (e)(2)(B)(ii). , in table, substituted applicable percentages of 22.75, 45.50, 68.25, and 91.00 for 22.5, 45, 67.5, and 90, respectively, in 1st, 2nd, 3rd and 4th installments.
Subsec. (e)(3)(A)(i). , substituted “91 percent” for “90 percent”.
1991—Subsec. (d)(3). , added par. (3).
Subsec. (e)(1). , substituted “paragraphs (2) and (3) of subsection (d)” for “subsection (d)(2)”.
1990—Subsec. (g)(3). inserted a period at end of last sentence.
1989—Subsec. (e)(1). , substituted “under subsection (d)(1)” for “under section (d)(1)”.
Subsec. (g)(4). , added par. (4).
1988—Subsec. (e)(1). , struck out at end “A reduction shall be treated as recaptured for purposes of subparagraph (B) if 90 percent of the reduction is recaptured.”
Subsec. (g)(1)(B). amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “the sum of—
“(i) the credits against tax provided by part IV of subchapter A of chapter 1, plus
“(ii) to the extent allowed under regulations prescribed by the Secretary, any overpayment of the tax imposed by section 4986 (determined without regard to section 4995(a)(4)(B)).”
Subsec. (g)(3). , inserted last sentence, and struck out former last sentence which read as follows: “In the case of any organization described in subparagraph (A), subsection (b)(2)(A) shall be applied by substituting ‘5th month’ for ‘3rd month’.”
1987— amended section generally, revising and restating as subsecs. (a) to (j) provisions of former subsecs. (a) to (i).
1986—Subsec. (a)(1). , substituted “the underpayment rate established under section 6621” for “the rate established under section 6621”.
Subsec. (f)(1). , amended par. (1) generally, restating existing provisions in subpar. (A) and adding subpar. (B).
amended subsec. (f)(1), as amended by the Tax Reform Act of 1986 (), by striking out “plus” at end of subpar. (A), substituting “plus” for “over” at end of subpar. (B), and adding subpar. (C).
1983—Subsec. (f)(2)(B). amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “to the extent allowed under regulations prescribed by the Secretary, any amount which is treated under section 6429 as an overpayment of the tax imposed by section 4986”. Notwithstanding directory language that amendment be made to subsec. (e)(2)(B), the amendment was executed to subsec. (f)(2)(B) to reflect the probable intent of Congress, the intervening redesignation of subsec. (e) as (f) by , and the retrospective effect of the amendment as provided by section 203(a), (b) of , set out as an Effective Date of 1983 Amendment note under .
1982—Subsec. (a). , in heading substituted “Addition to tax” for “Addition to the tax”, in provisions preceding par. (1) inserted reference to subsec. (e) as an exception and struck out “estimated” before “tax”, designated existing provisions as par. (1), and in par. (1) as so designated struck out parenthetical reference to subsecs. (b) and (c) for determination of the amount of the underpayment and the period of the underpayment, respectively, and added par. (2).
Subsec. (b)(1). , substituted “90” for “80” wherever appearing.
Subsec. (d)(3)(A). , substituted “90” for “80”.
Subsec. (e). , added subsec. (e). Former subsec. (e) redesignated (f).
Subsec. (f). , redesignated former subsec. (e) as (f) and substituted references to subsecs. (e) and (i) for references to subsec. (h). Former subsec. (f) redesignated (g).
Subsecs. (g) to (i). , redesignated former subsecs. (f) to (h) as (g) to (i), respectively.
1981—Subsec. (e)(2). , inserted “the sum of—”, designated existing provisions as subpar. (A), inserted at end of subpar. (A) “, plus”, and added subpar. (B).
Subsec. (h). , (b), substituted in heading “minimum percentage” for “at least 60 percent” and provisions of par. (1) respecting minimum percentage, for provisions respecting in the case of a large corporation, the amount treated as the estimated tax for the taxable year under paragraphs (1) and (2) of subsection (d) shall in no event be less than 60 percent of the tax shown on the return for the taxable year, or if no return was filed, the tax for such year.
1980—Subsec. (e). , substituted “subsections (b), (d), and (h)” for “subsections (b) and (d)”.
