2370 Federal Register / Vol. 74, No. 10 / Thursday, January 15, 2009 / Rules and Regulations 

regarding the regulatory amendments, 

and the changes made by HUD at the 

final rule stage, is provided in the 

preamble to the November 17, 2008, 

final rule. 

The effective date of the November 

17, 2008, final rule is January 16, 2009. 

However, the final rule provides for an 

appropriate transition period for certain 

requirements. Other provisions are to be 

implemented upon the effective date of 

the final rule. 

Among those regulatory changes to be 

implemented upon the effective date of 

January 16, 2009, is the revised 

definition of the term ‘‘Required use.’’ 

This amendment has become the subject 

of recently initiated litigation. (National 

Association of Home Builders, et al. v. 

Steve Preston, et al., Civ. Action No. 08– 

CV–1324, United States District Court 

for the Eastern District of Virginia, 

Alexandria Division.) For reasons 

related to the proper litigation of this 

case, HUD is issuing this final rule to 

delay the effective date of the revised 

definition of ‘‘Required use’’ for an 

additional 90 days until April 16, 2009. 

In general, HUD publishes a rule for 

public comment before issuing a rule for 

effect, in accordance with its own 

regulations on rulemaking at 24 CFR 

part 10. Part 10, however, does provide 

in § 10.1 for exceptions from that 

general rule where HUD finds good 

cause to omit advance notice and public 

participation. The Department finds that 

good cause exists to publish this final 

rule for effect without first soliciting 

public comment as public comment is 

impracticable, given the litigation 

schedule established by the court. 

■ Accordingly, HUD’s final rule 

published on November 17, 2008 at 73 

FR 68204 (Docket No. FR 5180–F–03, 

FR Doc. E8–27070) is corrected as 

follows: 

■ 1. On page 68239, beginning in the 

first column, § 3500.1(b)(1) is corrected 

to read as follows: 

§ 3500.1 Designation and applicability. 

* * * * * 

(b) * * * 

(1) The definition of Required use 

in§ 3500.2 is applicable commencing on 

April 16, 2009; §§ 3500.8(b), 3500.17, 

3500.21, 3500.22 and 3500.23, and 

Appendices E and MS–1 are applicable 

commencing January 16, 2009. 

* * * * * 

Dated: January 9, 2009. 

Brian D. Montgomery, 

Assistant Secretary for Housing-Federal 

Housing Commissioner. 

[FR Doc. E9–852 Filed 1–14–09; 8:45 am] 

BILLING CODE 4210–67–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 301 

[TD 9443] 

RIN 1545–BG16 

Postponement of Certain Tax-Related 

Deadlines by Reason of a Federally 

Declared Disaster or Terroristic or 

Military Action 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final regulation. 

SUMMARY: This document contains final 

regulations relating to postponement of 

certain tax-related deadlines either due 

to service in a combat zone or due to a 

federally declared disaster. The 

regulations reflect changes in the law 

made by the Victims of Terrorism Tax 

Relief Act of 2001, the Tax Extenders 

and Alternative Minimum Tax Relief 

Act of 2008 (TEAMTRA), and current 

IRS practice. The regulations affect 

taxpayers serving in a combat zone and 

taxpayers affected by a federally 

declared disaster. 

DATES: Effective Date: These regulations 

are effective on January 15, 2009. 

Applicability Dates: For dates of 

applicability, see § 301.7508A–1(g). 

FOR FURTHER INFORMATION CONTACT: 

Mary Ellen Keys, (202) 622–4570 (not a 

toll-free number). 

SUPPLEMENTARY INFORMATION: 

Background 

This document contains amendments 

to the Procedure and Administration 

Regulations (26 CFR part 301). Section 

7508A of the Internal Revenue Code 

(Code) relates to the postponement of 

certain tax-related acts by reason of a 

federally declared disaster or terroristic 

or military action. Section 7508A was 

added by section 911(a) of the Taxpayer 

Relief Act of 1997, Public Law 105–34 

(111 Stat. 788, 877–78 (1997)) (the 1997 

Act), which was effective for any period 

for performing an act that had not 

expired before December 5, 1997. 

A notice of proposed rulemaking 

(REG–142680–06) was published in the 

Federal Register (73 FR 40471–01) on 

July 15, 2008. No comments were 

received from the public in response to 

the notice of proposed rulemaking, and 

no public hearing was requested or 

held. In this Treasury decision, the 

proposed regulations are adopted as 

revised. 

