Page images
PDF
EPUB

(I) in the case of an S corporation, an individual who owns 10 percent or more (by vote or value) of the stock in such corporation, and

(II) in the case of a partnership, an individual who owns 10 percent or more of the capital interest (or the profits interest) in such

partnership. (F) OTHER DEFINITIONS AND SPECIAL RULES.—For purposes of this paragraph(i) CURRENT YEAR.

The term "current year” means the taxable year for which the amount of the installment is being determined.

(ü) SPECIAL RULE.—If no return is filed for the current year, any reference in subparagraph (C) or (D) to an item shown on the return for the current year shall be treated as a reference to the actual amount of such item for such year.

(iii) MARITAL STATUS.-Marital status shall be determined under sec

tion 7703. (2) LOWER REQUIRED INSTALLMENT WHERE ANNUALIZED INCOME INSTALLMENT IS LESS THAN AMOUNT DETERMINED UNDER PARAGRAPH (1).

(A) IN GENERAL.-In the case of any required installment, if the individual establishes that the annualized income installment is less than the amount determined under paragraph (1)

(i) the amount of such required installment shall be the annualized income installment, and

(ii) any reduction in a required installment resulting from the application of this subparagraph shall be recaptured by increasing the amount of the next required installment determined under paragraph (1) 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 clause). (B) DETERMINATION OF ANNUALIZED INCOME INSTALLMENT.In the case of any required installment, the annualized income installment is the excess (if any) of

(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, alternative minimum taxable income, and adjusted self-employment income for months in the taxable year ending before the due date for the installment, over

(ii) the aggregate amount of any prior required installments for the taxable year. (C) SPECIAL RULES.–For purposes of this paragraph

(i) ANNUALIZATION.—The taxable income, alternative minimum taxable income, and adjusted self-employment income shall be placed on an annualized basis under regulations prescribed by the Secretary.

(ii) APPLICABLE PERCENTAGE-
(D) TREATMENT OF SUBPART F AND SECTION 936 INCOME.-

(i) IN GENERAL.-Any amounts required to be included in gross income under section 936(h) or 951(a) (and credits properly allocable thereto) shall be taken into account in computing any annualized income installment under subparagraph (B) in a manner similar to the manner under which partnership income inclusions (and credits properly allocable thereto) are taken into account.

(ii) PRIOR YEAR SAFE HARBOR.-If a taxpayer elects to have this clause apply to any taxable year

(I) clause (i) 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 clause (i) in an amount equal to 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).

In the case of the following required installments:

The applicable percentage is:

1st

22.5 2nd

45 3rd

67.5 4th

90. (iii) ADJUSTED SELF-EMPLOYMENT INCOME.—The term "adjusted self-employment income” means self-employment income (as defined in section 1402(b)); except that section 1402(b) shall be applied by placing wages (within the meaning of section 1402(b)) for months in the taxable year ending before the due date for the installment on an

annualized basis consistent with clause (i). (e) EXCEPTIONS.

(1) 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), reduced by the credit allowable under section 31, is less than $500.

(2) WHERE NO TAX LIABILITY FOR PRECEDING TAXABLE YEAR.–No addition to tax shall be imposed under subsection (a) for any taxable year if

(A) the preceding taxable year was a taxable year of 12 months,

(B) the individual did not have any liability for tax for the preceding taxable year, and

(C) the individual was a citizen or resident of the United States throughout the preceding taxable year. (3) WAIVER IN CERTAIN CASES.

(A) IN GENERAL.-No addition to tax shall be imposed under subsection (a) with respect to any underpayment to the extent the Secretary determines that by reason of casualty, disaster, or other unusual circumstances the imposition of such addition to tax would be against equity and good conscience.

(B) NEWLY RETIRED OR DISABLED INDIVIDUALS.—No addition to tax shall be imposed under subsection (a) with respect to any underpayment if the Secretary determines that

(i) the taxpayer

(I) retired after having attained age 62, or

(II) became disabled, in the taxable year for which estimated payments were required to be made or in the taxable year preceding such taxable year, and

(ii) such underpayment was due to reasonable cause and not to will

ful neglect. (f) TAX COMPUTED AFTER APPLICATION OF CREDITS AGAINST TAX-For purposes of this section, the term "tax" means

(1) the tax imposed by chapter 1 (other than any increase in such tax by reason of section 143(m)), plus

(2) the tax imposed by chapter 2, minus

(3) the credits against tax provided by part IV of subchapter A of chapter 1, other than the credit against tax provided by section 31 (relating to tax with

held on wages). (g) APPLICATION OF SECTION IN CASE OF TAX WITHHELD ON WAGES.

