PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3681

tobacco before such date pursuant to a request made

under the first proviso of section 3(a) of such Act, or
(ii) such pipe tobacco is held on such date under the

supervision of a customs officer pursuant to the second

proviso of such section 3(a).

Under regulations prescribed by the Secretary of the
Treasury or his delegate, provisions similar to sections 5706
and 5708 of the 1986 Code shall apply to pipe tobacco with
respect to which tax is imposed by paragraph (1) by reason
of this subparagraph.

(3) PIPE TOBACCO.—For purposes of this subsection, the term
"pipe tobacco" shall have the meaning given to such term by
subsection (o) of section 5702 of the 1986 Code.

(4) EXCEPTION WHERE LIABILITY DOES NOT EXCEED $1,000.—No
tax shall be imposed by paragraph (1) on any person if the tax
which would but for this paragraph be imposed on such person
does not exceed $1,000. For purposes of the preceding sentence,
all persons who are treated as a single taxpayer under section
5061(e)(3) of the 1986 Code shall be treated as 1 person.

SEC. 5063. MODIFICATION OF DISTILLED SPIRITS TAX CREDIT FOR
FLAVORS CONTENT.

(a) IN GENERAL.—Subparagraph (B) of section 5010(c)(2) of the 1986
Code (defining flavors content) is amended by striking out the "and"
at the end of clause (i), by redesignating clause (ii) as clause (iii), and
by inserting after clause (i) the following new clause:

"(ii) alcohol derived from flavors distilled at a dis-
tilled spirits plant, and".

(b) EFFECTIVE DATE.—The amendments made by this section shall
apply with respect to distilled spirits withdrawn from bond after the
date of the enactment of this Act.

Subtitle H—Other Revenue Increase Provisions

26 USC 5010
note.

SEC. 5071. INCREASE IN PENALTY FOR BAD CHECKS.

(a) GENERAL RULE.—Section 6657 of the 1986 Code (relating to bad
checks) is amended—

(1) by striking out "1 percent" and inserting in lieu thereof "2
percent",

(2) by striking out "$500" and inserting in lieu thereof "$750",
and

(3) by striking out "$5" and inserting in lieu thereof "$15".

(b) EFFECTIVE DATE.—The amendment made by subsection (a) 26 USC 6657
shall apply to checks or money orders received after the date of the note.
enactment of this Act.

SEC. 5072. TIME FOR PAYMENT OF TAX ON REVERSION OF PENSION PLAN
ASSETS.

(a) IN GENERAL.—Section 4980(c) of the 1986 Code is amended by
adding at the end thereof the following new paragraph:

"(4) TIME FOR PAYMENT OF TAX.—For purposes of subtitle F,
the time for payment of the tax imposed by subsection (a) shall
be the last day of the month following the month in which the
employer reversion occurs."

(b) EFFECTIVE DATE.—The amendment made by subsection (a) 26 USC 4980
shall apply to reversions after December 31,1988. note.