ESTIMATED TAX PAYMENTS REQUIRED FOR S CORPORATIONS.

SEC. 7209. ESTIMATED TAX PAYMENTS REQUIRED FOR S CORPORATIONS. (a) In General.—Subsection (g) of section 6655 (relating to failure by corporation to pay estimated income tax) is amended by adding at the end thereof the following new paragraph: “(4) Application of section to certain taxes imposed on s corporations.—In the case of an S corporation, for purposes of this section— “(A) The following taxes shall be treated as imposed by section 11: “(i) The tax imposed by section 1374(a) (or the corresponding provisions of prior law). 103 STAT. 2339 “(ii) The tax imposed by section 1375(a). “(iii) Any tax for which the S corporation is liable by reason of section 1371(d)(2). “(B) Paragraph (2) of subsection (d) shall not apply. “(C) Clause (ii) of subsection (d)(1)(B) shall be applied as if it read as follows: “‘(ii) the sum of— “‘(I) the amount determined under clause (i) by only taking into account the taxes referred to in clauses (i) and (iii) of subsection (g)(4)(A), and “‘(III) 100 percent of the tax imposed by section 1375(a) which was shown on the return of the corporation for the preceding taxable year.’ “(D) The requirement in the last sentence of subsection (d)(1)(B) that the return for the preceding taxable year show a liability for tax shall not apply. “(E) Any reference in subsection (e) to taxable income shall be treated as including a reference to the net recognized built-in gain or the excess passive income (as the case may be).” (b) Effective Date.—The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1989.