PUBLIC LAW 100-203—DEC. 22, 1987
101 STAT. 1330-427
"(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. regulations provide for the determination of the base t' period percentage in the case of reorganizations, new corporations, and other similar circumstances. "(f) EXCEPTION WHERE TAX IS ^^i 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— "(A) the sum of^ "(i) the tax imposed by section 11 or 1201(a), 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 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.— '2° Copy read "divided". ' * • Copy read "is".
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