(a) Adjustments without interest. A State or local government employer who makes, or has made, an undercollection or underpayment of the hospital insurance taxes imposed by sections 3101(b) and 3111(b) that—
(1) Are required to be paid by reason of section 3121(u)(2), and
(2) Are required to be reported on returns due July 31, 1986, October 31, 1986, or February 2, 1987.
may make an adjustment without interest with respect to such taxes provided that all such taxes for the time period specified in paragraph (a)(2) (except for amounts that are subsequently paid pursuant to an interest-free adjustment under §31.6205-1) are paid on or before February 2, 1987.
(b) Example. The application of the provisions of this section are illustrated by the following example:
[T.D. 8156, 52 FR 33582, Sept. 4, 1987]