Amended 1987
- 1987 Pub. L. 100-203 Pub. L. 100–203 amended section generally, revising and restating as subsecs. (a) to (j) provisions of former subsecs. (a) to (i).
Cases: Evans Cooperage Co., Inc. v. United States, 712 F.2d 199 (5th Cir. 1983); Berkshire Hathaway, Inc. v. The United States, 802 F.2d 429 (Fed. Cir. 1986); The Pants Rack, Inc. v. United States, 669 F.2d 198 (4th Cir. 1982)
Final rules 3
(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—
Amended 1975, 1982
- 1982 Pub. L. 97-248 Pub. L. 97–248, § 234(c), 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).
- 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”.
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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)(15), substituted “the underpayment rate established under section 6621” for “the 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)—
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(1) Amount The amount of the underpayment shall be the excess of—
Amended 1968, 1982
- 1982 Pub. L. 97-248 Pub. L. 97–248, § 234(a)(1), substituted “90” for “80” wherever appearing.
- 1968 Pub. L. 90-364 Pub. L. 90–364, § 103(c)(1), substituted “80 percent” for “70 percent”.
(A) the required installment, over
(B) the amount (if any) of the installment paid on or before the due date for the installment.
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(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—
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(A) the 15th day of the 4th month following the close of the taxable year, or
Amended 2015
- 2015 Pub. L. 114-41 Pub. L. 114–41, § 2006(a)(2)(F), substituted “4th month” for “3rd month”.
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(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.
(c) Number of required installments; due dates For purposes 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 4thDecember 15.
Amended 1964
- 1964 Pub. L. 88-272 Pub. L. 88–272, § 122(c)(1), substituted “any installment date” and “such installment date” for “the 15th day of the 12th month”.
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(d) Amount of required installments For purposes of this section—
Amended 1964, 1968, 1982, 1991, 1992, 1993
- 1993 Pub. L. 103-66 Pub. L. 103–66, § 13225(a)(2)(A)(i), struck out heading and text of par. (3). Text read as follows: “In the case of any taxable year beginning after June 30, 1992, 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.”
- 1992 Pub. L. 102-318 Pub. L. 102–318, § 512(a)(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.
- 1992 Pub. L. 102-244 Pub. L. 102–244, 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”.
- 1991 Pub. L. 102-227 Pub. L. 102–227, § 201(a), added par. (3).
- 1982 Pub. L. 97-248 Pub. L. 97–248, § 234(a)(2), substituted “90” for “80”.
- 1968 Pub. L. 90-364 Pub. L. 90–364, § 103(c)(1), substituted “80 percent” for “70 percent”.
- 1964 Pub. L. 88-272 Pub. L. 88–272, § 122(c)(2), 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).
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(1) Amount
Amended 1968
- 1968 Pub. L. 90-364 Pub. L. 90–364, § 103(e)(1), struck out “reduced by $100,000” after “The tax shown on the return of the corporation for the preceding taxable year”.
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(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.
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(B) Required annual payment Except as otherwise provided in this subsection, the term “required annual payment” means the lesser of—
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(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
Amended 1992, 1993
- 1993 Pub. L. 103-66 Pub. L. 103–66, § 13225(a)(1), substituted “100 percent” for “91 percent” in two places.
- 1992 Pub. L. 102-318 Pub. L. 102–318, § 512(a)(1), substituted “91 percent” for “90 percent” in two places.
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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.
(2) Large corporations required to pay 100 percent of current year tax
Amended 1992, 1993
- 1993 Pub. L. 103-66 Pub. L. 103–66, § 13225(a)(2)(A)(ii), substituted “100 percent” for “91 percent” in heading.
- 1992 Pub. L. 102-318 Pub. L. 102–318, § 512(a)(2), substituted “91 percent” for “90 percent” in heading.
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(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.
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(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.
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(e) Lower required installment where annualized income installment or adjusted seasonal installment is less than amount determined under subsection (d)
Amended 1968, 1978, 1980, 1982
- 1982 Pub. L. 97-248 Pub. L. 97–248, § 234(d)(1), added subsec. (e). Former subsec. (e) redesignated (f).
- 1980 Pub. L. 96-499 Pub. L. 96–499, § 1111(b), substituted “subsections (b), (d), and (h)” for “subsections (b) and (d)”.
- 1978 Pub. L. 95-600 Pub. L. 95–600 struck out provisions relating to the corporation’s temporary estimated tax exemption.
- 1968 Pub. L. 90-364 Pub. L. 90–364, § 103(c)(2), 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.
