Taxable Years Beginning in 1949 tax so increased, whichever is the lesser. This paragraph shall not apply to the taxable year in which falls the death of the taxpayer, nor, under regulations prescribed by the Commissioner with the approval of the Secretary, shall it apply to the taxable year in which the taxpayer makes a timely payment of estimated tax within or before each quarter (excluding, in case the taxable year begins in 1943, any quarter beginning prior to July 1, 1943) of such year (or in the case of farmers exercising an election under section 60 (a), within the last quarter) in an amount at least as great as though computed (under such regulations) on the basis of the taxpayer's status with respect to the personal exemption and credit for dependents on the date of the filing of the declaration for such taxable year (or in the case of any such farmer, or in case the fifteenth day of the third month of the taxable year occurs after July 1, on July 1 of the taxable year) but otherwise on the basis of the facts shown on his return for the preceding taxable year. Taxable Years Beginning in 1948 Sec. 294. (e) Substantial over Sec. 294. (e) Substantial overstatement of expected carry-statement back. If the time for payment of backs. any tax or taxes for any taxable year is extended under section 3779, there shall be added to such tax or taxes an amount equal to 5 per centum of the penalty portion, if any, of the amount to which such extension relates, unless the taxpayer establishes to the satisfaction of the Commissioner that, as of the end of the taxable year in which such extension was made, there was reasonable cause to expect there would be no such penalty portion. The penalty portion shall be the excess of the amount to which such extension relates which is not paid by the end of the taxable year in which such extension is made over 125 per centum of the amount to which such extension relates which is satisfied by applying thereto a decrease in tax in respect of an application under section 3780 (a) less any amounts assessed in respect of such application which are not so satisfied. of expected Same as 1945. Taxable Years Beginning in 1946 and 1947 Sec. 294. (e) Substantial overcarry-statement of expected carrybacks. Same as 1945. Taxable Years Beginning in 1945 carry Sec. 294. (e) Substantial overstatement of expected back. If the time for payment of any tax or taxes for any taxable year is extended under section 3779, there shall be added to such tax or taxes an amount equal to 5 per centum of the penalty portion, if any, of the amount to which such extension relates, unless the taxpayer establishes to the satisfaction of the Commissioner that, as of the end of the taxable year in which such extension was made, there was reasonable cause to expect there would be no such penalty portion. The penalty portion shall be the excess of the amount to which such extension relates which is not paid by the end of the taxable year in which such extension is made over 125 per centum of the amount to which such extension relates which is satisfied by applying thereto a decrease in tax in respect of an application under section 3780 (a) less any amounts assessed in respect of such application which are not so satisfied. Sec. 294 (e), I. R. C., supra, added to I. R. C. by Sec. 4 (b), T. A. A. of 1945, approved July 31, 1945. Taxable Years Beginning in 1944 estimated tax so increased, whichever is the lesser. This paragraph shall not apply to the taxable year in which falls the death of the taxpayer, nor, under regulations prescribed by the Commissioner with the approval of the Secretary, shall it apply to the taxable year in which the taxpayer makes a timely payment of estimated tax within or before each quarter (excluding, in case the taxable year begins in 1943, any quarter beginning prior to July 1, 1943) of such year (or in the case of farmers exercising an election under section 60 (a), within the last quarter) in an amount at least as great as though computed (under such regulations) on the basis of the taxpayer's status with respect to the personal exemption and credit for dependents on the date of the filing of the declaration for such taxable year (or in the case of any such farmer, or in case the fifteenth day of the third month of the taxable year occurs after July 1, on July 1 of the taxable year) but otherwise on the basis of the facts shown on his return for the preceding taxable year. Sec. 118 (c) of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1942. Second amendment Sec. 294 (d) (2), I. R. C., supra, amended by Sec. 6 (b) (8), I. I. T. A. of 1944, by omitting language in strickenthrough italics and adding language in underlined italics. Sec. 2 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1943. Sec. 13 (e), I. I. T. A. of 1944, reads: "Penalty for understatement for 1944.-For the purposes of section 294 (d) (2) (relating to underestimate of estimated tax), in the case of a taxpayer filing a declaration for a taxable year beginning in the calendar year 1944 the term '80 per centum of the tax' as appearing in such subsection shall be taken to refer to 80 per centum of whichever of the following is the lesser: (1) a tax computed under the law applicable to such taxable year without regard to the amendments made by this Act, and (2) a tax computed under such law as amended by this Act. Taxable Years Beginning before 1944 Sec. 296. Time extended for payment of deficiency. If the time for the payment of any part of a deficiency is extended there shall be collected, as a part of the tax, interest on the part of the deficiency the time for payment of which is so extended, at the rate of 6 per centum per annum for the period of the extension, and no other interest shall be collected on such part of the deficiency for such period. If the part of the deficiency the time for payment of which is so extended is not