IRS Lists Time-Sensitive Acts That May Be Postponed
NOV. 2, 2001
Rev. Proc. 2001-53; 2001-2 C.B. 506
DOCUMENT ATTRIBUTES
- Institutional AuthorsInternal Revenue Service
- Cross-ReferencePart III
Administrative, Procedural, and Miscellaneous
26 CFR 301.7508-1: Time for performing certain acts postponed by
reason of service in a combat zone or a Presidentially declared
disaster.
(Also Part I, section 7508A; section 301.7508A-1.) - Code Sections
- Subject Area/Tax Topics
- Index Termscombat zone service, time computations, effect ondisasters, time computation, effect on
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2001-27710 (39 original pages)
- Tax Analysts Electronic Citation2001 TNT 214-13
Citations: Rev. Proc. 2001-53; 2001-2 C.B. 506
Superseded by Rev. Proc. 2002-71
Rev. Proc. 2001-53
SECTION 1. PURPOSE
.01 This revenue procedure provides a list of time-sensitive acts, the performance of which may be postponed under sections 7508 and 7508A of the Internal Revenue Code (Code). Section 7508 of the Code postpones specified acts for individuals serving in the Armed Forces of the United States or serving in support of such Armed Forces in a combat zone. Section 7508A of the Code permits a postponement of specified acts for taxpayers affected by a Presidentially declared disaster. The list of acts in this revenue procedure supplements the list of postponed acts in section 7508(a)(1) of the Code and section 301.7508A-1(b) of the Regulations on Procedure and Administration.
.02 This revenue procedure does not, by itself, provide any postponements under sections 7508 or 7508A. In order for taxpayers to be entitled to a postponement of any act listed in this revenue procedure, the IRS generally will publish a Notice or other guidance providing relief with respect to a specific combat zone or Presidentially declared disaster.
.03 This revenue procedure will be updated as needed when the IRS determines that additional acts should be included in the list of postponed acts or that certain acts should be removed from the list. Also, taxpayers may recommend that additional acts be considered for postponement under sections 7508 and 7508A. See section 17 of this revenue procedure.
SECTION 2. BACKGROUND
.01 Section 7508(a)(1) of the Internal Revenue Code permits a postponement of certain time-sensitive acts for individuals serving in the Armed Forces or in support of such Armed Forces in an area designated by the President as a combat zone under section 112. Among these acts are the filing of returns, the payment of tax, the filing of a Tax Court petition, and the filing of a refund claim. In the event of service in a combat zone, the acts specified in section 7508(a)(1) of the Code are AUTOMATICALLY POSTPONED. In addition, if the Service publishes a Notice or other guidance providing additional relief under section 7508, some or all of the acts listed in this revenue procedure may be postponed. Likewise, acts not listed in this revenue procedure may be included in published guidance.
.02 Section 7508A of the Code provides that certain acts performed by taxpayers and the government may be postponed if the taxpayer is affected by a Presidentially declared disaster. A "Presidentially declared disaster" is defined in section 1033(h)(3) of the Code. Section 301.7508A-1(d)(1) of the Regulations on Procedure and Administration defines seven types of affected taxpayers, including any individual whose principal residence (for purposes of 1033(h)(4)) is located in a "covered disaster area" and any business entity or sole proprietor whose principal place of business is located in a "covered disaster area." Postponements under section 7508A are not available simply because a disaster has occurred. Generally, the IRS will publish a Notice or other guidance authorizing the postponement. Such guidance will describe the acts postponed, the duration of the postponement, and the location of the covered disaster area. See, for example, Notice 2001-30, 2001-35 I.R.B. 1 and Notice 97-62, 1997-2 C.B. 320, 1997-49 I.R.B. 8. When a Notice or other guidance for a particular disaster is published, the guidance generally will refer to this revenue procedure and may provide for a postponement of all the acts listed in the regulations and this revenue procedure. Alternatively, the guidance may provide that only certain acts listed in this revenue procedure are postponed based on the time when the disaster occurred, its severity, and other factors.
SECTION 3. SCOPE
This revenue procedure applies to individuals serving in the Armed Forces in a combat zone, or in support of such Armed Forces, and to affected taxpayers within the meaning of section 301.7508A- 1(d)(1) of the Regulations on Procedure and Administration.
SECTION 4. APPLICATION
.01 The tables below list sections of the Internal Revenue Code and Treasury Regulations requiring the timely performance of specified acts that may be postponed under sections 7508 and 7508A.
.02 In order to avoid unnecessary duplication, the following tables do not include acts specified in sections 7508 or 7508A or the regulations thereunder. Thus, for example, no mention is made in the following tables of the filing of tax returns or the payment of taxes (or an installment thereof) because these acts are already covered by sections 7508 and 7508A and the regulations thereunder. Also, the following tables do not refer to the making of accounting method elections or any other elections required to be made on tax returns or attachments thereto. Reference to these elections is not necessary because postponement of the filing of a tax return automatically postpones the making of any election required to be made on the return or an attachment thereto.
.03 The following tables refer only to postponement of acts performed by taxpayers. Additional guidance will be published in the Internal Revenue Bulletin if a decision is made that acts performed by the government may be postponed under section 7508 or section 7508A.
SECTION 5. ACCOUNTING METHODS AND PERIODS
_____________________________________________________________________
Statute or
Regulation Act Postponed
_____________________________________________________________________
1. Chapter 1, Any act relating to the adoption,
Subchapter E of election, retention, or change of any
the Code accounting method or accounting period,
or to the use of an accounting method or
accounting period, that is required to be
performed on or before the due date of a
tax return (including extensions).
Examples of such acts are (a) the
requirement in Rev. Proc. 2000-11,
section 6.02, that Form 1128 must be
filed with the Director, Internal Revenue
Service Center, on or before the due date
of the tax return for the short period
required to effect the change in
accounting period; and (b) the
requirement in Rev. Proc. 99-49, section
6.02, that a copy of Form 3115 must be
filed with the national office no later
than when the original Form 3115 is filed
with the timely filed tax return for the
year of the accounting method change.
2. Treas. Reg. section If the acquiring corporation is not
1.381(c)(4)-1(d)(2) permitted to use the method of accounting
used by the acquiring corporation, the
method of accounting used by the
distributor/transferor corporation, or
the principal method of accounting; or if
the corporation wishes to use a new
method of accounting, then the acquiring
corporation must apply to the
Commissioner to use another method.
Treas. Reg. section 1.381(c)(4)-1(d)(2)
requires applications to be filed not
later than 90 days after the date of
distribution or transfer. Rev. Proc. 83-
77, 1983-2C.B. 594, provides an automatic
90-day extension.
3. Treas. Reg. section If the acquiring corporation is not
1.381(c)(5)-1(d)(2) permitted to use the inventory method
used by the acquiring corporation, the
inventory method used by the
distributor/transferor corporation, or
the principal method of accounting, or
wishes to use a new method of accounting,
then the acquiring corporation must apply
to the Commissioner to use another
method. Treas. Reg. section 1.381(c)(5)-
1(d)(2) requires applications to be filed
not later than 90 days after the date of
distribution or transfer. Rev. Proc. 83-
77 provides an automatic 90-day
extension.
4. Treas. Reg. In order to secure prior approval of an
section 1.442- adoption, change or retention of a
1(b)(1) taxpayer's annual accounting period, the
taxpayer generally must file an
application on Form 1128, Application to
Adopt, Change, or Retain a Tax Year, with
the Commissioner. The application must be
filed on or before the 15th day of the
second calendar month following the close
of the short period. (But see Rev. Proc.
2001-11, 2000-3 I.R.B. 309 for automatic
changes in annual accounting period that
can be made with the return.)
5. Treas. Reg. A section 444 election must be made by
section 1.444- filing Form 8716, Election to Have a Tax
3T(b)(1) Year Other Than a Required Tax Year, with
the Service Center. Generally, Form 8716
must be filed by the earlier of (a) the
15th day of the fifth month following the
month that includes the first day of the
taxable year for which the election will
first be effective, or (b) the due date
(without regard to extensions) of the
income tax return resulting from the
section 444 election.
6. Treas. Reg. To secure the Commissioner's consent to a
section 1.446- change in method of accounting, the
1(e)(3)(i) taxpayer must file an application on Form
3115, Application for Change in
Accounting Method, with the Commissioner
during the taxable year in which the
taxpayer desires to make the change in
method of accounting (i.e., must be filed
by the last day of such taxable year).
This filing requirement is also in Rev.
Proc. 97-27, 1997-21 I.R.B. 11. (But see
Rev. Proc. 99-49, 1999-2 C.B. 725, for
automatic changes in method of accounting
that can be made with the return.)
7. Treas. Reg. A taxpayer may elect, with the consent of
section 1.461- the Commissioner, to accrue real property
1(c)(3)(ii) taxes ratably in accordance with section
461(c). A written request for permission
to make such an election must be
submitted within 90 days after the
beginning of the taxable year to which
the election is first applicable. Rev.