(1) IN GENERAL.-For purposes of applying this section, 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 due date 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.

(2) SEPARATE APPLICATION.—The taxpayer may apply paragraph (1) separately with respect to

(A) wage withholding, and

(B) all other amounts withheld for which credit is allowed under section (h) SPECIAL RULE WHERE RETURN FILED ON OR BEFORE JANUARY 31.If

, on or before January 31 of the following taxable year, the taxpayer files a return for the taxable year and pays in full the amount computed on the return as payable, then no addition to tax shall be imposed under subsection (a) with respect to any underpayment of the 4th required installment for the taxable year.

(i) SPECIAL RULES FOR FARMERS AND FISHERMEN.-For purposes of this section

(1) IN GENERAL.-If an individual is a farmer or fisherman for any taxable year

(A) there shall be only 1 required installment for the taxable year,

(B) the due date for such installment shall be January 15 of the following taxable year,

(C) the amount of such installment shall be equal to the required annual payment determined under subsection (dx1)(B) by substituting “66 43 percent” for “90 percent and without regard to subparagraph (C) of subsection (dX1), and (D) subsection (h) shall be applied

(i) by substituting “March 1" for “January 31", and

(ii) by treating the required installment described in subparagraph

(A) of this paragraph as the 4th required installment. (2) FARMER OR FISHERMAN DEFINED.-An individual is a farmer or fisherman for any taxable year if

(A) the individual's gross income from farming or fishing (including oyster farming) for the taxable year is at least 66 48 percent of the total gross income from all sources for the taxable year, or

(B) such individual's gross income from farming or fishing (including oyster farming) shown on the return of the individual for the preceding taxable year is at least 66 48 percent of the total gross income from all sources

shown on such return. (j) SPECIAL RULES FOR NONRESIDENT ALIENS.—In the case of a nonresident alien described in section 6072(c):

(1) PAYABLE IN 3 INSTALLMENTS.-There shall be 3 required installments for the taxable year.

(2) TIME FOR PAYMENT OF INSTALLMENTS.—The due dates for required installments under this subsection shall be determined under the following table:

In the case of the following required installments:

The due date is:

1st 2nd 3rd

June 15

September 15 January 15 of the following

taxable year. (3) AMOUNT OF REQUIRED INSTALLMENTS.

(A) FIRST REQUIRED INSTALLMENT.-In the case of the first required installment, subsection (d) shall be applied by substituting “50 percent” for “25 percent" in subsection (dX1XA) and subsection (d/1XCXiii) shall not apply.

(B) DETERMINATION OF APPLICABLE PERCENTAGE.—The applicable percentage for purposes of subsection (dX(2) shall be determined under the following table:

In the case of the following required installments:

The applicable percentage is:

1st

45 2nd

67.5 3rd

90. (k) FISCAL YEARS AND SHORT YEARS.

(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 Sec

retary. (1) ESTATES AND TRUSTS.

(1) IN GENERAL.-Except as otherwise provided in this subsection, this section shall apply to any estate or trust.

(2) EXCEPTION FOR ESTATES AND CERTAIN TRUSTS.-With respect to any taxable year ending before the date 2 years after the date of the decedent's death, this section shall not apply to

(A) the estate of such decedent, or
(B) any trust-

(i) all of which was treated (under subpart E or part I of subchapter J of chapter 1) as owned by the decedent, and

(ii) to which the residue of the decedent's estate will pass under his will (or, if no will is admitted to probate, which is the trust primarily

responsible for paying debts, taxes, and expenses of administration). (3) EXCEPTION FOR CHARITABLE TRUSTS AND PRIVATE FOUNDATIONS.—This section shall not apply to any trust which is subject to the tax imposed by section 511 or which is a private foundation.

(4) SPECIAL RULE FOR ANNUALIZATIONS.- In the case of any estate or trust to which this section applies, paragraphs (1)(CXiv) and (2)(BXi) of subsection (d) shall be applied by substituting "ending before the date 1 month before the due date for the installment" for "ending before the due date for the

installment". (m) REGULATIONS.—The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this section.

*

SEC. 7213. UNAUTHORIZED DISCLOSURE OF INFORMATION. (a) RETURNS AND RETURN INFORMATION.

