[Federal Register Volume 68, Number 112 (Wednesday, June 11, 2003)]
[Rules and Regulations]
[Pages 34797-34799]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-14603]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1, 31, and 602
[TD 9061]
RIN 1545-BB55
Automatic Extension of Time To File Certain Information Returns
and Exempt Organization Returns
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Final and temporary regulations.
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SUMMARY: This document contains temporary regulations providing an
automatic extension of time to file certain information returns and
exempt organization returns. The temporary regulations remove the
requirement for a signature and an explanation to obtain an automatic
extension of time to file these returns. The temporary regulations
affect taxpayers who are required to file certain information returns
and/or exempt organization returns and need an extension of time to
file. The text of the temporary regulations also serves as a portion of
the text of the proposed regulations set forth in the notice of
proposed rulemaking on this subject in the Proposed Rules section in
this issue of the Federal Register.
DATES: Effective Date: These regulations are effective on June 11,
2003.
Applicability Date: For dates of applicability for these
regulations, see Sec. Sec. 1.6081-8T, 1.6081-9T, and 31.6081(a)-1T(d).
FOR FURTHER INFORMATION CONTACT: Charles A. Hall, (202) 622-4940 (not a
toll-free number).
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
These temporary regulations are being issued without prior notice
and public procedure pursuant to the Administrative Procedure Act (5
U.S.C. 553). For this reason, the collection of information contained
in these regulations has been reviewed and, pending receipt and
evaluation of public comments, approved by the Office of Management and
Budget under OMB control number 1545-1840. Responses to this collection
of information are required by the IRS for taxpayers to obtain a
benefit (an automatic extension of time to file certain information or
exempt organization returns).
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless the collection of
information displays a valid control number.
For further information concerning this collection of information,
and where to submit comments on the collection of information and the
accuracy of the estimated burden, and suggestions for reducing this
burden, please refer to the preamble to the cross-referencing notice of
proposed rulemaking published in the Proposed Rules section of this
issue of the Federal Register.
Books and records relating to a collection of information must be
retained as long as their contents may become material in the
administration of any internal revenue law. Generally, tax returns and
tax return information are confidential, as required by 26 U.S.C. 6103.
Background
This document contains amendments to 26 CFR parts 1, 31, and 602
under section 6081 of the Internal Revenue Code. Section 6081(a)
provides that the Secretary may grant a reasonable extension of time
for filing any return, declaration, statement, or other document
required by Title 26 or by regulations. Except in the case of taxpayers
who are abroad, no such extension shall be for more than 6 months. The
regulations under section 6081 provide specific rules taxpayers must
follow to request an extension of time to file Federal tax returns.
Under the generally applicable rule, a taxpayer must submit an
application for the extension on or before the due date of the return.
The application must be in writing, must be properly signed by the
taxpayer or his duly authorized agent, and must clearly set forth the
particular tax return for which the extension of the time for filing is
desired and a full recital of the reasons for requesting the extension.
These rules apply to all returns other than those for which the
regulations provide special rules. In addition, the Employment Tax
Regulations provide rules for employers to obtain an extension of time
to file the Social Security Administration copy of Forms W-2 and W-3.
Under those rules, the request must contain a concise statement of the
reasons for requesting the extension.
Explanation of Provisions
Information Returns
Filers and transmitters of information returns on Form 1099
(series), 1098 (series), 5498 (series), W-2 (series), W-2G, 1042-S, and
8027 can obtain an extension of time to file these information returns
by submitting a signed paper Form 8809, ``Request for Extension of Time
to File Information Returns.'' The extensions are most often for a
period of 30 days. Filers and transmitters may thereafter request an
additional 30-day extension. The extensions apply only to the filing
with the government. The filer or transmitter is still required to
provide statements to the recipients by the date specified in the Code
or the regulations.
Currently, in compliance with the regulations, Form 8809 requires a
signature and asks for an explanation of the reasons for the request
for an extension. In current practice, however, the explanation is not
a determining factor for the initial extension. If the filer supplies
the name, address, Employer Identification Number, tax year, and type
of form(s), the initial extension is routinely granted. An extension
beyond the initial 30-day period will not be granted, however, unless
the filer provides a detailed explanation.
