SIMPLIFICATION OF INDIVIDUAL ESTIMATED TAX SAFE HARBOR BASED ON LAST YEAR’S TAX.

SEC. 13214. SIMPLIFICATION OF INDIVIDUAL ESTIMATED TAX SAFE HARBOR BASED ON LAST YEAR’S TAX. (a) In General.— Paragraph (1) of section 6654(d) (relating to amount of required estimated tax installments) is amended by striking subparagraphs (C), (D), (E), and (F) and by inserting the following new subparagraph: “(C) Limitation on use of preceding year’s tax.— “(i) In general.— If the adjusted gross income shown on the return of the individual for the preceding taxable year exceeds $150,000, clause (ii) of subparagraph (B) shall be applied by substituting ‘110 percent’ for ‘100 percent’. “(ii) Separate returns.— In the case of a married individual (within the meaning of section 7703) who files a separate return for the taxable year for which the amount of the installment is being determined, clause (i) shall be applied by substituting ‘$75,000’ for‘$150,000’. “(iii) Special rule.— In the case of an estate or trust, adjusted gross income shall be determined as provided in section 67(e).” (b) Conforming Amendments.— (1) Subparagraph (A) of section 6654(j)(3) is amended by striking “and subsection (d)(1)(C)(iii) shall not apply”. (2) Paragraph (4) of section 6654(1) is amended by striking “paragraphs (1)(C)(iv) and (2)(B)(i) of subsection (d)” and inserting “subsection (d)(2)(B)(i)”. (c) Effective Date.— The amendments made by this section shall apply to taxable years beginning after December 31, 1993.