Explanation of Revisions 

Section 301.7508A–1 of these final 

regulations is revised throughout to use 

the term ‘‘federally declared disaster’’ 

instead of the term ‘‘Presidentially 

declared disaster’’ when referring to any 

disaster determined by the President of 

the United States to warrant assistance 

by the Federal Government under the 

Robert T. Stafford Disaster Relief and 

Emergency Assistance Act, 42 U.S.C. 

5121, et seq. (the ‘‘Stafford Act’’). Prior 

versions of these regulations and the 

proposed regulations included the term 

‘‘Presidentially declared disaster’’ as 

defined in former Code section 

1033(h)(3). Sec. 706(a) of TEAMTRA, 

Div. C of Public Law 110–343 (122 Stat. 

3765, 3920), amended Code section 

1033(h)(3) by replacing the term 

‘‘Presidentially declared disaster’’ with 

‘‘federally declared disaster’’ and 

providing that the term shall have the 

meaning given such term by section 

165(h)(3)(C). Section 165(h)(3)(C), added 

by section 706(a) of TEAMTRA, defines 

the term ‘‘federally declared disaster’’ to 

mean any disaster subsequently 

determined by the President of the 

United States to warrant assistance by 

the Federal Government under the 

Stafford Act. This definition is 

substantially the same as the definition 

of ‘‘Presidentially declared disaster’’ 

under former section 1033(h)(C). Thus, 

these statutory changes in terminology 

do not materially impact the meaning of 

either the proposed or final regulations. 

Section 301.7508A–1(d)(1) of the final 

regulations is revised to expand the 

definition of ‘‘affected taxpayer’’ to 

include any individual, business entity, 

or sole proprietorship not located in a 

covered disaster area, but whose records 

necessary to meet a deadline for an act 

specified in paragraph (c) of 

§ 301.7508A–1 are located in the 

covered disaster area. Section 

301.7508A–1(d)(1) of the final 

regulations further expands the 

definition of affected taxpayer to 

include any individual visiting the 

covered disaster area who was killed or 

injured as a result of the disaster. These 

changes reflect current IRS practice of 

broadly defining the term ‘‘affected 

taxpayer.’’ 

Section 301.7508A–1(f) of the final 

regulations is revised to include a new 

Example 9. Example 9, which reflects 

current IRS practice, explains the 

impact of disaster relief on installment 

agreement payments that become due 

during the postponement period. 

Example 9 explains that the affected 

taxpayer’s obligation to make 

installment agreement payments is 

suspended during the postponement 

period. Example 9 further explains that, 

because installment agreement 

payments pertain to pre-existing tax 

liabilities, interest and penalties 

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Federal Register / Vol. 74, No. 10 / Thursday, January 15, 2009 / Rules and Regulations 2371 

continue to accrue during the 

postponement period. 

Special Analyses 

It has been determined that these final 

regulations are not a significant 

regulatory action as defined in 

Executive Order 12866. Therefore, a 

regulatory assessment is not required. It 

has been determined that section 553(b) 

of the Administrative Procedure Act (5 

U.S.C. chapter 5) does not apply to these 

regulations. The regulations do not 

impose a collection of information 

requirement on small business entities, 

thus the Regulatory Flexibility Act (5 

U.S.C. chapter 6) does not apply. 

Pursuant to section 7805(f) of the Code, 

the notice of proposed rulemaking 

preceding these regulations was 

submitted to the Chief Counsel for 

Advocacy of the Small Business 

Administration for comment on its 

impact on small business. 

Drafting Information 

The principal author of these final 

regulations is Mary Ellen Keys of the 

Office of the Associate Chief Counsel 

(Procedure and Administration). 

List of Subjects in 26 CFR Part 301 

Employment taxes, Estate taxes, 

Excise taxes, Gift taxes, Income taxes, 

Penalties, Reporting and recordkeeping 

requirements. 

Adoption of Amendments to the 

Regulations 

■ Accordingly, 26 CFR part 301 is 

amended as follows: 

PART 301—PROCEDURE AND 

ADMINISTRATION 

■ Paragraph 1. The authority citation 

for part 301 continues to read in part as 

follows: 

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

■ Par. 2. Section 301.7508A–1 is 

amended by: 

■ 1. Revising the section heading and 

paragraphs (b), (d)(1)(vii), (d)(2), and (e). 

