Common use of Payment of Tax Clause in Contracts

Payment of Tax. Any increase in tax caused by including the LIFO re- capture amount or the lookthrough LIFO recapture amount in the gross in- come of the C corporation is payable in four equal installments. The C corpora- tion must pay the first installment of this payment by the due date of its re- turn, determined without regard to ex- tensions, for the last taxable year it operated as a C corporation if para- graph (a)(1) or (b)(1) of this section ap- plies, or for the taxable year of the transfer if paragraph (a)(2) or (b)(2) of this section applies. The three suc- ceeding installments must be paid—