96 STAT. 504
PUBLIC LAW 97-248—SEPT. 3, 1982 "(a) ADDITION TO TAX.—Except as provided in subsections (d) and (e), in the case of any under payment of tax by a corporation— "(1) IN GENERAL.—There shall be added to the tax under chapter 1 for the taxable year a n a m o u n t determined a t the rate established under section 6621 on the a m o u n t of the underp a y m e n t for the period of the under payment. "(2) SPECIAL RULE WHERE CORPORATION PAID 80 PERCENT OR
MORE OF TAX.—In any case in which the r e would be no underp a y m e n t if subsection (b) were applied by substituting '80 percent' for '90 percent" each place it appears, the addition to tax under paragraph (1) shall be equal to 75 percent of the a m o u n t otherwise determined under paragraph (1)." (d) ADDITIONAL EXCEPTION F R O M PENALTY FOR U N D E R P A Y M E N T S OF ESTIMATED INCOME T A X W H E R E A CORPORATION H A S A R E C U R R I N G PATTERN OF SEASONAL I N C O M E. —
26 USC 6655.
(1) IN GENERAL.—Section 6655 (relating to failure by corporation to pay estimated income tax) is amended by redesignating subsections (e), (f), (g), and (h) as subsections (f), (g), (h), and (i), respectively, and by inserting after subsection (d) the following new subsection: "(e) ADDITIONAL EXCEPTION FOR R E C U R R I N G SEASONAL I N C O M E. —
"(1) IN GENERAL.—Notwithstanding the preceding subsections, the addition to the tax with respect to any under payment of any installment shall not be imposed if the total a m o u n t of all payments of estimated tax m a d e on or before the last date prescribed for the payment of such installment equals or exceeds 90 percent of the a m o u n t determined under paragraph (2). "(2) DETERMINATION OF AMOUNT.—The a m o u n t determined under this paragraph for any installment shall be determined in the following m a n n e r — "(A) t a k e the taxable income for all months during, the taxable year preceding the filing month, "(B) divide such a m o u n t by the base period percentage for all months during the taxable year preceding the filing month, "(C) determine the tax on the a m o u n t determined under subparagraph (B), and "(D) multiply the tax computed under subparagraph (C) by the base period percentage for the filing month and all months during the taxable year preceding the filing month. "(8) DEFINITIONS AND SPECIAL RULES.—For purposes of t h i s
subsection— "(A) BASE PERIOD PERCENTAGE.—The base period percent-
age 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 8 preceding taxable years. "(B) FILING MONTH.—The term 'filing month ' means the month in which the installment is required to be paid. "(C) LIMITATION
ON APPLICATION
OF SUBSECTION.—This
subsection shall only apply if the base period percentage for any 6 consecutive months of the taxable year equals or exceeds 70 percent. " (D) REORGANIZATIONS, ETC.—The Secretary may by regulations provide for the determination of the base period
�
