Federal Register / Vol. 66, No. 8 / Thursday, January 11, 2001 / Rules and Regulations 2257

FOR FURTHER INFORMATION CONTACT:

Mark D. Harris, (202) 622–3860 (not a

toll-free number).

SUPPLEMENTARY INFORMATION:

Background

On January 24, 2000, the IRS and

Treasury issued final regulations under

section 367(b) of the Internal Revenue

Code (Code). At the same time, the IRS

and Treasury also modified temporary

regulation § 7.367(b)-12(a). The final

regulations and modified temporary

regulation were effective as of February

23, 2000.

As modified, § 7.367(b)-12(a)

addresses distributions with respect to,

or a disposition of, stock that was

subject to certain provisions of the

temporary section 367(b) regulations

that were in effect before February 23,

2000. This document finalizes the rule

stated in § 7.367(b)-12(a) in order to

insure its continued application. See

section 7805(e)(2) (stating a ‘‘sunset

rule’’ applicable to temporary

regulations).

Special Analyses

It has been determined that this

Treasury decision is not a significant

regulatory action as defined in

Executive Order 12866. Therefore, a

regulatory assessment is not required. It

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 because the

notice of proposed rulemaking

preceding the regulations was issued

prior to March 29, 1996, 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 the

impact of the proposed regulations on

small business.

Drafting Information

The principal author of these

regulations is Mark Harris of the Office

of Associate Chief Counsel

(International). However, other

personnel from the IRS and Treasury

Department participated in their

development.

List of Subjects 26 CFR Parts 1 and 7

Income taxes, Reporting and

recordkeeping requirements.

Adoption of Amendments to the

Regulations

Accordingly, 26 CFR parts 1 and 7 are

amended as follows:

PART 1—INCOME TAXES

Paragraph 1. The authority citation

for part 1 is amended by adding an entry

in numerical order to read in part as

follows:

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

Section 1.367(b)–12 also issued under 26

U.S.C. 367(a) and (b). * * *

Par. 2. Section 1.367(b)–0 is amended

by revising the introductory text and

adding entries for § 1.367(b)–12 to read

as follows:

§ 1.367(b)–0 Table of contents.

This section lists the paragraphs

contained in §§ 1.367(b)–1 through

1.367(b)–6 and 1.367(b)–12.

* * * * *

§ 1.367(b)–12 Subsequent treatment of

amounts attributed or included in income.

(a) In general.

(b) Applicable rules.

(c) Effective date.

Par. 3. Section 1.367(b)–12 is added

to read as follows:

§ 1.367(b)–12 Subsequent treatment of

amounts attributed or included in income.

(a) In general. This section applies to

distributions with respect to, or a

disposition of, stock—

(1) To which, in connection with an

exchange occurring before February 23,

2000, an amount has been attributed

pursuant to § 7.367(b)–9 or 7.367(b)–10

of this chapter (as in effect prior to

February 23, 2000, see 26 CFR part 1

revised as of April 1, 1999); or

(2) In respect of which, before

February 23, 2000, an amount has been

included in income or added to earnings

and profits pursuant to § 7.367(b)–7 or

§ 7.367(b)–10 of this chapter (as in effect

prior to February 23, 2000, see 26 CFR

part 1 revised as of April 1, 1999).

(b) Applicable rules. See § 7.367(b)–

12(b) through (e) of this chapter (as in

effect prior to January 11, 2001, see 26

CFR part 1 revised as of April 1, 2000)

for purposes of applying paragraph (a)

of this section.

(c) Effective date. This section applies

to distributions or dispositions that

occur on or after January 11, 2001.

PART 7—TEMPORARY INCOME TAX

REGULATIONS UNDER THE TAX

REFORM ACT OF 1976

Par. 4. The authority citation for part

7 is amended by removing the entry for

§ 7.367(b)–12 and continues to read in

part as follows:

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

§ 7.367(b)–12 [Removed]

Par. 5. Section 7.367(b)–12 is

removed.

Approved: December 28, 2000

Robert E. Wenzel,

Deputy Commissioner of Internal Revenue.

Jonathan Talisman,

Assistant Secretary of the Treasury.

[FR Doc. 01–488 Filed 1–10–01; 8:45 am]

BILLING CODE 4830–01–P

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[TD 8932]

RIN 1545–AW81

Timely Mailing Treated as Timely

Filing/Electronic Postmark

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Final regulations; and removal

of temporary regulations.

