[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 605-606]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
Procedure and Administration--Table of Contents
 
Sec.  1.9000-7  Provisions for estimated tax.

    (a) Additions to tax under section 294(d) of the Internal Revenue 
Code of 1939. Any addition to the tax under section 294(d) (relating to 
estimated tax) of the Internal Revenue Code of 1939 shall be computed as 
if the tax for the year for which the estimate was made were computed 
with sections 452 and 462 still applicable to such taxable year. For the 
purpose of the preceding sentence, it is not necessary for the taxpayer 
actually to have made an election under section 452 or 462; it is only 
necessary for the taxpayer to have taken such sections into account in 
estimating its tax liability for the year. Thus, if in determining the 
amount of estimated tax, the taxpayer computed his estimated tax 
liability by applying those sections, that portion of any additions to 
tax under section 294(d) resulting from the repeal of sections 452 and 
462 shall be disregarded.
    (b) Additions to tax under section 6654. In the case of an 
underpayment of estimated tax, any additions to the tax under section 
6654, with respect to installments due before December 15, 1955, shall 
be computed without regard to any increase in tax resulting from the 
repeal of sections 452 and 462. Any additions to the tax with respect to 
installments due on or after December 15, 1955, shall be imposed in 
accordance with the applicable provisions of the Code, and as though 
sections 452 and 462 had not been enacted. Thus, a taxpayer whose 
declaration of estimated tax was based upon an estimate of his taxable 
income for the year of the estimate which was determined by taking 
sections 452 and 462 into account, must file an amended declaration on 
or before the due date of the next installment of estimated tax due on 
or after December 15, 1955. Such amended declaration shall reflect an 
estimate of the tax without the application of such sections. If the 
taxpayer bases his estimate on the tax for the preceding taxable year 
under section 6654(d)(1)(A), an amended declaration must be filed on or 
before the due date of the next installment due on or after December 15,

[[Page 606]]

1955, if the tax for the preceding taxable year is increased as the 
result of the repeal of sections 452 and 462. Similarly, if the taxpayer 
bases his estimate on the tax computed under section 6654(d)(1)(B), he 
must file an amended declaration on or before the due date of the next 
installment due on or after December 15, 1955, taking into account the 
repeal of sections 452 and 462 with respect to the preceding taxable 
year. Any increase in estimated tax shown on an amended declaration 
filed in accordance with this paragraph must be paid in accordance with 
section 6153(c).
    (c) Estimated tax of corporations. Corporations required to file a 
declaration of estimated tax under section 6016 for taxable years ending 
on and after December 31, 1955, shall estimate their tax liability for 
such year as if sections 452 and 462 had not been enacted. Thus, if the 
corporation bases its estimated tax liability under section 6655(d) (1) 
or (2) on its operations for the preceding taxable year, the effect of 
the repeal of sections 452 and 462 with respect to such year must be 
taken into account.