Subsec. (h). , added subsec. (h).
1978—Subsec. (e). struck out provisions relating to the corporation’s temporary estimated tax exemption.
1976—Subsec. (e)(1)(B). , struck out in cl. (ii) “after , and” after “taxable year beginning” and struck out cl. (iii) which related to the case of a taxable year beginning after , and before , the amount of the corporation’s transitional exemption for such year.
Subsec. (e)(2)(B). , substituted “clause (ii)” for “clauses (ii) and (iii)”.
Subsec. (e)(3), (4). , redesignated par. (4) as (3). Former par. (3), which related to the computation of a corporation’s transitional exemption, was struck out.
Subsec. (f). , struck out “or his delegate” after “Secretary”.
1975—Subsecs. (a), (g)(1). substituted “an annual rate established under section 6621” for “the rate of 6 percent per annum”.
1968—Subsec. (b)(1). , substituted “80 percent” for “70 percent”.
Subsec. (d)(1). , struck out “reduced by $100,000” after “The tax shown on the return of the corporation for the preceding taxable year”.
Subsec. (d)(3)(A). , substituted “80 percent” for “70 percent”.
Subsec. (e). , designated existing provisions as par. (1) under a heading “In general”, in such redesignated par. (1) substituted “For purposes of subsections (b) and (d)” for “For purposes of subsections (b), (d)(2), and (d)(3)” in introductory text, redesignated as subpar. (A) former par. (1) and as subpar. (B) former par. (2), struck out reference to $100,000 as one factor in the sum required for redesignated subpar. (B) and added cls. (ii) and (iii), and added pars. (2), (3), and (4) under headings “Temporary estimated tax exemption”, “Transitional exemption”, and “Special rule for subsection (d)(1) and (2)” respectively.
Subsec. (g). , added subsec. (g).
1964—Subsec. (c)(2). , substituted “any installment date” and “such installment date” for “the 15th day of the 12th month”.
Subsec. (d)(3). , redesignated cls. (A)(i) and (ii) as (A)(iii) and (iv), respectively, added cls. (A)(i) and (ii), and substituted “(3, 5, 6, 8, 9,)” for “(6 or 8, or 9)” in subpar. (B)(ii).
## Statutory Notes and Related Subsidiaries
### Effective Date of 2022 Amendment
Amendment by applicable to taxable years beginning after , see , set out as a note under .
### Effective Date of 2017 Amendment
Amendment by section 12001(b)(18), (19) of applicable to taxable years beginning after , see , set out as a note under .
Amendment by applicable to taxable years beginning after , see , set out as a note under .
Amendment by applicable to base erosion payments (as defined in ) paid or accrued in taxable years beginning after , see , set out as a note under .
### Effective Date of 2015 Amendment
Amendment by applicable to returns for taxable years beginning after , with special rule for certain C corporations, see , set out as a note under .
### Effective Date of 2014 Amendment
Amendment by effective , subject to a savings provision, see , set out as a note under .
### Effective Date of 1999 Amendment
> “The amendment made by subsection (a) [amending this section] shall apply to estimated tax payments due on or after
>
> .”
, , , provided that:
### Effective Date of 1997 Amendment
> “The amendment made by subsection (a) [amending this section] shall apply for purposes of determining underpayments of estimated tax for taxable years beginning after the date of the enactment of this Act [
>
> ].”
, , , provided that:
### Effective Date of 1996 Amendment
Amendment by effective as if included in the provision of the Revenue Reconciliation Act of 1993, , §§ 13001–13444, to which such amendment relates, see section 1703() of , set out as a note under .
### Effective Date of 1994 Amendment
Amendment by applicable for purposes of determining underpayments of estimated tax for taxable years beginning after , see , set out as a note under .
### Effective Date of 1993 Amendment
> “The amendments made by this section [amending this section] shall apply to taxable years beginning after
>
> .”
, , , provided that:
### Effective Date of 1992 Amendments
> “The amendments made by this section [amending this section] shall apply to taxable years beginning after
>
> .”
, , , provided that:
> “The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after
>
> .”
, , , provided that:
### Effective Date of 1991 Amendment
> “The amendments made by subsection (a) [amending this section] shall apply to taxable years beginning after
>
> .”
