Federal Register / Vol. 69, No. 234 / Tuesday, December 7, 2004 / Rules and Regulations 70547

DEPARTMENT OF THE TREASURY

Internal Revenue Service 

26 CFR Parts 1, 25, 31, 53, 55, 156, 301, 

and 602

[TD 9163] 

RIN 1545–BB29

Automatic Extension of Time To File 

Certain Information Returns and 

Exempt Organization Returns

AGENCY: Internal Revenue Service (IRS), 

Treasury.

ACTION: Final regulations and removal of 

temporary regulations. 

SUMMARY: This document contains final 

regulations relating to the automatic 

extension of time to file certain 

information returns and exempt 

organization returns. The final 

regulations adopt temporary rules that 

removed the requirement for a signature 

and an explanation to obtain an 

automatic extension of time to file these 

returns. The final regulations also 

remove the requirement for a signature 

to obtain an automatic extension of time 

to file corporation income tax returns. 

The final regulations affect taxpayers 

who need an extension of time to file 

certain information returns, exempt 

organization returns, and/or corporation 

income tax returns.

DATES: Effective Date: These regulations 

are effective on December 7, 2004. 

Applicability Date: For dates of 

applicability, see §§ 1.6081–3(e), 

1.6081–8(g), 1.6081–9(f), and 

31.6081(a)–1(d).

FOR FURTHER INFORMATION CONTACT:

Charles A. Hall, (202) 622–4940 (not a 

toll-free number).

SUPPLEMENTARY INFORMATION: 

Background 

This document contains amendments 

to 26 CFR parts 1, 25, 31, 53, 55, 156, 

301, and 602 under section 6081 of the 

Internal Revenue Code, relating to 

extensions of time to file Federal tax 

returns. 

On June 11, 2003, the IRS published 

final and temporary regulations (TD 

9061) in the Federal Register (68 FR 

34797). A cross-reference notice of 

proposed rulemaking (REG–107618–02) 

was published in the Federal Register

(68 FR 34875) on the same day. 

Subsequently, the IRS published a 

correction to the final and temporary 

regulations dated September 18, 2003 

(68 FR 54660). 

The temporary regulations provide an 

automatic extension of time to file 

certain information returns and exempt 

organization returns. The temporary 

regulations also removed the previously 

applicable rules requiring a signature 

and an explanation to obtain an 

automatic extension of time to file these 

returns. In addition, the temporary 

regulations made other minor changes 

to conform the regulations under section 

6081 to current law and practice. 

No comments were received from the 

public in response to the notice of 

proposed rulemaking and no public 

hearing was requested or held. 

Explanation of Provisions 

This Treasury decision removes the 

temporary regulations and adopts the 

proposed regulations as final regulations 

with the changes explained below. 

The first change relates to the 

automatic extension of time to file 

exempt organization returns. Section 

1.6081–9(a) of the proposed regulations 

provides that exempt organizations may 

automatically extend the time for filing 

Form 990 (series) returns for three 

months. This language inadvertently 

included exempt organizations 

organized in corporate form (corporate 

filers) that file Forms 990–T, ‘‘Exempt 

Organization Business Income Tax 

Return’’ (and proxy tax under section 

6033(e)), who previously could obtain a 

six-month extension of time to file each 

year. The IRS and the Treasury 

Department did not intend to make any 

changes regarding the extension period 

for corporate filers of the Form 990–T. 

Therefore, these final regulations clarify 

that corporate filers of the Form 990–T 

may obtain a six-month automatic 

extension of time to file by properly 

filing Form 8868.

Furthermore, in reviewing the 

regulations under section 6081, the IRS 

and the Treasury Department 

determined that it was appropriate to 

amend § 1.6081–3 to eliminate the 

requirement for corporations to provide 

a signature on Form 7004, ‘‘Application 

for Automatic Extension of Time To File 

Corporation Income Tax Return,’’ to 

obtain a six-month automatic extension 

of time to file a corporation income tax 

return. Section 1.6081–3, like all other 

regulations providing for automatic 

extensions of time to file, does not 

require the taxpayer to explain why the 

extension is needed. Section 1.6081–3, 

however, unlike the other automatic 

extensions of time to file, does require 

a signature on the Form 7004. This 

signature requirement is an impediment 

to filing the Form 7004 electronically. 

