Section 119.23. Additions imposed for failure to file or to pay estimated tax

(a) Except as provided in subsection (c), any individual who is required to file a declaration of estimated tax shall be deemed to have made an underpayment of estimated tax if he fails to pay all or any part of an installment when due. The amount of the underpayment shall be the excess of the amount of the installment which would be required to be paid if the estimated tax were equal to 80% of the tax (2/3 in the case of an individual) shown on the return for the taxable year (or if no return was filed of the tax for such year) over the amount, if any, of the installments paid on or before the last day prescribed for such payment.

(b) Any individual making an underpayment shall pay, in addition to the tax, an amount at the rate of 9% per annum of the underpayment for the period of the underpayment. The period of the underpayment shall begin on the day after such payment was due and continue until such tax is actually paid but not beyond the 15th day of the fourth month following the close of the taxable year of the individual.

(c) No additions to the tax will be imposed if such installment is paid on or before the last date prescribed for payment, and the amount of such payment is one of the following:

(1) At least 80% (66 2/3% for an individual who expects to obtain at least 2/3 of his total estimated taxable income from farming for the year) of the amount due on the basis of the tax shown on the return for the taxable year.

(2) At least as much as would have been paid if based on the tax shown on the return of the prior year of the taxpayer.

(3) Based on a tax computed by using the income of the taxpayer for the prior year and the current tax rate.

(4) At least 90% of the tax due on the actual income earned in the months preceding the due date of the installment in question.

The provisions of this § 19.23 amended December 29, 1978, 8 Pa.B. 3826. Immediately preceding text appears at serial page (36084).