, , , provided that:
### Effective Date of 1989 Amendment
> “The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after
>
> .”
, , , provided that:
Amendment by effective as if included in the provision of the Revenue Act of 1987, , to which such amendment relates, see , set out as a note under .
### Effective Date of 1988 Amendments
Amendment by effective, except as otherwise provided, as if included in the provision of the Revenue Act of 1987, , to which such amendment relates, see , set out as a note under .
> “The amendment made by subsection (a) [amending this section] shall apply to installments required to be made after
>
> .”
, , , provided that:
Amendment by applicable to crude oil removed from the premises on or after , see , set out as a note under .
### Effective Date of 1987 Amendment
Amendment by applicable to taxable years beginning after , see , set out as a note under .
### Effective Date of 1986 Amendments
Amendment by applicable to taxable years beginning after , with certain exceptions and qualifications, see , set out as an Effective Date note under .
Amendment by applicable for purposes of determining interest for periods after , see , set out as a note under .
Amendment by applicable to taxable years beginning after , see , set out as a note under .
### Effective Date of 1983 Amendment
Amendment by effective, except as otherwise provided, as if it had been included in the provision of the Crude Oil Windfall Profit Tax Act of 1980, , to which such amendment relates, see section 203(a), (b) of , set out as a note under .
### Effective Date of 1982 Amendment
> “The amendments made by this section [amending this section and sections 832, 6081, 6152, and 6164 of this title] shall apply to taxable years beginning after
>
> .”
, , , provided that:
### Effective Date of 1981 Amendment
Amendment by effective , see , set out as a note under .
> “The amendments made by this section [amending this section] shall apply to taxable years beginning after
>
> .”
, , , provided that:
### Effective Date of 1980 Amendment
> “The amendments made by this section [amending this section] shall apply to taxable years beginning after
>
> .”
, , , provided that:
### Effective Date of 1978 Amendment
Amendment by applicable to taxable years beginning after , see , set out as a note under .
### Effective Date of 1976 Amendment
Amendment by section 1906(b)(3)(A)–(C)(i) of effective with respect to taxable years after , see , set out as a note under .
### Effective Date of 1975 Amendment
Amendment by effective , and applicable to amounts outstanding on such date or arising thereafter, see , set out as an Effective Date note under .
### Effective Date of 1968 Amendment
Amendment by applicable with respect to taxable years beginning after , except as provided by , see , set out as a note under .
### Effective Date of 1964 Amendment
Amendment by effective, except for purposes of , with respect to taxable years beginning after , see , set out as a note under .
### Repeal of Certain Shifts in the Timing of Corporate Estimated Tax Payments
> **“(1)** Section 202(b) of the Corporate Estimated Tax Shift Act of 2009 [Pub. L. 111–42, set out below].
>
> **“(2)** Section 561 of the Hiring Incentives to Restore Employment Act [Pub. L. 111–147, set out below].
>
> **“(3)** Section 505 of the United States-Korea Free Trade Agreement Implementation Act [Pub. L. 112–41, 19 U.S.C. 3805 note].
>
> **“(4)** Section 603 of the United States-Colombia Trade Promotion Agreement Implementation Act [Pub. L. 112–42, 19 U.S.C. 3805 note].
>
> **“(5)** Section 502 of the United States-Panama Trade Promotion Agreement Implementation Act [Pub. L. 112–43, 19 U.S.C. 3805 note].”
, , , as amended by , , , provided that:
> “The amendment made by subsection (a) [amending
>
> , set out above] shall take effect as if included in section 7001 of the Middle Class Tax Relief and Job Creation Act of 2012 [
>
> ].”
[, , , provided that:
]
### Savings Provision
For provisions that nothing in amendment by be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to , for purposes of determining liability for tax for periods ending after , see , set out as a note under .
### Payment of Corporate Estimated Taxes
, , , which provided for an increase of any required installment of corporate estimated tax due in July, August, or September of 2020 for corporations with assets of not less than $1,000,000,000, and a corresponding reduction of the next required installment, was repealed by , , .