These temporary regulations allow filers and transmitters to
request an automatic 30-day extension of time to file without having to
sign Form 8809 and provide an explanation. An explanation and a
signature are required if filers and transmitters need additional time
to file after receiving the automatic 30-day extension. These
regulations also permit employers to obtain an extension of time to
file the Social Security Administration copy of Forms W-2 and W-3
without providing a statement of the reasons for requesting the
extension.
[[Page 34798]]
The new rules will allow the IRS to develop an effective online
version of the extension request. Filers and transmitters will benefit
from the simplified extension procedure that will provide immediate
approval. The IRS will benefit from the efficiencies inherent in such a
system and will move closer to achieving electronic filing goals.
Filers and transmitters are eligible for only one automatic
extension of time to file. Filers and transmitters filing Forms W-2 on
an expedited basis under section 31.6071(a)-1(a)(3)(ii) may receive an
automatic extension of time to file Forms W-2 under Rev. Proc. 96-57,
1996-2 C.B. 389. These filers and transmitters are not eligible to
obtain the 30-day automatic extension under Sec. 1.6081-8T(b). If
these filers and transmitters need additional time, they may request an
extension under the generally applicable procedures for obtaining
additional extensions of time to file Form W-2.
Exempt Organization Returns
These temporary regulations also allow an exempt organization
required to file a return on Form 990 (series), 1041-A, 4720, 5227,
6069, or 8870 an automatic three-month extension of time to file if (a)
an application is submitted on Form 8868, ``Application for Extension
of Time To File an Exempt Organization Return,'' (b) the application is
filed on or before the date the return is due, (c) the application
shows the full amount properly estimated as tax, and (d) the
application is accompanied by full remittance of the amount properly
estimated as tax that is unpaid as of the date prescribed for the
filing of the return.
A signature and an explanation of the reasons for requesting the
extension are not required for an exempt organization to receive the
automatic three-month extension of time to file. If an exempt
organization needs additional time to file a return after receiving the
automatic three-month extension, the exempt organization may file a
signed Form 8868 that explains in detail why the additional time is
needed. The IRS may grant an additional three months for the exempt
organization to file.
Deadwood Provisions
These regulations also remove Sec. 1.6081-1T and Sec. Sec.
31.6011(a)-5(b)(1) and 31.6081(a)-1(a)(2). Section 1.6081-1T is removed
because it relates only to returns for tax years ending before February
1, 1985. Sections 31.6011(a)-5(b)(1) and 31.6081(a)-1(a)(2) are removed
because they relate to information returns that are no longer required.
Special Analyses
It has been determined that this Treasury decision is not a
significant regulatory action as defined in Executive Order 12866.
Therefore, a regulatory assessment is not required. It has also been
determined that section 553(b) of the Administrative Procedure Act (5
U.S.C. chapter 5) does not apply to the regulations. For the
applicability of the Regulatory Flexibility Act (5 U.S.C. chapter 6),
refer to the Special Analyses section of the preamble to the cross-
reference notice of proposed rulemaking published in the Proposed Rules
section of this issue of the Federal Register. Pursuant to section
7805(f) of the Internal Revenue Code, these temporary regulations will
be submitted to the Chief Counsel for Advocacy of the Small Business
Administration for comment on their impact on small businesses.
Drafting Information
The principal author of the regulations is Charles A. Hall of the
Office of Associate Chief Counsel, Procedure and Administration
(Administrative Provisions and Judicial Practice Division).
List of Subjects
26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
26 CFR Part 31
Employment taxes, Income taxes, Penalties, Pensions, Railroad
retirement, Reporting and recordkeeping requirements, Social security,
Unemployment compensation.
26 CFR Part 602
Reporting and recordkeeping requirements.
Amendments to the Regulations
0
Accordingly, 26 CFR parts 1, 31, and 602 are amended as follows:
PART 1--INCOME TAXES
0
Paragraph 1. The authority citation for part 1 is amended by adding
entries in numerical order to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Section 1.6081-8T also issued under 26 U.S.C. 6081.
