Publishing Section 113(c) of the National Internal Revenue Code of 1977, as amended by P.D. No. 1705

January 5, 1981 REVENUE MEMORANDUM CIRCULAR NO. 01-81 SUBJECT : Publishing Section 113(c) of the National Internal Revenue Code of 1977, as amended by P.D. No. 1705 TO : All Internal Revenue Officers and Others Concerned For the information and guidance of all concerned, quoted hereunder is Section 113(c) of the National Internal Revenue Code of 1977, as amended by P.D. No. 1705: "(c) Surcharge . If the amount of tax included in the notice and demand from the Commissioner of Internal Revenue shown on the Return is not paid in full on or before the date prescribed for its payment under paragraph (a) of this section, or any amount of deficiency, or any interest assessed in connection therewith is not paid in full within the period prescribed in the assessment notice and demand required under paragraph (b) of this Section, there shall be collected in addition to the interest prescribed herein and in Sections 111 and 112 and as part of the tax surcharge of ten per centum of the unpaid amount." aisa dc Under the above-quoted provision, which took effect on August 1, 1980, the date of promulgation of P.D. No. 1705, the surcharge was increased from 5% to 10%. Consequently, in the case of a deficiency estate tax assessment issued before August 1, 1980, if the period prescribed in the assessment notice within which the tax shall be paid expired and, therefore, the taxpayer become delinquent, before August 1, 1980 only a 5% surcharge shall be imposed even if the tax remained unpaid after August 1, 1980. On the other hand, if the period prescribed for payment expired and, therefore, the taxpayer become delinquent on or after August 1, 1980, the 10% surcharge shall be imposed in conformity with P.D. No. 1705. acd It is desired that this Circular be given as wide a publicity as possible. RUBEN B. ANCHETA Acting Commissioner