SUMMARY: This document contains

regulations relating to timely mailing

treated as timely filing and paying

under section 7502 of the Internal

Revenue Code. The regulations

generally reflect changes to the law

made since 1960. In addition, the

regulations provide that the date of an

electronic postmark will be the filing

date under certain circumstances. The

regulations affect taxpayers who file

documents or make payments or

deposits.

DATES: Effective Date: These regulations

are effective January 11, 2001.

Applicability Date: For dates of

applicability, see §§ 301.7502–1(g) and

301.7502–2(e).

FOR FURTHER INFORMATION CONTACT:

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

toll-free number).

SUPPLEMENTARY INFORMATION:

Background

This document contains amendments

to the Regulations on Procedure and

Administration (26 CFR part 301) under

section 7502 relating to timely mailing

treated as timely filing and paying. A

notice of proposed rulemaking (REG–

115433–98) was published in the

Federal Register (64 FR 2606) on

January 15, 1999. Temporary regulations

(TD 8807) relating to electronic

postmarks for electronically filed

income tax returns were published in

the Federal Register for the same day

(64 FR 2568). No public hearing was

requested or held. No comments were

received from the public in response to

the notice of proposed rulemaking. The

proposed regulations under section

2258 Federal Register / Vol. 66, No. 8 / Thursday, January 11, 2001 / Rules and Regulations

7502 are adopted as revised by this

Treasury decision and the

corresponding temporary regulations are

removed. The revisions are discussed

below.

Explanation of Revisions

In the notice of proposed rulemaking,

the IRS and the Treasury Department

requested comments regarding whether

section 7502 should apply to claims for

credit or refund made on late filed

original income tax returns. No

comments were received on this issue.

However, the IRS and the Treasury

Department have determined that, in

certain situations, a claim for credit or

refund made on a late filed original

income tax return should be treated

under section 7502 as timely filed on

the postmark date for purposes of

section 6511(b)(2)(A). This is consistent

with the opinion of the United States

Court of Appeals for the Second Circuit

in Weisbart v. United States Department

of Treasury and Internal Revenue

Service, 222 F.3d 93 (2d Cir. 2000), rev’g

99–1 USTC (CCH) ¶ 50,549 (E.D.N.Y.

1999), AOD–CC–2000–09 (Nov. 13,

2000).

The IRS and the Treasury Department

have further determined that claims for

credit or refund made on late filed

original tax returns other than income

tax returns should also be treated under

section 7502 as timely filed on the

postmark date for purposes of section

6511(b)(2)(A). This would include

returns such as Form 720, Quarterly

Federal Excise Tax Return, and Form

706, U.S. Estate Tax Return. Moreover,

the IRS and the Treasury Department

have determined that the late filed

original tax return, as well as the claim

for credit or refund, should also be

treated as filed on the postmark date.

These changes, which are reflected in

§ 301.7502–1(f), will assist taxpayers in

filing timely claims for credit or refund,

and will be applied retroactively to

certain previously disallowed claims for

credit or refund.

These changes are effective for any

claim for credit or refund on a late filed

tax return described in § 301.7502–

1(f)(1) except for those claims for credit

or refund which (without regard to

paragraph (f) of this section) were barred

by the operation of section 6532(a) or

any other law or rule of law (including

res judicata) as of January 11, 2001. See

§ 301.7502–1(g)(2), which provides the

effective date rules for § 301.7502–1(f).

Consistent with the effective date

rules for § 301.7502–1(f), the IRS will

attempt to identify as many claims as

possible that were filed on untimely

original individual income tax returns

and that were previously disallowed

based on the Government’s position in

Weisbart. In these cases, the IRS intends

to issue a refund, or credit the

overpayment against a liability as

provided in section 6402, without the

need for the taxpayer to contact the IRS.

Such automatic reconsideration of the

claim will generally occur if the claim

was filed on an individual income tax

return for 1995 or a subsequent calendar

year. Claims filed on other types of

original returns will not receive

automatic reconsideration under this

program, e.g., individual returns for

years prior to 1995.

