IRS Updates List Of Time-Sensitive Acts That May Be Postponed.
AUG. 20, 2007
Rev. Proc. 2007-56; 2007-34 I.R.B. 388
DOCUMENT ATTRIBUTES
- Institutional AuthorsInternal Revenue Service
- Cross-ReferenceFor Rev. Proc. 2005-27, 2005-20 I.R.B. 1050, see Doc 2005-10553 or
2005 TNT 93-8. - Code Sections
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2007-19104
- Tax Analysts Electronic Citation2007 TNT 161-6
Citations: Rev. Proc. 2007-56; 2007-34 I.R.B. 388
Superseded by Rev. Proc. 2018-58
Rev. Proc. 2007-56
SECTION 1. PURPOSE AND NATURE OF CHANGES
.01 This revenue procedure provides an updated 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 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, or serving with respect to a contingency operation (as defined in 10 U.S.C. § 101(a)(13)). Section 7508A permits a postponement of the time to perform specified acts for taxpayers affected by a Presidentially declared disaster or a terroristic or military action. The list of acts in this revenue procedure supplements the list of postponed acts in section 7508(a)(1) and section 301.7508A-1(c)(1)(vii) of the Procedure and Administration Regulations. Rev. Proc. 2005-27 is superseded.
.02 This revenue procedure does not, by itself, provide any postponements under section 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 issue other guidance (including an IRS News Release) providing relief with respect to a Presidentially declared disaster, or a terroristic or military action. See section 4.01 of this revenue procedure.
.03 For purposes of section 7508, this revenue procedure sets forth such other acts as contemplated by section 7508(a)(1)(K). Unlike section 7508A, when a taxpayer qualifies under section 7508, all the acts listed in section 7508(a)(1) are postponed. Therefore, when a taxpayer qualifies under section 7508, the acts listed in this revenue procedure are also postponed for that taxpayer, whether or not the IRS publishes a notice or issues other guidance.
.04 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 19 of this revenue procedure.
.05 Significant Changes. When a Presidentially declared disaster occurs, the IRS guidance usually postpones the time to perform the acts in section 301.7508A-1(c)(1) as well as this revenue procedure. However, because these acts are only listed in the regulations under the disaster relief provision, when an individual qualifies for relief by virtue of service in a combat zone, the time for performing those acts are not postponed. Thus, to ensure that individuals serving in or serving in support of the Armed Forces in a combat zone or contingency operation receive a postponement of time to perform these acts this revenue procedure now includes these acts.
Certain acts, such as filing Tax Court petitions in innocent spouse and other nondeficiency cases, and making certain distributions from, contributions to, recharacterizations of, and certain transactions involving qualified retirement plans (as defined in section 4974(c)), have been added to this revenue procedure even though they are also listed as acts postponed under section 301.7508A-1(c)(1).
SECTION 2. BACKGROUND
.01 Section 7508(a)(1) of the Code permits a postponement of certain time-sensitive acts for individuals serving in the Armed Forces of the United States or serving in support of such Armed Forces in an area designated by the President as a combat zone under section 112(c)(2) or serving with respect to a contingency operation (as defined in 10 U.S.C. § 101(a)(13)). Among these acts are the filing of certain returns, the payment of certain taxes, the filing of a Tax Court petition for redetermination of a deficiency, and the filing of a refund claim. In the event of service in a combat zone or service with respect to a contingency operation, the acts specified in section 7508(a)(1) are automatically postponed. This revenue procedure sets forth such other acts as contemplated by section 7508(a)(1)(K). Thus, the acts listed in this revenue procedure are also automatically postponed. In addition, the Service may include acts not listed in this revenue procedure in any other published guidance (including an IRS News Release) related to the combat zone or contingency operation.
.02 Section 7508A provides that certain acts performed by taxpayers and the government may be postponed if the taxpayer is affected by a Presidentially declared disaster or a terroristic or military action. A "Presidentially declared disaster" is defined in section 1033(h)(3). A "terroristic or military action" is defined in section 692(c)(2). Section 301.7508A-1(d)(1) defines seven types of affected taxpayers, including any individual whose principal residence (for purposes of section 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 or a terroristic or military action has occurred. Generally, the IRS will publish a notice or issue other guidance (including an IRS News Release) authorizing the postponement. See section 4.01 of this revenue procedure.
SECTION 3. SCOPE
This revenue procedure applies to individuals serving in the Armed Forces of the United States in a combat zone, or serving in support of such Armed Forces, individuals serving with respect to contingency operations, affected taxpayers by reason of Presidentially declared disasters within the meaning of section 301.7508A-1(d)(1), and taxpayers whom the IRS determines are affected by a terroristic or military action. Section 17 of this revenue procedure also applies to transferors who are not affected taxpayers but who are involved in a section 1031 like-kind exchange transaction and are entitled to relief under section 17.02(2) of this revenue procedure.
SECTION 4. APPLICATION
.01 As provided by section 301.7508A-1(e), in the event of a Presidentially declared disaster or terroristic or military action, the IRS will issue a news release or other guidance authorizing the postponement of acts described in this revenue procedure and that will define which taxpayers are considered to be "affected taxpayers" and will describe the acts postponed, the duration of the postponement, and the location of the covered disaster area. See, for example, Notice 2005-73, 2005-2 C.B. 723 (summarizing the relief provided for Hurricane Katrina in news releases IR-2005-84, IR-2005-91, IR-2005-96, and IR-2005-103). The guidance may provide for postponement of only certain acts listed in this revenue procedure based on the time when the disaster occurred, its severity, and other factors. Unless the notice or other guidance for a particular disaster provides that the relief is limited, the guidance will generally postpone all of the acts listed in the regulations and this revenue procedure.
.02 Provisions of the internal revenue laws requiring the timely performance of specified acts that may be postponed under sections 7508 and 7508A are listed in the tables below. In addition, section 17 of this revenue procedure expands the categories of taxpayers qualifying for relief to include transferors of certain property and provides additional postponements of deadlines solely with respect to section 1031 like-kind exchange transactions that are affected by a Presidentially declared disaster. If an IRS News Release or other guidance is issued with respect to a specific Presidentially declared disaster and authorizes postponement of acts in this revenue procedure, affected taxpayers may use the postponement rules provided in section 17 in lieu of section 6. Transferors who are covered by the like-kind exchange rules of section 17, but who are not "affected taxpayers" as defined by the IRS News Release or other guidance or section 301.7508A-1(d)(1) are not eligible for relief under section 7508A or other sections of this revenue procedure.
.03 The following tables may, but do not necessarily, include acts specified in sections 7508 or 7508A and 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 applicable regulations. Also, the following tables generally do not refer to the making of 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.
This revenue procedure, however, does include acts that are postponed under section 301.7508A-1(c)(1). The regulation lists acts that may be postponed when there has been a Presidentially declared disaster, but does not apply to postpone acts for individuals serving in, or serving in support of, the Armed Forces of the United States in a combat zone or contingency operation. For example, section 301.7508A-1(c)(1)(iii) provides a postponement for certain contributions to, distributions from qualified retirement plans. This revenue procedure also includes these acts to reflect that they are postponed for individuals serving in, or serving in support of, the Armed Forces of the United States in a combat zone or contingency operation.
.04 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 7508A. See, for example, Notice 2005-82, 2005-2 C.B. 978.
SECTION 5. ACCOUNTING METHODS AND PERIODS
Statute or Regulation Act Postponed
1. Chapter 1, Any act relating to the adoption,
Subchapter E of the election, retention, or change of any
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 include (a) the
requirements in Rev. Procs. 2006-45,
2006-45 I.R.B. 851, 2006-46, 2006-45
I.R.B. 859, and 2002-39, 2002-1 C.B.