The IRS and the Treasury Department 

have determined that there is no need 

for a signature requirement for the 

automatic corporation income tax return 

extension. Thus, to promote consistency 

and to remove barriers to electronic 

filing, this Treasury decision removes 

the signature requirement from 

§ 1.6081–3. 

In addition to removing the signature 

requirement, this Treasury decision 

revises § 1.6081–3 to reflect the repeal of 

section 6152, which allowed 

corporations to pay tax in installments. 

A similar revision is made to 

§ 301.6651–1, relating to the addition to 

tax for failure to file return or pay tax. 

For a corporation that obtains an 

automatic extension of time to file 

under § 1.6081–3, the existing rules in 

§ 301.6651–1(c)(4) provide that there is 

reasonable cause (and therefore no 

addition to tax) for failure to pay tax for 

the period of the extension if the 

corporation made payments on a 

schedule consistent with the installment 

payment schedule in section 6152, paid 

at least 90% of its tax due on or before 

the due date for the return, and paid any 

balance due on or before the extended 

due date. This Treasury decision 

removes the requirement that the 

corporation make payments on a 

schedule consistent with section 6152. 

Section 1.6081–8 allows filers and 

transmitters of information returns on 

Form 1099 (series), 1098 (series), 5498 

(series), W–2 (series), W–2G, 1042–S, 

and 8027 to request an automatic 30-day 

extension of time to file without having 

to sign Form 8809 and provide an 

explanation. An explanation and a 

signature are required if filers and 

transmitters need additional time to file 

after receiving the automatic 30-day 

extension. These regulations also permit 

employers to obtain an extension of 

time to file the Social Security 

Administration copy of Forms W–2 and 

W–3 without providing a statement of 

the reasons for requesting the extension. 

The final regulations clarify that filers 

and transmitters are eligible for only one 

automatic extension of time to file. 

Filers and transmitters filing Forms W–

2 on an expedited basis under 

§ 31.6071(a)–1(a)(3)(ii) may receive an 

automatic extension of time to file 

Forms W–2 under Rev. Proc. 96–57, 

1996–2 C.B. 389. These filers and 

transmitters are not eligible to obtain the 

30-day automatic extension under 

§ 1.6081–8(b). If these filers and 

transmitters need additional time, they 

may request an extension under the 

generally applicable procedures for 

obtaining additional extensions of time 

to file Form W–2. 

Special Analyses 

It has been determined that this 

Treasury decision is not a significant 

regulatory action as defined in 

Executive Order 12866. Therefore, a 

70548 Federal Register / Vol. 69, No. 234 / Tuesday, December 7, 2004 / Rules and Regulations 

regulatory assessment is not required. It 

also has been determined that section 

553(b) of the Administrative Procedure 

Act (5 U.S.C. chapter 5) does not apply 

to these regulations and, therefore, 

notice of the amendments to §§ 1.6081–

3 and 301.6651–1 and public procedure 

thereon is not required. Because these 

amendments merely remove a 

restriction (signature requirement) and 

otherwise make only nonsubstantive 

changes to remove references to prior 

law, a delayed effective date pursuant to 

5 U.S.C. 553(d) is also not required. 

In addition, because the regulation 

does not impose a collection of 

information on small entities, the 

Regulatory Flexibility Act (5 U.S.C. 

chapter 6) does not apply. Pursuant to 

section 7805(f) of the Internal Revenue 

Code, the notice of proposed rulemaking 

preceding this regulation and the 

amendments to §§ 1.6081–3 and 

301.6651–1 have been submitted to the 

Chief Counsel for Advocacy of the Small 

Business Administration for comment 

on their impact on small business.

Drafting Information 

The principal author of these 

regulations is Charles A. Hall of the 

Office of Associate Chief Counsel, 

Procedure and Administration 

(Administrative Provisions and Judicial 

Practice Division). However, other 

personnel from the IRS and Treasury 

Department participated in their 

development.

List of Subjects 

26 CFR Part 1

Income taxes, Reporting and 

recordkeeping requirements. 