> **“(1)** in the case of a corporation with assets of not less than $1,000,000,000 (determined as of the end of the preceding taxable year), the amount of any required installment of corporate estimated tax which is otherwise due in July, August, or September of 2017 shall be 100.25 percent of such amount; and
>
> **“(2)** the amount of the next required installment after an installment referred to in paragraph (1) shall be appropriately reduced to reflect the amount of the increase by reason of such paragraph.”
, , , provided that:
Notwithstanding this section, in the case of a corporation with assets of not less than $1,000,000,000, any required installment of corporate estimated tax due in July, August, or September of 2012 and July, August, or September of 2016 to be increased by 0.25 percent, and the amount of the next required installment thereafter to be appropriately reduced to reflect the amount of the increase, see , set out in a note under , Customs Duties.
Notwithstanding this section, in the case of a corporation with assets of not less than $1,000,000,000, any required installment of corporate estimated tax otherwise due in July, August, or September of 2016 to be increased by 0.50 percent, and the amount of the next required installment thereafter to be appropriately reduced to reflect the amount of the increase, see , set out in a note under , Customs Duties.
Notwithstanding this section, in the case of a corporation with assets of not less than $1,000,000,000, any required installment of corporate estimated tax due in July, August, or September of 2012 to be increased by 0.25 percent and any required installment due in July, August, or September of 2016 to be increased by 2.75 percent, and the amount of the next required installment thereafter to be appropriately reduced to reflect the amount of the increase, see , set out in a note under , Customs Duties.
> **“(1)** in the case of a corporation with assets of not less than $1,000,000,000 (determined as of the end of the preceding taxable year)—
>
> **“(A)** the amount of any required installment of corporate estimated tax which is otherwise due in July, August, or September of 2006 shall be 105 percent of such amount,
>
> **“(B)** the amount of any required installment of corporate estimated tax which is otherwise due in July, August, or September of 2012 shall be 100 percent of such amount,
>
> **“(C)** the amount of any required installment of corporate estimated tax which is otherwise due in July, August, or September of 2013 shall be 100.75 percent of such amount, and
>
> **“(D)** the amount of the next required installment after an installment referred to in subparagraph (A), (B), or (C) shall be appropriately reduced to reflect the amount of the increase by reason of such subparagraph,
>
> **“(2)** 20.5 percent of the amount of any required installment of corporate estimated tax which is otherwise due in September 2010 shall not be due until October 1, 2010, and
>
> **“(3)** 27.5 percent of the amount of any required installment of corporate estimated tax which is otherwise due in September 2011 shall not be due until October 1, 2011.”
, , , as amended by , , ; , , ; , , ; , , ; , , ; , , , provided that:
[, , , provided that:
[“(a) 2010, 2011, 2013.—Section 401 of the Tax Increase Prevention and Reconciliation Act of 2005 [, set out above] (and any modification of such section contained in any other provision of law) shall not apply with respect to any installment of corporate estimated tax which (without regard to such section) would otherwise be due after .
[“(b) 2014.—Notwithstanding section 6655 of the Internal Revenue Code of 1986—
[“(1) in the case of a corporation with assets of not less than $1,000,000,000 (determined as of the end of the preceding taxable year), the amount of any required installment of corporate estimated tax which is otherwise due in July, August, or September of 2014 shall be 100.25 percent of such amount; and
[“(2) the amount of the next required installment after an installment referred to in paragraph (1) shall be appropriately reduced to reflect the amount of the increase by reason of such paragraph.”]
[, set out above, and any modification of such provision, not applicable with respect to any installment of corporate income tax, see , set out as a note above.]
> “The percentage under paragraph (1) of section 202(b) of the Corporate Estimated Tax Shift Act of 2009 [
>
> , set out above] in effect on the date of the enactment of this Act [
>
> ] is increased by 0.75 percentage points.”
[, , , provided that:
]
> “The percentage under paragraph (1) of section 202(b) of the Corporate Estimated Tax Shift Act of 2009 [
>
> , set out above] in effect on the date of the enactment of this Act [
>
> ] is increased by 15.75 percentage points.”