1046, and 2003-62, 2003-2 C.B. 299, that
Form 1128, Application To Adopt,
Change, or Retain a Tax Year, be
filed with the Director, Internal
Revenue Service Center, on or before the
due date (or the due date including
extensions) of the tax return for the
short period required to effect the
change in accounting period; and (b) the
requirement in Rev. Proc. 2002-9, 2002-1
C.B. 327, section 6.02(3) that a copy of
Application for Change in Accounting
Method (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. If the acquiring corporation is not
§ 1.381(c)(4)-1(d)(2) permitted to use the method of
accounting previously used by it, or 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.
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. 2005-63, 2005-2
C.B. 491, provides that applications are
due by the later of (1) the last day of
the tax year in which the distribution
or transfer occurred, or (2) the earlier
of (a) the day that is 180 days after
the date of distribution or transfer, or
(b) the day on which the taxpayer files
its federal income tax return for the
taxable year in which the distribution
or transfer occurred.
3. Treas. Reg. If the acquiring corporation is not
§ 1.381(c)(5)-1(d)(2) permitted to use the inventory method
previously used by it, or the inventory
method used by the
distributor/transferor corporation, or
the principal inventory method of
accounting, or wishes to use a new
inventory method of accounting, then the
acquiring corporation must apply to the
Commissioner to use another method.
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. 2005-63 provides
that applications are due by the later
of (1) the last day of the taxable year
in which the distribution or transfer
occurred, or (2) the earlier of (a) the
day that is 180 days after the date of
distribution or transfer, or (b) the day
on which the taxpayer files its federal
income tax return for the tax year in
which the distribution or transfer
occurred.
4. Treas. Reg. In order to secure prior approval of an
§ 1.442-1(b)(1) adoption, change, or retention of a
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 within
such time as is provided in
administrative procedures published by
the Commissioner from time to time. See,
for example, Rev. Procs. 2006-45, 2006-
46, 2002-39 and 2003-62.
5. Treas. Reg. A section 444 election must be made by
§ 1.444-3T(b)(1) filing Form 8716, Election To Have a
Tax 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. Section 6 of Rev. Proc. 2002-9, at 341,
§ 1.446-1(e)(2)(i) allows a taxpayer to change a method of
accounting within the terms of the
revenue procedure by attaching the
application form to the timely filed
return for the year of change. Section
6.02(3)(b)(i) grants an automatic
extension of 6 months within which to
file an amended return with the
application for the change following a
timely filed original return for the
year of change.
7. Treas. Reg. To secure the Commissioner's consent
§ 1.446-1(e)(3)(i) to a change in method of accounting, the
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,
1997-1 C.B. 680. (But see Rev. Proc.
2002-9 for automatic changes in method
of accounting that can be made with the
return.)
8. Sec. 451(e) Section 451(e) permits a taxpayer using
the cash receipts and disbursements
method of accounting who derives income
from the sale or exchange of livestock
in excess of the number he would sell if
he followed his usual business practices
to elect (which election is deemed valid
if made within the period described in
section 1033(e)(2)) to include such
income for the taxable year following
the taxable year of such sale or
exchange if, under his usual business
practices, the sale or exchange would
not have occurred if it were not for
drought, flood, or other weather-related
conditions and that such conditions
resulted in the area being designated as
eligible for Federal assistance.
9. Treas. Reg. A taxpayer may elect, with the consent
§ 1.461-1(c)(3)(ii) of the Commissioner, to accrue real
property 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. 2005-63 provides that a
request to adopt the method of
accounting described in § 1.461-
1(c)(3)(ii) may be submitted during the
taxable year in which the taxpayer
desires to make the change in method of
accounting.
10. Treas. Reg. A partnership or S corporation must file
§ 1.7519-2T(a)(2), the Form 8752, Required Payment or
(3) and (4) Refund Under Section 7519, if
the taxpayer has 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.
11. Rev. Proc. 92-29, A developer of real estate requesting
Section 6.02 the 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 benefited 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
§ 1.71-1T(b), Q&A-7 party on behalf of a spouse that
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. § 1.77-1 A taxpayer who receives a loan from the
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. Section 1.77-1
requires such requests to be filed
within 90 days after the beginning of
the taxable year of change. Rev. Proc.
2005-63 provides that a request for
consent to adopt the method of
accounting described in § 1.77-1 may
be submitted during the taxable year in
which the taxpayer desires to make the
change in method of accounting; however,
taxpayers within the scope of Rev. Proc.
2002-9 for the requested year of change
that desire to make the changes in
method described in § 1.77-1 must
follow the procedures in Rev. Proc.
2002-9.
3. Treas. Reg. The lessee must expend its construction
§ 1.110-1(b)(4)(ii)(A) allowance on the qualified long-term
real 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. Sec. 170(f)(12)(C) A taxpayer claiming a charitable
contribution deduction of more than $500
for a gift of a qualified vehicle must
obtain a written acknowledgment of the
contribution by the donee organization
within 30 days of the contribution or
the sale of the vehicle by the donee
organization, as applicable.
6. Treas. Reg. A contribution of an undivided present
§ 1.170A-5(a)(2) interest in tangible personal property
shall be treated as made upon receipt by
the donee of a formally executed and
acknowledged deed of gift. The period of
initial possession by the donee may not
be deferred for more than one year.
7. Sec. 172(b)(3) A taxpayer entitled to a carryback
period under section 172(b)(1) may elect
to relinquish the entire carryback
period with respect to a net operating
loss for any taxable year. The taxpayer
must make the election by the due date
of the taxpayer's federal income tax
return (including extensions) for the
taxable year of the net operating loss
for which the election is to be
effective.
8. Sec. 172(f)(6) A taxpayer entitled to a 10-year
carryback under section 172(b)(1)(C)
(relating to certain specified liability
losses) from any loss year may elect to
have the carryback period with respect
to such loss year determined without
regard to that section. The taxpayer
must make the el ection by the due date
of the taxpayer's federal income tax
return (including extensions) for the
taxable year of the net operating loss.
9. Sec. 172(i)(3) A taxpayer entitled to a 5-year
carryback period under section
172(b)(1)(G) (relating to certain
farming losses) from any loss year may
elect to have the carryback period with
respect to such loss year determined
without regard to that section. The
taxpayer must make the election by the
due date of the taxpayer's federal
income tax return (including extensions)
for the taxable year of the net
operating loss.
10. 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).
11. Treas. Reg. A taxpayer must file a request for a
§ 1.468A-3(h)(1)(v) schedule of ruling amounts for a nuclear
decommissioning fund by the deemed
payment date (21/2-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
§ 1.468A-3(h)(1)(vii) additional requested information with
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. A rollover contribution to another
529(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. 530(b)(5) An individual shall be deemed to have
made a contribution to a Coverdell
education savings account on the last
day of the preceding taxable year if the
contribution is made on account of such
taxable year and is made not later than
the time prescribed by law for filing
the return for such taxable year (not
including extensions thereof).
15. Sec. Excess contributions (and any earnings
530(d)(4)(C)(i) on the excess) to a Coverdell education
savings account must be distributed
before the first day of the sixth month
of the following taxable year.
16. 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.
17. 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-ESA, Coverdell ESA Contribution
Information, must be filed with the
IRS by May 31 following the calendar
year to which the information relates.
18. 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.
19. 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
in 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 31/2-month period within which the
dividend is paid is the period extended.
20. Sec. 563(d) For the purpose of applying section
562(a), with respect to distributions
under subsection (a) or (b) 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.
21. Sec. 1031(a)(3) In a deferred exchange, property
otherwise qualified as like-kind
property under section 1031 is treated
as like-kind property if the 45-day
identification period and the 180-day
exchange period requirements under
section 1031(a)(3) and section
1.1031(k)-1(b)(2) are met. See also
section 17 of this revenue procedure.