26 CFR Part 25

Gift taxes, Reporting and 

recordkeeping requirements. 

26 CFR Part 31

Employment taxes, Income taxes, 

Penalties, Pensions, Railroad retirement, 

Reporting and recordkeeping 

requirements, Social security, 

Unemployment compensation. 

26 CFR Part 53

Excise taxes, Foundations, 

Investments, Lobbying, Reporting and 

recordkeeping requirements. 

26 CFR Part 55

Excise taxes, Investments, Reporting 

and recordkeeping requirements. 

26 CFR Part 156

Excise taxes, Reporting and 

recordkeeping requirements. 

26 CFR Part 301

Employment taxes, Estate taxes, 

Excise taxes, Gift taxes, Income taxes, 

Penalties, Reporting and recordkeeping 

requirements. 

26 CFR Part 602

Reporting and recordkeeping 

requirements.

Adoption of Amendments to the 

Regulations

■ Accordingly, 26 CFR parts 1, 25, 31, 

53, 55, 156, 301, and 602 are amended 

as follows:

PART 1—INCOME TAXES

■ Paragraph 1. The authority citation for 

part 1 is amended by removing the 

entries for § 1.6081–8T and § 1.6081–9T 

and adding entries in numerical order to 

read in part as follows:

Authority: 26 U.S.C. 7805 * * *

Section 1.6081–8 also issued under 26 

U.S.C. 6081(a). 

Section 1.6081–9 also issued under 26 

U.S.C. 6081(a). * * *

■ Par. 2. Section 1.6081–1 is amended by 

revising paragraph (a) to read as follows:

§ 1.6081–1 Extension of time for filing 

returns. 

(a) In general. The Commissioner is 

authorized to grant a reasonable 

extension of time for filing any return, 

declaration, statement, or other 

document which relates to any tax 

imposed by subtitle A of the Code and 

which is required under the provisions 

of subtitle A or F of the Code or the 

regulations thereunder. However, other 

than in the case of taxpayers who are 

abroad, such extensions of time shall 

not be granted for more than 6 months, 

and the extension of time for filing the 

return of a DISC (as defined in section 

992(a)), as specified in section 6072(b), 

shall not be granted. Except in the case 

of an extension of time pursuant to 

§ 1.6081–5, an extension of time for 

filing an income tax return shall not 

operate to extend the time for the 

payment of the tax unless specified to 

the contrary in the extension. For rules 

relating to extensions of time for paying 

tax, see § 1.6161–1.

* * * * *

■ Par. 3. Section 1.6081–3 is revised to 

read as follows:

§ 1.6081–3 Automatic extension of time for 

filing corporation income tax returns. 

(a) In general. A corporation or an 

affiliated group of corporations filing a 

consolidated return will be allowed an 

automatic 6-month extension of time to 

file its income tax return after the date 

prescribed for filing the return if the 

following requirements are met: 

(1) An application must be submitted 

on Form 7004, ‘‘Application for 

Automatic Extension of Time To File 

Corporation Income Tax Return,’’ or in 

any other manner as may be prescribed 

by the Commissioner.

(2) The application must be filed on 

or before the date prescribed for the 

filing of the return of the corporation (or 

the consolidated return of the affiliated 

group of corporations) with the Internal 

Revenue Service office designated in the 

application’s instructions. 

(3) The corporation (or affiliated 

group of corporations filing a 

consolidated return) must remit the 

amount of the properly estimated 

unpaid tax liability on or before the date 

prescribed for payment. 

(4) The application must include a 

statement listing the name and address 

of each member of the affiliated group 

if the affiliated group will file a 

consolidated return. 

(b) No extension of time for the 

payment of tax. Any automatic 

extension of time for filing a corporation 

income tax return granted under 

paragraph (a) of this section shall not 

operate to extend the time for payment 

of any tax due on such return. 

(c) Termination of automatic 

extension. The Commissioner may 

terminate an automatic extension at any 

time by mailing a notice of termination 

to the corporation (parent corporation in 

the case of an affiliated group of 

corporations filing a consolidated 

return). The notice shall be mailed at 

least 10 days prior to the termination 

date designated in such notice. The 

notice of termination shall be sufficient 

for all purposes when mailed to the 

corporation at the address shown on 

Form 7004 or to the corporation’s last 

known address. For further guidance 

regarding the definition of last known 

address, see § 301.6212–2 of this 

chapter. 