Because the IRS will be undertaking

the automatic reconsideration program

described above and intends to

complete the program by June 30, 2001,

taxpayers who have filed income tax

refund claims for tax year 1995 and later

years that qualify under § 301.7502–1(f)

need not contact the IRS regarding their

claims unless the two-year period for

filing a refund suit under section

6532(a) for their denied claim will

expire prior to June 30, 2001. In such

cases, taxpayers are advised to file a

request for reconsideration with the

appropriate IRS Service Center. Such a

request should include a notation on the

top of the first page that it is a ‘‘Weisbart

Claim.’’ Such taxpayers are also advised

to file a refund suit to protect their legal

rights with respect to the claim. The IRS

will respond to the requests for

reconsideration after the IRS has

finished identifying eligible claims

under the automatic reconsideration

program and paying those refunds.

Taxpayers whose two-year period for

filing a refund suit under section

6532(a) does not expire until after June

30, 2001, and who have not received a

refund by that date, are advised to file

a request for reconsideration with the

appropriate IRS Service Center at that

time.

Special Analyses

It has been determined that this

Treasury decision is not a significant

regulatory action as defined in

Executive Order 12866. Therefore, a

regulatory assessment is not required. It

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 because these

regulations do 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 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

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 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 is amended by adding

entries in numerical order to read as

follows:

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

Section 301.7502–1 also issued under 26

U.S.C. 7502.

Section 301.7502–2 also issued under 26

U.S.C. 7502.

* * * * *

Par. 2. Section 301.7502–1 is revised

to read as follows:

§ 301.7502–1 Timely mailing of documents

and payments treated as timely filing and

paying.

(a) General rule. Section 7502

provides that, if the requirements of that

section are met, a document or payment

is deemed to be filed or paid on the date

of the postmark stamped on the

envelope or other appropriate wrapper

(envelope) in which the document or

payment was mailed. Thus, if the

envelope that contains the document or

payment has a timely postmark, the

document or payment is considered

timely filed or paid even if it is received

after the last date, or the last day of the

period, prescribed for filing the

document or making the payment.

Section 7502 does not apply in

determining whether a failure to file a

return or pay a tax has continued for an

additional month or fraction thereof for

purposes of computing the penalties

and additions to tax imposed by section

6651. Except as provided in section

7502(e) and § 301.7502–2, relating to the

timely mailing of deposits, and

paragraph (d) of this section, relating to

Federal Register / Vol. 66, No. 8 / Thursday, January 11, 2001 / Rules and Regulations 2259

electronically filed documents, section

7502 is applicable only to those

documents or payments as defined in

paragraph (b) of this section and only if

the document or payment is mailed in

accordance with paragraph (c) of this

section and is delivered in accordance

with paragraph (e) of this section.

(b) Definitions—(1) Document

defined. (i) The term document, as used

in this section, means any return, claim,

statement, or other document required

to be filed within a prescribed period or

on or before a prescribed date under

authority of any provision of the

internal revenue laws, except as

provided in paragraph (b)(1)(ii), (iii), or

(iv) of this section.

(ii) The term does not include returns,

claims, statements, or other documents

that are required under any provision of

the internal revenue laws or the

regulations thereunder to be delivered

by any method other than mailing.

(iii) The term does not include any

document filed in any court other than

the Tax Court, but the term does include

any document filed with the Tax Court,

including a petition and a notice of

appeal of a decision of the Tax Court.

(iv) The term does not include any

document that is mailed to an

authorized financial institution under

section 6302. However, see § 301.7502–

2 for special rules relating to the

timeliness of deposits and documents

required to be filed with deposits.

(2) Claims for refund. In the case of

certain taxes, a return may constitute a

claim for credit or refund. In such a

case, section 7502 is applicable to the

claim for credit or refund if the

conditions of such section are met,

irrespective of whether the claim is also

a return. For rules regarding claims for

refund on late filed tax returns, see

paragraph (f) of this section.

(3) Payment defined. (i) The term

payment, as used in this section, means

any payment required to be made

within a prescribed period or on or

before a prescribed date under the

authority of any provision of the

internal revenue laws, except as

provided in paragraph (b)(3)(ii), (iii),

(iv), or (v) of this section.

(ii) The term does not include any

payment that is required under any

provision of the internal revenue laws

or the regulations thereunder to be

delivered by any method other than

mailing. See, for example, section

6302(h) and the regulations thereunder

regarding electronic funds transfer.

(iii) The term does not include any

payment, whether it is made in the form

of currency or other medium of

payment, unless it is actually received

and accounted for. For example, if a

check is used as the form of payment,

this section does not apply unless the

check is honored upon presentation.