[, , , provided that:
]
> [“(1) the percentage under paragraph (1) of section 202(b) of the Corporate Estimated Tax Shift Act of 2009 [, set out above] in effect on the date of the enactment of this Act [] is increased by 23 percentage points,
>
> [“(2) the amount of any required installment of corporate estimated tax which is otherwise due in July, August, or September of 2015 shall be 121.5 percent of such amount,
>
> [“(3) the amount of any required installment of corporate estimated tax which is otherwise due in July, August, or September of 2019 shall be 106.5 percent of such amount, and
>
> [“(4) the amount of the next required installment after an installment referred to in paragraph (2) or (3) shall be appropriately reduced to reflect the amount of the increase by reason of such paragraph.”
[, , , provided that:
]
[, set out above, and any modification of such provision, not applicable with respect to any installment of corporate income tax, see , set out as a note above.]
> “The percentage under paragraph (2) of section 561 of the Hiring Incentives to Restore Employment Act [
>
> , set out above] in effect on the date of the enactment of this Act [
>
> ] is increased by 4.5 percentage points.”
[, , , provided that:
]
> “The percentage under paragraph (2) of section 561 of the Hiring Incentives to Restore Employment Act [
>
> , set out above] in effect on the date of the enactment of this Act [
>
> ] is increased by 36 percentage points.”
[, , , provided that:
]
> “The percentage under paragraph (2) of section 561 of the Hiring Incentives to Restore Employment Act [
>
> , set out above] in effect on the date of the enactment of this Act [
>
> ] is increased by 0.25 percentage points.”
[, , , provided that:
]
> “The percentage under paragraph (2) of section 561 of the Hiring Incentives to Restore Employment Act [
>
> , set out above] in effect on the date of the enactment of this Act [
>
> ] is increased by 0.5 percentage points.”
[, , , provided that:
]
> “The percentage under paragraph (2) of section 561 of the Hiring Incentives to Restore Employment Act [
>
> , set out above] in effect on the date of the enactment of this Act [
>
> ] is increased by 0.25 percentage points.”
[, , , provided that:
]
> “The percentage under paragraph (2) of section 561 of the Hiring Incentives to Restore Employment Act [
>
> , set out above] in effect on the date of the enactment of this Act [
>
> ] is increased by 0.75 percentage points.”
[, , , provided that:
]
> “The percentage under paragraph (1) of section 202(b) of the Corporate Estimated Tax Shift Act of 2009 [
>
> , set out above] in effect on the date of the enactment of this Act [
>
> ] is increased by 1.5 percentage points.”
[, , , provided that:
]
> “The percentage under paragraph (1) of section 202(b) of the Corporate Estimated Tax Shift Act of 2009 [
>
> , set out above] in effect on the date of the enactment of this Act [
>
> ] is increased by 33.0 percentage points.”
[, , , provided that:
]
> “The percentage under subparagraph (C) of section 401(1) of the Tax Increase Prevention and Reconciliation Act of 2005 [
>
> , set out above] in effect on the date of the enactment of this Act [
>
> ] is increased by 0.5 percentage point.”
[, , , provided that:
]
> “The percentage under subparagraph (C) of section 401(1) of the Tax Increase Prevention and Reconciliation Act of 2005 [
>
> , set out above] in effect on the date of the enactment of this Act [
>
> ] is increased by 2 percentage points.”
[, , , provided that:
]
> “Subparagraph (B) of section 401(1) of the Tax Increase Prevention and Reconciliation Act of 2005 [
>
> , set out above] is amended by striking the percentage contained therein and inserting ‘100 percent’. No other provision of law which would change such percentage shall have any force and effect.”
[, , , provided that:
]
> “The percentage under subparagraph (C) of section 401(1) of the Tax Increase Prevention and Reconciliation Act of 2005 [
>
> , set out above] in effect on the date of the enactment of this Act [
>
> ] is increased by 16.75 percentage points.”
[, , , provided that:
]
> “The percentage under subparagraph (C) of section 401(1) of the Tax Increase Prevention and Reconciliation Act of 2005 [
>
> , set out above] in effect on the date of the enactment of this Act [
>
> ] is increased by 0.25 percentage points.”