Proc. 83-77 provides an automatic 90-day
extension.
8. Sec. 461(h)(3) A taxpayer may elect the recurring item
exception method of accounting under
which certain items that are recurring in
nature (for example, rebates, prizes, and
provision of services under warranty
contracts) are treated as incurred during
a taxable year if, (among other
requirements) for each such item,
economic performance occurs within 8 1/2-
months after the close of the taxable
year.
9. Treas. Reg. A partnership or S corporation must file
section 1.7519- the Form 8752, Required Payment or Refund
2T(a)(2), (3) Under Section 7519, if the taxpayer has
and (4) made an election under section 444 to use
a taxable year other than its required
taxable year and the election is still in
effect. The Form 8752 must be filed and
any required payment must be made by the
date stated in the instructions to Form
8752.
10. Rev. Proc. Certain partnerships, S corporations,
87-32, 1987-2 corporations electing to be S
C.B. 396 corporations, or personal service
corporations that desire to change or
retain a tax year that is its natural
business year, as defined in section
4.01(1) of Rev. Proc. 87-32, and S
corporations or corporations electing to
be S corporations that desire to change
to a tax year that meets the "ownership
tax year test" set forth in section 4.02,
must file Form 1128, Application to
Adopt, Change, or Retain a Tax Year, with
the Service Center on or before the 15th
day of the second calendar month
following the close of the short period
for which a return is required.
If a partnership, S corporation or a
personal service corporation desires to
retain a tax year not described in Rev.
Proc. 87-32, then the taxpayer should
request permission to retain its tax year
by filing Form 1128 on or before the 75th
day of the tax year fr which the
retention is to apply.
An electing S corporation that desires to
adopt, change to, or retain a tax year
not described in Rev. Proc. 87-32 must
request permission by filing Form 2553,
Election by a Small Business Corporation,
when the election to be an S corporation
is filed.
11. Rev. Proc. 92-29, A developer of real estate requesting the
section 6.02 Commissioner's consent to use the
alternative cost method must file a
private letter ruling request within 30
days after the close of the taxable year
in which the first benefitted property in
the project is sold. The request must
include a consent extending the period of
limitation on the assessment of income
tax with respect to the use of the
alternative cost method.
_____________________________________________________________________
SECTION 6. BUSINESS AND INDIVIDUAL TAX ISSUES
_____________________________________________________________________
Statute or
Regulation Act Postponed
_____________________________________________________________________
1. Treas. Reg. A payer spouse may send cash to a third
section 1.71-1T(b), party on behalf of a spouse that
Q&A-7 qualifies for alimony or separate
maintenance payments if the payments are
made to the third party at the written
request or consent of the payee spouse.
The request or consent must state that
the parties intend the payment to be
treated as an alimony payment to the
payee spouse subject to the rules of
section 71. The payer spouse must receive
the request or consent prior to the date
of filing of the payer spouse's first
return of tax for the taxable year in
which the payment was made.
2. Treas. Reg. A taxpayer who receives a loan from the
section 1.77-1 Commodity Credit Corporation may elect to
include the amount of the loan in his
gross income for the taxable year in
which the loan is received. The taxpayer
in subsequent taxable years must include
in his gross income all amounts received
during those years as loans from the
Commodity Credit Corporation, unless he
secures the permission of the
Commissioner to change to a different
method of accounting. Treas. Reg. section
1.77-1 requires such requests to be filed
within 90 days after the beginning of the
taxable year of change. Rev. Proc. 83-77
provides an automatic 90-day extension.
3. Treas. Reg. The lessee must expend its construction
section 1.110- allowance on the qualified long-term real
1(b)(4)(ii)(A) property within eight and one-half months
after the close of the taxable year in
which the construction allowance was
received.
4. Sec. 118(c)(2) A contribution in aid of construction
received by a regulated public utility
that provides water or sewerage disposal
services must be expended by the utility
on qualifying property before the end of
the second taxable year after the year in
which it was received by the utility.
5. Treas. Reg. A contribution of an undivided present
section interest in tangible personal property
1.170A-5(a)(2) shall be treated as made upon receipt by
the donee of a formally executed and
acknowledged deed of gift. However, the
period of initial possession by the donee
may not be deferred for more than one
year.
6. Sec. 468A(g) A taxpayer that makes payments to a
nuclear decommissioning fund with respect
to a taxable year must make the payments
within 2 1/2 months after the close
of such taxable year (the deemed payment
date).
7. Sec. 530(h) A trustee of a Coverdell education
savings account must provide certain
information concerning the account to the
beneficiary by January 31 following the
calendar year to which the information
relates. In addition, Form 5498 must be
filed with the IRS by May 31 following
the calendar year to which the
information relates.
8. Sec. 563(a) In the determination of the dividends
paid deduction for purposes of the
accumulated earnings tax imposed by
section 531, a dividend paid after the
close of any taxable year and on or
before the 15th day of the third month
following the close of such taxable year
shall be considered as paid during such
taxable year. The close of the taxable
year is not affected by this revenue
procedure; the 3 1/2-month period within
which the dividend is paid is the period
extended.
9. Sec. 563(b) In the determination of the dividends
paid deduction for purposes of the
personal holding company tax imposed by
section 541, a dividend paid after the
close of any taxable year and on or
before the 15th day of the third month
following the close of such taxable year
shall, to the extent the taxpayer elects
on its return for the taxable year, be
considered as paid during such taxable
year. The close of the taxable year is
not affected by this revenue procedure;
the 3 1/2-month period within which the
dividend is paid is the period extended.
10. Sec. 563(c) In the determination of the dividends
paid deduction for purposes of part III,
a dividend paid after the close of any
taxable year and on or before the 15th
day of the third month following the
close of such taxable year shall, to the
extent the company designates such
dividend as being taken into account, be
considered as paid during such taxable
year. The close of the taxable year is
not affected by this revenue procedure;
the 3 1/2-month period within which the
dividend is paid is the period extended.
11. Treas. Reg. A taxpayer must file a request for a
section 1.468A- schedule of ruling amounts for a nuclear
3(h)(1)(v) decommissioning fund by the deemed
payment date (2 1/2-months after the
close of the taxable year for which the
schedule of ruling amounts is sought).
12. Treas. Reg. A taxpayer has 30 days to provide
section 1.468A- additional requested information with
3(h)(1)(vii) respect to a request for a schedule of
ruling amounts. If the information is not
provided within the 30 days, the request
will not be considered filed until the
date the information is provided.
13. Sec. 529 A rollover contribution to another
(c)(3)(C)(i) qualified tuition program must be made no
later than the 60th day after the date of
a distribution from a qualified tuition
program.
14. Sec. Excess contributions to a Coverdell
530(d)(4)(C)(i) education savings account must be
distributed before a specified time in
the taxable year following the taxable
year in which the contribution is made.
15. Sec. 530(d)(5) A rollover contribution to another
Coverdell education savings account must
be made no later than the 60th day after
the date of a payment or distribution
from a Coverdell education savings
account.
16. Sec. 563(d) For the purpose of applying section
562(a), with respect to distributions
under subsection (a), (b), or (c) of
section 562, a distribution made after
the close of the taxable year and on or
before the 15th day of the third month
following the close of the taxable year
shall be considered as made on the last
day of such taxable year. The close of
the taxable year is not affected by this
revenue procedure; the 3 1/2-month period
within which the dividend is paid is the
period extended.
17. Sec. 1031(a) Any property received by the taxpayer
shall be treated as property which is not
like-kind property if -- (A) such
property is not identified as property to
be received in the exchange on or before
the day which is 45 days after the date
on which the taxpayer transfers the
property relinquished in the exchange, or
(B) such property is received after the
earlier of (i) the day which is 180 days
after the date on which the taxpayer
transfers the property relinquished in
the exchange, or (ii) the due date
(determined with regard to extension) for
the transferor's return of the tax
imposed by this chapter for the taxable
year in which the transfer of the
relinquished property occurs.
18. Sec. 1043(a) If an eligible person (as defined under
section 1043(b)) sells any property
pursuant to a certificate of divestiture,
then at the election of the taxpayer,
gain from such sale shall be recognized
only to the extent that the amount
realized on such sale exceeds the cost of
any permitted property purchased by the
taxpayer during the 60-day period
beginning on the date of such sale.
19. Sec. 1045(a) A taxpayer other than a corporation may
elect to roll over gain from the sale of
qualified small business stock held for
more than six months if other qualified
small business stock is purchased by the
taxpayer during the 60-day period
beginning on the date of sale.
20. Sec. 1382(d) An organization, to which section 1382(d)
applies, is required to pay a patronage
dividend within 8 1/2 months after the
close of the year.
21. Sec. 1388(j)(3)(A) Any cooperative organization that
exercises its option to net patronage
gains and losses, is required to give
notice to its patrons of the netting by
the 15th day of the 9th month following
the close of the taxable year.