■ 2. Adding paragraphs (d)(1)(viii) and 

(d)(1)(ix), and (d)(3). 

■ 3. Removing paragraph (f), 

redesignating paragraphs (g) and (h) as 

paragraphs (f) and (g), respectively, and 

revising them. 

The revisions and additions read as 

follows: 

§ 301.7508A–1 Postponement of certain 

tax-related deadlines by reasons of a 

federally declared disaster or terroristic or 

military action. 

* * * * * 

(b) Postponed deadlines—(1) In 

general. In the case of a taxpayer 

determined by the Secretary to be 

affected by a federally declared disaster 

(as defined in section 1033(h)(3)) or a 

terroristic or military action (as defined 

in section 692(c)(2)), the Secretary may 

specify a postponement period (as 

defined in paragraph (d)(1) of this 

section) of up to one year that may be 

disregarded in determining under the 

internal revenue laws, in respect of any 

tax liability of the affected taxpayer (as 

defined in paragraph (d)(1) of this 

section)— 

(i) Whether any or all of the acts 

described in paragraph (c) of this 

section were performed within the time 

prescribed; 

(ii) The amount of interest, penalty, 

additional amount, or addition to the 

tax; and 

(iii) The amount of credit or refund. 

(2) Effect of postponement period. 

When an affected taxpayer is required to 

perform a tax-related act by a due date 

that falls within the postponement 

period, the affected taxpayer is eligible 

for postponement of time to perform the 

act until the last day of the period. The 

affected taxpayer is eligible for relief 

from interest, penalties, additional 

amounts, or additions to tax during the 

postponement period. 

(3) Interaction between postponement 

period and extensions of time to file or 

pay—(i) In general. The postponement 

period under section 7508A runs 

concurrently with extensions of time to 

file and pay, if any, under other sections 

of the Internal Revenue Code. 

(ii) Original due date prior to, but 

extended due date within, the 

postponement period. When the original 

due date precedes the first day of the 

postponement period and the extended 

due date falls within the postponement 

period, the following rules apply. If an 

affected taxpayer received an extension 

of time to file, filing will be timely on 

or before the last day of the 

postponement period, and the taxpayer 

is eligible for relief from penalties or 

additions to tax related to the failure to 

file during the postponement period. 

Similarly, if an affected taxpayer 

received an extension of time to pay, 

payment will be timely on or before the 

last day of the postponement period, 

and the taxpayer is eligible for relief 

from interest, penalties, additions to tax, 

or additional amounts related to the 

failure to pay during the postponement 

period. 

(4) Due date not extended. The 

postponement of the deadline of a taxrelated act does not extend the due date 

for the act, but merely allows the IRS to 

disregard a time period of up to one year 

for performance of the act. To the extent 

that other statutes may rely on the date 

a return is due to be filed, the 

postponement period will not change 

the due date of the return. 

(5) Additional relief. The rules of this 

paragraph (b) demonstrate how the IRS 

generally implements section 7508A. 

The IRS may determine, however, that 

additional relief to taxpayers is 

appropriate and may provide additional 

relief to the extent allowed under 

section 7508A. To the extent that the 

IRS grants additional relief, the IRS will 

provide specific guidance on the scope 

of relief in the manner provided in 

paragraph (e) of this section. 

* * * * * 

(d) * * * 

(1) * * * 

(vii) Any individual, business entity, 

or sole proprietorship not located in a 

covered disaster area, but whose records 

necessary to meet a deadline for an act 

specified in paragraph (c) of this section 

are located in the covered disaster area; 

(viii) Any individual visiting the 

covered disaster area who was killed or 

injured as a result of the disaster; or 

(ix) Any other person determined by 

the IRS to be affected by a federally 

declared disaster (within the meaning of 

section 1033(h)(3)). 

(2) Covered disaster area means an 

area of a federally declared disaster 

(within the meaning of section 

1033(h)(3)) to which the IRS has 

determined paragraph (b) of this section 

applies. 

(3) Postponement period means the 

period of time (up to one year) that the 

IRS postpones deadlines for performing 

tax-related acts under section 7508A. 

(e) Notice of postponement of certain 

acts. If a tax-related deadline is 

postponed under section 7508A and this 

section, the IRS will publish a revenue 

ruling, revenue procedure, notice, 

announcement, news release, or other 

guidance (see § 601.601(d)(2) of this 

chapter) describing the acts postponed, 

the postponement period, and the 

location of the covered disaster area. 