(iv) The term does not include any

payment to any court other than the Tax

Court.

(v) The term does not include any

deposit that is required to be made with

an authorized financial institution

under section 6302. However, see

§ 301.7502–2 for rules relating to the

timeliness of deposits.

(4) Last date or last day prescribed. As

used in this section, the term the last

date, or the last day of the period,

prescribed for filing the document or

making the payment includes any

extension of time granted for that action.

When the last date, or the last day of the

period, prescribed for filing the

document or making the payment falls

on a Saturday, Sunday or legal holiday,

section 7503 applies. Therefore, in

applying the rules of this paragraph

(b)(4), the next succeeding day that is

not a Saturday, Sunday, or legal holiday

is treated as the last date, or the last day

of the period, prescribed for filing the

document or making the payment. Also,

when the last date, or the last day of the

period, prescribed for filing the

document or making the payment falls

within a period disregarded under

section 7508 or section 7508A, the next

succeeding day after the expiration of

the section 7508 period or section

7508A period that is not a Saturday,

Sunday, or legal holiday is treated as the

last date, or the last day of the period,

prescribed for filing the document or

making the payment.

(c) Mailing requirements—(1) In

general. Section 7502 does not apply

unless the document or payment is

mailed in accordance with the following

requirements:

(i) Envelope and address. The

document or payment must be

contained in an envelope, properly

addressed to the agency, officer, or

office with which the document is

required to be filed or to which the

payment is required to be made.

(ii) Timely deposited in U.S. mail. The

document or payment must be

deposited within the prescribed time in

the mail in the United States with

sufficient postage prepaid. For this

purpose, a document or payment is

deposited in the mail in the United

States when it is deposited with the

domestic mail service of the U.S. Postal

Service. The domestic mail service of

the U.S. Postal Service, as defined by

the Domestic Mail Manual as

incorporated by reference in the postal

regulations, includes mail transmitted

within, among, and between the United

States of America, its territories and

possessions, and Army post offices

(APO), fleet post offices (FPO), and the

United Nations, NY. (See Domestic Mail

Manual, section G011.2.1, as

incorporated by reference in 39 CFR

111.1.) Section 7502 does not apply to

any document or payment that is

deposited with the mail service of any

other country.

(iii) Postmark—(A) U.S. Postal Service

postmark. If the postmark on the

envelope is made by the U.S. Postal

Service, the postmark must bear a date

on or before the last date, or the last day

of the period, prescribed for filing the

document or making the payment. If the

postmark does not bear a date on or

before the last date, or the last day of the

period, prescribed for filing the

document or making the payment, the

document or payment is considered not

to be timely filed or paid, regardless of

when the document or payment is

deposited in the mail. Accordingly, the

sender who relies upon the applicability

of section 7502 assumes the risk that the

postmark will bear a date on or before

the last date, or the last day of the

period, prescribed for filing the

document or making the payment. See,

however, paragraph (c)(2) of this section

with respect to the use of registered mail

or certified mail to avoid this risk. If the

postmark on the envelope is made by

the U.S. Postal Service but is not legible,

the person who is required to file the

document or make the payment has the

burden of proving the date that the

postmark was made. Furthermore, if the

envelope that contains a document or

payment has a timely postmark made by

the U.S. Postal Service, but it is received

after the time when a document or

payment postmarked and mailed at that

time would ordinarily be received, the

sender may be required to prove that it

was timely mailed.

(B) Postmark made by other than U.S.

Postal Service—(1) In general. If the

postmark on the envelope is made other

than by the U.S. Postal Service—

(i) The postmark so made must bear

a legible date on or before the last date,

or the last day of the period, prescribed

for filing the document or making the

payment; and

(ii) The document or payment must be

received by the agency, officer, or office

with which it is required to be filed not

later than the time when a document or

payment contained in an envelope that

is properly addressed, mailed, and sent

by the same class of mail would

ordinarily be received if it were

postmarked at the same point of origin

by the U.S. Postal Service on the last

date, or the last day of the period,

prescribed for filing the document or

making the payment.