22. Sec. 1031 Property held in a qualified exchange
accommodation arrangement may qualify as
"replacement property" or
"relinquished property" under
section 1031 if the requirements of
section 4 of Rev. Proc. 2000-37, 2000-2
C.B. 308, modified by Rev. Proc. 2004-
51, 2004-2 C.B. 294, are met, including
the 5-business day period to enter into
a qualified exchange accommodation
agreement (QEAA), the 45-day
identification period, the 180-day
exchange period, and the 180-day
combined time period. See also section
17 of this revenue procedure.
23. Sec. 1033 An election respecting the
nonrecognition of gain on the
involuntary conversion of property
(section 1.1033(a)-2(c)(1) and (2)) is
required to be made within the time
periods specified in section 1.1033(a)-
2(c)(3), section 1.1033(g)-1(c), section
1033(e)(2)(A), or section 1033(h)(1)(B),
as applicable.
24. 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.
25. 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.
26. 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.
27. 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.
28. Treas. Reg. The effective date of an entity
§ 301.7701-3(c) classification election (Form 8832,
Entity Classification Election)
cannot be more than 75 days prior to the
date on which the election is filed.
29. Treas. Reg. An automatic extension of 12 months from
§ 301.9100-2(a)(1) the due date for making a regulatory
election is granted to make certain
elections described in section 301.9100-
2(a)(2), including the election to use
other than the required taxable year
under section 444, and the election to
use the last-in, first out (LIFO)
inventory method under section 472.
30. Treas. Reg. An automatic extension of 6 months from
§§ 301.9100-2(b)-(d) the due date of a return, excluding
extensions, is granted to make the
regulatory or statutory elections whose
due dates are the due date of the return
or the due date of the return including
extensions (for example, a taxpayer has
an automatic 6 month extension to file
an application to change a method of
accounting under Rev. Proc. 2002-9),
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 § 301.9100-2."
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 Treas. A corporation must complete the
Reg. § 1.303-2 distribution of property to a
shareholder 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 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. 316(b)(2)(A) A personal holding company may designate
and (B)(ii) and Treas. as a dividend to a shareholder all or
Reg. § 1.316-1(b)(2) part of a distribution in complete
liquidation described in section
316(b)(2)(B) and section 1.316-1(b)
within 24 months after the adoption of a
plan of liquidation by, inter
alia, following the procedure
provided by Treas. Reg. § 1.316-
1(b)(5).
5. Sec. 332(b) and A corporation must completely liquidate
Treas. Reg. a corporate subsidiary within the
§§ 1.332-3 specified period.
and 1.332-4
6. Sec. 338(d)(3) and An acquiring corporation must complete a
(h), and Treas. Reg. "qualified stock purchase" of a
§ 1.338-2 target corporation's stock within the
specified acquisition period.
7. Sec. 338(g) and An acquiring corporation may elect to
Treas. Reg. § 1.338-2 treat certain stock purchases as asset
acquisitions. The election must be made
within the specified period.
8. Sec. 338(h)(10) An acquiring corporation and selling
and Treas. Reg. group of corporations may elect to treat
§ 1.338(h)(10)-1(c) certain stock purchases as asset
purchases, and to avoid gain or loss
upon the stock sale. The election must
be made within the specified period.
9. Treas. Reg. An acquiring corporation files a Form
§ 1.381(c)(17)-1(c) 976, Claim for Deficiency Dividends
Deductions 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. Treas. Reg. A personal service corporation may
§ 1.441-3(b) obtain the approval of the Commissioner
to adopt, change, or retain an annual
accounting period by filing Form 1128,
Application To Adopt, Change, or
Retain a Tax Year, within such time
as is provided in the administrative
procedures published by the
Commissioner. See Rev. Procs. 2006-46,
2006-45 I.R.B. 859, and Rev. Proc. 2002-
39, 2002-1 C.B. 1046.
11. Sec. 562(b)(1)(B) In the case of a complete liquidation
(except in the case of a complete
liquidation of a 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.
12. 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.
13. Sec. 597 and Treas. A consolidated group of which an
Reg. § 1.597-4(g) Institution (as defined by section
1.591-1(b)) is a subsidiary may elect
irrevocably not to include the
Institution in its affiliated group if
the Institution is placed in Agency (as
defined by section 1.591-1(b))
receivership (whether or not assets or
deposit liabilities of the Institution
are transferred to a Bridge Bank (as
defined by section 1.591-1(b)). Except
as otherwise provided in section 1.597-
4(g)(6), a consolidated group makes the
election by sending a written statement
by certified mail to the affected
Institution on or before the later of
120 days after its placement in Agency
(as defined by section 1.591-1(b))
receivership or May 31, 1996.
14. Sec. 1502 A common parent must apply for
and Treas. Reg. permission to discontinue filing
§ 1.1502-75(c)(1)(i) consolidated returns within a specified
period after the date of enactment of a
law affecting the computation of tax
liability.
15. Sec. 6425 and Corporations applying for an adjustment
Treas. Reg. § 1.6425-1 of an overpayment of estimated income
tax must file Form 4466, Corporation
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.
16. Rev. Proc. If the filer complies with the
2003-33, Section 5 procedures set forth in the revenue
procedure, including a requirement that
the filer file Form 8023, Elections
Under Section 338 for Corporations
Making Qualified Stock
Purchases, within the specified
period, the filer gets an automatic
extension under section 301.9100-3 to
file an election under section 338.
SECTION 8. EMPLOYEE BENEFIT ISSUES
Statute or Regulation Act Postponed
1. Sec. 72(p)(2)(B) and A loan from a qualified employer plan to
(C), and Treas. Reg. a participant in, or a beneficiary of,
§ 1.72(p)-1, Q&A-10 such plan must be repaid according to
certain time schedules specified in
section 72(p)(2)(B) and (C) (including,
if applicable, any grace period granted
pursuant to 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. 72(t)(2)(G) Under section 72(t)(2)(G), all or part
of a distribution from a retirement plan
to an individual called to active duty
may be repaid into an IRA within 2 years
after the active duty period ends (or
later, if section 72(t)(2)(G)(iv)
applies).
5. Sec. 83(b) and Treas. If substantially nonvested property to
Reg. § 1.83-2(b) which section 83 applies is transferred
to any person, the service provider may
elect to include the excess of the fair
market value of the property over the
amount paid (if any) for the property in
gross income for the taxable year in
which such property is transferred. This
election must occur not later than 30
days after the date the property was
transferred.
6. Proposed Treas. Reg. Cafeteria plan participants will avoid
§ 1.125-1, Q&A-15 constructive receipt of the taxable
amounts if they elect the benefits they
will receive before the beginning of the
period during which the benefits will be
provided.
7. Proposed Treas. Reg. Cafeteria plan participants will not be
§ 1.125-1, Q&A-14 and in constructive receipt if, at the end
Proposed Treas. Reg. of the plan year, they forfeit amounts
§ 1.125-2, Q&A-7 elected but not used during the plan
year.
8. Proposed Treas. Reg. Cafeteria plan participants may receive
§ 1.125-2, Q&A-5 in cash the value of unused vacation
days on or before the earlier of the
last day of the cafeteria plan year or
the last day of the employee's taxable
year to which the unused days relate.
9. Treas. Reg. A performance goal is considered
§ 1.162-27(e)(2) preestablished if it is established in
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.
10. Sec. 219(f)(3) A contribution to an individual
retirement account shall be deemed to
have been made by the taxpayer on the
last day of the preceding taxable year
if the contribution is made on account
of such taxable year and is made not
later than the time prescribed for
filing the return (not including
extensions thereof) for such taxable
year.