Guidance under this paragraph (e) will 

be published as soon as practicable after 

the occurrence of a terroristic or military 

action or declaration of a federally 

declared disaster. 

(f) Examples. The rules of this section 

are illustrated by the following 

examples: 

Example 1. (i) Corporation X, a calendar 

year taxpayer, has its principal place of 

business in County M in State W. Pursuant 

to a timely filed request for extension of time 

to file, Corporation X’s 2008 Form 1120, 

‘‘U.S. Corporation Income Tax Return,’’ is 

due on September 15, 2009. Also due on 

September 15, 2009, is Corporation X’s third 

quarter estimated tax payment for 2009. 

Corporation X’s 2009 third quarter Form 720, 

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2372 Federal Register / Vol. 74, No. 10 / Thursday, January 15, 2009 / Rules and Regulations 

‘‘Quarterly Federal Excise Tax Return,’’ and 

third quarter Form 941, ‘‘Employer’s 

Quarterly Federal Tax Return,’’ are due on 

October 31, 2009. In addition, Corporation X 

has an employment tax deposit due on 

September 15, 2009. 

(ii) On September 1, 2009, a hurricane 

strikes County M in State W. On September 

7, 2009, certain counties in State W 

(including County M) are determined to be 

disaster areas within the meaning of section 

1033(h)(3) that are eligible for assistance by 

the Federal government under the Stafford 

Act. Also on September 7, 2009, the IRS 

determines that County M in State W is a 

covered disaster area and publishes guidance 

announcing that the time period for affected 

taxpayers to file returns, pay taxes, and 

perform other time-sensitive acts falling on or 

after September 1, 2009, and on or before 

November 30, 2009, has been postponed to 

November 30, 2009, pursuant to section 

7508A. 

(iii) Because Corporation X’s principal 

place of business is in County M, Corporation 

X is an affected taxpayer. Accordingly, 

Corporation X’s 2008 Form 1120 will be 

timely if filed on or before November 30, 

2009. Corporation X’s 2009 third quarter 

estimated tax payment will be timely if made 

on or before November 30, 2009. In addition, 

pursuant to paragraph (c) of this section, 

Corporation X’s 2009 third quarter Form 720 

and third quarter Form 941 will be timely if 

filed on or before November 30, 2009. 

However, because deposits of taxes are 

excluded from the scope of paragraph (c) of 

this section, Corporation X’s employment tax 

deposit is due on September 15, 2009. In 

addition, Corporation X’s deposits relating to 

the third quarter Form 720 are not 

postponed. Absent reasonable cause, 

Corporation X is subject to the failure to 

deposit penalty under section 6656 and 

accrual of interest. 

Example 2. The facts are the same as in 

Example 1, except that because of the 

severity of the hurricane, the IRS determines 

that postponement of government acts is 

necessary. During 2009, Corporation X’s 2005 

Form 1120 is being examined by the IRS. 

Pursuant to a timely filed request for 

extension of time to file, Corporation X 

timely filed its 2005 Form 1120 on 

September 15, 2006. Without application of 

this section, the statute of limitation on 

assessment for the 2005 income tax year will 

expire on September 15, 2009. However, 

pursuant to paragraph (c) of this section, 

assessment of tax is one of the government 

acts for which up to one year may be 

disregarded. Because September 15, 2009, 

falls within the period in which government 

acts are postponed, the statute of limitation 

on assessment for Corporation X’s 2005 

income tax will expire on November 30, 

2009. Because Corporation X did not timely 

file an extension of time to pay, payment of 

its 2005 income tax was due on March 15, 

2006. As such, Corporation X will be subject 

to the failure to pay penalty and related 

interest beginning on March 15, 2006. The 

due date for payment of Corporation X’s 2005 

income tax preceded the postponement 

period. Therefore, Corporation X is not 

entitled to the suspension of interest or 

penalties during the disaster period with 

respect to its 2005 income tax liability. 

Example 3. The facts are the same as in 

Example 2, except that the examination of 

the 2005 taxable year was completed earlier 

in 2009, and on July 28, 2009, the IRS mailed 

a statutory notice of deficiency to 

Corporation X. Without application of this 

section, Corporation X has 90 days (or until 

October 26, 2009) to file a petition with the 

Tax Court. However, pursuant to paragraph 

(c) of this section, filing a petition with the 

Tax Court is one of the taxpayer acts for 

which a period of up to one year may be 

disregarded. Because Corporation X is an 

affected taxpayer, Corporation X’s petition to 

the Tax Court will be timely if filed on or 

before November 30, 2009, the last day of the 

postponement period. 

