26 U.S.C. § 6654: Failure by individual to pay estimated income tax

§ 1.6654-1 Addition to the tax in the case of an individual.§ 1.6654-2 Exceptions to imposition of the addition to the tax in the case of individuals.§ 1.6654-3 Short taxable years of individuals.§ 1.6654-5 Payments of estimated tax.§ 1.6654-6 Nonresident alien individuals.§ 1.6654-7 Applicability.§ 301.6654-1 Failure by individual to pay estimated income tax.

Cases: Wheeler v. Commissioner, 127 T.C. 200 (2006); Stephenson v. Commissioner, 79 T.C. 995 (1982)

Forms: Form 1040-ES; Form 2210

Final rules 4

(a) Addition to the tax Except as otherwise provided in this section, in the case of any underpayment of estimated tax by an individual, there shall be added to the tax under chapter 1, the tax under chapter 2, and the tax under chapter 2A for the taxable year an amount determined by applying—

Amended 1966, 1975, 1984, 2010, 2018

2018 Pub. L. 115-141 Pub. L. 115–141, § 401(a)(301), substituted “chapter 1, the tax” for “chapter 1 the tax” in introductory provisions.
2010 Pub. L. 111-152 Pub. L. 111–152, § 1402(a)(2)(A), substituted “the tax under chapter 2, and the tax under chapter 2A” for “and the tax under chapter 2” in introductory provisions.
1984 Pub. L. 98-369 Pub. L. 98–369 amended subsec. (a) generally, setting out the exception provision as initial phrase, previously set out as second phrase, substituting “subsection (d)” for “this section”; and substituting “determined by applying—” and provisions designated cls. (1) to (3) for provisions reading “determined at an annual rate established under section 6621 upon the amount of the underpayment (determined under subsection (b)) for the period of the underpayment (determined under subsection (c)))”.
1975 Pub. L. 93-625 Pub. L. 93–625 substituted “an annual rate established under section 6621” for “the rate of 6 percent per annum”.
1966 Pub. L. 89-368 Pub. L. 89–368, § 102(b)(1), inserted “and the tax under chapter 2” after “chapter 1”.

Cases: In Re Arthur Carol Sanford, Debtor. United States of America v. Arthur Carol Sanford, 979 F.2d 1511 (11th Cir. 1992)

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(1) the underpayment rate established under section 6621,

Amended 1986

1986 Pub. L. 99-514 Pub. L. 99–514, § 1511(c)(14), substituted “the underpayment rate established under section 6621” for “the applicable annual 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)—

Amended 1962, 1966, 1984

1984 Pub. L. 98-369 Pub. L. 98–369 amended subsec. (b) generally, substituting provisions relating to amount and period of underpayment for provisions relating only to amount of underpayment.
1966 Pub. L. 89-368 Pub. L. 89–368, § 103(a), substituted “80 percent” for “70 percent” whenever appearing.
1962 Pub. L. 87-682 Pub. L. 87–682 inserted “or fishing” after “from farming” wherever appearing.

(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.

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(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.

Amended 1984

1984 Pub. L. 98-369 Pub. L. 98–369 amended subsec. (c) generally, substituting provisions relating to number of required installments and due dates for provisions respecting period of underpayment. See subsec. (b)(2) of this section.

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(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: 1stApril 15 2ndJune 15 3rdSeptember 15 4thJanuary 15 of the following taxable year.

(d) Amount of required installments For purposes of this section—

Amended 1966, 1984

1984 Pub. L. 98-369 Pub. L. 98–369 amended subsec. (d) generally, substituting provisions relating to amount of required installments for provisions designated “Exception” and describing conditions for nonimposition of an addition to the tax with respect to any underpayment of any installment.
1966 Pub. L. 89-368 Pub. L. 89–368, §§ 102(b)(2), 103(a), inserted requirement that, for purposes of applying the annualization exception, the tax on adjusted self-employment income be included in determining if the net earnings from self-employment for the taxable year equal or exceed $400, inserted definition of “adjusted self-employment income”, inserted a requirement that, for purposes of determining the applicability of the 90 percent exception, the tax on actual self-employment income be included, and substituted “80 percent” for “70 percent” wherever appearing.