(d) No extension for DISCs.

Paragraphs (a) through (c) of this section 

shall not apply to returns filed by a 

DISC pursuant to section 6011(c)(2). 

(e) Effective date. This section applies 

to requests for extension of time to file 

corporation income tax returns due after 

December 7, 2004.

■ Par. 4. Section 1.6081–8 is added to 

read as follows:

§ 1.6081–8 Automatic extension of time to 

file certain information returns. 

(a) In general. Except as provided in 

paragraph (f) of this section, a person 

required to file an information return 

(the filer) on Form W–2 series, W–2G, 

1042–S, 1098 series, 1099 series, 5498 

Federal Register / Vol. 69, No. 234 / Tuesday, December 7, 2004 / Rules and Regulations 70549

series, or 8027 will be allowed one 

automatic 30-day extension of time to 

file the return after the date prescribed 

for filing the return if the filer or the 

person transmitting the return for the 

filer (the transmitter) files an 

application in accordance with 

paragraph (b) of this section. 

(b) Requirements. To satisfy this 

paragraph (b), an application must—

(1) Be submitted on Form 8809, 

‘‘Request for Extension of Time To File 

Information Returns,’’ or in any other 

manner as may be prescribed by the 

Commissioner; and 

(2) Be filed with the Internal Revenue 

Service office designated in the 

application’s instructions on or before 

the date prescribed for filing the 

information return. 

(c) Penalties. See sections 6652, 6693, 

6721, 6722, and 6723 for failure to file 

an information return. 

(d) Additional 30-day extension of 

time to file—(1) In general. This 

paragraph (d) provides procedures for 

obtaining an additional extension of 

time for filing an information return on 

a form listed in paragraph (a) of this 

section. No extension of time will be 

granted under this paragraph (d) unless 

the filer or transmitter has first obtained 

an automatic extension under this 

section. 

(2) Procedures. In the case of an 

information return on a form listed in 

paragraph (a) of this section, one 

additional 30-day extension of time to 

file the return may be allowed if the filer 

or transmitter submits a request for the 

additional extension before the 

expiration of the automatic 30-day 

extension. The request must—

(i) Be submitted on Form 8809 or in 

any other manner as may be prescribed 

by the Commissioner; 

(ii) Explain in detail why the 

additional time is needed;

(iii) Be signed by the filer or 

transmitter; and 

(iv) Otherwise satisfy the 

requirements of § 1.6081–1. 

(e) No effect on time to provide 

statement to recipients. An extension 

under this section of time to file an 

information return does not extend the 

due date for providing a statement to the 

person with respect to whom the 

information is required to be reported. 

(f) Form W–2 filed on expedited basis.

This section does not apply to a return 

on Form W–2 (series) if the procedures 

authorized in § 31.6081(a)–1(a)(2)(ii) of 

this chapter allow an automatic 

extension of time to file the return. 

(g) Effective date. This section applies 

to requests for extension of time to file 

information returns due after December 

7, 2004.

§ 1.6081–8T [Removed]

■ Par. 5. Section 1.6081–8T is removed.

■ Par. 6. Section 1.6081–9 is added to 

read as follows:

§ 1.6081–9 Automatic extension of time to 

file exempt organization returns. 

(a) In general. A corporation required 

to file a return on Form 990–T will be 

allowed an automatic six-month 

extension of time to file the return after 

the date prescribed for filing if the 

corporation files an application in 

accordance with paragraph (b) of this 

section. In any other case, an exempt 

organization required to file a return on 

Form 990 (series, except for Form 990–

C), 1041–A, 4720, 5227, 6069, or 8870 

will be allowed an automatic threemonth extension of time to file the 

return after the date prescribed for filing 

if the exempt organization files an 

application in accordance with 

paragraph (b) of this section. For 

guidance on extensions of time for an 

exempt organization to file Form 990–C, 

‘‘Farmer’s Cooperative Association 

Income Tax Return,’’ or Form 1120–

POL, ‘‘U.S. Income Tax Return for 

Certain Political Organizations,’’ see 

§ 1.6081–3. 