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(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))—
Amended 1988, 1989, 1991
- 1991 Pub. L. 102-227 Pub. L. 102–227, § 201(b), substituted “paragraphs (2) and (3) of subsection (d)” for “subsection (d)(2)”.
- 1989 Pub. L. 101-239 Pub. L. 101–239, § 7822(a), substituted “under subsection (d)(1)” for “under section (d)(1)”.
- 1988 Pub. L. 100-647 Pub. L. 100–647, § 5001(a), struck out at end “A reduction shall be treated as recaptured for purposes of subparagraph (B) if 90 percent of the reduction is recaptured.”
(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).
Amended 1976
- 1976 Pub. L. 94-455 Pub. L. 94–455, § 1906(b)(3)(A), struck out in cl. (ii) “after December 31, 1967, and” after “taxable year beginning” and struck out cl. (iii) which related to the case of a taxable year beginning after Dec. 31, 1967, and before Jan. 1, 1972, the amount of the corporation’s transitional exemption for such year.
(2) Determination of annualized income installment
Amended 1981
- 1981 Pub. L. 97-34 Pub. L. 97–34, § 601(a)(6)(B), inserted “the sum of—”, designated existing provisions as subpar. (A), inserted at end of subpar. (A) “, plus”, and added subpar. (B).
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(A) In general 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, adjusted financial statement income (as defined in section 56A), and modified taxable income—
Amended 2014, 2017, 2022
- 2022 Pub. L. 117-169 Pub. L. 117–169, § 10101(a)(4)(G), inserted “, adjusted financial statement income (as defined in section 56A),” before “and modified taxable income” in introductory provisions.
- 2017 Pub. L. 115-97 Pub. L. 115–97, § 14401(d)(4)(B), inserted “and modified taxable income” after “taxable income” in introductory provisions.
- 2017 Pub. L. 115-97 Pub. L. 115–97, § 12001(b)(18), struck out “and alternative minimum taxable income” after “taxable income” in introductory provisions.
- 2014 Pub. L. 113-295 Pub. L. 113–295, § 221(a)(12)(K)(i), substituted “taxable income and alternative minimum taxable income” for “taxable income, alternative minimum taxable income, and modified alternative minimum taxable income”.
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(I) for the first 3 months of the taxable year, in the case of the 1st required installment,
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(II) for the first 3 months of the taxable year, in the case of the 2nd required installment,
Amended 1993
- 1993 Pub. L. 103-66 Pub. L. 103–66, § 13225(b)(1)(A), struck out “or for the first 5 months” after “3 months”.
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(III) for the first 6 months of the taxable year in the case of the 3rd required installment, and
Amended 1993
- 1993 Pub. L. 103-66 Pub. L. 103–66, § 13225(b)(1)(B), struck out “or for the first 8 months” after “6 months”.
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(IV) for the first 9 months of the taxable year, in the case of the 4th required installment, over
Amended 1993
- 1993 Pub. L. 103-66 Pub. L. 103–66, § 13225(b)(1)(C), struck out “or for the first 11 months” after “9 months”.
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(ii) the aggregate amount of any prior required installments for the taxable year.
(B) Special rules For purposes of this paragraph—
Amended 1976
- 1976 Pub. L. 94-455 Pub. L. 94–455, § 1906(b)(3)(B), substituted “clause (ii)” for “clauses (ii) and (iii)”.
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(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.
Amended 2017, 2022
- 2022 Pub. L. 117-169 Pub. L. 117–169, § 10101(a)(4)(G), inserted “, adjusted financial statement income (as defined in section 56A),” before “and modified taxable income”.
- 2017 Pub. L. 115-97 Pub. L. 115–97, § 14401(d)(4)(B), inserted “and modified taxable income” after “taxable income”.
- 2017 Pub. L. 115-97 Pub. L. 115–97, § 12001(b)(18), struck out “and alternative minimum taxable income” after “taxable income”.
(ii) Applicable percentage In the case of the following required installments:The applicable percentage is: 1st25 2nd50 3rd75 4th100.
Amended 1992, 1993
- 1993 Pub. L. 103-66 Pub. L. 103–66, § 13225(a)(2)(B), 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.
- 1992 Pub. L. 102-318 Pub. L. 102–318, § 512(b)(1), 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.
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(iii) Modified taxable income The term “modified taxable income” has the meaning given such term by section 59A(c)(1).
Amended 2014, 2017
- 2017 Pub. L. 115-97 Pub. L. 115–97, § 14401(d)(4)(C), added cl. (iii).
- 2014 Pub. L. 113-295 Pub. L. 113–295, § 221(a)(12)(K)(ii), 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).”