22. Treas. Reg. The effective date of an entity
section 301.7701- classification election (Form 8832)
3(c) cannot be more than 75 days prior to the
date on which the election is filed.
23. Treas. Reg. An automatic extension of 6 months from
sections 301.9100- the due date of a return, excluding
2(b)-(d) extensions, is granted to make the
regulatory of statutory elections whose
due dates are the due date of the return
or the due date of the return including
extensions (for example, an application
to change a method of accounting under
Rev. Proc. 99-49), provided the taxpayer
(a) timely filed its return for the year
of election, (b) within that 6-month
extension period, takes the required
corrective action to file the election in
accordance with the statute, regulations,
revenue procedure, revenue ruling, notice
or announcement permitting the election,
and (c) writes at the top of the return,
statement of election or other form
"FILED PURSUANT TO SECTION 301.9100-2."
24. Treas. Reg. An automatic extension of 12 months from
section 301.9100- the due date for making a regulatory
2(a)(1) election is granted to make certain
elections, including the election to use
other than the required taxable year
under section 444, and the election to
use LIFO under section 472.
_____________________________________________________________________
SECTION 7. CORPORATE ISSUES
_____________________________________________________________________
Statute or
Regulation Act Postponed
_____________________________________________________________________
1. Sec. 302(e)(1) A corporation must complete a
distribution in pursuance of a plan of
partial liquidation of a corporation
within the specified period.
2. Sec. 303 and A corporation must complete the
Treas. Reg. distribution of property to a shareholder
section 1.303-2 in redemption of all or part of the stock
of the corporation which (for Federal
estate tax purposes) is included in
determining the estate of a decedent.
Section 303 and Treas. Reg. section
1.303-2 require, among other things, that
the distribution occur within the
specified period.
3. Sec. 304(b)(3)(C) If certain requirements are met, section
304(a) does not apply to a transaction
involving the formation of a bank holding
company. One requirement is that within a
specified period (generally 2 years)
after control of a bank is acquired,
stock constituting control of the bank is
transferred to a bank holding company in
connection with the bank holding
company's formation.
4. Sec. 332(b) A corporation must completely liquidate a
and corporate subsidiary within the specified
Treas. Reg. period.
sections 1.332-3
and 1.332-4
5. Sec. 338(d)(3) An acquiring corporation must complete a
and (h), and "qualified stock purchase" of a target
Treas. Reg. section corporation's stock within the specified
1.338-2 acquisition period.
6. Sec. 338(g) An acquiring corporation may elect to
and Treas. treat certain stock purchases as asset
Reg. acquisitions. The election must be made
section 1.338-2 within the specified period.
7. Sec. An acquiring corporation and selling
338(h)(10) group of corporations may elect to treat
and Treas. certain stock purchases as asset
Reg. purchases, and to avoid gain or loss upon
section the stock sale. The election must be made
1.338(h)(10)- within the specified period.
1(c)
8. Sec. 341 and A shareholder of a collapsible
Treas. Reg. corporation must sell its stock in the
section 1.341-7 corporation within the specified period.
9. Treas. Reg. An acquiring corporation files a Form
section 976, Claim for Deficiency Dividends
1.381(c)(17)-1(c) Deduction by a Personal Holding Company,
Regulated Investment Company, or Real
Estate Investment Trust, within 120 days
after the date of the determination under
section 547(c) to claim a deduction of a
deficiency dividend.
10. Sec. In the case of a complete liquidation
562(b)(1)(B) (except in the case of a complete
liquidation of a personal holding company
or foreign personal holding company)
occurring within 24 months after the
adoption of a plan of liquidation, any
distribution within such period pursuant
to such plan shall, to the extent of the
earnings and profits (computed without
regard to capital losses) of the
corporation for the taxable year in which
such distribution is made, be treated as
a dividend for purposes of computing the
dividends paid deduction.
11. Sec. 562(b)(2) In the case of a complete liquidation of
a personal holding company occurring
within 24 months after the adoption of a
plan of liquidation, the amount of any
distribution within such period pursuant
to such plan shall be treated as a
dividend for purposes of computing the
dividends paid deduction to the extent
that such is distributed to corporate
distributees and represents such
corporate distributees' allocable share
of the undistributed personal holding
company income for the taxable year of
such distribution.
12. Sec. 1502 and A common parent must apply for permission
Treas. Reg. to discontinue filing consolidated
section 1.1502- returns within a specified period after
75(c)(1)(i) the date of enactment of a law affecting
the computation of tax liability.
13. Sec. 6425 Corporations applying for an adjustment
and Treas. of an overpayment of estimated tax income
Reg. tax must file Form 4466, Corporation
section 1.6425-1 Application for Quick Refund of
Overpayment of Estimated Tax, on or
before the 15th day of the third month
after the taxable year, or before the
date the corporation first files its
income tax return for such year,
whichever is earlier.
_____________________________________________________________________
SECTION 8. EMPLOYEE BENEFIT ISSUES
_____________________________________________________________________
Statute or
Regulation Act Postponed
_____________________________________________________________________
1. Sec. A loan from a qualified employer plan to
72(p)(2)(B) a participant in, or a beneficiary of,
and (C), and such plan must be repaid according to
Treas. Reg. certain time schedules specified in
section 1.72(p)-1, section 72(p)(2)(B) and (C) (including,
Q&A-10 if applicable, any grace period granted
pursuant to Treas. Reg. section 1.72(p)-
1, Q&A-10).
2. Sec. 72(t)(2)(A)(iv) Under section 72(t)(2)(A)(iv), to avoid
the imposition of a 10-percent
additional tax on a distribution from a
qualified retirement plan, the
distribution must be part of a series of
substantially equal periodic payments,
made at least annually.
3. Sec. 72(t)(2)(F) To avoid the imposition of a 10-percent
additional tax on a distribution from an
individual retirement arrangement (IRA)
for a first-time home purchase, such
distribution must be used within 120 days
of the distribution to pay qualified
acquisition costs or rolled into an IRA.
4. Sec. 83(b) Any person who performs services in
and Treas. connection with which property is
Reg. transferred to any person may elect not
section 1.83-2(a) later than 30 days after the date of the
transfer of the property to include in
his gross income, for the taxable year in
which such property is transferred, the
excess of the fair market value of the
property over the amount (if any) paid
for the property.
5. Proposed Cafeteria plan participants will avoid
Treas. Reg. section constructive receipt of the taxable
1.125-1, amounts if they elect the benefits they
Q&A-15 will receive before the beginning of the
period during which the benefits will be
provided.
6. Proposed Cafeteria plan participants will not be
Treas. Reg. section in constructive receipt if, at the end of
1.125-1, the plan year, they forfeit amounts
Q&A-14 and elected but not used during the plan
Proposed year.
Treas. Reg. section
1.125-2,
Q&A-7
7. Proposed Cafeteria plan participants may receive
Treas. Reg. section in cash the value of unused vacation days
1.125-2, on or before the earlier of the last day
Q&A-5 of the cafeteria plan year or the last
day of the employee's taxable year to
which the unused days relate.
8. Treas. Reg. A performance goal is considered pre-
section 1.162- established if it is established in
27(e)(2) writing by the corporation's compensation
committee not later than 90 days after
the commencement of the period of service
to which the performance goal relates if
the outcome is substantially uncertain at
the time the compensation committee
actually establishes the goal. In no
event, however, will the performance goal
be considered pre-established if it is
established after 25 percent of the
period of service has elapsed.
9. Sec. 220(f)(5) A rollover contribution to an Archer MSA
must be made no later than the 60th day
after the day on which the holder
receives a payment or distribution from
an Archer MSA.
10. Sec. 220(h) A trustee or custodian of an MSA (Archer
MSA or Medicare+Choice MSA) must provide
certain information concerning the MSA to
the account holder by January 31
following the calendar year to which the
information relates. In addition, MSA
contribution information must be
furnished to the account holder, and Form
5498, IRA Contribution Information, filed
with the IRS, by May 31 following the
calendar year to which the information
relates.
11. Secs. The first required minimum distribution
401(a)(9), from plans subject to the rules in
403(a)(1), section 401(a)(9) must be made no later
403(b)(10), than the required beginning date.
408(a)(6), Subsequent required minimum distributions
408(b)(3) and must be made by the end of each
457(d)(2) distribution calendar year.
12. Sec. A qualified participant in an ESOP (as
401(a)(28)(B)(i) defined in section 401(a)(28)(B)(iii))
may elect within 90 days after the close
of each plan year in the qualified
election period (as defined in section
401(a)(28)(B)(iv)) to direct the plan as
to the investment of at least 25 percent
of the participant's account in the plan
(50 percent in the case of the last
election).
13. Sec. A plan must distribute the portion of the
401(a)(28)(B)(ii) participant's account covered by an
election under section 401(a)(28)(B)(i)
within 90 days after the period during
which an election can be made; or the
plan must offer at least 3 investment
options (not inconsistent with
regulations prescribed by the Secretary)
to each participant making the election
under section 401(a)(28)(B)(i) and within
90 days after the period during which the
election may be made, the plan must
invest the portion of the participant's
account in accordance with the
participant's election.
