ESTIMATED TAX PENALTIES FOR 1987.

SEC. 10303. ESTIMATED TAX PENALTIES FOR 1987. (a) Delay of Increase in Current Year Liability Test for Individuals.— Notwithstanding section 1541(c) of the Tax Reform Act of 1986, the amendments made by section 1541 of such Act shall apply only to taxable years beginning after December 31, 1987. (b) Corporate Provisions.— (1) Ratification of secretarial waiver.— The Congress hereby ratifies the safe harbor provided by paragraph (b) of the Treasury Temporary Regulation 1.6655–2T. (2) Corporations also may use 1986 tax to determine amount of certain estimated tax installments due on or before june 15, 1987.— (A) In general.— In the case of a large corporation, no addition to tax shall be imposed by section 6655 of the Internal Revenue Code of 1986 with respect to any underpayment of an estimated tax installment to which this subsection applies if no addition would be imposed with respect to such underpayment by reason of section 6655(d)(1) of such Code if such corporation were not a large corporation. The preceding sentence shall apply only to the extent the underpayment is paid on or before the last date prescribed for payment of the most recent installment of estimated tax due on or before September 15, 1987. (B) Installment to which subsection applies.— This subsection applies to any installment of estimated tax for a taxable year beginning after December 31, 1986, which is due on or before June 15, 1987. (C) Large corporation.— For purposes of this subsection, the term “large corporation” has the meaning given such term by section 6655(i)(2) of such Code (as in effect on the day before the date of the enactment of this Act).