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(1) Amount

Amended 1991, 1993, 2009, 2018

2018 Pub. L. 115-141 Pub. L. 115–141, § 401(b)(49), struck out subpar. (D) which set out a special rule for taxable years beginning in 2009.
2009 Pub. L. 111-5 Pub. L. 111–5 added subpar. (D).
1993 Pub. L. 103-66 Pub. L. 103–66, § 13214(a), added subpar. (C) and struck out former subpars. (C) to (F) which related to limitation on use of preceding year’s tax, modified adjusted gross income for current year, qualified pass-thru item, and other definitions and special rules, respectively.
1991 Pub. L. 102-164 Pub. L. 102–164, § 403(a), added subpars. (C) to (F).

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(A) In general Except as provided in paragraph (2), the amount of any required installment shall be 25 percent of the required annual payment.

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(B) Required annual payment For purposes of subparagraph (A), the term “required annual payment” means the lesser of—

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(i) 90 percent of the tax shown on the return for the taxable year (or, if no return is filed, 90 percent of the tax for such year), or

Amended 1986

1986 Pub. L. 99-514 Pub. L. 99–514, § 1541(a), substituted “90 percent” for “80 percent” in two places.

(ii) 100 percent of the tax shown on the return of the individual for the preceding taxable year.

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Clause (ii) shall not apply if the preceding taxable year was not a taxable year of 12 months or if the individual did not file a return for such preceding taxable year.

Amended 1962, 1991, 1993

1993 Pub. L. 103-66 Pub. L. 103–66, § 13214(a), added subpar. (C) and struck out former subpars. (C) to (F) which related to limitation on use of preceding year’s tax, modified adjusted gross income for current year, qualified pass-thru item, and other definitions and special rules, respectively.
1991 Pub. L. 102-164 Pub. L. 102–164, § 403(a), added subpars. (C) to (F).
1962 Pub. L. 87-682 Pub. L. 87–682 inserted “or fishing” after “from farming” wherever appearing.

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(i) In general If the adjusted gross income shown on the return of the individual for the preceding taxable year beginning in any calendar year exceeds $150,000, clause (ii) of subparagraph (B) shall be applied by substituting “110 percent” for “100 percent”.

Amended 1997, 1998, 1999, 2018

2018 Pub. L. 115-141 Pub. L. 115–141, § 401(b)(48), substituted “by substituting ‘110 percent’ for ‘100 percent’.” for “by substituting the applicable percentage for ‘100 percent’. For purposes of the preceding sentence, the applicable percentage shall be determined in accordance with the following table:”, table setting out applicable percentages for preceding taxable years 1998 to 2002 and thereafter, and concluding provisions “This clause shall not apply in the case of a preceding taxable year beginning in calendar year 1997.”
1999 Pub. L. 106-170 Pub. L. 106–170 in table substituted items assigning applicable percentages of 108.6 for 1999 and 110 for 2000 for item assigning applicable percentage of 106 for 1999 or 2000.
1998 Pub. L. 105-277 Pub. L. 105–277 in table substituted items assigning applicable percentages of 105 for 1998 and 106 for 1999 or 2000 for item assigning applicable percentage of 105 for 1998, 1999, or 2000.
1997 Pub. L. 105-34 Pub. L. 105–34, § 1091(a), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “If the adjusted gross income shown on the return of the individual for the preceding taxable year exceeds $150,000, clause (ii) of subparagraph (B) shall be applied by substituting ‘110 percent’ for ‘100 percent’.”

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(ii) Separate returns In the case of a married individual (within the meaning of section 7703) who files a separate return for the taxable year for which the amount of the installment is being determined, clause (i) shall be applied by substituting “$75,000” for “$150,000”.

(iii) Special rule In the case of an estate or trust, adjusted gross income shall be determined as provided in section 67(e).

(2) Lower required installment where annualized income installment is less than amount determined under paragraph (1)

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(A) In general In the case of any required installment, if the individual establishes that the annualized income installment is less than the amount determined under paragraph (1)—

Amended 1977

1977 Pub. L. 95-30 Pub. L. 95–30 substituted provisions directing that the placement of taxable income on an annualized basis be accomplished under regulations prescribed by the Secretary for provisions which had spelled out in detail the formula under which taxable income would be placed on an annualized basis.