11. 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.
12. 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-SA filed with the IRS, by May
31 following the calendar year to which
the information relates.
13. Sec. 223(f)(5) A rollover contribution to a Health
Savings Accounts (HSA) must be made no
later than the 60th day after the day on
which the account beneficiary receives a
payment or distribution from a HSA.
14. Sec. 223(h) A trustee or custodian of a HSA must
provide certain information concerning
the HSA to the account beneficiary by
January 31 following the calendar year
to which the information relates. In
addition, HSA contribution information
must b e furnished to the account
beneficiary, and Form 5498-SA filed with
the IRS, by May 31 following the
calendar year to which the information
relates.
15. Secs. 401(a)(9), The first required minimum distribution
403(a)(1), 403(b)(10), from plans subject to the rules in
408(a)(6), 408(b)(3) section 401(a)(9) must be made no later
and 457(d)(2), than the required beginning date.
and Treas. Reg. Subsequent required minimum
§ 1.401(a)(9)-4 & distributions must be made by the end of
1.401(a)(9)-8, Q&A-2 each distribution calendar year.
16. 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).
17. Sec. A plan must distribute the portion of
401(a)(28)(B)(ii) the 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.
18. Sec. 401(a)(30) Excess deferrals for a calendar year,
and Treas. Reg. plus income attributable to the excess,
§ 1.401(a)-30 and must be distributed no later than the
§ 1.402(g)-1 first April 15 following the calendar
year.
19. Sec. 401(b) A retirement plan that fails to satisfy
and Treas. Reg. the requirements of section 401(a) or
§ 1.401(b)-1 section 403(a) on any day because of a
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.
20. 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.
21. 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.
22. Secs. 402(c), An eligible rollover distribution may be
403(a)(4), 403(b)(8), rolled over to an eligible retirement
408(d)(3), and plan no later than the 60th day
457(e)(16)(B) following the day the distributee
received the distributed property. A
similar rule applies to IRAs.
23. Sec. 402(g)(2)(A) An individual with excess deferrals for
and Treas. Reg. a taxable year must notify a plan, not
§ 1.402(g)-1 later than a specified date following
the taxable year that excess deferrals
have 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.
24. Secs. 404(a)(6), A contribution to a qualified retirement
404(h)(1)(B), and plan (other than an individual
404(m)(2) retirement account) shall be deemed to
have been made by the taxpayer on the
last day of the preceding taxable year
if the contribution is made on account
of such taxable year and is made not
later than the time prescribed for
filing the return for such taxable year.
25. 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.
26. Sec. 408(d)(4) A distribution of any contribution made
for a taxable year to an individual
retirement or for an individual
retirement annuity shall be included in
gross income unless such distribution
(and attributable earnings) is received
on or before the day prescribed by law
(including extensions of time) for
filing such individual's return for such
taxable year.
27. Sec. 408A(d)(6)(A) If, on or before the date prescribed by
law (including extensions of time) for
filing the taxpayer's return for such
taxable year, a taxpayer transfers in a
trustee-to-trustee transfer any
contribution to an individual retirement
plan made during such taxable year from
such plan to any other individual
retirement plan, then such contribution
shall be treated as having been made to
the transferee plan (and not the
transferor plan).
28. Secs. 408(i) and A trustee or issuer of an individual
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
filed with the IRS, by May 31 following
the calendar year to which the
information relates.
29. 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.
30. 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.
31. 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).
32. 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).
33. 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.
34. Sec. 4972(c)(3) Nondeductible plan contributions must be
distributed prior to a certain date to
avoid a 10 percent tax.
35. Sec. 4979 A 10 percent tax on the amount of excess
and Treas. Reg. contributions and excess aggregate
§ 54.4979-1 contributions under a plan for a plan
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.
36. Secs. 6033, 6039D, Form 5500, Annual Return/Report of
6047, 6057, 6058, and Employee Benefit Plan, and Form
6059 5500-EZ, Annual Return of One-
Participant (Owners and Their Spouses)
Retirement Plan, which are used to
report annual information concerning
employee benefit plans and 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
Individual taxpayers who meet the
requirements of section 7508 are
entitled to a postponement of time to
file the Form 5500 or Form 5500-EZ under
section 7508. The postponement of the
Form 5500 series filing due date under
section 7508 will also be permitted by
the Department of Labor and the Pension
Benefit Guaranty Corporation (PBGC) for
similar ly situated individuals who are
plan administrators.
Postponements for Presidentially-
Declared Disasters and Terroristic or
Military Actions under Section
7508A
In the case of "affected
taxpayers," as defined in 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.
37. Rev. Proc. The correction period for self-
2006-27, Sections correction of operational failures is
9.02(1) and (2) the last day of the second plan year
following the plan year for which the
failure occurred. 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.
38. Rev. Proc. If the submission involves a plan with
2006-27, 2003-44, transferred assets and no new incidents
Section 12.07 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.
39. Rev. Proc. If an examination involves a plan with
2006-27, Section 14.03 transferred assets and the IRS
determines that no new incidents of the
failures that relate to the transferred
assets occurred after the end of the
second plan year that begins after the
corporate merger, acquisition, or other
similar employer transaction, 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. 645 and Treas. An election to treat a qualified
Reg. § 1.645-1(c) revocable trust as part of the
decedent's estate must be made by filing
Form 8855, Election To Treat a
Qualified Revocable Trust as Part of an
Estate, by the due date (including
extensions) of the estate's Federal
income tax return for the estate's first
taxable year, if there is an executor,
or by the due date (including
extensions) of the trust's Federal
income tax return for the trust's first
taxable year (treating the trust as an
estate), if there is no executor.
3. Sec. 663(b) The fiduciary of a trust or estate may
and Treas. Reg. elect to treat any amount properly paid
§ 1.663(b)-2 or credited to a beneficiary within the
first 65 days following the close of the
taxable year as an amount that was
properly paid or credited on the last
day of such taxable year. If a return is
required to be filed for the taxable
year for which the election is made, the
election shall be made on such return no
later than the time for making such
return (including extensions). If no
return is required to be filed, the
election shall be made in a separate
statement filed with the internal
revenue office with which a return would
have been filed, no later than the time
for making a return (including
extensions).
4. 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. (Section 2011 does not apply
to estates of decedents dying after
December 31, 2004; see section 2058).
5. 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.
6. Sec. 2016 and Treas. If an executor of a decedent's estate
Reg. § 20.2016-1 (or any other person) receives a refund
of any state or foreign death taxes
claimed as a credit on Form 706, the IRS
must be notified within 30 days of
receipt. (Section 2016 is amended
effective for estates of decedents dying
after December 31, 2004; see section
2058).
7. 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.
8. 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.
9. 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.
10. 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.
11. 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.
12. Sec. 2053(d) If the executor of a decedent's estate
and Treas. Reg. elects to take a deduction for state and
§§ 20.2053-9(c) and foreign death tax imposed upon a
10(c) transfer for charitable or other uses,
the executor must file a written
notification to that effect with the IRS
before expiration of the period of
limitations on assessments (generally 3
years). (Section 2053 is amended
effective for estates of decedents dying
after December 31, 2004, to apply only
with respect to foreign death taxes).
13. 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.
14. 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.
15. 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.
16. 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. (The section 2057
election is not available to estates of
decedents dying after December 31,
2004).
17. 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.
18. Sec. 2058(b) The executor of a decedent's estate may
deduct estate, inheritance, legacy, or
succession taxes actually paid to any
state or the District of Columbia from
the decedent's gross estate. With
certain exceptions, the deduction is
only allowed provided the taxes are
actually paid and the deduction claimed
within 4 years of filing Form 706.
