83 STAT. ]
PUBLIC LAW 91-172-DEC. 30, 1969
727
"(3) to cases where the gross income is $10,000 or more, "(4) to cases where the taxpayer is entitled to the credit provided by section 37 (relating to retirement income credit), or 26 USC 37. "(5) to cases where the taxpayer does not elect the standard deduction." (b) ErrECTivE DATE.—The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1969. SEC. 943. FAILURE TO MAKE TIMELY PAYMENT OR DEPOSIT OF TAX. (a) FAILURE To P A Y TAX.—Section 6651 (relating to failure to esAstat. 821. file tax return) is amended to read as follows: "SEC. 6651. FAILURE TO FILE TAX RETURN OR TO PAY TAX. " (a) ADDITION TO TJIE T A X. — I n case of failure— "(1) to file any return required under authority of subchapter A of chapter 61 (other than part III thereof), subchapter A of 26 USC eooi, chapter 51 (relating to distilled spirits, Avines, and beer), or of ^°°^' ^^°^' ^^°^subchapter A of chapter 52 (relating to tobacco, cigars, cigarettes, and cigarette papers and tubes), or of subchapter A of chapter 53 (relating to machine guns and certain other firearms), on the date prescribed therefor (determined with regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount required to be shown as tax on such return 5 percent of the amount of such tax if the failure is for not more than 1 month, with an additional 5 percent for each additional month or fraction thereof during which such failure continues, not exceedhig 25 percent in the aggregate; "(2) fo pay the amounf shown as tax on any return specified in paragraph (1) on or before the date prescribed for payment of such tax (determined with regard to any extension of tin:e for payment), unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount shown as tax on such return 0.5 percent of the amount of such tax if the failure is for not more tlian 1 month, with an additional 0.5 percent for each additional month or fraction thereof during which such failure continues, not exceeding 25 percent in the aggregate; or "(3) to pay any amount in respect of any tax required to be shown on a return specified in paragraph (1) which is not so shown (including an assessment made pursuant to section 6213(b)) within 10 days of the date of the notice and demand 26 USC 6213. therefor, unless it is shown that such failure is due to reasonable cause and not due to Avillful neglect, there shall be added to the amount of tax stated in such notice and demand 0.5 percent of the amount of such tax if the failure is for not more than 1 month, with an additional 0.5 percent for each additional month or fraction thereof during which such failure continues, not exceeding 25 percent in the aggregate. "(b)
PENALTY IMPOSED ON X E T A:MOUNT D U E. — For purposes of—
"(1) subsection (a)(1), the amount of tax required to be shown on the return shall be reduced by the amount of any part of the tax which is paid on or before the date prescribed for payment of the tax and by the amount of any credit against the tax which may be claimed on the return, "(2) subsection (a)(2), the amount of tax shown on the return shall, for purposes of computing the addition for any month, be
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