(i) the amount of such required installment shall be the annualized income installment, and

(ii) any reduction in a required installment resulting from the application of this subparagraph shall be recaptured by increasing the amount of the next required installment determined under paragraph (1) 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 clause).

(B) Determination of annualized income installment In the case of any required installment, the annualized income installment is the excess (if any) of—

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(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, alternative minimum taxable income, and adjusted self-employment income for months in the taxable year ending before the due date for the installment, over

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(ii) the aggregate amount of any prior required installments for the taxable year.

Amended 1971, 1972, 1973

1973 Pub. L. 93-233 Pub. L. 93–233, § 5(b)(7), effective with respect to taxable years beginning after 1973, substituted “$13,200” for “$12,600”.
1973 Pub. L. 93-233 Pub. L. 93–233, § 5(d), applicable only with respect to remuneration paid after, and taxable years beginning after, 1973 (as provided in section 5(e) of Pub. L. 93–233, set out as an Effective Date of 1973 Amendments note under section 409 of Title 42, The Public Health and Welfare), amended section 203(b)(7)(C) of Pub. L. 92–336 (set out as 1973 Amendment note below), substituting “$13,200” for “$12,600”. See, also, 1973 Amendment note below.
1973 Pub. L. 93-66 Pub. L. 93–66, § 203(b)(7), effective with respect to taxable years beginning after 1973, substituted “$12,600” for “$12,000”.
1973 Pub. L. 93-66 Pub. L. 93–66, § 203(d), applicable only with respect to remuneration paid after, and taxable years beginning after, 1973 (as provided in section 203(e) of Pub. L. 93–66, set out as an Effective Date of 1973 Amendments note under section 409 of Title 42, The Public Health and Welfare), amended section 203(b)(7)(C) of Pub. L. 92–336 (set out as 1972 Amendment note below, substituting “$12,600” for “$12,000”. See, also, such 1972 Amendment note below.
1972 Pub. L. 92-336 Pub. L. 92–336, § 203(b)(7)(A) substituted “$10,800” for “$9,000”.
1972 Pub. L. 92-336 Pub. L. 92–336, § 203(b)(7)(B), effective with respect to taxable years beginning after 1973, substituted “$12,000” for “$10,800”.
1972 Pub. L. 92-336 Pub. L. 92–336, § 203(b)(7)(C), effective with respect to taxable years beginning after 1974, substituted “(I) an amount equal to the contribution and benefit base (as determined under section 230 of the Social Security Act) which is effective for the calendar year in which the taxable year begins, over (II)” for “$12,000 over”.
1971 Pub. L. 92-5 Pub. L. 92–5 substituted “$9,000” for “$6,600”.

(i) Annualization The taxable income, alternative minimum taxable income, and adjusted self-employment income shall be placed on an annualized basis under regulations prescribed by the Secretary.

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(ii) Applicable percentage In the case of the following required installments:The applicable percentage is: 1st22.5 2nd45 3rd67.5 4th90.

Amended 1986

1986 Pub. L. 99-514 Pub. L. 99–514, § 1541(b)(1), in table of applicable percentages increased applicable percentages from “20” to “22.5”, from “40” to “45”, from “60” to “67.5”, and from “80” to “90”, respectively.

(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).

(D) Treatment of subpart F income

Amended 1994, 2018

2018 Pub. L. 115-141 Pub. L. 115–141, § 401(d)(1)(D)(xix)(II), struck out “and section 936” before “income” in heading.
1994 Pub. L. 103-465 Pub. L. 103–465 added subpar. (D).

(i) 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 subparagraph (B) in a manner similar to the manner under which partnership income inclusions (and credits properly allocable thereto) are taken into account.

Amended 2018

2018 Pub. L. 115-141 Pub. L. 115–141, § 401(d)(1)(D)(xix)(I), struck out “936(h) or” before “951(a)”.

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(ii) Prior year safe harbor If a taxpayer elects to have this clause apply to any taxable year—

(I) clause (i) 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 clause (i) in an amount equal to 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).