14. Sec. Excess deferrals for a calendar year,
401(a)(30) plus income attributable to the excess,
and Treas. must be distributed no later than the
Reg. first April 15 following the calendar
section 1.401(a)-30 year.
and
section 1.402(g)-1
15. Sec. 401(b) A retirement plan that fails to satisfy
and Treas. the requirements of section 401(a) or
Reg. section 403(a) on any day because of a
section 1.401(b)-1 disqualifying provision will be treated
as satisfying such requirements on such
day if, prior to the expiration of the
applicable remedial amendment period, all
plan provisions necessary to satisfy the
requirements of section 401(a) or 403(a)
are in effect and have been made
effective for the whole of such period.
16. Sec. 401(k)(8) A cash or deferred arrangement must
distribute excess contributions for a
plan year, plus income attributable to
the excess, pursuant to the terms of the
arrangement no later than the close of
the following plan year.
17. Sec. 401(m)(6) A plan subject to section 401(m) must
distribute excess aggregate contributions
for a plan year, plus income attributable
to the excess, pursuant to the terms of
the plan no later than the close of the
following plan year.
18. Sec. An individual with excess deferrals for a
402(g)(2)(A) taxable year must notify a plan, not
and Treas. later than a specified date following the
Reg. taxable year, that excess deferrals have
section 1.402(g)-1 been contributed to that plan for the
taxable year. A distribution of excess
deferrals identified by the individual,
plus income attributable to the excess,
must be accomplished no later than the
first April 15 following the taxable year
of the excess.
19. Sec. An ESOP receiving dividends on stock of
404(k)(2)(A)(ii) the C corporation maintaining the plan
must distribute the dividend in cash to
participants or beneficiaries not later
than 90 days after the close of the plan
year in which the dividend was paid.
20. Secs. 408(i) A trustee or issuer of an individual
and 6047(c) retirement arrangement (IRA) must provide
certain information concerning the IRA to
the IRA owner by January 31 following the
calendar year to which the information
relates. In addition, IRA contribution
information must be furnished to the
owner, and Form 5498, Individual
Retirement Arrangement Information, filed
with the IRS, by May 31 following the
calendar year to which the information
relates.
21. Sec. 409(h)(4) An employer required to repurchase
employer securities under section
409(h)(1)(B) must provide a put option
for a period of at least 60 days
following the date of distribution of
employer securities to a participant, and
if the put option is not exercised, for
an additional 60-day period in the
following plan year. A participant who
receives a distribution of employer
securities under section 409(h)(1)(B)
must exercise the put option provided by
that section within a period of at least
60 days following the date of
distribution, or if the put option is not
exercised within that period, for an
additional 60-day period in the following
plan year.
22. Sec. 409(h)(5) An employer required to repurchase
employer securities distributed as part
of a total distribution must pay for the
securities in substantially equal
periodic payments (at least annually)
over a period beginning not later than 30
days after the exercise of the put option
and not exceeding 5 years.
23. Sec. 409(h)(6) An employer required to repurchase
employer securities distributed as part
of an installment distribution must pay
for the securities not later than 30 days
after the exercise of the put option
under section 409(h)(4).
24. Sec. 409(o) An ESOP must commence the distribution of
a participant's account balance, if the
participant elects, not later than 1 year
after the close of the plan year -- i) in
which the participant separates from
service by reason of attaining normal
retirement age under the plan, death or
disability; or ii) which is the 5th plan
year following the plan year in which the
participant otherwise separates from
service (except if the participant is
reemployed before distribution is
required to begin).
25. Sec. 1042(a)(2) A taxpayer must purchase qualified
replacement property (defined in section
1042(c)(4)) within the replacement
period, defined in section 1042(c)(3) as
the period which begins 3 months before
the date of the sale of qualified
securities to an ESOP and ends 12 months
after the date of such sale.
26. Treas. Reg. A taxpayer must notarize any statement of
section 1.1042-1T, purchase with respect to qualified
Q&A-3 replacement property required under
Treas. Reg. section 1.1042-1T, Q&A-3 no
later than 30 days after a purchase of
qualified replacement property.
27. Sec. 4972(c)(3) Nondeductible plan contributions must be
distributed prior to a certain date to
avoid a 10 percent tax.
28. Sec. 4979 A 10 percent tax on the amount of excess
and Treas. contributions and excess aggregate
Reg. section contributions under a plan for a plan
54.4979-1 year will be imposed unless the excess,
plus income attributable to the excess is
distributed (or, if forfeitable,
forfeited) no later than 2 1/2-months
after the close of the plan year. In the
case of an employer maintaining a SARSEP,
employees must be notified of the excess
by the employer within the 2 1/2-month
period to avoid the tax.
29. Secs. 6033, Form 5500 and Form 5500-EZ, which are
6039D, 6047, used to report annual information
6057, 6058, concerning employee benefit plans and
and 6059 fringe benefit plans, must be filed by a
specified time.
GENERAL ADVICE
Affected filers are advised to follow the
instructions accompanying the Form 5500
series (or other guidance published on
the postponement) regarding how to file
the forms when postponements are granted
pursuant to section 7508 or section
7508A.
COMBAT ZONE POSTPONEMENTS UNDER SECTION
7508
In the case of taxpayers who are
individuals, the IRS may permit a
postponement of the filing of the Form
5500 or Form 5500-EZ under section 7508.
Whatever postponement of the Form 5500
series filing due date is permitted by
the IRS under section 7508 will also be
permitted by the Department of Labor and
the Pension Benefit Guaranty Corporation
(PBGC) for similarly situated individuals
who are plan administrators.
POSTPONEMENTS FOR PRESIDENTIALLY DECLARED
DISASTERS UNDER SECTION 7508A
In the case of "affected taxpayers," as
defined in Treas. Reg. section 301.7508A-
1(d), the IRS may permit a postponement
of the filing of the Form 5500 or Form
5500-EZ. Taxpayers who are unable to
obtain on a timely basis information
necessary for completing the forms from a
bank, insurance company, or any other
service provider because such service
providers' operations are located in a
covered disaster area will be treated as
"affected taxpayers." Whatever
postponement of the Form 5500 series
filing due date is permitted by the IRS
under section 7508A will also be
permitted by the Department of Labor and
PBGC for similarly situated plan
administrators and direct filing
entities.
30. Rev. Proc. The correction period for self-correction
2001-17, of operational failures is the last day
Sections of the second plan year following the
9.02(1), (2) plan year for which the failure occurred.
and (3) The correction period for self-
correction of operational failures for
transferred assets does not end until the
last day of the first plan year that
begins after the corporate merger,
acquisition, or other similar employer
transaction.
31. Rev. Proc. If the submission involves a plan with
2001-17, transferred assets and the IRS determines
Section 12.08 that none of the failures in the
submission occurred after the end of the
second plan year that begins after the
corporate merger, acquisition or other
similar employer transaction, the plan
sponsor may calculate the amount of plan
assets and number of plan participants
based on the Form 5500 information that
would have been filed by the plan sponsor
for the plan year that includes the
employer transaction if the transferred
assets were maintained as a separate
plan.
32. Rev. Proc. If an examination involves a plan with
2001-17, transferred assets and the IRS determines
Section 14.03 that the failures did not occur after the
end of the second plan year that begins
after the corporate merger, acquisition,
or other similar employer transaction
occurred, the sanction under Audit CAP
will not exceed the sanction that would
apply if the transferred assets were
maintained as a separate plan.
_____________________________________________________________________
SECTION 9. ESTATE, GIFT AND TRUST ISSUES
_____________________________________________________________________
Statute or
Regulation Act Postponed
_____________________________________________________________________
1. Sec. 643(g) The trustee may elect to treat certain
payments of estimated tax as paid by the
beneficiary. The election shall be made
on or before the 65th day after the close
of the taxable year of the trust.
2. Sec. 2011(c) The executor of a decedent's estate must
file a claim for a credit for state
estate, inheritance, legacy or succession
taxes by filing a claim within 4 years of
filing Form 706, United States Estate
(and Generation Skipping Transfer) Tax
Return.
3. Sec. 2014(e) The executor of a decedent's estate must
file a claim for foreign death taxes
within 4 years of filing Form 706, United
States Estate (and Generation Skipping
Transfer) Tax Return.
4. Sec. 2016 If an executor of a decedent's estate (or
and any other person) receives a refund of
Treas. Reg. any state or foreign death taxes claimed
section 20.2016-1 as a credit on Form 706, the IRS must be
notified within 30 days of receipt.
5. Sec. 2031(c) If an executor of a decedent's estate
elects on Form 706 to exclude a portion
of the value of land that is subject to a
qualified conservation easement,
agreements relating to development rights
must be implemented within 2 years after
the date of the decedent's death.
