PUBLIC LAW 99-514—OCT. 22, 1986
100 STAT. 2751
fc Subtitle E—Estimated Tax Provisions SEC. 1541. CURRENT YEAR LIABILITY TEST INCREASED FROM 80 TO 90 PERCENT FOR ESTIMATED TAX PAYMENTS BY INDIVIDUALS.
(a) IN GENERAL.—Clause (i) of section 6654(d)(l)(B) (defining required annual payment) is amended by striking out "80 percent" each place it appears and inserting in lieu thereof "90 percent". (b) TECHNICAL AMENDMENTS.—
(1) The table contained in clause (ii) of section 6654(d)(2)(C) (defining applicable percentage) is amended— (A) by striking out "20" and inserting in lieu thereof "22.5", (B) by striking out "40" and inserting in lieu thereof "45", (C) by striking out "60" and inserting in lieu thereof .1 "67.5", and (D) by striking out "80" and inserting in lieu thereof "90". (2) Subparagraph (C) of section 6654(i)(l) (relating to special rules for farmers and fishermen) is amended by striking out "80 percent" and inserting in lieu thereof "90 percent". (3) The table contained in subparagraph (B) of section 6654(j)(3) (relating to special rules for nonresident aliens) is amended— (A) by striking out "40" and inserting in lieu thereof "45", (B) by striking out "60" and inserting in lieu thereof "67.5", and (C) by striking out "80" and inserting in lieu thereof "90". (c) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 1986. SEC. 1542. CERTAIN TAX-EXEMPT ORGANIZATIONS SUBJECT TO CORPORATE ESTIMATED TAX RULES.
(a) GENERAL RULE.—Section 6154 (relating to installment payments of estimated income tax by corporations) is amended by adding at the end thereof the following new subsection: "(h) CERTAIN TAX-EXEMPT ORGANIZATIONS.—For purposes of this section and section 6655— "(1) any organization subject to the tax imposed by section 511, and any private foundation subject to the tax imposed by section 4940, shall be treated as a corporation subject to tax under section 11, "(2) any tax imposed by section 511 or 4940 shall be treated as a tax imposed by section 11, and "(3) any reference to taxable income shall be treated as including a reference to unrelated business taxable income or net investment income (as the case may be)." (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1986. SEC. 1543. WAIVER OF ESTIMATED PENALTIES FOR 1986 UNDERPAYMENTS ATTRIBUTABLE TO THIS ACT.
No addition to tax shall be made under section 6654 or 6655 of the Internal Revenue Code of 1986 (relating to failure to pay estimated tax) for any period before April 16, 1987 (March 16, 1987, in the case of a taxpayer subject to section 6655 of such Code), with respect to
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