[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 469]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
Procedure and Administration--Table of Contents
 
Sec.  1.6655-3  Short taxable years in the case of corporations.

    (a) In general. The provisions of section 6655, with certain 
modifications relating to the application of subsection (d) thereof, 
which are explained in paragraph (b) of this section, are applicable in 
the case of a short taxable year for which a declaration is required to 
be filed. (See Sec.  1.6016-4 for requirement of declaration for short 
taxable year.)
    (b) Rules as to application of section 6655(d). In any case in which 
the taxable year for which an underpayment of estimated tax exists is a 
short taxable year due to a change in annual accounting periods, in 
determining the tax:
    (1) Shown on the return for the preceding taxable year (for purposes 
of section 6655(d)(1));
    (2) Based on the current year's rates but otherwise on the basis of 
the facts shown on the return for the preceding taxable year and the law 
applicable to such year (for purposes of section 6655(d)(2)); or
    (3) Computed by placing taxable income for a portion of the current 
year on an annual basis under section 6655(d)(3);

the tax will be reduced by multiplying it by the number of months in the 
short taxable year and dividing the resulting amount by 12. The 
application of the exception provided in section 6655(d)(3) shall be 
determined as if the estimated tax were 70 percent of the tax so 
reduced.
    (c) Preceding taxable year a short taxable year. If ``the preceding 
taxable year'' referred to in section 6655(d)(2) was a short taxable 
year, the tax computed on the basis of the facts shown on the return for 
such preceding year, for purposes of determining the applicability of 
the exception described in section 6655(d)(2), shall be the tax computed 
on the annual basis in the manner described in section 443(b)(1) (prior 
to its reduction in the manner described in the last sentence thereof). 
If the tax rates for the taxable year with respect to which the 
underpayment occurs differ from the rates applicable to the preceding 
taxable year, the tax determined in accordance with the preceding 
sentence shall be recomputed using the rates applicable to the year with 
respect to which the underpayment occurs.

[T.D. 6500, 25 FR 12152, Nov. 26, 1960]