6. Sec. 2032(d) The executor of a decedent's estate may
elect an alternate valuation on a late
filed Form 706 if the Form 706 is not
filed later than 1 year after the due
date.
7. Sec. 2032A(c)(7) A qualified heir, with respect to
specially valued property, is provided a
two-year grace period immediately
following the date of the decedent's
death in which the failure by the
qualified heir to begin using the
property in a qualified use will not be
considered a cessation of qualified use
and therefore will not trigger additional
estate tax.
8. Sec. 2032A(d)(3) The executor of a decedent's estate has
90 days after notification of incomplete
information/signatures to provide the
information/signatures to the IRS
regarding an election on Form 706 with
respect to specially valued property.
9. Sec. 2046 A taxpayer may make a qualified
disclaimer no later than 9 months after
the date on which the transfer creating
the interest is made, or the date the
person attains age 21.
10. Sec. 2053(d) If the executor of a decedent's estate
and Treas. elects to take a deduction for state and
Reg. foreign death tax imposed upon a transfer
sections 20.2053- for charitable or other uses, the
9(c) and 10(c) executor must file a written notification
to that effect with the IRS before
expiration of the period of limitations
on assessments (generally 3 years).
11. Sec. 2055(e)(3) A party in interest must commence a
judicial proceeding to change an interest
into a qualified interest no later than
the 90th day after the estate tax return
(Form 706) is required to be filed or, if
no return is required, the last date for
filing the income tax return for the
first taxable year of the trust.
12. Sec. 2056(d) A qualified domestic trust (QDOT)
election must be made on Form 706,
Schedule M, and the property must be
transferred to the trust before the date
on which the return is made. Any
reformation to determine if a trust is a
QDOT requires that the judicial
proceeding be commenced on or before the
due date for filing the return.
13. Sec. 2056A(b)(2) The trustee of a QDOT must file a claim
for refund of excess tax no later than 1
year after the date of final
determination of the decedent's estate
tax liability.
14. Sec. 2057(i)(3)(G) A qualified heir, with respect to
qualified family owned business, has a
two-year grace period immediately
following the date of the decedent's
death in which the failure by the
qualified heir to begin using the
property in a qualified use will not be
considered a cessation of qualified use
and therefore will not trigger additional
estate tax.
15. Sec. 2057(i)(3)(H) The executor of a decedent's estate has
90 days after notification of incomplete
information/signatures to provide the
information/signatures to the IRS
regarding an election on Form 706 with
respect to specially valued property.
16. Sec. 2516 The IRS will treat certain transfers as
made for full and adequate consideration
in money or money's worth where husband
and wife enter into a written agreement
relative to their marital and property
rights and divorce actually occurs within
the 3-year period beginning on the date 1
year before such agreement is entered
into.
17. Sec. 2518(b) A taxpayer may make a qualified
disclaimer no later than 9 months after
the date on which the transfer creating
the interest is made, or the date the
person attains age 21.
18. Sec. 26.2654-1(b) The IRS recognizes the division of a
trust for generation-skipping transfer
tax purposes if the severance occurs (or
a reformation proceeding, if required, is
commenced) prior to the date prescribed
for filing the estate tax return, Form
706.
_____________________________________________________________________
SECTION 10. EXEMPT ORGANIZATION ISSUES
_____________________________________________________________________
Statute or
Regulation Act Postponed
_____________________________________________________________________
1. Sec. 505(c)(1) An organization must give notice by
filing Form 1024, Application for
Recognition of Exemption Under Section
501(a), to be recognized as an
organization exempt under section
501(c)(9) or section 501(c)(17).
Generally, if the exemption is to apply
for any period before the giving of the
notice, Treas. Reg. section 505(c)-1T,
Q&A-6, of the regulations requires that
Form 1024 be filed within 15 months from
the end of the month in which the
organization was organized.
2. Sec. 508 and A purported section 501(c)(3)
Treas. Reg. organization must generally file Form
section 1.508-1 1023, Application for Recognition of
Exemption, to qualify for exemption.
Generally, if the exemption is to apply
for any period before the giving of the
notice, the Form 1023 must be filed
within 15 months from the end of the
month in which the organization was
organized.
3. Sec. 6072(e) Annual returns of organizations exempt
and Treas. under section 501(a) must be filed on or
Reg. section before the 15th day of the 5th month
1.6033-2(e) following the close of the taxable year.
_____________________________________________________________________
SECTION 11. EXCISE TAX ISSUES
_____________________________________________________________________
Statute or
Regulation Act Postponed
_____________________________________________________________________
1. Treas. Reg. A registrant must notify the IRS of any
section 48.4101- change in the information a registrant
1(h)(v) has submitted within 10 days.
2. Sec. 4221(b) A manufacturer is allowed to make a tax-
and Treas. free sale of articles for resale to a
Reg. second purchaser for use in further
section 48.4221- manufacture. This rule ceases to apply
2(c) six months after the earlier of the sale
or shipment date unless the manufacturer
receives certain proof.
3. Sec. 4221(b) A manufacturer is allowed to make a tax-
and Treas. free sale of articles for export. This
Reg. rule ceases to apply six months after the
section 48.4221- earlier of the sale or shipment date
3(c) unless the manufacturer receives certain
proof.
4. Sec. A manufacturer is allowed to make a tax-
4221(e)(2)(A) free sale of tires for use by the
and Treas. purchaser in connection with the sale of
Reg. another article manufactured or produced
section 48.4221- by the purchaser. This rule ceases to
7(c) apply six months after the earlier of the
sale or shipment date unless the
manufacturer receives certain proof.
_____________________________________________________________________
SECTION 12. INTERNATIONAL ISSUES
_____________________________________________________________________
Statute or
Regulation Act Postponed
_____________________________________________________________________
1. Sec. 482 and A claim for a setoff of a section 482
Treas. Reg. allocation by the IRS must be filed
section 1.482- within 30 days of either the date of the
1(g)(4)(ii)(C) IRS's letter transmitting an examination
report with notice of the proposed
adjustment or the date of a notice of
deficiency.
2. Sec. 482 and A claim for retroactive application of
Treas. Reg. the final section 482 regulations,
section otherwise effective only for taxable
1.482-1(j)(2) years beginning after October 6, 1994,
must be filed prior to the expiration of
the statute of limitations for the year
for which retroactive application is
sought.
3. Sec. 482 and A participant in a cost-sharing
Treas. Reg. arrangement must provide documentation
section regarding the arrangement, as well as
1.482-7(j)(2) documentation specified in Treas. Reg.
sections 1.482-7(b)(4) and 1.482-7(c)(1),
within 30 days of a request by the IRS.
4. Treas. Reg. Liabilities of a foreign corporation that
section 1.882- is not a bank must be entered on a set of
5(d)(2)(ii)(A)(2) books at a time reasonably
contemporaneous with the time the
liabilities are incurred.
5. Treas. Reg. Liabilities of foreign corporations that
section 1.882- are engaged in a banking business must be
5(d)(2)(iii)(A)(1) entered on a set of books relating to an
activity that produces ECI before the
close of the day on which the liability
is incurred.
6. Treas. Reg. Requirement that marketable securities be
section 1.884- identified on the books of a U.S. trade
2T(b)(3)(i) or business within 30 days of the date an
equivalent amount of U.S. assets ceases
to be U.S. assets. This requirement
applies when a taxpayer has elected to be
treated as remaining engaged in a U.S.
trade or business for branch profits tax
purposes.
7. Treas. Reg. Requirement that a foreign corporation
section 1.884- which identifies liabilities as giving
4(b)(3)(ii)(B) rise to U.S. branch interest, send a
statement to the recipients of such
interest within two months of the end of
the calendar year in which the interest
was paid, stating that such interest was
U.S. source income (if the corporation
did not make a return pursuant to section
6049 with respect to the interest
payment).
8. Sec. The FSC must appoint a new non-U.S.
922(a)(1)(E) resident director within 30 days of the
and Treas. date of death, resignation, or removal of
Reg. section 1.922- the former director, in the event that
1(j) (Q&A-19) the sole non-U.S. resident director of a
FSC dies, resigns, or is removed.
9. Sec. A taxpayer must execute an agreement
924(b)(2)(B) and regarding unequal apportionment at a time
Treas. Reg. when at least 12 months remain in the
section 1.924(a)- period of limitations (including
1T(j)(2)(i) extensions) for assessment of tax with
respect to each shareholder of the small
FSC in order to apportion unequally among
shareholders of a small FSC the $5
million foreign trading gross receipts
used to determine exempt foreign trade
income.
10. Sec. 924(c)(2) The FSC must open a new qualifying
and Treas. foreign bank account within 30 days of
Reg. the date of termination of the original
section 1.924(c)- bank account, if a FSC's qualifying
1(c)(4) foreign bank account terminates during
the taxable year due to circumstances
beyond the control of the FSC.
