80
STAT.]
PUBLIC LAW 89-368-MAR. 15, 1966
ments of estimated tax made on or before the last date prescribed for the payment of such installment equals or exceeds the amount which would have been required to be paid on or before such date if the estimated tax were whichever of the following is the least— "(1) The tax shown on the return of the individual for the preceding taxable year.^ if a return showing a liability for tax was filed by the individual for the preceding taxable year and such preceding year was a taxable year of 12 months. "(2) An amount equal to 70 percent (66% percent in the case of individuals referred to in section 6073(b), relating to income ^SA Stat. vso; from farming or fishing) of the tax for the taxable year com- ^^26 USC^6o'73. puted 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 and by taking into account the adjusted self-employment income (if the net earnings from self-employment (as defined in section 1402(a)) for the taxable ^^ ^^^ ^'*°2year equal or exceed $400). For purposes of this paragraph— " (A) The taxable income s h a l l b e 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). " (B) The term 'adjusted self-employment income' means— "(i) the net earnings from self-employment (as defined in section 1402(a)) for the months in the taxable year ending before the month in which the installment is required to be paid, but not more than "(ii) the excess of $6,600 over the amount determined by placing the wages (within the meaning of section 1402(b)) for the months in the taxable year ending before the month in which the installment is required to be paid on an annualized basis in a manner consistent with clauses (i) and (ii) of subparagraph (A). "(3) 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 and the actual self-employment income for the months in the taxable year ending before the month in which the installment is required to be paid as if such months constituted the taxable year. "(4) 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 26 USC isi. taxable year, but otherwise on the basis of the facts shown on his return for, and the law applicable to, the preceding taxable year."
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