(e) Exceptions

Amended 1984

1984 Pub. L. 98-369 Pub. L. 98–369 amended subsec. (e) generally, substituting provisions relating to exceptions for provisions relating to application of section in case of tax withheld on wages. See subsec. (g) of this section.

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(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 $1,000.

Amended 1982, 1983, 1997

1997 Pub. L. 105-34 Pub. L. 105–34, § 1202(a), substituted “$1,000” for “$500”.
1983 Pub. L. 98-67 Pub. L. 98–67 repealed amendments made by Pub. L. 97–248. See 1982 Amendment note below.
1982 Pub. L. 97-248 Pub. L. 97–248, §§ 307(a)(14), 308(a), provided that, applicable to payments of interest, dividends, and patronage dividends paid or credited after June 30, 1983, par. (1) is amended by inserting “, interest, dividends, and patronage dividends” after “tax withheld at source on wages”. Section 102(a), (b) of Pub. L. 98–67, title I, Aug. 5, 1983, 97 Stat. 369, repealed subtitle A (§§ 301–308) of title III of Pub. L. 97–248 as of the close of June 30, 1983, and provided that the Internal Revenue Code of 1954 [now 1986] [this title] shall be applied and administered (subject to certain exceptions) as if such subtitle A (and the amendments made by such subtitle A) had not been enacted.

(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

(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 reasonable cause and not to willful neglect.

(f) Tax computed after application of credits against tax For purposes of this section, the term “tax” means—

Amended 1966, 1981, 1984

1984 Pub. L. 98-369 Pub. L. 98–369 amended subsec. (f) generally, substituting provisions relating to tax computed after application of credits against tax for provisions relating to exception where tax is small amount. See subsec. (e)(1) of this section.
1981 Pub. L. 97-34 Pub. L. 97–34, § 725(b), added subsec. (f). Former subsec. (f) redesignated (g).
1966 Pub. L. 89-368 Pub. L. 89–368, § 102(b)(3), inserted tax imposed by chapter 2 to definition of “tax”.

(1) the tax imposed by chapter 1 (other than any increase in such tax by reason of section 143(m)), plus

Amended 1969, 1978, 1983, 1988

1988 Pub. L. 100-647 Pub. L. 100–647, § 4005(g)(5), inserted “(other than any increase in such tax by reason of section 143(m))” after “chapter 1”.
1983 Pub. L. 97-448 Pub. L. 97–448, § 107(c)(1), inserted “, reduced by the credit allowable under section 31,” before “is less than”.
1978 Pub. L. 95-600 Pub. L. 95–600 substituted “section 55 or 56” for “section 56”.
1969 Pub. L. 91-172 Pub. L. 91–172 inserted “(other than by section 56)” after “chapter 1”.

(2) the tax imposed by chapter 2, plus

Amended 2010

2010 Pub. L. 111-152 Pub. L. 111–152, § 1402(a)(2)(B)(i), substituted “plus” for “minus”.

(3) the tax imposed by chapter 2A, minus

Amended 1981, 1988, 2010, 2018

2018 Pub. L. 115-141 Pub. L. 115–141, § 401(a)(302), substituted “tax” for “taxes”.
2010 Pub. L. 111-152 Pub. L. 111–152, § 1402(a)(2)(B)(ii), added par. (3) and redesignated former par. (3) as (4).
1988 Pub. L. 100-418 Pub. L. 100–418 amended par. (3) generally. Prior to amendment par. (3) read as follows: “the sum of—
“(A) the credits against tax allowed by part IV of subchapter A of chapter 1, other than the credit against tax provided by section 31 (relating to tax withheld on wages), plus
“(B) 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)).”
1981 Pub. L. 97-34 Pub. L. 97–34, § 601(a)(6)(A), inserted “the sum of—” after “(3)”, designated former par. (3) as subpar. (A), and added subpar. (B).

(4) the credits against tax provided by part IV of subchapter A of chapter 1, other than the credit against tax provided by section 31 (relating to tax withheld on wages).