11. Sec. 924(c)(3) The FSC must transfer funds from its
and Treas. foreign bank account to its U.S. bank
Reg. account, equal to the dividends, salaries
section 1.924(c)- or fees disbursed, and such transfer must
1(d)(1) take place within 12 months of the date
of the original disbursement from the
U.S. bank account, if dividends,
salaries, or fees are disbursed from a
FSC's U.S. bank account.
12. Sec. 924(c)(3) The FSC must reimburse from its own bank
and Treas. account any dividends or other expenses
Reg. that are paid by a related person, on or
section 1.924(c)- before the due date (including
1(d)(2) extensions) of the FSC's tax return for
the taxable year to which the
reimbursement relates.
13. Sec. 924(c)(3) If the Commissioner determines that the
and Treas. taxpayer acted in good faith, the
Reg. taxpayer may comply with the
section 1.924(c)- reimbursement requirement by reimbursing
1(d)(3) the funds within 90 days of the date of
the Commissioner's determination,
notwithstanding a taxpayer's failure to
meet the return-filing-date reimbursement
deadline in Treas. Reg. section 1.924(c)-
1(d)(2).
14. Sec. If a payment with respect to a
924(e)(4) and transaction is made directly to the FSC
Treas. Reg. or the related supplier in the United
section 1.924(e)- States, the funds must be transferred to
1(d)(2)(iii) and received by the FSC bank account
outside the United States no later than
35 days after the receipt of good funds
(i.e., date of check clearance) on the
transaction.
15. Temp. Treas. A FSC and its related supplier may
Reg. section redetermine a transfer pricing method,
1.925(a)- the amount of foreign trading gross
1T(e)(4) receipts, and costs and expenses,
provided such redetermination occurs
before the expiration of the statute of
limitations for claims for refund for
both the FSC and related supplier, and
provided such redetermination shall
affect both the FSC and the related
supplier. See Treas. Reg. section
1.925(a)-1(c)(8)(i) for time limitations
with respect to FSC administrative
pricing grouping redeterminations and for
a cross-reference to Temp. Treas. Reg.
section 1.925(a)-1T(e)(4).
16. Sec. A corporation may terminate its election
927(f)(3)(A) to be treated as a FSC or a small FSC by
and Treas. revoking the election during the first 90
Reg. days of the FSC taxable year (other than
section the first year in which the election is
1.927(f)-1(b) effective) in which the election was to
(Q&A-12) take effect.
17. Sec. 927 and A taxpayer may satisfy the destination
Temp. Treas. test with respect to property sold or
Reg. leased by a seller or lessor if such
section 1.927(a) property is delivered by the seller or
-1T(d)(2)(i)(B) lessor (or an agent of the seller or
lessor) within the United States to a
purchaser or lessee, if the property is
ultimately delivered outside the United
States (including delivery to a carrier
or freight forwarder for delivery outside
the United States) by the purchaser or
lessee (or a subsequent purchaser or
sublessee) within one year after the sale
or lease.
18. Sec. 927 and A taxpayer that claims FSC commission
Temp. Treas. deductions must designate the sales,
Reg. leases, or rentals subject to the FSC
section 1.927(b)- commission agreement no later than the
1T(e)(2)(i) due date (as extended) of the tax return
of the FSC for the taxable year in which
the transaction(s) occurred.
19. Sec. 927 and A transferee or other recipient of shares
Treas. Reg. in the corporation (other than a
section shareholder that previously consented to
1.927(f)-1(a) the election) must consent to be bound by
(Q&A 4) the prior election within 90 days of the
first day of the FSC's taxable year to
preserve the status of a corporation that
previously qualified as a FSC or as a
small FSC.
20. Sec. 936 and If a "qualified investment" in a
Treas. Reg. Caribbean Basin country ceases to meet
section 1.936-10(c) the qualification requirements, the
taxpayer may correct any disqualifying
events within a reasonable period of
time, which is defined as not more than
60 days from the date that such events
came to the attention of the taxpayer (or
should have come to its attention by the
exercise of reasonable diligence).
21. Sec. 936 and A taxpayer that elects retroactive
Treas. Reg. application of the temporary regulation
section 1.936-11 regarding separate lines of business for
taxable years beginning after December
31, 1995, must elect to do so prior to
the expiration of the statute of
limitations for the year in question.
22. Treas. Reg. An election of, or an adoption of or
sections 1.964- change in a method of accounting of a CFC
1(c)(3)(ii) and (controlled foreign corporation) requires
-1T(g)(2). the filing of a written statement jointly
executed by the controlling U.S.
shareholders of the CFC within 180 days
after the close of the taxable year of
the CFC.
23. Sec. 982(c)(2)(A) Any person to whom a formal document
request is mailed shall have the right to
bring a proceeding to quash such request
not later than the 90th day after the day
such request was mailed.
24. Treas. Reg. An election to have Treas. Reg. section
section 1.988- 1.988-1(a)(2)(iii) apply to regulated
1(a)(7)(ii). futures contracts and nonequity options
must be made on or before the first day
of the taxable year, or if later, on or
before the first day during such taxable
year on which the taxpayer holds a
contract described in section
988(c)(1)(D)(ii) and Treas. Reg. section
1.988-1(a)(7)(ii). A late election may be
made within 30 days after the time
prescribed for the election.
25. Sec. A qualified fund election must be made on
988(c)(1)(E)(iii)(V) or before the first day of the taxable
(qualified year, or if later, on or before the first
fund) and day during such taxable year on which the
Treas. Reg. partnership holds an instrument described
section in section 988(c)(1)(E)(i).
1.988-1(a)(8)(i)(E).
26. Treas. Reg. An election to treat (under certain
section 1.988-3(b) circumstances) any gain or loss
recognized on a contract described in
Treas. Reg. section 1.988-2(d)(1) as
capital gain or loss must be made by
clearly identifying such transaction on
taxpayer's books and records on the date
the transaction is entered into.
27. Treas. Reg. Taxpayer must establish a record, and
section 1.988- before the close of the date the hedge is
5(a)(8)(i) entered into, the taxpayer must enter
into the record for each qualified
hedging transaction the information
contained in Treas. Reg. sections 1.988-
5(a)(8)(i)(A) through (E).
28. Treas. Reg. Taxpayer must establish a record and
section 1.988- before the close of the date the hedge is
5(b)(3)(i) entered into, the taxpayer must enter
into the record a clear description of
the executory contract and the hedge.
29. Treas. Reg. Taxpayer must identify a hedge and
section 1.988- underlying stock or security under the
5(c)(2) rules of Treas. Reg. section 1.988-
5(b)(3).
30. Sec. 991 A corporation that elects IC-DISC
treatment (other than in the
corporation's first taxable year) must
file Form 4876-A, Election To Be Treated
as an Interest Charge DISC, with the
regional service center during the 90-day
period prior to the beginning of the tax
year in which the election is to take
effect.
31. Sec. 991 and A corporation that filed a tax return as
Treas. Reg. a DISC, but subsequently determines that
section 1.991- it does not wish to be treated as a DISC,
1(g)(2) must notify the [district director] more
than 30 days before the expiration of
period of limitations on assessment
applicable to the tax year.
32. Sec. 992 and A qualifying corporation must file Form
Treas. Reg. 4876-A, or attachments thereto,
section 1.992- containing the consent of every
2(a)(1)(i) shareholder of the corporation to be
treated as a DISC as of the beginning of
the corporation's first taxable year.
33. Sec. 992 and A qualifying corporation must file
Treas. Reg. consents of the shareholders of the
section 1.992- corporation to be treated as a DISC with
2(b)(2) the service center with which the DISC
election was first filed, within 90 days
after the first day of the taxable year,
or within the time granted for an
extension to file such consents.
34. Sec. 992 and A corporation seeking to revoke a prior
Treas. Reg. election to be treated as a DISC, must
section 1.992- file a statement within the first 90 days
2(e)(2)(ii) of the taxable year in which the election
is to take effect with the service center
with which it filed the election or, if
the corporation filed an annual
information return, by filing the
statement at the service center with
which it filed its most recent annual
information return.
35. Sec. 992 and A DISC that receives notification that it
Treas. Reg. failed to satisfy the 95 percent of gross
section 1.992- receipts test or the 95 percent assets
3(c)(3) test, or both tests, for a particular
taxable year, must make a corrective
deficiency distribution within 90 days of
the date of the first written
notification from the IRS.
36. Sec. 993 and A taxpayer must deliver export property
Treas. Reg. outside the U.S. within one year of the
section 1.993- date of sale or lease in order to
3(d)(2)(i)(b) generate DISC benefits from a qualifying
export transaction.
37. Sec. 1445 Treas. Form 8288, U.S. Withholding Tax Return
Reg. section for Dispositions by Foreign Persons of
1.1445-1 U.S. Real Property Interests, must be
filed by a buyer or other transferee of a
U.S. real property interest, and a
corporation, partnership, or fiduciary
that is required to withhold tax. The
amount withheld is to be transmitted with
Form 8288, which is generally to be filed
by the 20th day after the date of
transfer.