19. 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.
20. 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.
SECTION 10. EXEMPT ORGANIZATION ISSUES
Statute or Regulation Act Postponed
1. Sec. 501(h) Under section 501(h), certain eligible
501(c)(3) organizations may elect on
Form 5768, Election/Revocation of
Election by an Eligible Section
501(c)(3) Organization To Make
Expenditures To Influence
Legislation, to have their
legislative activities measured solely
by expenditures. Form 5768 is effective
beginning with a taxable period,
provided it is filed before the end of
the organization's taxable period.
2. 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, section 1.505(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.
3. Sec. 508 and Treas. A purported section 501(c)(3)
Reg. § 1.508-1 organization must generally file Form
1023, Application for Recognition
of Exemption Under Section 501(c)(3)
of the Internal Revenue Code, 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.
4. Sec. 527(i)(2) Certain political organizations shall
not be treated as tax-exempt section 527
organizations unless each such
organization electronically files a
notice (Form 8871, Political
Organization Notice of Section 527
Status) not less than 24 hours
after the date on which the organization
is established, or, in the case of a
material change in the information
required, not later than 30 days after
such material change.
5. Sec. 527(j)(2) Under section 527(j)(2), certain tax-
exempt political organizations that
accept contributions or make
expenditures for an exempt function
under section 527 during a calendar year
are required to file periodic reports on
Form 8872, Political Organization
Report of Contributions and
Expenditures, beginning with the
first month or quarter in which they
accept contributions or make
expenditures, unless excepted. In
addition, tax-exempt political
organizations that make contributions or
expenditures with respect to an election
for federal office may be required to
file pre-election reports for that
election. A tax-exempt political
organization that does not file the
required Form 8872, or that fails to
include the required information, must
pay an amount calculated by multiplying
the amount of the contributions or
expenditures that are not disclosed by
the highest corporate tax rate.
6. Sec. 6033(g)(1) Annual information returns, Forms 990,
and Treas. Reg. Return of Organization Exempt From
§ 1.6033-2(e) Income Tax, of certain tax-exempt
political organizations described under
section 527 must be filed on or before
the 15th day of the 5th month following
the close of the taxable year.
7. Sec. 6034 and Treas. Annual information returns, Forms 1041-
Reg. § 1.6034-1(c) A, U.S. Information Return Trust
Accumulation of Charitable
Amounts, of trusts claiming
charitable or other deductions under
section 642(c) must be filed on or
before the 15th day of the 4th month
following the close of the taxable year
of the trust.
8. Sec. 6072(e) Annual returns of organizations exempt
and Treas. Reg. or treated in the same manner as
§ 1.6033-2(e) organizations exempt from tax under
section 501(a) must be filed on or
before the 15th day of the 5th month
following the close of the taxable year.
9. Rev. Proc. 80-27, The central organization of a group
Section 6.01 ruling is required to report information
regarding the status of members of the
group annually (at least 90 days before
the close of its annual accounting
period).
SECTION 11. EXCISE TAX ISSUES
Statute or Regulation Act Postponed
1. Treas. Reg. A registrant must notify the IRS of any
§ 48.4101-1(h)(v) change in the information a registrant
has submitted within 10 days.
2. Sec. 4101(d) Each information return under section
and Treas. Reg. 4101(d) must be filed by the last day of
§ 48.4101-2 the first month following the month for
which the report is made.
3. Sec. 4221(b) A manufacturer is allowed to make a tax-
and Treas. Reg. free sale of articles for resale to a
§ 48.4221-2(c) second purchaser for use in further
manufacture. This rule ceases to apply
six months after the earlier of the sale
or shipment date unless the manufacturer
receives certain proof.
4. Sec. 4221(b) A manufacturer is allowed to make a tax-
and Treas. Reg. free sale of articles for export. This
§ 48.4221-3(c) rule ceases to apply six months after
the earlier of the sale or shipment date
unless the manufacturer receives certain
proof.
5. Sec. 4221(e)(2)(A) A manufacturer is allowed to make a tax-
and Treas. Reg. free sale of tires for use by the
§ 48.4221-7(c) purchaser in connection with the sale of
another article manufactured or produced
by the purchaser. This rule ceases to
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 A claim for a setoff of a section 482
and Treas. Reg. allocation by the IRS must be filed
§ 1.482-1(g)(4)(ii)(C) within 30 days of either the date of the
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 Treas. A claim for retroactive application of
Reg. § 1.482-1(j)(2) the final section 482 regulations,
otherwise effective only for taxable
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 Treas. A participant in a cost-sharing
Reg. § 1.482-7(j)(2) arrangement must provide documentation
regarding the arrangement, as well as
documentation specified in 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
§ 1.882-5(d)(2)(ii)(A)(2) that is not a bank must be entered on a
set of books at a time reasonably
contemporaneous with the time the
liabilities are incurred.
5. Treas. Reg. Liabilities of foreign corporations that
§ 1.882-5(d)(2)(iii) are engaged in a banking business must
(A)(1) be 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
§ 1.884-2T(b)(3)(i) be identified on the books of a U.S.
trade 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
§ 1.884-4(b)(3)(ii)(B) which identifies liabilities as giving
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. Treas. Reg. The quarterly income statements for the
§ 1.922-1(i) (Q&A-13) first three quarters of the FSC year
must be maintained at the FSC's office
no later than 90 days after the end of
the quarter. The quarterly income
statement for the fourth quarter of the
FSC year, the final year-end income
statement, the year-end balance sheet,
and the final invoices (or summaries) or
statements of account must be maintained
at the FSC's office no later than the
due date, including extensions, of the
FSC tax return for the applicable
taxable year.
9. Sec. 922(a)(1)(E) The FSC must appoint a new non-U.S.
and Treas. Reg. resident director within 30 days of the
§ 1.922-1(j) (Q&A-19) date of death, resignation, or removal
of the former director, in the event
that the sole non-U.S. resident director
of a FSC dies, resigns, or is removed.
10. Sec. 924(b)(2)(B) A taxpayer must execute an agreement
and Treas. Reg. regarding unequal apportionment at a
§ 1.924(a)-1T(j)(2)(i) time when at least 12 months remain in
the period of limitations (including
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.
11. Sec. 924(c)(2) The FSC must open a new qualifying
and Treas. Reg. foreign bank account within 30 days of
§ 1.924(c)-1(c)(4) the date of termination of the original
bank account, if a FSC's qualifying
foreign bank account terminates during
the taxable year due to circumstances
beyond the control of the FSC.
12. Sec. 924(c)(3) The FSC must transfer funds from its
and Treas. Reg. foreign bank account to its U.S. bank
§ 1.924(c)-1(d)(1) account, equal to the dividends,
salaries, or fees disbursed, and such
transfer must 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.
13. Sec. 924(c)(3) The FSC must reimburse from its own bank
and Treas. Reg. account any dividends or other expenses
§ 1.924(c)-1(d)(2) that are paid by a related person, on or
before the due date (including
extensions) of the FSC's tax return for
the taxable year to which the
reimbursement relates.
14. Sec. 924(c)(3) If the Commissioner determines that the
and Treas. Reg. taxpayer acted in good faith, the
§ 1.924(c)-1(d)(3) taxpayer may comply with the
reimbursement requirement by reimbursing
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 section
1.924(c)-1(d)(2).
15. Sec. 924(e)(4) If a payment with respect to a
and Treas. Reg. transaction is made directly to the FSC
§ 1.924(e)-1(d)(2)(iii) or the related supplier in the United
States, the funds must be transferred to
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.