Amended 2010

2010 Pub. L. 111-152 Pub. L. 111–152, § 1402(a)(2)(B)(ii), added par. (3) and redesignated former par. (3) as (4).

(g) Application of section in case of tax withheld on wages

Amended 1976, 1981, 1982, 1983, 1984

1984 Pub. L. 98-369 Pub. L. 98–369 amended subsec. (g) generally, substituting provisions relating to application of section in case of tax withheld on wages for provisions relating to tax computed after application of credits against tax. See subsec. (f) of this section.
1983 Pub. L. 97-448 Pub. L. 97–448, § 201(j)(3), 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 or 6430 as an overpayment of the tax imposed by section 4986”.
1983 Pub. L. 97-448 Pub. L. 97–448, § 106(a)(4)(C), inserted “or 6430” after “section 6429”.
1982 Pub. L. 97-248 Pub. L. 97–248, § 328(a)(2), substituted “(f), and (h)” for “and (f)”.
1982 Pub. L. 97-248 Pub. L. 97–248, §§ 307(a)(14), 308(a), provided that, applicable to payments of interest, dividends, and patronage dividends paid or credited after June 30, 1983, subsec. (g)(3) is amended by inserting “, interest, dividends, and patronage dividends” after “tax withheld at source on wages”. Section 102(a), (b) of Pub. L. 98–67, title I, Aug. 5, 1983, 97 Stat. 369, repealed subtitle A (§§ 301–308) of title III of Pub. L. 97–248 as of the close of June 30, 1983, and provided that the Internal Revenue Code of 1954 [now 1986] [this title] shall be applied and administered (subject to certain exceptions) as if such subtitle A (and the amendments made by such subtitle A) had not been enacted.
1981 Pub. L. 97-34 Pub. L. 97–34, §§ 601(a)(6)(A), 725(b), (c)(5), redesignated former subsec. (f) as (g), inserted reference to subsec. (f) in introductory text, and “the sum of—” after “(3)”, designated former par. (3) as subpar. (A), and added subpar. (B). Former subsec. (g) redesignated (h).
1976 Pub. L. 94-455 Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.

(1) In general For purposes of applying this section, the amount of the credit allowed under section 31 for the taxable year shall be deemed a payment of estimated tax, and an equal part of such amount shall be deemed paid on each due date for such taxable year, unless the taxpayer establishes the dates on which all amounts were actually withheld, in which case the amounts so withheld shall be deemed payments of estimated tax on the dates on which such amounts were actually withheld.

Amended 1982

1982 Pub. L. 97-248 Pub. L. 97–248, § 201(d)(7), formerly § 201(c)(7), substituted “section 55” for “section 55 or 56”.

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(2) Separate application The taxpayer may apply paragraph (1) separately with respect to—

(A) wage withholding, and

(B) all other amounts withheld for which credit is allowed under section 31.

(h) Special rule where return filed on or before January 31 If, on or before January 31 of the following taxable year, the taxpayer files a return for the taxable year and pays in full the amount computed on the return as payable, then no addition to tax shall be imposed under subsection (a) with respect to any underpayment of the 4th required installment for the taxable year.

Textual readingALL OF= no subsection (a) addition to tax for 4th required installment underpayment

“on or before January 31 of the following taxable year, the taxpayer files a return for the taxable year and pays in full the amount computed on the return as payable”

Amended 1976, 1981, 1982, 1984

1984 Pub. L. 98-369 Pub. L. 98–369 amended subsec. (h) generally, substituting provisions relating to special rule for returns filed on or before January 31 for provisions relating to exception for no tax liability for preceding taxable year. See subsec. (e)(2) of this section.
1982 Pub. L. 97-248 Pub. L. 97–248, § 328(a)(1), added subsec. (h) and redesignated former subsec. (h) as (i).
1981 Pub. L. 97-34 Pub. L. 97–34, §§ 601(a)(6)(A), 725(b), (c)(5), redesignated former subsec. (f) as (g), inserted reference to subsec. (f) in introductory text, and “the sum of—” after “(3)”, designated former par. (3) as subpar. (A), and added subpar. (B). Former subsec. (g) redesignated (h).
1976 Pub. L. 94-455 Pub. L. 94–455, § 1906(a)(35), struck out subsec. (h) which provided that this section shall apply to taxable years beginning after Dec. 31, 1954 and that section 294(d) of the Internal Revenue Code of 1939 shall continue in force with respect to taxable years beginning before Jan. 1, 1955.