Example 4. (i) H and W, individual 

calendar year taxpayers, intend to file a joint 

Form 1040, ‘‘U.S. Individual Income Tax 

Return,’’ for the 2008 taxable year and are 

required to file a Schedule H, ‘‘Household 

Employment Taxes.’’ The joint return is due 

on April 15, 2009. H and W’s principal 

residence is in County M in State Q. 

(ii) On April 2, 2009, a severe ice storm 

strikes County M. On April 5, 2009, certain 

counties in State Q (including County M) are 

determined to be disaster areas within the 

meaning of section 1033(h)(3) that are 

eligible for assistance by the Federal 

government under the Stafford Act. Also on 

April 5, 2009, the IRS determines that County 

M in State Q is a covered disaster area and 

publishes guidance announcing that the time 

period for affected taxpayers to file returns, 

pay taxes, and perform other time-sensitive 

acts falling on or after April 2, 2009, and on 

or before June 2, 2009, has been postponed 

to June 2, 2009. 

(iii) Because H and W’s principal residence 

is in County M, H and W are affected 

taxpayers. April 15, 2009, the due date for 

the filing of H and W’s 2008 Form 1040 and 

Schedule H, falls within the postponement 

period described in the IRS published 

guidance. Thus, H and W’s return will be 

timely if filed on or before June 2, 2009. If 

H and W request an extension of time to file 

under section 6081 on or before June 2, 2009, 

the extension is deemed to have been filed 

by April 15, 2009. Thus, H and W’s return 

will be timely if filed on or before 

October 15, 2009. 

(iv) April 15, 2009, is also the due date for 

the payment due on the return. This date 

falls within the postponement period 

described in the IRS published guidance. 

Thus, the payment of tax due with the return 

will be timely if paid on or before June 2, 

2009 the last day of the postponement 

period. If H and W fail to pay the tax due on 

the 2008 Form 1040 by June 2, 2009, and do 

not receive an extension of time to pay under 

section 6161, H and W will be subject to 

failure to pay penalties and accrual of 

interest beginning on June 3, 2009. 

Example 5. (i) H and W, residents of 

County D in State G, intend to file an 

amended return to request a refund of 2008 

taxes. H and W timely filed their 2008 

income tax return on April 15, 2009. Under 

section 6511(a), H and W’s amended 2008 tax 

return must be filed on or before April 16, 

2012 (because April 15, 2012 falls on a 

Sunday, H and W’s amended return was due 

to be filed on April 16, 2012). 

(ii) On April 2, 2012, an earthquake strikes 

County D. On April 6, 2012, certain counties 

in State G (including County D) are 

determined to be disaster areas within the 

meaning of section 1033(h)(3) that are 

eligible for assistance by the Federal 

government under the Stafford Act. Also on 

April 6, 2012, the IRS determines that County 

D in State G is a covered disaster area and 

publishes guidance announcing that the time 

period for affected taxpayers to file returns, 

pay taxes, and perform other time-sensitive 

acts falling on or after April 2, 2012, and on 

or before October 2, 2012, has been 

postponed to October 2, 2012. 

(iii) Under paragraph (c) of this section, 

filing a claim for refund of tax is one of the 

taxpayer acts for which the IRS may 

disregard a period of up to one year. The 

postponement period for this disaster begins 

on April 2, 2012, and ends on October 2, 

2012. Accordingly, H and W’s claim for 

refund for 2008 taxes will be timely if filed 

on or before October 2, 2012. Moreover, in 

applying the lookback period in section 

6511(b)(2)(A), which limits the amount of the 

allowable refund, the period from October 2, 

2012, back to April 2, 2012, is disregarded 

under paragraph (b)(1)(iii) of this section. 

Thus, if the claim is filed on or before 

October 2, 2012, amounts deemed paid on 

April 15, 2009, under section 6513(b), such 

as estimated tax and tax withheld from 

wages, will have been paid within the 

lookback period of section 6511(b)(2)(A). 

Example 6. (i) A is an unmarried, calendar 

year taxpayer whose principal residence is 

located in County W in State Q. A intends 

to file a Form 1040 for the 2008 taxable year. 