[, , , provided that:
]
> “The percentage under subparagraph (B) of section 401(1) of the Tax Increase Prevention and Reconciliation Act of 2005 [
>
> , set out above] in effect on the date of the enactment of this Act [
>
> ] is increased by 7.75 percentage points.”
[, , , and , title XV, § 15202, , , 2262, provided that:
and enacted identical provisions. was repealed by , set out as a note under , Agriculture.]
> “The percentage under subparagraph (C) of section 401(1) of the Tax Increase Prevention and Reconciliation Act of 2005 [
>
> , set out above] in effect on the date of the enactment of this Act [
>
> ] is increased by 0.25 percentage points.”
[, , , provided that:
]
> “The percentage under subparagraph (B) of section 401(1) of the Tax Increase Prevention and Reconciliation Act of 2005 [
>
> , set out above] in effect on the date of the enactment of this Act [
>
> ] is increased by 1.50 percentage points.”
[, , , provided that:
]
[, (c), title VI, § 602, , , 1490, which directed amendment of , set out above, by striking “115 percent” and inserting “115.75 percent” effective on the date on which the United States-Peru Trade Promotion Agreement entered into force () and ceasing to have effect on the date on which the Agreement terminates, could not be executed in view of the subsequent amendment by , which was effective .]
### Time for Payment of September 2001 and September 2004 Corporate Estimated Taxes
> **“(1)** 100 percent of the amount of any required installment of corporate estimated tax which is otherwise due in September 2001 shall not be due until October 1, 2001; and
>
> **“(2)** 20 percent of the amount of any required installment of corporate estimated tax which is otherwise due in September 2004 shall not be due until October 1, 2004.”
, , , provided that:
### Waiver of Estimated Tax Penalties for 1998 Underpayments
No addition to tax to be made under this section with respect to any underpayment of an installment required to be paid on or before the 30th day after , to the extent such underpayment was created or increased by any provision of , see , set out as a note under .
No addition to tax to be made under this section for any period before , for any payment the due date of which is before , with respect to any underpayment attributable to such period to the extent such underpayment was created or increased by any provision of , see , set out as a note under .
### Underpayments of Estimated Tax for 1996
No addition to tax to be made under this section with respect to any underpayment of an installment required to be paid before , to the extent such underpayment was created or increased by any provision of title I (§§ 1101–1954) of , see , set out as a note under .
### Waiver of Estimated Penalties for 1993 Underpayments Attributable to Revenue Reconciliation Act of 1993
No addition to tax to be made under this section for any period before (, in the case of a corporation), with respect to any underpayment to the extent such underpayment was created or increased by any provision of chapter 1 (§§ 13001–13444) of title XIII of , see , set out as a note under .
### Waiver of Estimated Tax Penalties for Underpayments Attributable to Section 420(b)(4)(B) of This Title
No addition to tax to be made under this section for taxable year preceding taxpayer’s first taxable year beginning after , with respect to any underpayment to the extent such underpayment was created or increased by reason of former , see , set out as an Effective Date note under .
### Waiver of Estimated Penalties for 1990 Underpayments Attributable to Revenue Reconciliation Act of 1990
> “No addition to tax shall be made under section 6655 of the Internal Revenue Code of 1986 for any period before
>
> , with respect to any underpayment to the extent such underpayment was created or increased by any provision of this part [part I (§§ 11301–11307) of subtitle C of title XI of
>
> , see Tables for classification].”
, , , provided that:
### Applicability of Certain Amendments by Pub. L. 99–514 in Relation to Treaty Obligations of United States
For applicability of amendment by notwithstanding any treaty obligation of the United States in effect on , see , set out as a note under .
### Waiver of Estimated Penalties for 1988 Underpayments Attributable to Technical and Miscellaneous Revenue Act of 1988
No addition to tax to be made under this section for any period before , with respect to any underpayment to the extent such underpayment was created or increased by any provision of title I (§§ 1001 to 1019) or II (§§ 2001 to 2006) of , see , set out as an Effective Date of 1988 Amendment note under .