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(i) Special rules for farmers and fishermen For purposes of this section—

Amended 1982, 1984

1984 Pub. L. 98-369 Pub. L. 98–369 amended subsec. (i) generally, substituting provisions relating to special rules for farmers and fishermen for provisions relating to short taxable year. See subsec. (j)(2) of this section.
1982 Pub. L. 97-248 Pub. L. 97–248, § 328(a)(1), added subsec. (h) and redesignated former subsec. (h) as (i).

(1) In general If an individual is a farmer or fisherman for any taxable year—

(A) there shall be only 1 required installment for the taxable year,

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(B) the due date for such installment shall be January 15 of the following taxable year,

(C) the amount of such installment shall be equal to the required annual payment determined under subsection (d)(1)(B) by substituting “66⅔ percent” for “90 percent” and without regard to subparagraph (C) of subsection (d)(1), and

Amended 1986, 1991

1991 Pub. L. 102-164 Pub. L. 102–164, § 403(b)(1), amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: “the amount of such installment shall be equal to the required annual payment (determined under subsection (d)(1)(B) by substituting ‘66⅔ percent’ for ‘90 percent’, and”.
1986 Pub. L. 99-514 Pub. L. 99–514, § 1541(b)(2), substituted “90 percent” for “80 percent”.

(D) subsection (h) shall be applied—

(i) by substituting “March 1” for “January 31”, and

(ii) by treating the required installment described in subparagraph (A) of this paragraph as the 4th required installment.

(2) Farmer or fisherman defined An individual is a farmer or fisherman for any taxable year if—

(A) the individual’s gross income from farming or fishing (including oyster farming) for the taxable year is at least 66⅔ percent of the total gross income from all sources for the taxable year, or

(B) such individual’s gross income from farming or fishing (including oyster farming) shown on the return of the individual for the preceding taxable year is at least 66⅔ percent of the total gross income from all sources shown on such return.

(j) Special rules for nonresident aliens In the case of a nonresident alien described in section 6072(c):

Amended 1984, 1986

1986 Pub. L. 99-514 Pub. L. 99–514, § 1841, added subsec. (j). Former subsec. (j) redesignated (k).
1984 Pub. L. 98-369 Pub. L. 98–369, in amending section generally, added subsecs. (j) to (l).

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(1) Payable in 3 installments There shall be 3 required installments for the taxable year.

(2) Time for payment of installments The due dates for required installments under this subsection shall be determined under the following table: In the case of the following required installments:The due date is: 1stJune 15 2ndSeptember 15 3rdJanuary 15 of the following taxable year.

(3) Amount of required installments

(A) First required installment In the case of the first required installment, subsection (d) shall be applied by substituting “50 percent” for “25 percent” in subsection (d)(1)(A).

Amended 1991, 1993

1993 Pub. L. 103-66 Pub. L. 103–66, § 13214(b)(1), struck out before period at end “and subsection (d)(1)(C)(iii) shall not apply”.
1991 Pub. L. 102-164 Pub. L. 102–164, § 403(b)(2), inserted before period at end “and subsection (d)(1)(C)(iii) shall not apply”.

(B) Determination of applicable percentage The applicable percentage for purposes of subsection (d)(2) shall be determined under the following table: In the case of the following required installments:The applicable percentage is: 1st22.5 2nd45 3rd67.5 4th90.

Amended 1986

1986 Pub. L. 99-514 Pub. L. 99–514, § 1541(b)(3), which directed the amendment of the table in subpar. (B) by substituting “45” for “40”, “65.5” for “60”, and “90” for “80”, could not be executed because the higher figures appear in the text as enacted by section 1841 of Pub. L. 99–514.

(k) Fiscal years and short years

Amended 1984, 1986

1986 Pub. L. 99-514 Pub. L. 99–514, § 1841, redesignated former subsec. (j) as (k). Former subsec. (k) redesignated (l).
1984 Pub. L. 98-369 Pub. L. 98–369, in amending section generally, added subsecs. (j) to (l).