The return is due on April 15, 2009. A timely 

files Form 4868, ‘‘Application for Automatic 

Extension of Time to File U.S. Individual 

Income Tax Return.’’ Due to A’s timely filing 

of Form 4868, the extended filing deadline 

for A’s 2008 tax return is October 15, 2009. 

Because A timely requested an extension of 

time to file, A will not be subject to the 

failure to file penalty under section 

6651(a)(1), if A files the 2008 Form 1040 on 

or before October 15, 2009. However, A failed 

to pay the tax due on the return by April 15, 

2009 and did not receive an extension of time 

to pay under section 6161. Absent reasonable 

cause, A is subject to the failure to pay 

penalty under section 6651(a)(2) and accrual 

of interest. 

(ii) On September 30, 2009, a blizzard 

strikes County W. On October 5, 2009, 

certain counties in State Q (including County 

W) are determined to be disaster areas within 

the meaning of section 1033(h)(3) that are 

eligible for assistance by the Federal 

government under the Stafford Act. Also on 

October 5, 2009, the IRS determines that 

County W in State Q is a covered disaster 

area and announces that the time period for 

affected taxpayers to file returns, pay taxes, 

and perform other time-sensitive acts falling 

on or after September 30, 2009, and on or 

before December 2, 2009, has been postponed 

to December 2, 2009. 

(iii) Because A’s principal residence is in 

County W, A is an affected taxpayer. Because 

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Federal Register / Vol. 74, No. 10 / Thursday, January 15, 2009 / Rules and Regulations 2373 

October 15, 2009, the extended due date to 

file A’s 2008 Form 1040, falls within the 

postponement period described in the IRS’s 

published guidance, A’s return is timely if 

filed on or before December 2, 2009. 

However, the payment due date, April 15, 

2009, preceded the postponement period. 

Thus, A will continue to be subject to failure 

to pay penalties and accrual of interest 

during the postponement period. 

Example 7. (i) H and W, individual 

calendar year taxpayers, intend to file a joint 

Form 1040 for the 2008 taxable year. The 

joint return is due on April 15, 2009. After 

credits for taxes withheld on wages and 

estimated tax payments, H and W owe tax for 

the 2008 taxable year. H and W’s principal 

residence is in County J in State W. 

(ii) On March 3, 2009, severe flooding 

strikes County J. On March 6, 2009, certain 

counties in State W (including County J) are 

determined to be disaster areas within the 

meaning of section 1033(h)(3) that are 

eligible for assistance by the Federal 

government under the Stafford Act. Also on 

March 6, 2009, the IRS determines that 

County J in State W is a covered disaster area 

and publishes guidance announcing that the 

time period for affected taxpayers to file 

returns, pay taxes, and perform other timesensitive acts falling on or after March 3, 

2009, and on or before June 1, 2009, has been 

postponed to June 1, 2009. 

(iii) Because H and W’s principal residence 

is in County J, H and W are affected 

taxpayers. April 15, 2009, the due date for 

filing the 2008 joint return, falls within the 

postponement period described in the IRS 

published guidance. Therefore, H and W’s 

joint return without extension will be timely 

if filed on or before June 1, 2009. Similarly, 

H and W’s 2008 income taxes will be timely 

paid if paid on or before June 1, 2009. 

(iv) On April 30, 2009, H and W timely file 

Form 4868, ‘‘Application for Automatic 

Extension of Time to File U.S. Individual 

Income Tax Return.’’ H and W’s extension 

will be deemed to have been filed on April 

15, 2009. Thus, H and W’s 2008 income tax 

return will be timely if filed on or before 

October 15, 2009. 

(v) H and W did not request or receive an 

extension of time to pay. Therefore, the 

payment of tax due with the 2008 joint return 

will be timely if paid on or before June 1, 

2009. If H and W fail to pay the tax due on 

the 2008 joint return by June 1, 2009, H and 

W will be subject to failure to pay penalties 

and accrual of interest beginning on June 2, 

2009. 

Example 8. The facts are the same as in 

Example 7 except that H and W file the joint 

2008 return and pay the tax due on April 15, 

2009. Later, H and W discover additional 

deductions that would lower their taxable 

income for 2008. On June 1, 2012, H and W 

file a claim for refund under section 6511(a). 