### Corporations Also May Use 1986 Tax To Determine Amount of Certain Estimated Tax Installments Due On or Before June 15, 1987
> **“(A)** **In general.—** In the case of a large corporation, no addition to tax shall be imposed by section 6655 of the Internal Revenue Code of 1986 with respect to any underpayment of an estimated tax installment to which this subsection applies if no addition would be imposed with respect to such underpayment by reason of section 6655(d)(1) of such Code if such corporation were not a large corporation. The preceding sentence shall apply only to the extent the underpayment is paid on or before the last date prescribed for payment of the most recent installment of estimated tax due on or before September 15, 1987.
>
> **“(B)** **Installment to which subsection applies.—** This subsection applies to any installment of estimated tax for a taxable year beginning after December 31, 1986, which is due on or before June 15, 1987.
>
> **“(C)** **Large corporation.—** For purposes of this subsection, the term ‘large corporation’ has the meaning given such term by section 6655(i)(2) of such Code (as in effect on the day before the date of the enactment of this Act [Dec. 22, 1987]).”
, , , provided that:
### Waiver of Estimated Penalties for 1986 Underpayments Attributable to Tax Reform Act of 1986
No addition to tax to be made under this section for any period before , with respect to any underpayment, to the extent such underpayment was created or increased by any provision of , see , set out as a note under .
### Waiver of Estimated Tax Penalties
> “No addition to tax shall be made under section 6654 or 6655 of the Internal Revenue Code of 1954 [now 1986] (relating to failure to pay estimated income tax) for any period before
>
> (
>
> in the case of a taxpayer subject to section 6655 of such Code), with respect to any underpayment, to the extent that such underpayment was created or increased by any provision of the Tax Reform Act of 1984 [
>
> ].”
, , , provided that:
### Underpayments of Estimated Tax for 1984
, subtitle A, § 218, , , which provided that no addition to the tax shall be made under with respect to any underpayment of an installment required to be paid before , to the extent such underpayment was created or increased by any provision of this subtitle, and such underpayment was paid in full on or before the last date prescribed for payment of the first installment of estimated tax required to be paid after , was repealed by , , .
### Waiver of Penalty for Underpayment of Estimated Tax
> “If—
>
> **“(1)** a corporation made underpayments of estimated tax for a taxable year of the corporation which includes August 1, 1975, because the corporation intended to elect to have the provisions of subparagraph (B) of section 46(a)(1) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as it existed before the date of enactment of this Act [Oct. 4, 1976]) apply for such taxable year, and
>
> **“(2)** the corporation does not elect to have the provisions of such subparagraph apply for such taxable year because this Act does not contain the amendments made by section 804(a)(2) (relating to flowthrough of investment credit), or the provisions of subsection (f) of such section (relating to grace period for certain plan transfers), of the bill H.R. 10612 (94th Congress, 2d Session), as amended by the Senate,
>
> then the provisions of section 6655 of such Code (relating to failure by corporation to pay estimated income tax) shall not apply to so much of any such underpayment as the corporation can establish, to the satisfaction of the Secretary of the Treasury, is properly attributable to the inapplicability of such subparagraph (B) for such taxable year.”
, , , as amended by , , , provided that:
### Declaration of Estimated Tax
With respect to taxable years beginning before , if a taxpayer is required to make a declaration, or to pay any amount of estimated tax by reason of amendments made by , such amount shall be paid ratably on each of the remaining installment dates for the taxable year beginning with the first installment date on or after ; as to any declaration or payment of estimated tax before the first installment date, this section, and sections 6015, 6154, and 6654 of this title shall be applied without regard to amendments made by , see , set out as a note under .
### Tax Surcharge Extension; Declarations of Estimated Tax
Requirement of making a declaration or amended declaration of estimated tax or of payment of any amount or additional amount of estimated tax by reason of amendment of sections 51(a)(1)(A), (B), (2)(A) and 963(b) of this title as calling for payment of such amount or additional amount ratably on or before each of remaining installment dates for taxable year beginning with installment date on or after the 30th day after ; application of this section without regard to such amendment with respect to any declaration or payment of estimated tax before such first installment date; and definition of “installment date”, see , , .
### Estimated Tax of Life Insurance Companies for 1958
, , § 3(h), , provided that in the case of a taxpayer subject to tax under , as in effect before , no additional tax was to be payable under this section with respect to estimated tax for a taxable year beginning in 1958.