[Code of Federal Regulations]
[Title 26, Volume 13]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR]

[Page 461-462]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
Procedure and Administration--Table of Contents
 
Sec.  1.6654-4  Waiver of penalty for underpayment of 1971 estimated 
tax by an individual.

    (a) In general. Section 207 of the Revenue Act of 1971 provides 
that, in the case of individuals, the penalty prescribed by section 
6654(a) and Sec.  1.6654-1 for underpayment of estimated tax shall not 
apply in certain cases to taxable years beginning after December 31, 
1970, and ending before January 1, 1972. The penalty shall be waived 
only if the taxpayer meets one of the gross income requirements 
contained in paragraph (b) of this section and if the limitation 
contained in paragraph (c) of this section is not applicable.
    (b) Gross income requirement. Except as provided in paragraph (c) of 
this section, the waiver provided in paragraph (a) of this section shall 
be applicable only:
    (1) If the gross income for the taxable year does not exceed $10,000 
in the case of:
    (i) A single individual who is neither a head of a household (as 
defined in section 2(b)) nor a surviving spouse (as defined in section 
2(a)), or
    (ii) A married individual not entitled under section 6013 to file a 
joint return for the taxable year, or

[[Page 462]]

    (2) If the gross income for the taxable year does not exceed $20,000 
in the case of:
    (i) A head of a household (as defined in section 2(b)) or
    (ii) A surviving spouse (as defined in section 2(a)), or
    (3) If the aggregate gross income for the taxable year does not 
exceed $20,000 in the case of a married individual (entitled under 
section 6013 to file a joint return for the taxable year) and his 
spouse.
    (c) Limitation. Notwithstanding any other provision of this section, 
the waiver provided in paragraph (a) of this section shall not be 
applicable if, in the taxable year, the taxpayer has income from sources 
other than wages (as defined in section 3401(a)) in excess of $200 ($400 
in the case of a husband and wife entitled to file a joint return for 
the taxable year under section 6013). Thus, for example, even if the 
aggregate gross income of a husband and wife (entitled under section 
6013 to file a joint return for the taxable year) does not exceed 
$20,000, the waiver of the penalty for underpayment of estimated tax 
shall not apply if the husband and wife have, in the aggregate, income 
from sources other than wages in excess of $400.

[T.D. 7282, 38 FR 19028, July 17, 1973]