The amount of H and W’s overpayment 

exceeds the amount of taxes paid on April 

15, 2009. Section 6511(a) generally requires 

that a claim for refund be filed within three 

years from the time the return was filed or 

two years from the time the tax was paid, 

whichever period expires later. Section 

6511(b)(2)(A) includes within the lookback 

period the period of an extension of time to 

file. Thus, payments that H and W made on 

or after June 1, 2009 would be eligible to be 

refunded. Because the period from April 15, 

2009 to June 1, 2009 is disregarded, the 

payments H and W made on April 15, 2009 

(including withholding or estimated tax 

payments deemed to have been made on 

April 15, 2009) would also be included in the 

section 6511(b)(2)(A) lookback period. Thus, 

H and W are entitled to a full refund in the 

amount of their overpayment. 

Example 9. (i) H and W, individual 

calendar year taxpayers, entered into an 

installment agreement with respect to their 

2006 tax liabilities. H and W’s installment 

agreement required H and W to make 

regularly scheduled installment payments on 

the 15th day of the month for the next 60 

months. H and W’s principal residence is in 

County K in State X. 

(ii) On May 1, 2009, severe flooding strikes 

County K. On May 5, 2009, certain counties 

in State X including County K) are 

determined by the Federal government to be 

disaster areas within the meaning of section 

1033(h)(3), and are eligible for assistance 

under the Stafford Act. Also on May 5, 2009, 

the IRS determines that County K in State X 

is a covered disaster area and publishes 

guidance announcing that the time period for 

affected taxpayers to file returns, pay taxes, 

and perform other time-sensitive acts falling 

on or after May 1, 2009 and on or before July 

1, 2009, has been postponed to July 1, 2009. 

(iii) Because H and W’s principal residence 

is in County K, H and W are affected 

taxpayers. Pursuant to the IRS’s grant of relief 

under section 7508A, H and W’s installment 

agreement payments that become due during 

the postponement period are suspended until 

after the postponement period has ended. H 

and W will be required to resume payments 

no later than August 15, 2009. Skipped 

payments will be tacked on at the end of the 

installment payment period. Because the 

installment agreement pertains to prior year 

tax liabilities, interest and penalties will 

continue to accrue. H and W may, however, 

be entitled to abatement of the failure to pay 

penalties incurred during the postponement 

period upon establishing reasonable cause. 

(g) Effective/applicability date. This 

section applies to disasters declared 

after January 15, 2009. 

Linda E. Stiff, 

Deputy Commissioner for Services and 

Enforcement. 

Approved: January 6, 2009. 

Eric Solomon, 

Assistant Secretary of the Treasury (Tax 

Policy). 

[FR Doc. E9–767 Filed 1–14–09; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF LABOR 

Employee Benefits Security 

Administration 

29 CFR Part 2560 

RIN 1210–AB24 

Civil Penalties Under ERISA Section 

502(c)(4) 

Correction 

In rule document Z8–31188 beginning 

on page 17 in the issue of Friday, 

January 2, 2009 make the following 

correction: 

On page 17, in the second column, in 

the DATES heading, March 3, 2008 

should read March 3, 2009. 

[FR Doc. Z8–31188 Filed 1–14–09; 8:45 am] 

BILLING CODE 1505–01–D 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[Docket No. USCG–2008–1236] 

RIN 1625–AA87 

Security Zone; Steam Generator 

Transit, Captain of the Port Zone San 

Diego; San Diego, CA 

AGENCY: Coast Guard, DHS. 

ACTION: Temporary final rule. 

SUMMARY: The Coast Guard is 

establishing a temporary moving 

security zone around steam generators 

as they transit through and when 

moored in the Captain of the 

Port(COTP) zone San Diego. This 

security zone is needed to prevent 

vessels from transiting in the vicinity of 

the generators to help ensure the safety 

and security of the operation. Entry into 

this zone will be prohibited unless 

specifically authorized by the Captain of 

the Port, San Diego, or his designated 

representative. 

DATES: This rule is effective from 11:59 

p.m. on January 2, 2009, to 11:59 p.m 

on January 22, 2009. 

ADDRESSES: Documents indicated in this 

preamble as being available in the 

docket are part of docket USCG–2008– 

1236 and are available online at http:// 

www.regulations.gov. They are also 

available for inspection or copying two 

locations: the Docket Management 

Facility (M–30), U.S. Department of 

Transportation, West Building Ground 

Floor, Room W12–140, 1200 New Jersey 

Avenue, SE., Washington, DC 20590, 

mstockstill on PROD1PC66 with RULES