paid in accordance with the terms of the extension, there shall be collected as a part of the tax, interest on such unpaid amount at the rate of 6 per centum per annum for the period from the time fixed by the terms of the extension for its payment until it is paid, and no other interest shall be collected on such unpaid amount for such period. Sec. 297. Interest in case of jeopardy assessments. In the case of the amount collected under section 273 (i) there shall be collected at the same time as such amount, and as a part of the tax, interest at the rate of 6 per centum per annum upon such amount from the date of the jeopardy notice and demand to the date of notice and demand under section 273 (i), or, in the case of the amount collected in excess of the amount of the jeopardy assessment, interest as provided in section 292. If the amount included in the notice and demand from the collector under section 273 (i) is not paid in full within ten days after such notice and demand, then there shall Sec. 295. Time extended for Sec. 295. Time extended for payment of tax shown on return. payment of tax shown on return. Same as 1944. Sec. 296. Time extended for payment of deficiency. Same as 1944. Sec. 297. Interest in case of jeopardy assessments. Same as 1944. If the time for payment of the amount determined as the tax by the taxpayer, or any installment thereof, is extended under the authority of section 56 (c), there shall be collected as a part of such amount, interest thereon at the rate of 6 per centum per annum from the date when such payment should have been made if no extension had been granted, until the expiration of the period of the extension. Sec. 296. Time extended for payment of deficiency. If the time for the payment of any part of a deficiency is extended there shall be collected, as a part of the tax, interest on the part of the deficiency the time for payment of which is so extended, at the rate of 6 per centum per annum for the period of the extension, and no other interest shall be collected on such part of the deficiency for such period. If the part of the deficiency the time for payment of which is so extended is not paid in accordance with the terms of the extension, there shall be collected as a part of the tax, interest on such unpaid amount at the rate of 6 per centum per annum for the period from the time fixed by the terms of the extension for its payment until it is paid, and no other interest shall be collected on such unpaid amount for such period. Sec. 297. Interest in case of jeopardy assessments. In the case of the amount collected under section 273 (i) there shall be collected at the same time as such amount, and as a part of the tax, interest at the rate of 6 per centum per annum upon such amount from the date of the jeopardy notice and demand to the date of notice and demand under section 273 (i), or, in the case of the amount collected in excess of the amount of the jeopardy assessment, interest as provided in section 292. If the amount included in the notice and demand from the collector under section 273 (i) is not paid in full within ten days after such notice and demand, then there shall Taxable Years Beginning before 1944 Sec. 295. Time extended for payment of tax shown on return. Section originated 1924 as Sec. 270 (c) (2), R. A. of 1924. For any amendments prior to 1944, see Second Edition, p. 278, Sec. 296. Time extended for payment of deficiency. Section originated 1921 as Second Edition, p. 284, Sec. 297. Interest in case of jeopardy assessments. Section originated 1924 as Second Edition, p. 300, Taxable Years Beginning in 1949 be collected, as part of the tax, interest upon the unpaid amount at the rate of 6 per centum per annum from the date of such notice and demand until it is paid. Sec. 298. Bankruptcy and receiverships. If the unpaid portion of the claim allowed in a bankruptcy or receivership proceeding, as provided in section 274, is not paid in full within ten days from the date of notice and demand from the collector, then there shall be collected as a part of such amount interest upon the unpaid portion thereof at the rate of 6 per centum per annum from the date of such notice and demand until payment. Sec. 299. Removal of property or departure from United States. For additions to tax in case of leaving the United States or concealing property in such manner as to hinder collection of the tax, see section 146. Supplement N-Claims Against Transferees and Fiduciaries Sec. 311. Transferred assets. Sec. 311. (a) Method of collection.-The amounts of the following liabilities shall, except as hereinafter in this section provided, be assessed, collected, and paid in the same manner and subject to the same provisions and limitations as in the case of a deficiency in a tax imposed by this chapter (including the provisions in case of delinquency in payment after notice and demand, the provisions authorizing distraint and proceedings in court for collection, and the provisions prohibiting claims and suits for refunds): Taxable Years Beginning in 1948 Sec. 298. Bankruptcy and receiverships. Same as 1944. Sec. 299. Removal of property or departure from United States. Same as 1944. Supplement N-Claims Against Transferees and Fiduciaries Sec. 311. Transferred assets. Sec. 311. (a) Method of collection. Same as 1944. Sec. 311. (a) (1) Transferees. Same as 1944. Taxable Years Beginning in 1946 and 1947 Sec. 298. Bankruptcy and receiverships. Same as 1944. Sec. 299. Removal of property or departure from United States. Same as 1944. Supplement N-Claims Against Transferees and Fiduciaries Sec. 311. Transferred assets. Sec. 311. (a) Method of collection. Same as 1944. Sec. 311. (a) (1) Transferees. Same as 1944. Sec. 311. (a) (2) Fiduciaries. Same as 1944. Sec. 311. (a) (2) Fiduciaries. Sec. 311. (a) (2) Fiduciaries. The liability of a fiduciary under section 3467 of the Revised Stat Same as 1944. |