16. Temp. Treas. Reg. A FSC and its related supplier may
§ 1.925(a)-1T(e)(4) redetermine a transfer pricing method,
the amount of foreign trading gross
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 the statute of limitations for
assessment applicable to the party that
has a deficiency in tax on account of
the redetermination is open. See Treas.
Reg. § 1.925(a)-1(c)(8)(i) for time
limitations with respect to FSC
administrative pricing grouping
redeterminations and for a cross-
reference to section 1.925(a)-1T(e)(4).
17. Sec. 927(f)(3)(A) A corporation may terminate its election
and Treas. Reg. to be treated as a FSC or a small FSC by
§ 1.927(f)-1(b) revoking the election during the first
(Q&A-12) 90 days of the FSC taxable year (other
than the first year in which the
election is effective) in which the
revocation was to take effect.
18. Sec. 927 A taxpayer may satisfy the destination
and Temp. Treas. test with respect to property sold or
Reg. § 1.927(a)-1T leased by a seller or lessor if such
(d)(2)(i)(B) property is delivered by the seller or
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.
19. Sec. 927 and A taxpayer that claims FSC commission
Temp. Treas. Reg. deductions must designate the sales,
§ 1.927(b)-1T(e)(2)(i) leases, or rentals subject to the FSC
commission agreement no later than the
due date (as extended) of the tax return
of the FSC for the taxable year in which
the transaction(s) occurred.
20. Sec. 927 and Treas. A transferee or other recipient of
Reg. § 1.927(f)-1(a) shares in the corporation (other than a
(Q&A 4) shareholder that previously consented to
the election) must consent to be bound
by 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.
21. Sec. 936 and Treas. A taxpayer that elects retroactive
Reg. § 1.936-11 application of the regulation 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, adoption or change in a
§§ 1.964-1T(c)(3) method of accounting or tax year on
behalf of a CFC or noncontrolled section
902 corporation by its controlling
domestic shareholders requires the
filing of a statement with the
shareholder's return for its year with
or within which ends the foreign
corporation's taxable year for which the
election is made or the method or tax
year is adopted or changed, and the
filing of a written notice on or before
the filing date of the shareholder's
return.
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 section 1.988-
§ 1.988-1(a)(7)(ii) 1(a)(2)(iii) apply to regulated 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 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
988(c)(1)(E)(iii)(V) on or before the first day of the
(qualified fund) taxable year, or if later, on or before
and Treas. Reg. the first day during such taxable year
§ 1.988-1(a)(8)(i)(E) on which the partnership holds an
instrument described in section
988(c)(1)(E)(i).
26. Treas. Reg. An election to treat (under certain
§ 1.988-3(b) circumstances) any gain or loss
recognize d on a contract described in
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
§ 1.988-5(a)(8)(i) before the close of the date the hedge
is entered into, the taxpayer must enter
into the record for each qualified
hedging transaction the information
contained in sections 1.988-
5(a)(8)(i)(A) through (E).
28. Treas. Reg. Taxpayer must establish a record and
§ 1.988-5(b)(3)(i) before the close of the date the hedge
is 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
§ 1.988-5(c)(2) underlying stock or security under the
rules of 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 Treas. A corporation that filed a tax return as
Reg. § 1.991-2(g)(2) a DISC, but subsequently determines that
it does not wish to be treated as a
DISC, must notify the Commissioner more
than 30 days before the expiration of
period of limitations on assessment
applicable to the tax year.
32. Sec. 992 and Treas. A qualifying corporation must file Form
Reg. § 1.992-2(a)(1)(i) 4876-A or attachments thereto,
containing the consent of every
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 Treas. A corporation seeking to revoke a prior
Reg. § 1.992-2(e)(2) election to be treated as a DISC, must
file a statement within the first 90
days of the taxable year in which the
revocation 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.
34. Sec. 992 and Treas. A DISC that makes a deficiency
Reg. § 1.992-3(c)(3) distribution with respect to the 95
percent of gross receipts test or the 95
percent assets test, or both tests, for
a particular taxable year, must make
such distribution within 90 days of the
date of the first written notification
from the IRS that the DISC failed to
satisfy such test(s).
35. Sec. 993 In certain cases, property may not
and Treas. Reg. qualify as export property for DISC
§ 1.993-3(d)(2)(i)(b) purposes unless, among other things,
such property is ultimately delivered,
directly used, or directly consumed
outside the U.S. within one year of the
date of sale or lease of the property.
36. Sec. 1445 Treas. Form 8288, U.S. Withholding Tax
Reg. § 1.1445-1 Return for Dispositions by Foreign
Persons of 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.
37. 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 (Section
1446), 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.
38. Sec. 1446 Form 8813, Partnership Withholding
Tax Payment Voucher (Section 1446),
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, Partnership
Withholding Tax Payment Voucher
(Section 1446), 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.
39. Sec. 6038A(d)(2) A reporting corporation must cure any
and Treas. Reg. failure to furnish information or
§ 1.6038A-4(d)(1) failure to maintain records within 90
days after the IRS gives notice of the
failure to avoid the continuation
penalty.
40. Sec. 6038A(d)(2) A reporting corporation must cure any
and Treas. Reg. failure to furnish information or
§ 1.6038A-4(d)(1) failure to maintain records before the
beginning of each 30-day period after
expiration of the initial 90-day period
to avoid additional continuation
penalties.
41. Sec. 6038A(a) A reporting corporation must file a
and Treas. Reg. duplicate Form 5472 at the same time it
§ 1.6038A-2(d) files its income tax return unless Form
5472 is filed electronically.
42. Sec. 6038A(e)(1) A reporting corporation must furnish an
and Treas. Reg. authorization of agent within 30 days of
§ 1.6038A-5(b) a request by the IRS to avoid a penalty.
43. Sec. A reporting corporation must commence
6038A(e)(4)(A) any 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. A reporting corporation must commence
6038A(e)(4)(B) 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. Reg. English translation of records provided
§ 1.6038A-3(b)(3) pursuant to a request for production
within 30 days of a request by the IRS
for a translation to avoid a penalty.
46. Sec. 6038A A reporting corporation must, within 60
and Treas. Reg. days of a request by the IRS for records
§ 1.6038A-3(f)(2) maintained outside the United States,
either provide the records to the IRS,
or 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. Reg. English translations of documents
§ 1.6038A-3(f)(2)(i) maintained outside the United States
within 30 days of a request by the IRS
for translation to avoid a penalty.
48. Sec. 6038A A reporting corporation must request an
and Treas. Reg. extension of time to produce or
§ 1.6038A-3(f)(4) translate documents maintained outside
the United States beyond the period
specified in the regulations within 30
days of a request by the IRS to avoid a
penalty.
49. Secs. 6038, 6038B, The filing of Form 8865, Return of
and 6046A U.S. Persons With Respect to Certain
Foreign 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 or
at the time any required information
return is due.
50. Secs. 6039F and Form 3520, Annual Return To Report
6048 Transactions With Foreign Trusts and
Receipt of Certain Foreign
Gifts, must be filed by the due
date of the U.S. person's income tax
return, including extensions.
51. Sec. 6662(e) A taxpayer must provide, within 30 days
and Treas. Reg. of a request by the IRS, specified
§ 1.6662-6(d)(2)(iii)(A) "principal documents" regarding
the taxpayer's selection and application
of transfer pricing method to avoid
potential penalties in the event of a
final transfer pricing adjustment by the
IRS. See also Treas. Reg. § 1.6662-
6(d)(2)(iii)(C) (similar requirement re:
background documents).