(b) Requirements. To satisfy this 

paragraph (b), an application for an 

automatic extension under this section 

must—

(1) Be submitted on Form 8868, 

‘‘Application for Extension of Time To 

File an Exempt Organization Return,’’ or 

in any other manner as may be 

prescribed by the Commissioner; 

(2) Be filed with the Internal Revenue 

Service office designated in the 

application’s instructions on or before 

the date prescribed for filing the return; 

(3) Show the full amount properly 

estimated as tentative tax for the exempt 

organization for the taxable year; and 

(4) Be accompanied by the full 

remittance of the amount properly 

estimated as tentative tax which is 

unpaid as of the date prescribed for the 

filing of the return. 

(c) Termination of automatic 

extension. The Commissioner may 

terminate an automatic extension at any 

time by mailing to the exempt 

organization a notice of termination. 

The notice must be mailed at least 10 

days prior to the termination date 

designated in such notice. The notice of 

termination must be mailed to the 

address shown on the application for 

extension or to the exempt 

organization’s last known address. For 

further guidance regarding the 

definition of last known address, see 

§ 301.6212–2 of this chapter. 

(d) Penalties. See sections 6651 and 

6652(c) for failure to file an exempt 

organization return or failure to pay the 

amount shown as tax on the return. 

(e) Coordination with § 1.6081–1. No 

extension of time will be granted under 

§ 1.6081–1 for filing an exempt 

organization return listed in paragraph 

(a) of this section until an automatic 

extension has been allowed pursuant to 

this section. 

(f) Effective date. This section applies 

to requests for extensions of time to file 

an exempt organization return due after 

December 7, 2004.

§ 1.6081–9T [Removed]

■ Par. 7. Section 1.6081–9T is removed.

PART 25—GIFT TAX; GIFTS MADE 

AFTER DECEMBER 31, 1954

■ Par. 8. The authority citation for part 

25 continues to read in part as follows:

Authority: 26 U.S.C. 7805 * * *

PART 31—EMPLOYMENT TAXES AND 

COLLECTION OF INCOME TAX AT 

SOURCE

■ Par. 9. The authority citation for part 

31 is amended by removing the entry for 

§ 31.6081(a)–1T to read in part as 

follows:

Authority: 26 U.S.C. 7805 * * *

Section 31.6081(a)–1 also issued under 26 

U.S.C. 6081.* * *

■ Par. 10. Section 31.6081(a)–1 is 

amended by: 

1. Revising paragraph (a)(2)(i). 

2. Adding paragraph (d). 

The revision and addition reads as 

follows:

§ 31.6081(a)–1 Extensions of time for filing 

returns and other documents. 

(a) * * *

(2) Information returns of employers 

on Forms W–2 and W–3—(i) In general.

The Commissioner may grant an 

extension of time in which to file the 

Social Security Administration copy of 

Forms W–2 and the accompanying 

transmittal form which constitutes an 

information return under § 31.6051–

2(a). For further guidance regarding 

extensions of time to file the Social 

Security Administration copy of Forms 

W–2 and W–3, see § 1.6081–8 of this 

chapter.

* * * * *

(d) Effective date. Paragraph (a)(2)(i) 

of this section applies to requests for 

extensions of time to file the Social 

Security Administration copy of Forms 

W–2 and W–3 due after December 7, 

2004.

§ 31.6081(a)–1T [Removed]

■ Par. 11. Section 31.6081(a)–1T is 

removed.

70550 Federal Register / Vol. 69, No. 234 / Tuesday, December 7, 2004 / Rules and Regulations 

PART 53—FOUNDATION AND SIMILAR 

EXCISE TAXES

■ Par. 12. The authority citation for part 

53 continues to read as follows:

Authority: 26 U.S.C. 7805.