(1) FEDERAL EMPLOYEES AND OTHER PERSONS.- It shall be unlawful for any officer or employee of the United States or any person described in section 6103(n) (or an officer or employee of any such person), or any former officer or employee, willfully to disclose to any person, except as authorized in this title, any return or return information (as defined in section 6103(b)). Any violation of this paragraph shall be a felony punishable upon conviction by a fine in any amount not exceeding $5,000, or imprisonment of not more than 5 years, or both, together with the costs of prosecution, and if such offense is committed by any officer or employee of the United States, he shall, in addition to any other punishment, be dismissed from office or discharged from employment upon conviction for such offense.

(2) STATE AND OTHER EMPLOYEES.-It shall be unlawful for any person (not described in paragraph (1)) willfully to disclose to any person, except as authorized in this title, any return or return information (as defined in section 6103(b)) acquired by him or another person under subsection (d), (iX3XBXi), 16 (1)(6), (7), (8), (9), (10), or (12) or (mX2), (4), (6), or (7) of section 6103. Any violation of this paragraph shall be a felony punishable by a fine in any amount not exceeding $5,000, or imprisonment of not more than 5 years, or both, together with the costs of prosecution.

(3) OTHER PERSONS.— It shall be unlawful for any person to whom any return or return information (as defined in section 6103(b)) is disclosed in a man. ner unauthorized by this title thereafter willfully to print or publish in any manner not provided by law any such return or return information. Any violation of this paragraph shall be a felony punishable by a fine in any amount not exceeding $5,000, or imprisonment of not more than 5 years, or both, together with the costs of prosecution.

(4) SOLICITATION.-It shall be unlawful for any person willfully to offer any item of material value in exchange for any return or return information (as defined in section 6103(b)) and to receive as a result of such solicitation any such

16 As in original. One comma should be stricken.

return or return information. Any violation of this paragraph shall be a felony punishable by a fine in any amount not exceeding $5,000, or imprisonment of not more than 5 years, or both, together with the costs of prosecution.

*

*

SEC. 7701. DEFINITIONS.

(a) * * *

(41) TIN The term "TIN” means the identifying number, assigned to a person under section 6109.

SEC. 7862. OTHER APPLICABLE RULES.

(b) REFERENCE IN OTHER LAWS TO INTERNAL REVENUE CODE OF 1939.-Any reference in any other law of the United States or in any Executive order to any provision of the Internal Revenue Code of 1939 shall, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof, be deemed also to refer to the corresponding provision of this title.

[blocks in formation]

SEC. 7873. INCOME DERIVED BY INDIANS FROM EXERCISE OF FISHING RIGHTS. (a) IN GENERAL

(1) INCOME AND SELF-EMPLOYMENT TAXES.—No tax shall be imposed by subtitle A on income derived

(A) by a member of an Indian tribe directly or through a qualified Indian entity, or

(B) by a qualified Indian entity, from a fishing rights-related activity of such tribe.

(2) EMPLOYMENT TAXES.—No tax shall be imposed by subtitle C on remuneration paid for services performed in a fishing rights-related activity of an Indian tribe by a member of such tribe for another member of such tribe or for a quali

fied Indian entity. (b) DEFINITIONS.-For purposes of this section

(1) FISHING RIGHTS-RELATED ACTIVITY.—The term "fishing rights-related activitymeans, with respect to an Indian tribe, any activity directly related to har. vesting, processing, or transporting fish harvested in the exercise of a recognized fishing right of such tribe or to selling such fish but only if substantially all of such harvesting was performed by members of such tribe.

(2) RECOGNIZED FISHING RIGHTS.—The term “recognized fishing rights” means, with respect to an Indian tribe, fishing rights secured as of March 17, 1988, by a treaty between such tribe and the United States or by an Executive order or an Act of Congress. (3) QUALIFIED INDIAN ENTITY.

(A) IN GENERAL.—The term "qualified Indian entity" means, with respect to an Indian tribe, any entity if

(i) such entity is engaged in a fishing rights-related activity of such tribe,

(ii) all of the equity interests in the entity are owned by qualified Indian tribes, members of such tribes, or their spouses,

(iii) except as provided in regulations, in the case of an entity which engages to any extent in any substantial processing or transporting of fish, 90 percent or more of the annual gross receipts of the entity is derived from fishing rights-related activities of one or more qualified Indian tribes each of which owns at least 10 percent of the equity interests in the entity, and

(iv) substantially all of the management functions of the entity are performed by members of qualified Indian tribes.

« PreviousContinue »