(C) Election for different annualization periods
Amended 1993
- 1993 Pub. L. 103-66 Pub. L. 103–66, § 13225(b)(2), added subpar. (C).
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(i) If the taxpayer makes an election under this clause—
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(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—
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(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.
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(3) Determination of adjusted seasonal installment
Amended 1976
- 1976 Pub. L. 94-455 Pub. L. 94–455, § 1906(b)(3)(C)(i), redesignated par. (4) as (3). Former par. (3), which related to the computation of a corporation’s transitional exemption, was struck out.
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(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
Amended 1992, 1993
- 1993 Pub. L. 103-66 Pub. L. 103–66, § 13225(a)(2)(C), substituted “100 percent” for “91 percent”.
- 1992 Pub. L. 102-318 Pub. L. 102–318, § 512(b)(2), substituted “91 percent” for “90 percent”.
(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—
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(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,
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(iii) determine the tax on the amount determined under clause (ii), and
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(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.
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(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
Amended 1976, 1994, 2018
- 2018 Pub. L. 115-141 Pub. L. 115–141, § 401(d)(1)(D)(xx)(II), struck out “and section 936” after “subpart F” in heading.
- 1994 Pub. L. 103-465 Pub. L. 103–465 added par. (4).
- 1976 Pub. L. 94-455 Pub. L. 94–455, § 1906(b)(3)(C)(i), redesignated par. (4) as (3). Former par. (3), which related to the computation of a corporation’s transitional exemption, was struck out.
(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.
Amended 2018
- 2018 Pub. L. 115-141 Pub. L. 115–141, § 401(d)(1)(D)(xx)(I), struck out “936(h) or” before “951(a)”.
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(B) Prior year safe harbor
(i) In general If a taxpayer elects to have this subparagraph apply for any taxable year—
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(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).
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(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”.
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(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
Amended 1999
- 1999 Pub. L. 106-170 Pub. L. 106–170 added par. (5).
(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.
Amended 2000
- 2000 Pub. L. 106-554 Pub. L. 106–554 substituted “subsection (d)(5)” for “subsections (d)(5) and (l)(3)(B)”.
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(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.
Amended 2000
- 2000 Pub. L. 106-554 Pub. L. 106–554 substituted “subsection (d)(5)” for “subsections (d)(5) and (l)(3)(B)”.
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(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.
Amended 1976, 1982, 1983, 1986
- 1986 Pub. L. 99-514 Pub. L. 99–514, § 701(d)(3), amended par. (1) generally, restating existing provisions in subpar. (A) and adding subpar. (B).
- 1986 Pub. L. 99-499 Pub. L. 99–499 amended subsec. (f)(1), as amended by the Tax Reform Act of 1986 (Pub. L. 99–514), by striking out “plus” at end of subpar. (A), substituting “plus” for “over” at end of subpar. (B), and adding subpar. (C).
- 1983 Pub. L. 97-448 Pub. L. 97–448 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 Pub. L. 97–248, and the retrospective effect of the amendment as provided by section 203(a), (b) of Pub. L. 97–448, set out as an Effective Date of 1983 Amendment note under section 4988 of this title.
- 1982 Pub. L. 97-248 Pub. L. 97–248, § 234(d), redesignated former subsec. (e) as (f) and substituted references to subsecs. (e) and (i) for references to subsec. (h). Former subsec. (f) redesignated (g).
- 1976 Pub. L. 94-455 Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
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(g) Definitions and special rules
Amended 1968, 1982
- 1982 Pub. L. 97-248 Pub. L. 97–248, § 234(d)(1), redesignated former subsecs. (f) to (h) as (g) to (i), respectively.
- 1968 Pub. L. 90-364 Pub. L. 90–364, § 103(d)(2), added subsec. (g).
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(1) Tax For purposes of this section, the term “tax” means the excess of—
Amended 1975
- 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”.
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(A) the sum of—
(i) the tax imposed by section 11 or subchapter L of chapter 1, whichever applies,
Amended 2017
- 2017 Pub. L. 115-97 Pub. L. 115–97, § 14401(d)(4)(A), struck out “plus” at end.
- 2017 Pub. L. 115-97 Pub. L. 115–97, § 13001(b)(2)(P), struck out “or 1201(a),” after “section 11”.
- 2017 Pub. L. 115-97 Pub. L. 115–97, § 12001(b)(19), inserted “plus” at end.
(ii) the tax imposed by section 55,
Amended 2014, 2017, 2022
- 2022 Pub. L. 117-169 Pub. L. 117–169, § 10101(a)(4)(H), added cl. (ii) and redesignated former cls. (ii) and (iii) as (iii) and (iv), respectively.
