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the payment of the tax). Sec. 6653(a)(2)(B). ERTA sec.
722(b)(2) provides that section 6653(a)(2) applies "to taxes the
last date prescribed for payment of which is after December 31,
1981."
Petitioners argue that the first three of their four
required installment payments of 1981 estimated tax were made
during 1981 and were payments of income tax, the last respective
dates for payment of which were all before December 31, 1981.
Consequently, according to petitioners, the section 6653(a)(2)
addition to tax is inapplicable to three quarters of their
underpayment. We disagree.
The relevant provisions of the Code are in subtitle F
(procedure and administration), chapters 61, 62, 63, 64, and 66
(concerning information and returns, time and place for paying
tax, assessment, collection, and limitations, respectively).
Secs. 6072, 6151, 6201, 6211, 6315, 6501, 6513. These provisions
reflect the annual nature of the income tax and the recognition
in the Code that installment payments of estimated tax "are
merely prepayments, not payments of the tax itself." In re
Ripley, 926 F.2d 440, 447 (5th Cir. 1991). Section 6315 provides
that "Payment of the estimated income tax, or any installment
thereof, shall be considered payment on account of the income
taxes imposed by subtitle A for the taxable year." (Emphasis
added.)
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