MITIGATION OF PENALTY ON INDIVIDUAL’S FAILURE TO PAY FOR MONTHS DURING PERIOD OF INSTALLMENT AGREEMENT.

SEC. 3303. MITIGATION OF PENALTY ON INDIVIDUAL’S FAILURE TO PAY FOR MONTHS DURING PERIOD OF INSTALLMENT AGREEMENT. (a) In General.— Section 6651 (relating to failure to file tax return or to pay tax) is amended by adding at the end the following new subsection: “(h) Limitation on Penalty on Individual’s Failure To Pay for Months During Period of Installment Agreement.— In the case of an individual who files a return of tax on or before the due date for the return (including extensions), paragraphs (2) and (3) of subsection (a) shall each be applied by substituting ‘0.25’ for ‘0.5’ each place it appears for purposes of determining the addition to tax for any month during which an installment agreement under section 6159 is in effect for the payment of such tax.”. (b) Effective Date.— The amendment made by this section shall apply for purposes of determining additions to the tax for months beginning after December 31, 1999.