PUBLIC LAWS--CH. 63 - -FEB. 25 , 1944 Pot, p. 244 Post, p. 235 . 53 Stat. 24; 56 Stat. 893, 890. 26U..c.132; Bupp. III, 66 35, 466 (e). PMoe,p. 234 . 57 Stat. 143 . 26 U. 8. C., Supp. III, 60 (a). Post, p. 244 . 57 Stat. 143. 28 U. 8. C., Supp. I 60 (b). Pb, p. 244 subparagraph with respect to any installment due but unpaid, exceed 10 per centum of the unpaid portion of such install- ment. For the purposes of this subparagraph each install- ment shall be considered to be an amount equal to the amount that would have been due and payable if a declaration show- ing an estimated tax in the amount of the correct tax had been timely filed, and one such installment shall be considered due on the fifteenth day of the last month of that quarter of the taxable year in which the declaration is required to be filed, and another such installment shall be considered due on the fifteenth day of the last month of each succeeding quarter of the taxable year. "(B) Failure to Pay Installments of Estimated Tax De- clared.- Where a declaration of estimated tax has been made and filed within the time prescribed, or where a declaration of estimated tax has been made and filed after the time pre- scribed and the Commissioner has found that failure to make and file such declaration within the time prescribed was due to reasonable cause and not to willful neglect, in the case of a failure to pay an installment of the estimated tax within the time prescribed, unless such failure is shown to the satis- faction of the Commissioner to be due to reasonable cause and not to willful neglect, there shall be added to the tax 5 per centum of the unpaid amount of such installment, and in addition 1 per centum of such unpaid amount for each month (except the first) or fraction thereof during which such amount remains unpaid. In no event shall the aggregate addition to the tax under this subparagraph with respect to any installment due but unpaid, exceed 10 per centum of the unpaid portion of such installment. "(2) SUBSTANTIAL UNDERESTIMATE OF ESTIMATED TAX.-If 80 per centum of the tax (determined without regard to the credits under sections 32, 35, and 466 (e)), in the case of individuals other than farmers exercising an election under section 60 (a), or 66% per centum of such tax so determined in the case of such farmers, exceeds the estimated tax (increased by such credits), there shall be added to the tax an amount equal to such excess, or equal to 6 per centum of the amount by which such tax so deter- mined exceeds the 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 Secre- tary, 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." (b) TECHNOAi AxENDmx .r.Section 60 (b) (relating to the application of declarations of estimated tax to short taxable years) is [58 STAT.
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