824
INTERNAL REVENUE CODE OF 1954
(B) An amount equal to the tax computed, at the rates applicable to the taxable year, on the basis of the taxpayer's status with respect to personal exemptions under section 151 for the taxable year, but otherwise on the basis of the facts shown on his return for, and the law applicable to, the preceding taxable year, or (C) An amount equal to 70 percent (66^^ percent in the case of individuals referred to in section 6073(b), relating to income from farming) of the tax for the taxable year computed by placing on an annualized basis the taxable income for the months in the taxable year ending before the month in which the installment is required to be paid. For purposes of this subparagraph, the taxable income shall be placed on an annualized basis by— (i) multiplying by 12 (or, in the case of a taxable year of less than 12 months, the number of months in the taxable year) the taxable income (computed without deduction of personal exemptions) for the months in the taxable year ending before the month in which the installment is required to be paid, (ii) dividing the resulting amount by the number of months in the taxable year ending before the month in which such installment date falls, and (iii) deducting from such amount the deductions for personal exemptions allowable for the taxable year (such personal exemptions being determined as of the last date prescribed for payment of the installment); or (2) An amount equal to 90 percent of the tax computed, at the rates applicable to the taxable year, on the basis of the actual taxable income for the months in the taxable year ending before the month in which the installment is required to be paid. (e)
APPLICATION OF SECTION IN C A S E
OF T A X
W I T H H E L D ON
WAGES.—For purposes of applying this section— (1) The estimated tax shall be computed without any reduction for the amount which the individual estimates as his credit under section 31 (relating to tax withheld at source on wages), and (2) 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 installment date (determined under section 6153) 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. (f)
TAX
COMPUTED A F T E R APPLICATION OF CREDITS AGAINST
TAX.—For purposes of subsections (b) and (d), the term " tax " means the tax imposed by chapter 1 reduced by 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). (g) SHORT TAXABLE Y E A R. — The application of this section to taxable years of less than 12 months shall be in accordance with regulations prescribed by the Secretary or his delegate. (h) APPLICABILITY.—This section shall apply only with respect to taxable years beginning after December 31, 1954; and section 294(d) § 6654(d)(1)(B)
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