(

a) Section of the Internal Revenue Code, relating to failure by an individual to pay estimated income tax, applies, except as otherwise provided. (

b) Section 6654(a)(1) of the Internal Revenue Code is modified to refer to the rate determined under

Section in lieu of

Section of the Internal Revenue Code. (c)

(1) Section 6654(e)(1) of the Internal Revenue Code, relating to exceptions where the tax is a small amount, does not apply.

(2) An addition to tax shall not be imposed under this

section if the tax imposed under

Section or and the tax imposed under

Section for the preceding taxable year, minus the sum of any credits against the tax provided by

Part 10 (commencing with

Section 17001) or this part, or the tax computed under

Section or upon the estimated income for the taxable year, minus the sum of any credits against the tax provided by

Part 10 (commencing with

Section 17001) or this part, is less than five hundred dollars ($500), except in the case of a separate return filed by a married person the amount shall be less than two hundred fifty dollars ($250). (

d) Section 6654(

f) of the Internal Revenue Code does not apply and for purposes of this

section the term “tax” means the tax imposed under

Section or and the tax imposed under

Section less any credits against the tax provided by

Part 10 (commencing with

Section 17001) or this part, other than the credit provided by subdivision (

a) of

Section 19002. (e)

(1) The credit for tax withheld on wages, as specified in

Section 6654(

g) of the Internal Revenue Code, is the credit allowed under subdivision (

a) of

Section 19002. (2) (

A) Section 6654(g)(1) of the Internal Revenue Code is modified by substituting the phrase “the applicable percentage” for the phrase “an equal part.” (

B) For purposes of this paragraph, “applicable percentage” means the percentage amount prescribed under

Section 6654(d)(1)(

A) of the Internal Revenue Code, as modified by subdivision (

a) of

Section 19136.1. (

f) This

section applies to a nonresident individual. (g)

(1) An addition to tax shall not be imposed under this

section to the extent that the underpayment was created or increased by either of the following: (

A) Any law that is chaptered during and operative for the taxable year of the underpayment. (

B) If, for a taxable year prior to its repeal, the adjustment factor for the credit authorized by

Section for the taxable year was less than the adjustment factor for that credit for the preceding taxable year. (2) (

A) Notwithstanding

Section 18415, subparagraph (

A) of paragraph (1) applies to penalties imposed under this

section on or after January 1, 2005. (

B) Notwithstanding

Section 18415, subparagraph (

B) of paragraph (1) applies to penalties imposed under this

section on or after January 1, 2016. (

h) The amendments made to this

section by

Section of

Chapter of the Statutes of apply to taxable years beginning on or after January 1, 2009. (

i) The amendments made to this

section by

Section of

Chapter of the Fourth Extraordinary Session of the Statutes of apply to amounts withheld on wages beginning on or after January 1, 2009. (

j) Notwithstanding subdivision (f), this

section shall not apply to a nonresident individual electing to file in a group return pursuant to

Section 18537, for taxable years beginning on or after January 1, 2026.