- 2017 Pub. L. 115-97 Pub. L. 115–97, § 14401(d)(4)(A), added cl. (ii). Former cl. (ii) redesignated (iii).
- 2017 Pub. L. 115-97 Pub. L. 115–97, § 12001(b)(19), redesignated cl. (iii) as (ii) and struck out former cl. (ii) which read as follows: “the tax imposed by section 55, plus”.
- 2014 Pub. L. 113-295 Pub. L. 113–295, § 221(a)(12)(K)(iii), 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”.
(iii) the tax imposed by section 59A, plus
Amended 2014, 2017, 2022
- 2022 Pub. L. 117-169 Pub. L. 117–169, § 10101(a)(4)(H), added cl. (ii) and redesignated former cls. (ii) and (iii) as (iii) and (iv), respectively.
- 2017 Pub. L. 115-97 Pub. L. 115–97, § 14401(d)(4)(A), redesignated cl. (ii) as (iii).
- 2017 Pub. L. 115-97 Pub. L. 115–97, § 12001(b)(19), redesignated cl. (iii) as (ii).
- 2014 Pub. L. 113-295 Pub. L. 113–295, § 221(a)(12)(K)(iii), 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”.
(iv) the tax imposed by section 887, over
Amended 2014, 2022
- 2022 Pub. L. 117-169 Pub. L. 117–169, § 10101(a)(4)(H), added cl. (ii) and redesignated former cls. (ii) and (iii) as (iii) and (iv), respectively.
- 2014 Pub. L. 113-295 Pub. L. 113–295, § 221(a)(12)(K)(iii), 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”.
(B) the credits against tax provided by part IV of subchapter A of chapter 1.
Amended 1988
- 1988 Pub. L. 100-418 Pub. L. 100–418 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)).”
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.
(2) Large corporation
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(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.
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(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—
Amended 1988, 1990, 1993, 1996, 1997, 2015
- 2015 Pub. L. 114-41 Pub. L. 114–41, § 2006(a)(2)(F), substituted “4th month” for “3rd month”.
- 1997 Pub. L. 105-34 Pub. L. 105–34 inserted at end “In the case of a private foundation, subsection (c)(2) shall be applied by substituting ‘May 15’ for ‘April 15’.”
- 1996 Pub. L. 104-188 Pub. L. 104–188, § 1703(h), 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).”
- 1993 Pub. L. 103-66 Pub. L. 103–66, § 13225(b)(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.
- 1990 Pub. L. 101-508 Pub. L. 101–508 inserted a period at end of last sentence.
- 1988 Pub. L. 100-647 Pub. L. 100–647, § 2004(r), 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’.”
(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.
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(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).
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”.
(4) Application of section to certain taxes imposed on S corporations In the case of an S corporation, for purposes of this section—
Amended 1989
- 1989 Pub. L. 101-239 Pub. L. 101–239, § 7209(a), added par. (4).
(A) The following taxes shall be treated as imposed by section 11:
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(i) The tax imposed by section 1374(a).
Amended 2014
- 2014 Pub. L. 113-295 Pub. L. 113–295, § 221(a)(114), struck out “(or the corresponding provisions of prior law)” before period at end.
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(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).
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(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:
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“(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”.
Amended 2015
- 2015 Pub. L. 114-41 Pub. L. 114–41, § 2006(a)(2)(G), added subpar. (E) and redesignated former subpar. (E) as (F).
(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).
Amended 2015
- 2015 Pub. L. 114-41 Pub. L. 114–41, § 2006(a)(2)(G), added subpar. (E) and redesignated former subpar. (E) as (F).
(h) Excessive adjustment under section 6425
Amended 1980, 1981, 1982
- 1982 Pub. L. 97-248 Pub. L. 97–248, § 234(d)(1), redesignated former subsecs. (f) to (h) as (g) to (i), respectively.
- 1981 Pub. L. 97-34 Pub. L. 97–34, § 731(a), (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 Pub. L. 96-499 Pub. L. 96–499, § 1111(a), added subsec. (h).
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(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.
Amended 2015
- 2015 Pub. L. 114-41 Pub. L. 114–41, § 2006(a)(2)(F), substituted “4th month” for “3rd month”.
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(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
(i) Fiscal years and short years
Amended 1982
- 1982 Pub. L. 97-248 Pub. L. 97–248, § 234(d)(1), redesignated former subsecs. (f) to (h) as (g) to (i), respectively.
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(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.