2260 Federal Register / Vol. 66, No. 8 / Thursday, January 11, 2001 / Rules and Regulations

(2) Document or payment received

late. If a document or payment

described in paragraph (c)(1)(iii)(B)(1) is

received after the time when a

document or payment so mailed and so

postmarked by the U.S. Postal Service

would ordinarily be received, the

document or payment is treated as

having been received at the time when

a document or payment so mailed and

so postmarked would ordinarily be

received if the person who is required

to file the document or make the

payment establishes—

(i) That it was actually deposited in

the U.S. mail before the last collection

of mail from the place of deposit that

was postmarked (except for the metered

mail) by the U.S. Postal Service on or

before the last date, or the last day of the

period, prescribed for filing the

document or making the payment;

(ii) That the delay in receiving the

document or payment was due to a

delay in the transmission of the U.S.

mail; and

(iii) The cause of the delay.

(3) U.S. and non-U.S. postmarks. If

the envelope has a postmark made by

the U.S. Postal Service in addition to a

postmark not so made, the postmark

that was not made by the U.S. Postal

Service is disregarded, and whether the

envelope was mailed in accordance

with this paragraph (c)(1)(iii)(B) will be

determined solely by applying the rule

of paragraph (c)(1)(iii)(A) of this section.

(2) Registered or certified mail. If the

document or payment is sent by U.S.

registered mail, the date of registration

of the document or payment is treated

as the postmark date. If the document or

payment is sent by U.S. certified mail

and the sender’s receipt is postmarked

by the postal employee to whom the

document or payment is presented, the

date of the U.S. postmark on the receipt

is treated as the postmark date of the

document or payment. Accordingly, the

risk that the document or payment will

not be postmarked on the day that it is

deposited in the mail may be eliminated

by the use of registered or certified mail.

(d) Electronically filed documents—

(1) In general. A document filed

electronically with an electronic return

transmitter (as defined in paragraph

(d)(3)(i) of this section and authorized

pursuant to paragraph (d)(2) of this

section) in the manner and time

prescribed by the Commissioner is

deemed to be filed on the date of the

electronic postmark (as defined in

paragraph (d)(3)(ii) of this section) given

by the authorized electronic return

transmitter. Thus, if the electronic

postmark is timely, the document is

considered filed timely although it is

received by the agency, officer, or office

after the last date, or the last day of the

period, prescribed for filing such

document.

(2) Authorized electronic return

transmitters. The Commissioner may

enter into an agreement with an

electronic return transmitter or

prescribe in forms, instructions, or other

appropriate guidance the procedures

under which the electronic return

transmitter is authorized to provide

taxpayers with an electronic postmark

to acknowledge the date and time that

the electronic return transmitter

received the electronically filed

document.

(3) Definitions—(i) Electronic return

transmitter. For purposes of this

paragraph (d), the term electronic return

transmitter has the same meaning as

contained in section 3.01(4) of Rev.

Proc. 2000–31 (2000–31 I.R.B. 146 (July

31, 2000))(see § 601.601(d)(2) of this

chapter) or in procedures prescribed by

the Commissioner.

(ii) Electronic postmark. For purposes

of this paragraph (d), the term electronic

postmark means a record of the date and

time (in a particular time zone) that an

authorized electronic return transmitter

receives the transmission of a taxpayer’s

electronically filed document on its host

system. However, if the taxpayer and

the electronic return transmitter are

located in different time zones, it is the

taxpayer’s time zone that controls the

timeliness of the electronically filed

document.

(e) Delivery—(1) Except as provided

in section 7502(f) and paragraph (d) of

this section, section 7502 is not

applicable unless the document or

payment is delivered by U.S. mail to the

agency, officer, or office with which the

document is required to be filed or to

which payment is required to be made.

However, in the case of a document (but

not a payment) sent by registered or

certified mail, proof that the document

was properly registered or that a

postmarked certified mail sender’s

receipt was properly issued and that the

envelope was properly addressed to the

agency, officer, or office constitutes

prima facie evidence that the document

was delivered to the agency, officer, or

office.

(2) Section 7502 is applicable to the

determination of whether a claim for

credit or refund is timely filed for

purposes of section 6511(a), assuming

all the requirements of section 7502 are

satisfied. Section 7502 is also applicable

when a claim for credit or refund is

delivered after the last day of the period

specified in section 6511(b)(2)(A) or in

any other corresponding provision of

law relating to the limit on the amount

of credit or refund that is allowable.