SECTION 13. PARTNERSHIP AND S CORPORATION ISSUES
Statute or Regulation Act Postponed
1. Treas. Reg. A partnership may obtain approval of the
§§ 1.442-1(b)(1) and Commissioner to adopt, change or retain
(3) and 1.706-1(b)(8) an annual accounting period by filing
Form 1128, Application To Adopt,
Change, or Retain a Tax Year, within
such time as provided in administrative
procedures published by the
Commissioner. See Rev. Procs. 2006-46,
2006-45 I.R.B. 859, and 2002-39, 2002-1
C.B. 1046.
2. Treas. Reg. A transferee that acquires, by sale or
§ 1.743-1(k)(2) exchange, 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 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.
3. Treas. Reg. Generally, a partnership may revoke a
§ 1.754-1(c)(1) section 754 election by filing the
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.
4. Treas. Reg. A partnership may generally elect to be
§ 1.761-2(b)(3) excluded from subchapter K. The election
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.
5. Treas. Reg. A partnership requesting permission to
§ 1.761-2(c) be 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.
6. 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
Treas. Reg. § 1.1361-1(m)(2)(ii).
7. Treas. Reg. The current income beneficiary of a
§ 1.1361-1(j)(6) qualified subchapter S trust (QSST) must
make a QSST election within the 2-month
and 16-day period from one of the dates
prescribed in section 1.1361-
1(j)(6)(iii).
8. Treas. Reg. The successive income beneficiary of a
§ 1.1361-1(j)(10) QSST may affirmatively refuse to consent
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.
9. Treas. Reg. If an S corporation elects to treat an
§ 1.1361-3(a)(4) eligible subsidiary as a qualified
subchapter S subsidiary (QSUB), the
election cannot be effective more than 2
months and 15 days prior to the date of
filing the election.
10. Treas. Reg. An S corporation may revoke a QSUB
§ 1.1361-3(b)(2) election by filing a statement with the
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.
11. Treas. Reg. If a corporation revokes its subchapter
§ 1.1362-2(a)(2), (4) S election after the first 21/2-months
of 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.
12. Sec. 1362(b)(1) An election under section 1362(a) to be
an S corporation may be made by a small
business corporation for any taxable
year at any time during the preceding
taxable year, or at any time during the
taxable year and on or before the 15th
day of the 3rd month of the taxable
year.
13. Rev. Proc. 2003-43 This revenue procedure provides a
simplified method for taxpayers
requesting relief for late S
corporation elections, Qualified
Subchapter S Subsidiary (QSUB)
elections, Qualified Subchapter S Trust
(QSST) elections, and Electing Small
Business Trust (ESBT) elections.
Generally, this revenue procedure
provides that certain eligible entities
may file late elections within 24
months of the due date of the election.
14. Rev. Proc. 2004-48 This revenue procedure provides a
simplified method for taxpayers to
request relief for a late S corporation
election and a late corporate
classification election which was
intended to be effective on the same
date that the S corporation election
was intended to be effective. This
revenue procedure provides that within
6 months after the due date for the tax
return, excluding extensions, for the
first year the entity intended to be an
S corporation, the corporation must
file a properly completed Form 2553,
Election by a Small Business
Corporation, with the applicable
service center.
15. Sec. 1378(b) An S or electing S corporation may
and Treas. Reg. obtain the approval of the Commissioner
§ 1.1378-1(c) to adopt, change or retain an annual
accounting period by filing Form 1128,
Application To Adopt, Change, or
Retain a Tax Year, within such time
as is provided in administrative
procedures published by the
Commissioner. See Rev. Procs. 2006-46
and 2002-39.
SECTION 14. PROCEDURE & ADMINISTRATION ISSUES
.01 Bankruptcy and Collection
Statute or Regulation Act Postponed
1. Treas. Reg. A court-appointed receiver or fiduciary
§ 301.6036-1(a)(2) in a non-bankruptcy receivership, a
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.
2. Sec. 6320(a)(3)(B) A taxpayer has 30 days after receiving a
and (c) and Treas. Reg. notice of a lien to request a Collection
§ 301.6320-1(b), (c) Due Process (CDP) administrative
and (f) hearing. After a determination at the
CDP hearing, the taxpayer may appeal
this determination within 30 days to the
United States Tax Court or a United
States district court.
3. Sec. 6330(a)(3)(B) The taxpayer must request a Collections
and (d)(1) and Treas. Due Process (CDP) administrative hearing
Reg. § 301.6330-1(b), within 30 days after the IRS sends
(c) and (f) notice of a proposed levy. After a
determination at the CDP hearing, the
taxpayer may appeal this determination
within 30 days to the United States Tax
Court or a United States district court.
4. Sec. 6331(k)(1) If a taxpayer submits a good-faith
and Treas. Reg. revision of a rejected offer in
§ 301.7122-1(g)(2) compromise within 30 days after the
rejection, the Service will not levy to
collect the liability before deciding
whether to accept the revised offer.
5. Sec. 6331(k)(2) If, within 30 days following the
and Treas. Reg. rejection or termination of an
§ 301.6331-4(a)(1) installment agreement, the taxpayer
files an appeal with the IRS Office of
Appeals, no levy may be made while the
rejection or termination is being
considered by Appeals.
6. Rev. Proc. 2005-34, If the Service determines that a
Sec. 4.01 taxpayer is liable for the trust fund
recovery penalty under section 6672, the
Service will provide the taxpayer an
opportunity to dispute the proposed
assessment by appealing the proposed
assessment within 60 days of the date on
the notice (75 days if the notice is
addressed to the taxpayer outside of the
United States).
7. Sec. 7122(d)(2) A taxpayer must request administrative
and Treas. Reg. review of a rejected offer in compromise
§ 301.7122-1(f)(5)(i) within 30 days after the date on the
letter of rejection.
.02 Information Returns
Statute or Regulation Act Postponed
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. 6050K A partnership notified of an exchange
and Treas. Reg. after the partnership has filed its Form
1.6050K-1(f)(2) 1065 for the taxable year with respect
to which the exchange should have been
reported shall file its Form 8308 with
the service center where its Form 1065
was filed on or before the 30th day
after the partnership is notified of the
exchange.
3. 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
Statute or Regulation Act Postponed
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. 6015(e) A requesting spouse may petition the
Tax Court to determine the appropriate
relief under this section if such
petition is filed not later than the
close of the 90th day after the Service
mails, by certified or registered mail,
notice of the Service's final
determination of relief available to
the individual.
4. Sec. 6411 Taxpayers applying for a tentative
carryback adjustment of the tax for the
prior taxable year must file Form 1139,
Corporation Application for
Tentative Refund, (for
corporations) or Form 1045,
Application for Tentative
Refund, (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.
5. 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. Sec. 42(e)(3)(A)(ii) A taxpayer has a 24-month measuring
period in which the requisite amount of
rehabilitation expenditures has to be
incurred in order to qualify for
treatment as a separate new building.
2. Treas. Reg. The taxpayer must make certain
§ 1.42-5(c)(1) certifications at least annually to the
Agency.
3. Treas. Reg. The taxpayer must receive an annual
§ 1.42-5(c)(1)(iii) income certification from each low-
income tenant with documentation to
support the certification.
4. Treas. Reg. The taxpayer and an Agency may elect to
§ 1.42-8(a)(3)(v) use an appropriate percentage under
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.
5. Treas. Reg. The taxpayer and an Agency may elect an
§ 1.42-8(b)(1)(vii) appropriate percentage under section
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.
6. Sec. In order to claim section 42 credits on
42(d)(2)(D)(ii)(IV) an existing building, section
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.
7. 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.
8. 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.
9. Sec. 42(h)(1)(E) and The taxpayer's basis in the building
(F) project, as of the later of the date
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.
10. Sec. 47(c)(1)(C) A taxpayer has a 24- or 60-month
and Treas. Reg. measuring period in which the requisite
§ 1.48-12(b)(2) amount of rehabilitation expenditures
have to be incurred in order to satisfy
the "substantial rehabilitation"
test.