PART 55—EXCISE TAX ON REAL 

ESTATE INVESTMENT TRUSTS AND 

REGULATED INVESTMENT 

COMPANIES

■ Par. 13. The first sentence of the 

authority citation for part 55 is revised to 

read as follows:

Authority: 26 U.S.C. 6001, 6011, 6071, 

6091, and 7805. * * *

PART 156—EXCISE TAX ON 

GREENMAIL

■ Par. 14. The authority citation for part 

156 is revised to read as follows:

Authority: 26 U.S.C. 6001, 6011, 6061, 

6071, 6091, 6161, and 7805.

■ Par. 15. In the list below, for each 

section indicated in the left column, 

remove the language in the middle 

column and add the language in the right 

column in its place:

Section Remove Add 

1.6081–2(f), first sentence district director, including the Assistant Commissioner (International), or the director of a 

service center.

Commissioner. 

1.6081–4(c), first sentence district director, including the Assistant Commissioner (International), or the director of a 

service center.

Commissioner. 

1.6081–5(a)(1) 1.6031–1(e)(2) ................................................. 1.6031(a)–1(e)(2) 

1.6081–6(d), first sentence district director, including the Assistant Commissioner (International), or the director of a 

service center.

Commissioner. 

1.6081–7(d), first sentence district director, including the Assistant Commissioner (International), or the director of a 

service center.

Commissioner. 

25.6081–1, second sentence district director or director of the service center.Commissioner. 

31.6081(a)–1(b), first sentence district director or director of a service center Commissioner. 

53.6081–1(a), first sentence District directors and directors of service centers are.The Commissioner is 

53.6081–1(b), first sentence to the district director or director of the service 

center with whom the return is to be filed.

in accordance with the instructions to the extension request form 

55.6081–1, first sentence District directors and directors of service centers are.The Commissioner is 

156.6081–1(a), first sentence District directors and directors of service centers are.The Commissioner is 

156.6081–1(b), first sentence to the district director or director of the service 

center with whom the return is to be filed.

in accordance with the instructions to the extension form. 

PART 301—PROCEDURE AND 

ADMINISTRATION

■ Par. 16. The authority citation for part 

301 continues to read as follows:

Authority: 26 U.S.C. 7805 * * *

§ 301.6651–1 [Amended]

■ Par. 17. Section 301.6651–1(c)(4) 

introductory text is amended by 

removing the language ‘‘or (b)’’, 

removing paragraph (c)(4)(i), and 

redesignating paragraphs (c)(4)(ii) and 

(c)(4)(iii) as paragraphs (c)(4)(i) and 

(c)(4)(ii), respectively.

PART 602—OMB CONTROL NUMBERS 

UNDER THE PAPERWORK 

REDUCTION ACT

■ Par. 18. The authority citation for part 

602 continues to read as follows:

Authority: 26 U.S.C. 7805.

■ Par. 19. In § 602.101, paragraph (b) is 

amended by removing the entries for 

§§ 1.6081–8T and 1.6081–9T from the 

table.

Approved: November 23, 2004. 

Mark E. Matthews, 

Deputy Commissioner for Services and 

Enforcement.

Gregory Jenner, 

Acting Assistant Secretary of the Treasury.

[FR Doc. 04–26837 Filed 12–6–04; 8:45 am] 

BILLING CODE 4830–01–P

DEPARTMENT OF THE TREASURY

Internal Revenue Service 

26 CFR Parts 1 and 602

[TD 9144] 

RIN 1545–BA75

Statutory Options; Correction

AGENCY: Internal Revenue Service (IRS), 

Treasury.

ACTION: Correcting amendment.

SUMMARY: This document corrects final 

regulations (TD 9144) that were 

published in the Federal Register on 

Monday, August 3, 2004 (69 FR 46401) 

and corrected on Monday, October 18, 

2004 (69 FR 61309). The final 

regulations relate to statutory options.

DATES: This document is effective on 

August 3, 2004.

FOR FURTHER INFORMATION CONTACT:

Erinn Madden, (202) 622–6030 (not a 

toll-free number).

SUPPLEMENTARY INFORMATION: 

Background 

The final regulations (TD 9144) that 

are the subject of these corrections are 

under sections 421, 422, and 424 of the 

Internal Revenue Code. 

Need for Correction 

As published, the final regulations 

(TD 9144) contain errors that may prove 

to be misleading and are in need of 

clarification.