HOUSE BILL NO. 397
AN ACT TO AMEND CHAPTER 19, TITLE 30, DELAWARE CODE, RELATING TO PAYMENT OF FINAL TAX AND UNDERPAYMENT OF ESTIMATED TAX BY CORPORATIONS.
Be it enacted by the General Assembly of the State of Delaware:
Section 1. Amend §1905, Title 30, Delaware Code, by adding thereto a new subsection (c) to read as follows:
"(c) Any additional tax due as computed in the final return required to be filed pursuant to §1904 shall be paid with such final return."
Section 2. Amend §1910, Title 30, Delaware Code by striking subsection (d) in its entirety and substituting in lieu thereof a new subsection (d) to read as follows:
"() Underpayment of Estimated Tax.
(1) Addition to Tax. - In case of any underpayment of tentative tax or installment of estimated tax required by this Chapter, there shall be added to the tax for the taxable year an amount determined at the rate of 1% per month or fraction thereof upon the amount of underpayment for the period of the underpayment.
(2) Amount of Underpayment. - For purposes of paragraph (1), the amount of the underpayment shall be the excess of -
(i) The amount of the tentative tax or installment payment which would be required to be made if theestimated tax were equal to 80 percent of the tax shown on the final return for the taxable year, or if no return was filed, 80 percent of the tax for such year, over
(ii) The amount, if any, of the tentative tax or the installment paid on or before the last date prescribed for payment.
(3) Period of Underpayment. - The period of the underpayment shall run from the date the tentative tax or installment was required to be paid to the first day of the fourth month following the close of the taxable year, or the date on which paid, whichever date is earlier.
(0) Exception. - Notwithstanding the foregoing provisions of this Subsection, the addition to the tax with respect to any underpayment of tentative tax or any installment shall not be imposed if the total amount of all payments of estimated tax made on or before the last date prescribed for the payment thereof equals or exceeds the amount which would have been required to be paid on or before such date if the estimated tax were the tax shown on the final return of the corporation for the preceding taxable year."
Section 3. Effective Date. This amendment shall apply to the taxable years beginning on or after January 1, 1975
Approved July 8, 1975