38. Sec. 1446 All partnerships with effectively
connected gross income allocable to a
foreign partner in any tax year must file
forms 8804, Annual Return for Partnership
Withholding Tax, and 8805, Foreign
Partner's Information Statement of
Section 1446 Withholding Tax, on or
before the 15th day of the 4th month
following the close of the partnership's
taxable year.
39. Sec. 1446 Form 8813, Partnership Withholding Tax
Payment Voucher, is used to pay the
withholding tax under section 1446 for
all partnerships with effectively
connected gross income allocable to a
foreign partner in any tax year. Form
8813 must accompany each payment of
section 1446 tax made during the
partnership's taxable year. Form 8813 is
to be filed on or before the 15th day of
the 4th, 6th, 9th, and 12th months of the
partnership's taxable year for U.S.
income tax purposes.
40. Sec. A reporting corporation must cure any
6038A(d)(2) failure to furnish information or failure
and Treas. to maintain records within 90 days after
Reg. the IRS gives notice of the failure to
section 1.6038A- avoid the continuation penalty.
4(d)(1)
41. Sec. A reporting corporation must cure any
6038A(d)(2) failure to furnish information or failure
and Treas. to maintain records before the beginning
Reg. of each 30-day period after expiration of
section 1.6038A- the initial 90-day period to avoid
4(d)(1) additional continuation penalties.
42. Sec. A reporting corporation must furnish an
6038A(e)(1) authorization of agent within 30 days of
and Treas. a request by the IRS to avoid a penalty.
Reg.
section 1.6038A-
5(b)
43. Sec. A reporting corporation must commence any
6038A(e)(4)(A) proceeding to quash a summons filed by
the IRS in connection with an information
request within 90 days of the date the
summons is issued.
44. Sec. 6038A(e)(4)(B) A reporting corporation must commence any
proceeding to review the IRS's
determination of noncompliance with a
summons within 90 days of the IRS's
notice of noncompliance.
45. Sec. 6038A A reporting corporation must supply an
and Treas. English translation of records provided
Reg. pursuant to a request for production
section 1.6038A- within 30 days of a request by the IRS
3(b)(3) for a translation to avoid a penalty.
46. Sec. 6038A A reporting corporation must, within 60
and Treas. days of a request by the IRS for records
Reg. maintained outside the United States,
section 1.6038A- either provide the records to the IRS, or
3(f)(2) move them to the United States and
provide the IRS with an index to the
records to avoid a penalty.
47. Sec. 6038A A reporting corporation must supply
and Treas. English translations of documents
Reg. maintained outside the United States
section 1.6038A- within 30 days of a request by the IRS
3(f)(2)(i) for translation to avoid a penalty.
48. Sec. 6038A A reporting corporation must request an
and Treas. extension of time to produce or translate
Reg. documents maintained outside the United
section 1.6038A- States beyond the period specified in the
3(f)(4) regulations within 30 days of a request
by the IRS to avoid a penalty.
49. Sec. 6662(e) A taxpayer must provide, within 30 days
and Treas. of a request by the IRS, specified
Reg. "principal documents" regarding the
section 1.6662- taxpayer's selection and application of
6(d)(2)(iii)(A) transfer pricing method to avoid
potential penalties in the event of a
final transfer pricing adjustment by the
IRS. See also Treas. Reg. section 1.6666-
6(d)(2)(iii)(C) (similar requirement re:
background documents).
50. Secs. 6038, The filing of Form 8865, Return of U.S.
6038B, and Persons With Respect to Certain Foreign
6046A Partnerships, for those taxpayers who do
not have to file an income tax return.
The form is due at the time that an
income tax return would have been due had
the taxpayer been required to file an
income tax return.
_____________________________________________________________________
SECTION 13. PARTNERSHIP AND S CORPORATION ISSUES
_____________________________________________________________________
Statute or
Regulation Act Postponed
_____________________________________________________________________
1. Treas. Reg. A partnership may apply for approval to
section 1.706- change a partnership taxable year by
1(b)(4)(i) filing Form 1128, Application to Adopt,
Change, or Retain a Tax Year, on or
before the 15th day of the second
calendar month following the close of the
short period involved.
2. Treas. Reg. A partnership may apply for approval to
section 1.706- adopt a partnership taxable year by
1(b)(4)(ii) filing Form 1128, Application to Adopt,
Change, or Retain a Tax Year, on or
before the last day of the month
following the close of the taxable year
to be adopted.
3. Treas. Reg. A transferee that acquires, by sale or
section 1.743- exchange, an interest in a partnership
1(k)(2) with an election under section 754 in
effect for the taxable year of the
transfer, must notify the partnership, in
writing, within 30 days of the sale or
exchange. A transferee that acquires, on
the death of a partner, an interest in a
partnership with an election under
section 754 in effect for the taxable
year of the transfer, must notify the
partnership, in writing, within one year
of the death of the deceased partner.
4. Treas. Reg. Generally, a partnership may revoke a
section 1.754- section 754 election by filing the
1(c)(1) revocation no later than 30 days after
the close of the partnership taxable year
with respect to which the revocation is
intended to take effect.
5. Treas. Reg. A partnership may generally elect to be
section 1.761- excluded from subchapter K. The election
2(b)(3) will be effective unless within 90 days
after the formation of the organization
any member of the organization notifies
the Commissioner that the member desires
subchapter K to apply to such
organization and also advises the
Commissioner that he has so notified all
other members of the organization. In
addition, an application to revoke an
election to be excluded from subchapter K
must be submitted no later than 30 days
after the beginning of the first taxable
year to which the revocation is to apply.
6. Treas. Reg. A partnership requesting permission to be
section 1.761-2(c) excluded from certain provisions of
subchapter K must submit the request to
the Commissioner no later than 90 days
after the beginning of the first taxable
year for which partial exclusion is
desired.
7. Sec. 1361(e) In general, the trustee of the electing
small business trust (ESBT) must file the
ESBT election within the 2-month and 16-
day period beginning on the day the stock
is transferred to the trust. See Notice
97-12, 1997-1 C.B. 385.
8. Treas. Reg. The current income beneficiary of a
section 1.1361- qualified subchapter S trust (QSST) must
1(j)(6) make a QSST election within the 2-month
and 16-day period from one of the dates
prescribed in Treas. Reg. section 1.1361-
1(j)(6)(iii).
9. Treas. Reg. The successive income beneficiary of a
section 1.1361- QSST may affirmatively refuse to consent
1(j)(10) to the QSST election. The beneficiary
must sign the statement and file the
statement with the IRS within 15 days and
2 months after the date on which the
successive income beneficiary becomes the
income beneficiary.
10. Treas. Reg. If an S corporation elects to treat an
section 1.1361- eligible subsidiary as a qualified
3(a)(4) subchapter S subsidiary (QSUB), the
election cannot be effective more than 2
months and 15 days prior to the date of
filing the election.
11. Treas. Reg. An S corporation may revoke a QSUB
section 1.1361- election by filing a statement with the
3(b)(2) service center. The effective date of a
revocation of a QSUB election cannot be
more than 2 months and 15 days prior to
the filing date of the revocation.
12. Treas. Reg. If a corporation revokes its subchapter S
section 1.1362- election after the first 2 1/2-months of
2(a)(2), (4) its taxable year, the revocation will not
be effective until the following taxable
year. An S corporation may rescind a
revocation of an S election at any time
before the revocation becomes effective.
13. Sec. 1362(b)(3) If a corporation files a subchapter S
election after the first 2 1/2-months of
a corporation's taxable year, that
corporation will not be treated as an S
corporation until the taxable year after
the year in which the S election is made.
_____________________________________________________________________
SECTION 14. PROCEDURE & ADMINISTRATION ISSUES
.01 Bankruptcy and Collection
_____________________________________________________________________
Statute or
Regulation Act Postponed
_____________________________________________________________________
1. Sec. A taxpayer has 30 days after receiving a
6320(a)(3)(B), notice of a lien to request a Collection
6230(c) and Due Process (CDP) administrative hearing.
Treas. Reg. After a determination at the CDP hearing,
sections 301.6320- the taxpayer may appeal this
1T(b), (c) and determination within 30 days to the
(f) United States Tax Court or a United
States district court.
2. Sec. The taxpayer must request a Collections
6330(a)(3)(B) Due Process (CDP) administrative hearing
and (d)(1) within 30 days after the IRS sends notice
and Treas. of a proposed levy. After a determination
Reg. at the CDP hearing, the taxpayer may
sections 301.6330- appeal this determination within 30 days
1T(b), (c) and (f) to the United States Tax Court or a
United States district court.
3. Treas. Reg. A court-appointed receiver or fiduciary
sections 301.6036- in a non-bankruptcy receivership, a
1(a)(2) and (3) fiduciary in aid of foreclosure who takes
possession of substantially all of the
debtor's assets, or an assignee for
benefit of creditors, must give written
notice within ten days of his appointment
to the IRS as to where the debtor will
file his tax return.