(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.

(l) Estates and trusts

Amended 1984, 1986, 1988

1988 Pub. L. 100-647 Pub. L. 100–647, § 1014(d)(2), substituted “Estates and trusts” for “Trusts and certain estates” in heading and amended text generally. Prior to amendment, text read as follows: “This section shall apply to—
“(1) any trust, and
“(2) any estate with respect to any taxable year ending 2 or more years after the date of the death of the decedent’s death.”
1988 Pub. L. 100-647 Pub. L. 100–647, § 1014(d)(1), made clarifying amendment to directory language of Pub. L. 99–514, § 1404(a), to reflect prior redesignation of subsec. (k) as (l) by section 1841 of Pub. L. 99–514, see 1986 Amendment note below.
1986 Pub. L. 99-514 Pub. L. 99–514, § 1404(a), as amended by Pub. L. 100–647, § 1014(d)(1), amended subsec. (l) generally. Prior to amendment, subsec. (l) read as follows: “This section shall not apply to any estate or trust.”
1986 Pub. L. 99-514 Pub. L. 99–514, § 1841, redesignated subsec. (k) as (l). Former subsec. (l) redesignated (m).
1984 Pub. L. 98-369 Pub. L. 98–369, in amending section generally, added subsecs. (j) to (l).

Cited by 2

(1) In general Except as otherwise provided in this subsection, this section shall apply to any estate or trust.

Amended 1989

1989 Pub. L. 101-239 Pub. L. 101–239, § 7811(j)(5), substituted “this section shall” for “this subsection shall”.

(2) Exception for estates and certain trusts With respect to any taxable year ending before the date 2 years after the date of the decedent’s death, this section shall not apply to—

Cited by 1

(A) the estate of such decedent, or

Cited by 1

(B) any trust—

“With respect to any taxable year ending before the date 2 years after the date of the decedent’s death, this section” Enclosing § 6654(l)(2)

Textual readingALL OF= section does not apply to trust

(i) all of which was treated (under subpart E of part I of subchapter J of chapter 1) as owned by the decedent, and

(ii) to which the residue of the decedent’s estate will pass under his will (or, if no will is admitted to probate, which is the trust primarily responsible for paying debts, taxes, and expenses of administration).

Amended 1989

1989 Pub. L. 101-239 Pub. L. 101–239, § 7811(j)(6), inserted before period at end “(or, if no will is admitted to probate, which is the trust primarily responsible for paying debts, taxes, and expenses of administration)”.

(3) Exception for charitable trusts and private foundations This section shall not apply to any trust which is subject to the tax imposed by section 511 or which is a private foundation.

(4) Special rule for annualizations In the case of any estate or trust to which this section applies, subsection (d)(2)(B)(i) shall be applied by substituting “ending before the date 1 month before the due date for the installment” for “ending before the due date for the installment”.

Amended 1991, 1993

1993 Pub. L. 103-66 Pub. L. 103–66, § 13214(b)(2), substituted “subsection (d)(2)(B)(i)” for “paragraphs (1)(C)(iv) and (2)(B)(i) of subsection (d)”.
1991 Pub. L. 102-164 Pub. L. 102–164, § 403(b)(3), substituted “paragraphs (l)(C)(iv) and (2)(B)(i) of subsection (d)” for “subsection (d)(2)(B)(i)”.

(m) Special rule for Medicare tax For purposes of this section, the tax imposed under section 3101(b)(2) (to the extent not withheld) shall be treated as a tax imposed under chapter 2.

Amended 1986, 2010

2010 Pub. L. 111-152 Pub. L. 111–152, § 1402(b)(2), added subsec. (m) and redesignated former subsec. (m) as (n).
1986 Pub. L. 99-514 Pub. L. 99–514, § 1841, redesignated former subsec. (l) as (m).

(n) Regulations The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this section.

Amended 2010

2010 Pub. L. 111-152 Pub. L. 111–152, § 1402(b)(2), added subsec. (m) and redesignated former subsec. (m) as (n).