Civil penalties.
Section 88
SEC. 88. Civil penalties.— (1) Deficiency.—-Definition.— As used, and in respect of the estimated tax referred to* in this Chapter, the term "Deficiency'1 means: (a) The amount by which eighty per centum of the estimated tax referred to in this Chapter exceeds the amount shown by the taxpayer as the estimated tax on his or its 'return, including tax credit allowable; (b) If no amount is shown by the taxpayer as estimated; ;tax on his or its return, or if no return is filed by the tax£ payer, and the taxpayer has tax credit allowable, the amount by which eighty per centum of the estimated tax referred to in this Chapter exceeds the tax credit allowable against such estimated tax; or (c) If no amount is shown by the taxpayer as estimated tax on his or its return, and the taxpayer has no tax credit allowable, eighty per centum of the estimated: tax referred to. in .this Chapter (2) (a) Interest.—Interest1 upon the amount determined as a deficiency shall be -assessed' at the same: time as the 'deficiency; and shall be paid upon notice and demand from the Commissioner of Internal Revenue; and shall be collected as- part of the estimated tax at the rate.of fifteen per centum per annum from the date prescribed for the payment of the estimated tax to the date the deficiency is assessed: Provided, That the maximum amount, that .may ,be collected as , interest on deficiency shall in, no. case exceed the amount corresponding, to. a period not later than the fifteenth day of April :or the fifteenth day of the fourth month following the close of. the taxable year: Provided, further, That no interest on. deficiency estimated income tax .shall be assessed at any. time after assessment of the actual income tax due for "the .taxable year. (b) Addition to estimated' tax in case of nonpayment.— (I) Estimated Tax on the return.—Where the amount -'shown by the taxpayer as estimated tax on his or its return or part of such amount, is not paid on.or before the date prescribed for its "payment, there1 shall be collected; as part of the estimated tax interest upon such unpaid amount, at the rate of fifteen per centum per annum from the date 'prescribed for its payment until it is paid but not later than the fifteenth day of April or" the fifteenth day of the fourth Month following-the close of-the taxable year. (2) Deficiency.—-Where' the deficiency, or interest on deficiency, assessed under subsection (a) of this section, or part thereof, is not' paid in full within thirty days from the date of receipt by the taxpayer of the notice and demand from the Commissioner- of Internal Revenue, there shall be collected.upon such unpaid amount, as part of the estimated tax, interest at the rate of fifteen per centum per annum from the.date of receipt the taxpayer of1 such notice and demand until it is paid but not later than the fifteenth day of April or. the fifteenth day of the fourth month following t;he close of ;the taxable year.