(3) Example. The rules of paragraph

(e)(2) of this section are illustrated by

the following example:

Example. (i) Taxpayer A, an individual,

mailed his 1998 Form 1040, ‘‘U.S. Individual

Income Tax Return,’’ on May 10, 1999, but

no tax was paid at that time because the tax

liability disclosed by the return had been

completely satisfied by the income tax that

had been withheld on A’s wages. On April

15, 2002, A mails in accordance with the

requirements of this section, a Form 1040X,

‘‘U.S. Amended Individual Income Tax

Return,’’ claiming a refund of a portion of the

tax that had been paid through withholding

during 1998. The date of the postmark on the

envelope containing the claim for refund is

April 15, 2002. The claim is received by the

Internal Revenue Service (IRS) on April 18,

2002.

(ii) Under section 6511(a), A’s claim for

refund is timely if filed within three years

from May 10, 1999, the date on which A’s

1998 return was filed. However, as a result

of the limitations of section 6511(b)(2)(A), if

his claim is not filed within three years after

April 15, 1999, the date on which he is

deemed under section 6513 to have paid his

1998 tax, he is not entitled to any refund.

Thus, because A’s claim for refund is

postmarked and mailed in accordance with

the requirements of this section and is

delivered after the last day of the period

specified in section 6511(b)(2)(A), section

7502 is applicable and the claim is deemed

to have been filed on April 15, 2002.

(f) Claim for credit or refund on late

filed tax return—(1) In general.

Generally, an original income tax return

may constitute a claim for credit or

refund of income tax. See § 301.6402–

3(a)(5). Other original tax returns can

also be considered claims for credit or

refund if the liability disclosed on the

return is less than the amount of tax that

has been paid. If section 7502 would not

apply to a return (but for the operation

of paragraph (f)(2) of this section) that

is also considered a claim for credit or

refund because the envelope that

contains the return does not have a

postmark dated on or before the due

date of the return, section 7502 will

apply separately to the claim for credit

or refund if—

(i) The date of the postmark on the

envelope is within the period that is

three years (plus the period of any

extension of time to file) from the day

the tax is paid or considered paid (see

section 6513), and the claim for credit

or refund is delivered after this threeyear period; and

(ii) The conditions of section 7502 are

otherwise met.

(2) Filing date of late filed return. If

the conditions of paragraph (f)(1) of this

section are met, the late filed return will

be deemed filed on the postmark date.

(3) Example. The rules of this

paragraph (f) are illustrated by the

following example:

Federal Register / Vol. 66, No. 8 / Thursday, January 11, 2001 / Rules and Regulations 2261

Example. (i) Taxpayer A, an individual,

mailed his 2001 Form 1040, ‘‘U.S. Individual

Income Tax Return,’’ on April 15, 2005,

claiming a refund of amounts paid through

withholding during 2001. The date of the

postmark on the envelope containing the

return and claim for refund is April 15, 2005.

The return and claim for refund are received

by the Internal Revenue Service (IRS) on

April 18, 2005. Amounts withheld in 2001

exceeded A’s tax liability for 2001 and are

treated as paid on April 15, 2002, pursuant

to section 6513.

(ii) Even though the date of the postmark

on the envelope is after the due date of the

return, the claim for refund and the late filed

return are treated as filed on the postmark

date for purposes of this paragraph (f).

Accordingly, the return will be treated as

filed on April 15, 2005. In addition, the claim

for refund will be treated as timely filed on

April 15, 2005. Further, the entire amount of

the refund attributable to withholding is

allowable as a refund under section

6511(b)(2)(A).

(g) Effective date—(1) In general.

Except as provided in paragraphs (g)(2)

and (3) of this section, the rules of this

section apply to any payment or

document mailed and delivered in

accordance with the requirements of

this section in an envelope bearing a

postmark dated after January 11, 2001.

(2) Claim for credit or refund on late

filed tax return. Paragraph (f) of this

section applies to any claim for credit or

refund on a late filed tax return

described in paragraph (f)(1) of this

section except for those claims for credit

or refund which (without regard to

paragraph (f) of this section) were barred

by the operation of section 6532(a) or

any other law or rule of law (including

res judicata) as of January 11, 2001.

(3) Electronically filed documents.

This section applies to any

electronically filed return, claim,

statement, or other document

transmitted to an electronic return

transmitter that is authorized to provide

an electronic postmark pursuant to

paragraph (d)(2) of this section after

January 11, 2001.

§ 301.7502–1T [Removed]

Par. 3. Section 301.7502–1T is

removed.