Section 1.6081-9T also issued under 26 U.S.C. 6081. * * *
Sec. 1.6081-1T [Removed]
0
Par. 2. Section 1.6081-1T is removed.
0
Par. 3. Section 1.6081-8T is added to read as follows:
Sec. 1.6081-8T Automatic extension of time to file certain
information returns (temporary).
(a) In general. A person required to file an information return
(the filer) on Form W-2 series, W-2G, 1042-S, 1098 series, 1099 series,
5498 series, or 8027 will be allowed an automatic 30-day extension of
time to file the return after the date prescribed for filing the return
if the filer or the person transmitting the return for the filer (the
transmitter) files an application in accordance with paragraph (b) of
this section.
(b) Requirements. To satisfy this paragraph (b), an application
must--
(1) Be submitted on Form 8809, ``Request for Extension of Time To
File Information Returns,'' or in any other manner as may be prescribed
by the Commissioner; and
(2) Be filed with the Internal Revenue Service office designated in
the application's instructions on or before the date prescribed for
filing the information return.
(c) Penalties. See sections 6652, 6693, 6721, 6722, and 6723 for
failure to file an information return.
(d) Additional 30-day extension of time to file--(1) In general.
This paragraph (d) provides procedures for obtaining an additional
extension of time for filing an information return on a form listed in
paragraph (a) of this section. No extension of time will be granted
under this paragraph (d) unless the filer or transmitter has first
obtained an automatic extension.
(2) Procedures. In the case of an information return on a form
listed in paragraph (a) of this section, one additional 30-day
extension of time to file the return may be allowed if the filer or
transmitter submits a request for the additional extension before the
expiration of the automatic 30-day extension. The request must--
(i) Be submitted on Form 8809 or in any other manner as may be
prescribed by the Commissioner;
(ii) Explain in detail why the additional time is needed;
(iii) Be signed by the filer or transmitter; and
(iv) Otherwise satisfy the requirements of Sec. 1.6081-1.
(e) No effect on time to provide statement to recipients. An
extension under this section of time to file an information return does
not extend the due date for providing a statement to the person with
respect to whom the information is required to be reported.
(f) Effective date. This section applies to requests for extension
of time to file
[[Page 34799]]
information returns due after June 11, 2003. The applicability of this
section expires on June 12, 2006.
0
Par. 4. Section 1.6081-9T is added to read as follows:
Sec. 1.6081-9T Automatic extension of time to file exempt
organization returns (temporary).
(a) In general. An exempt organization required to file a return on
Form 990 (series), 1041-A, 4720, 5227, 6069, or 8870 will be allowed an
automatic three-month extension of time to file the return after the
date prescribed for filing if the exempt organization files an
application in accordance with paragraph (b) of this section. For
guidance on extensions of time for an exempt organization to file Form
1120-POL, U.S. Income Tax Return for Certain Political Organizations,
see Sec. 1.6081-3.
(b) Requirements. To satisfy this paragraph (b), an application for
an automatic extension under this section must--
(1) Be submitted on Form 8868, ``Application for Extension of Time
To File an Exempt Organization Return,'' or in any other manner as may
be prescribed by the Commissioner;
(2) Be filed with the Internal Revenue Service office designated in
the application's instructions on or before the date prescribed for
filing the information return;
(3) Show the full amount properly estimated as tentative tax for
the exempt organization for the taxable year; and
(4) Be accompanied by the full remittance of the amount properly
estimated as tentative tax which is unpaid as of the date prescribed
for the filing of the return.
(c) Termination of automatic extension. The Commissioner may
terminate an automatic extension at any time by mailing to the exempt
organization a notice of termination. The notice must be mailed at
least 10 days prior to the termination date designated in such notice.
The notice of termination must be mailed to the address shown on the
application for extension or to the exempt organization's last known
address. For further guidance regarding the definition of last known
address, see Sec. 301.6212-2 of this chapter.
(d) Penalties. See sections 6651 and 6652(c) for failure to file an
exempt organization return or failure to pay the amount shown as tax on
the return.
