EXTENSION OF INTEREST-FREE PERIOD FOR PAYMENT OF TAX AFTER NOTICE AND DEMAND.

Sec. 303. EXTENSION OF INTEREST-FREE PERIOD FOR PAYMENT OF TAX AFTER NOTICE AND DEMAND. (a) General Rule.— Paragraph (3) of section 6601(e) (relating to payments made within 10 days after notice and demand) is amended to read as follows: “(3) Payments made within specified period after notice and demand.— If notice and demand is made for payment of any amount and if such amount is paid within 21 calendar days (10 business days if the amount for which such notice and demand is made equals or exceeds $100,000) after the date of such notice and demand, interest under this section on the amount so paid shall not be imposed for the period after the date of such notice and demand.”. (b) Conforming Amendments.— (1) Subparagraph (A) of section 6601(e)(2) is amended by striking “10 days from the date of notice and demand therefor” and inserting “21 calendar days from the date of notice and demand therefor (10 business days if the amount for which such notice and demand is made equals or exceeds $100,000)”. (2) Paragraph (3) of section 6651(a) is amended by striking “10 days of the date of the notice and demand therefor” and inserting “21 calendar days from the date of notice and demand therefor (10 business days if the amount for which such notice and demand is made equals or exceeds $100,000)”. (c) Effective Date.— The amendments made by this section shall apply in the case of any notice and demand given after December 31, 1996.