11. Treas. Reg. 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 Service.
12. Sec. An employer seeking the Work Opportunity
51(d)(12)(A)(ii)(II) Credit with respect to an individual
and 51A(d)(1) must submit Form 8850, Pre-Screening
Notice and Certification Request for the
Work Opportunity Credit, to the
State Employment Security Agency (State
Workforce Agency) not later than the
28th day after the individual begins
work for the employer.
SECTION 16. TAX-EXEMPT BOND ISSUES
Statute or Regulation Act Postponed
1. Treas. Reg. On or before the date of distribution of
§ 1.25-4T(c) mortgage credit certificates under a
program or December 31, 1987, the issuer
must file an election not to issue an
amount of qualified mortgage bonds. An
election may be revoked, in whole or on
part, at any time during the calendar
year in which the election was made.
2. Treas. Reg. An issuer must provide notice to the
§§ 1.141-12(d)(3) Commissioner of the establishment of a
and 1.142-2(c)(2) defeasance escrow within 90 days of the
date such defeasance escrow is
established in accordance with sections
1.141-12(d)(1) or 1.142-2(c)(1).
3. 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).
4. Sec. 142(f)(4) A person engaged in the local furnishing
and Treas. Reg. of electric energy or gas (a local
§ 1.142(f)(4)-1 furnisher) that uses facilities financed
with exempt facility bonds under section
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.
5. Sec. 146(f) and If an issuing authority's volume cap for
Notice 89-12 any calendar year exceeds the aggregate
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.
6. Sec. 148(f)(3) An issuer of a tax-exempt municipal
and Treas. Reg. obligation must make any required rebate
§ 1.148-3(g) payment no later than 60 days after the
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.
7. Treas. Reg. 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 section 1.148-3(f), (g),
and (h).
8. Sec. As issuer of a tax-exempt municipal
148(f)(4)(C)(xvi) obligation that elects to pay certain
and Treas. Reg. penalties in lieu of rebate must make
§ 1.148-7(k)(1) any required penalty payments not later
than 90 days after the period to which
the penalty relates.
9. 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. SPECIAL RULES FOR SECTION 1031 LIKE-KIND EXCHANGE TRANSACTIONS
.01 Taxpayers are provided the relief described in this section if an IRS news release or other guidance provides relief for acts listed in this revenue procedure (unless the news release or other guidance specifies otherwise).
.02 (1) The last day of a 45-day identification period set forth in section 1.1031(k)-1(b)(2) of the Income Tax Regulations, the last day of a 180-day exchange period set forth in section 1.1031(k)-1(b)(2), and the last day of a period set forth in section 4.02(3) through (6) of Rev. Proc. 2000-37, modified by Rev. Proc. 2004-51, that fall on or after the date of a Presidentially declared disaster, are postponed by 120 days or to the last day of the general disaster extension period authorized by an IRS News Release or other guidance announcing tax relief for victims of the specific Presidentially declared disaster, whichever is later. However, in no event may a postponement period extend beyond: (a) the due date (including extensions) of the taxpayer's tax return for the year of the transfer (See Treas. Reg. § 1.1031(k)-1(b)(2)); or (b) one year (See IRC § 7508A(a)).
(2) A taxpayer who is a transferor qualifies for a postponement under this section only if --
(a) The relinquished property was transferred on or before the date of the Presidentially declared disaster, or in a transaction governed by Rev. Proc. 2000-37, modified by Rev. Proc. 2004-51, qualified indicia of ownership were transferred to the exchange accommodation titleholder on or before that date; and
(b) The taxpayer (transferor) --
(i) Is an "affected taxpayer" as defined in the IRS News Release or other guidance announcing tax relief for the victims of the specific Presidentially declared disaster; or
(ii) Has difficulty meeting the 45-day identification or 180-day exchange deadline set forth in section 1.1031(k)-1(b)(2), or a deadline set forth in section 4.02(3) through (6) of Rev. Proc. 2000-37, modified by Rev. Proc. 2004-51, due to the Presidentially declared disaster for the following or similar reasons:
(A) The relinquished property or the replacement property is located in a covered disaster area (as defined in section 301.7508A-1(d)(2)) as provided in the IRS News Release or other guidance (the covered disaster area);
(B) The principal place of business of any party to the transaction (for example, a qualified intermediary, exchange accommodation titleholder, transferee, settlement attorney, lender, financial institution, or a title insurance company) is located in the covered disaster area;
(C) Any party to the transaction (or an employee of such a party who is involved in the section 1031 transaction) is killed, injured, or missing as a result of the Presidentially declared disaster;
(D) A document prepared in connection with the exchange (for example, the agreement between the transferor and the qualified intermediary or the deed to the relinquished property or replacement property) or a relevant land record is destroyed, damaged, or lost as a result of the Presidentially declared disaster;
(E) A lender decides not to fund either permanently or temporarily a real estate closing due to the Presidentially declared disaster or refuses to fund a loan to the taxpayer because flood, disaster, or other hazard insurance is not available due to the Presidentially declared disaster; or
(F) A title insurance company is not able to provide the required title insurance policy necessary to settle or close a real estate transaction due to the Presidentially declared disaster.
.03 The postponement described in this section also applies to the last day of a 45-day identification period described in section 1.1031(k)-1(b)(2) and the last day of a 45-day identification period described in section 4.05(4) of Rev. Proc. 2000-37, modified by Rev. Proc. 2004-51, that falls prior to the date of a Presidentially declared disaster if an identified replacement property (in the case of an exchange described in section 1.1031(k)-1), or an identified relinquished property (in the case of an exchange described in Rev. 2004-51) is substantially damaged by the Presidentially declared disaster.
.04 If the taxpayer (transferor) qualifies for relief under this section for any reason other than section 17.02(2)(b)(i), then such taxpayer is not considered an affected taxpayer for purposes of any other act listed in this revenue procedure or for any acts listed in an IRS News Release or other published guidance related to the specific Presidentially declared disaster.
SECTION 18. INQUIRIES If you wish to recommend that other acts qualify for postponement, please write to the Office of Associate Chief Counsel, Procedure and Administration CC:PA:B7, 1111 Constitution Avenue, NW, Washington, DC 20224. Please mark "7508A List" on the envelope. In the alternative, e-mail your comments to: Notice.Comments@irscounsel.treas.gov, and refer to Rev. Proc. 2005-27 in the Subject heading.
SECTION 19. EFFECT ON OTHER REVENUE PROCEDURES
Rev. Proc. 2005-27, 2005-1 C.B. 1050, is superseded.
SECTION 20. EFFECTIVE DATE
This revenue procedure is effective for acts that may be performed or disasters which occur on or after August 20, 2007.
SECTION 21. DRAFTING INFORMATION
The principal author of this revenue procedure is Melissa Quale in Branch 7, of the Office of Associate Chief Counsel (Procedure & Administration). For further information regarding section 1031 like-kind exchange postponements under section 17 of this revenue procedure, contact Peter J. Baumgarten or Michael F. Schmit of the Office of Associate Chief Counsel (Income Tax and Accounting) at (202) 622-4920 (not a toll-free call) or (202) 622-4960 (not a toll-free call), respectively. For further information regarding other sections of this revenue procedure, contact Ms. Quale at (202) 622-4570 (not a toll-free call).
DOCUMENT ATTRIBUTES
- Institutional AuthorsInternal Revenue Service
- Cross-ReferenceFor Rev. Proc. 2005-27, 2005-20 I.R.B. 1050, see Doc 2005-10553 or
2005 TNT 93-8. - Code Sections
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2007-19104
- Tax Analysts Electronic Citation2007 TNT 161-6