_____________________________________________________________________
.02 Information Returns
_____________________________________________________________________
1. Sec. 6050I Any person engaged in a trade or business
receiving more than $10,000 cash in one
transaction (or 2 or more related
transactions) must file an information
return, Form 8300, Report of Cash
Payments over $10,000 Received in a Trade
or Business, by the 15th day after the
date the cash was received.
Additionally, a statement must be
provided to the person with respect to
whom the information is required to be
furnished by Jan. 31st of the year
following.
2. Sec. 6050L Returns relating to certain dispositions
of donated property, Forms 8282, Donee
Information Return, must be filed within
125 days of the disposition.
_____________________________________________________________________
.03 Miscellaneous
_____________________________________________________________________
1. Sec. 1314(b) A taxpayer may file a claim for refund or
credit of tax based upon the mitigation
provisions of sections 1311 through 1314
if, as of the date a determination (as
defined in section 1313(a)) is made, one
year remains on the period for filing a
claim for refund.
2. Sec. 6015 A requesting spouse must request relief
under section 6015 within 2 years of the
first collection activity against the
requesting spouse.
3. Sec. 6411 Taxpayers applying for a tentative
carryback adjustment of the tax for the
prior taxable year must file Form 1139
(for corporations) or Form 1045 (for
entities other than corporations) within
12 months after the end of such taxable
year that generates such net operating
loss, net capital loss, or unused
business credit from which the carryback
results.
4. Sec. 6656(e)(2) A taxpayer who is required to deposit
taxes and fails to do so is subject to a
penalty under section 6656. Under section
6656(e)(2), the taxpayer may, within 90
days of the date of the penalty notice,
designate to which deposit period within
a specified tax period the deposits
should be applied.
_____________________________________________________________________
SECTION 15. TAX CREDIT ISSUES
_____________________________________________________________________
Statute or
Regulation Act Postponed
_____________________________________________________________________
1. Treas. Reg. The taxpayer and an Agency may elect to
section 1.42- use an appropriate percentage under
8(a)(3)(v) section 42(b)(2)(A)(ii)(I) by notarizing
a binding agreement by the 5th day
following the end of the month in which
the binding agreement was made.
2. Treas. Reg. The taxpayer and an Agency may elect an
section 1.42-8(b) appropriate percentage under section
(1)(vii) 42(b)(2)(A)(ii)(II) by notarizing a
binding agreement by the 5th day
following the end of the month in which
the tax-exempt bonds are issued.
3. Sec. In order to claim section 42 credits on
42(d)(2)(D) an existing building, section
(ii)(IV) 42(d)(2)(B)(ii)(I) requires that the
building must have been placed in service
at least ten years before the date the
building was acquired by the taxpayer. A
building is not considered placed in
service for purposes of section
42(d)(2)(B)(ii) if the building is resold
within a 12-month period after
acquisition by foreclosure of any
purchase-money security interest.
4. Sec. 42(g)(3)(A) A building shall be treated as a
qualified low-income building only if the
project meets the minimum set aside
requirement by the close of the first
year of the credit period of the
building.
5. Sec. 42(h)(6)(J) A low-income housing agreement commitment
must be in effect as of the beginning of
the year for a building to receive
credit. If such a commitment was not in
effect, the taxpayer has a one-year
period for correcting the failure.
6. Sec. The taxpayer's basis in the building
42(h)(1)(E) project, as of the later of the date
and (F) which is 6 months after the date the
allocation was made or the close of the
calendar year in which the allocation is
made, must be more than 10 percent of the
taxpayer's reasonably expected basis in
the project.
7. Sec. A taxpayer has a 24- or 60-month
47(c)(1)(C) measuring period in which the requisite
and Treas. amount of rehabilitation expenditures
Reg. have to be incurred in order to satisfy
section 1.48- the "substantial rehabilitation" test.
12(b)(2)
8. Treas. Reg. section In the historic rehabilitation context,
1.48-12(d)(7) if the taxpayer fails to receive final
certification of completed work prior to
the date that is 30 months after the date
that the taxpayer filed the return on
which the credit is claimed, the taxpayer
must, prior to the last day of the 30th
month, consent to extending the statute
of limitations by submitting a written
statement to the District Director.
9. Sec. An employer seeking the Work Opportunity
51(d)(12)(A) Credit or the Welfare-to-Work Credit with
(ii)(II) and respect to an individual must submit Form
51A(d)(1) 8850, Pre-Screening Notice and
Certification Request for the Work
Opportunity and Welfare-to-Work Credits,
to the State Employment Security Agency
not later than the 21st day after the
individual begins work for the employer.
_____________________________________________________________________
SECTION 16. TAX-EXEMPT BOND ISSUES
_____________________________________________________________________
Statute or
Regulation Act Postponed
_____________________________________________________________________
1. Treas. Reg. An issuer must provide notice to the
sections 1.141- Commissioner of the establishment of a
12(d)(3) and defeasance escrow within 90 days of the
1.142-2(c)(2) date such defeasance escrow is
established in accordance with Treas.
Reg. section 1.141-12(d)(1) or 1.142-
2(c)(1).
2. Sec. 142(d)(7) An operator of a multi-family housing
project for which an election was made
under section 142(d) must submit to the
Secretary an annual certification as to
whether such project continues to meet
the requirements of section 142(d).
3. Sec. 142(f)(4) A person engaged in the local furnishing
and Treas. of electric energy or gas (a local
Reg. furnisher) that uses facilities financed
section with exempt facility bonds under section
1.142(f)(4)-1 142(a)(8) and expands its service area in
a manner inconsistent with the
requirements of sections 142(a)(8) and
142(f), may make an election to ensure
that those bonds will continue to be
treated as exempt facility bonds. The
election must be filed with the IRS on or
before 90 days after the date of the
service area expansion that causes the
bonds to cease to meet the applicable
requirements.
4. Sec. 146(f) If an issuing authority's volume cap for
and Notice any calendar year exceeds the aggregate
89-12 amount of tax-exempt private activity
bonds issued during such calendar year by
such authority, such authority may elect
to treat all (or any portion) of such
excess as a carryforward for 1 or more
carryforward purposes. Such election
must be filed by the earlier of (1)
February 15 of the calendar year
following the year in which the excess
amount arises, or (2) the date of issue
of bonds issued pursuant to the
carryforward election.
5. Sec. 148(f)(3) An issuer of a tax-exempt municipal
and Treas. obligation must make any required rebate
Reg. payment no later than 60 days after the
section 1.148-3(g) computation date to which the payment
relates. A rebate payment is paid when it
is filed with the IRS at the place or
places designated by the Commissioner. A
payment must be accompanied by the form
provided by the Commissioner for this
purpose.
6. Treas. Reg. section An issuer of a tax-exempt municipal
1.148-5(c) obligation must make a yield reduction
payment on or before the date of required
rebate installment payments as described
in Treas. Reg. section 1.148-3(f), (g)
and (h).
7. Sec. As issuer of a tax-exempt municipal
148(f)(4)(C) obligation that elects to pay certain
(xvi) and penalties in lieu of rebate must make any
Treas. Reg. required penalty payments not later than
section 1.148- 90 days after the period to which the
7(k)(1) penalty relates.
8. Sec. 149(e) An issuer of a tax-exempt municipal
obligation must submit to the Secretary a
statement providing certain information
regarding the municipal obligation not
later than the 15th day of the 2nd
calendar month after the close of the
calendar quarter in which the municipal
obligation is issued.
_____________________________________________________________________
SECTION 17. INQUIRIES
If you wish to recommend that other acts qualify for postponement, please write to the Office of Associate Chief Counsel, Procedure and Administration (Administrative Provisions and Judicial Practice Division), CC:PA:APJP:B2, 1111 Constitution Avenue, NW, Washington, DC 20224. Please mark "7508A List" on the envelope. In the alternative, e-mail your comments to: Notice.Comments@m1.irscounsel.treas.gov.
SECTION 18. EFFECTIVE DATE
This revenue procedure is effective for acts which may be performed on or after September 11, 2001.
SECTION 19. DRAFTING INFORMATION
The principal author of this revenue procedure is Marcy W. Mendelsohn of the Office of Associate Chief Counsel, Procedure and Administration (Administrative Provisions and Judicial Practice Division). For further information regarding this revenue procedure, contact Ms. Mendelsohn at (202) 622-4940 (not a toll free call).
DOCUMENT ATTRIBUTES
- Institutional AuthorsInternal Revenue Service
- Cross-ReferencePart III
Administrative, Procedural, and Miscellaneous
26 CFR 301.7508-1: Time for performing certain acts postponed by
reason of service in a combat zone or a Presidentially declared
disaster.
(Also Part I, section 7508A; section 301.7508A-1.) - Code Sections
- Subject Area/Tax Topics
- Index Termscombat zone service, time computations, effect ondisasters, time computation, effect on
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2001-27710 (39 original pages)
- Tax Analysts Electronic Citation2001 TNT 214-13