(e) Coordination with Sec. 1.6081-1. No extension of time will be
granted under Sec. 1.6081-1 for filing an exempt organization return
listed in paragraph (a) of this section until an automatic extension
has been allowed pursuant to this section.
(f) Effective date. This section applies to requests for extensions
of time to file an exempt organization return due after June 11, 2003.
The applicability of this section expires on June 12, 2006.
PART 31--EMPLOYMENT TAXES AND COLLECTION OF INCOME TAX AT SOURCE
0
Par. 5. The authority citation for part 31 continues to read as
follows:
Authority: 26 U.S.C. 7805 * * *
Section 31.6081(a)-1T also issued under 26 U.S.C. 6081. * * *
0
Par. 6. Section 31.6011(a)-5 is amended by revising paragraph (b) to
read as follows:
Sec. 31.6011(a)-5 Monthly returns.
* * * * *
(b) Information returns on Form W-3 and Social Security
Administration copies of Form W-2. See Sec. 31.6051-2 for requirements
with respect to information returns on Form W-3 and Social Security
Administration copies of Form W-2.
* * * * *
Sec. 31.6051-1 [Amended]
0
Par. 7. Section 31.6051-1(d)(2)(i)(c) is amended by removing the
language ``Sec. 31.6081(a)-1(a)(3)'' and adding ``Sec. 31.6081(a)-
1(a)(2)'' in its place.
Sec. 31.6051-2 [Amended]
0
Par. 8. Section 31.6051-2(c) is amended by removing the language
``31.6081(a)-1(a)(3)'' and adding ``31.6081(a)-1(a)(2)'' in its place.
0
Par. 9. Section 31.6081(a)-1 is amended by:
0
1. Removing paragraph (a)(2).
0
2. Redesignating paragraph (a)(3) as paragraph (a)(2).
0
3. Revising newly designated paragraph (a)(2)(i).
The revision reads as follows:
Sec. 31.6081(a)-1 Extensions of time for filing returns and other
documents.
(a) * * *
(2) * * * (i) [Reserved]. For guidance on extensions of time to
file the Social Security Administration copy of Forms W-2 and W-3 due
after June 11, 2003, see Sec. 31.6081(a)-1T.
* * * * *
0
Par. 10. Section 31.6081(a)-1T is added to read as follows:
Sec. 31.6081(a)-1T Extensions of time for filing returns and other
documents (temporary).
(a)(1) [Reserved]. For further guidance, see Sec. 31.6081(a)-
1(a)(1).
(2) Information returns of employers on Forms W-2 and W-3-- (i) In
general. The Commissioner may grant an extension of time in which to
file the Social Security Administration copy of Forms W-2 and the
accompanying transmittal form which constitutes an information return
under paragraph Sec. 31.6051-2(a). For further guidance regarding
extensions of time to file the Social Security Administration copy of
Forms W-2 and W-3, see Sec. 1.6081-8T of this chapter.
(a)(2)(ii) through (c) [Reserved]. For further guidance, see Sec.
31.6081(a)-1(a)(2)(ii) through (c).
(d) Effective date. This section applies to requests for extensions
of time to file the Social Security Administration copy of Forms W-2
and W-3 due after June 11, 2003. The applicability of this section
expires on June 12, 2006.
PART 602--OMB CONTROL NUMBERS UNDER THE PAPERWORK REDUCTION ACT
0
Par. 11. The authority citation for part 602 continues to read as
follows:
Authority: 26 U.S.C. 7805.
0
Par. 12. In Sec. 602.101, paragraph (b) is amended by adding the
following entries in numerical order to the table to read as follows:
Sec. 602.101 OMB Control numbers.
* * * * *
(b) * * *
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Current OMB
CFR part or section identified and described control No.
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* * * * *
1.6081-8T............................................. 1545-1040
1.6081-9T............................................. 1545-1040
* * * * *
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David A. Mader,
Assistant Deputy Commissioner of Internal Revenue.
Approved: May 21, 2003.
Pamela F. Olson,
Assistant Secretary of the Treasury.
[FR Doc. 03-14603 Filed 6-10-03; 8:45 am]
BILLING CODE 4830-01-P