Par. 4. Section 301.7502–2 is added to

read as follows:

§ 301.7502–2 Timely mailing of deposits.

(a) General rule—(1) Two day rule.

Section 7502(e) provides that, if the

requirements of that section are met, a

deposit is deemed to be received on the

date the deposit was mailed even

though it is received after the date

prescribed for making the deposit. The

requirements of the section are met if

the person required to make the deposit

establishes that the date of mailing was

on or before the second day preceding

the date prescribed for making the

deposit. If the date of mailing was not

established to be on or before the second

day preceding the date prescribed for

making the deposit, the deposit will not

be considered timely received unless it

is actually received on or before the date

prescribed for making the deposit.

Section 7502(e) only applies to a deposit

mailed to the financial institution

authorized to receive that deposit. Thus,

section 7502(e) does not apply to any

remittance mailed to an internal

revenue service center.

(2) Deposits of $20,000 or more.

Paragraph (a)(1) of this section does not

apply with respect to any deposit of

$20,000 or more by any person required

to deposit any tax more than once a

month. Any such deposit must be made

by the due date for such deposit,

regardless of the method of delivery.

(b) Deposit defined. The term deposit,

as used in this section, means any

deposit of tax required to be made on or

before a prescribed date at an authorized

financial institution pursuant to

regulations prescribed under section

6302.

(c) Mailing requirements—(1) In

general. Section 7502(e) does not apply

unless the deposit is mailed in

accordance with the requirements of

paragraph (c)(2) of this section.

(2) Requirements. The date of mailing

must fall on or before the second day

preceding the prescribed date for

making a deposit (including any

extension of time granted for making the

deposit). For example, if a deposit is

due on or before January 15, the date of

mailing must fall on or before January

13. The deposit must be contained in an

envelope or other appropriate wrapper

approved for use in the mails by the

U.S. Postal Service, properly addressed

to the financial institution authorized to

receive the deposit. The deposit must be

deposited with sufficient postage

prepaid in the mail in the United States

within the meaning of § 301.7502–1 on

or before the second day preceding the

prescribed date for making a deposit.

(3) Registered and certified mail. The

provisions of § 301.7502–1(c)(2) apply

to a deposit sent by U.S. registered mail

or U.S. certified mail as if the deposit

were a payment, except that the date of

registration or the date of the postmark

on the sender’s receipt is considered the

date of mailing of such deposit.

(d) Delivery. Section 7502(e) does not

apply unless a deposit is actually

delivered by U.S. mail to the authorized

financial institution with which the

deposit is required to be made and is

accepted by that financial institution.

For rules relating to the acceptance of

deposits by authorized financial

institutions see 31 CFR 203.18. The fact

that a deposit is sent by U.S. registered

or U.S. certified mail does not constitute

prima facie evidence that the deposit

was delivered to the financial

institution authorized to receive the

deposit. Section 7502(e) does not apply

unless the deposit is delivered after the

date prescribed for making the deposit.

(e) Effective date. This section applies

to all deposits required to be made after

January 11, 2001.

Robert E. Wenzel,

Deputy Commissioner of Internal Revenue.

Approved: December 21, 2000.

Jonathan Talisman,

Acting Assistant Secretary of the Treasury.

[FR Doc. 01–130 Filed 1–10–01; 8:45 am]

BILLING CODE 4830–01–U

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[TD 8935]

RIN 1545–AY59

Disclosure of Returns and Return

Information to Designee of Taxpayer

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Temporary regulation.

SUMMARY: This document contains a

temporary regulation relating to the

disclosure of returns and return

information to a designee of the

taxpayer. The temporary regulation

provides guidance to IRS employees

responsible for disclosing returns and

return information and to taxpayers who

wish to designate a person or persons to

whom returns and return information

may be disclosed. The portion of this

temporary regulation pertaining to

nonwritten requests or consents reflects

changes to the law made by the

Taxpayer Bill of Rights II, Public Law

104–168, section 1207, 110 Stat. 1473.

With respect to written requests or

consents, the temporary regulation

amends the existing regulation to

provide further guidance in certain

limited situations and to clarify existing

procedures. The text of the temporary

regulation also serves as the text of the

proposed regulation set forth in the

notice of proposed rulemaking on this

subject in the Proposed Rules section of

this issue of the Federal Register.

DATES: Effective Date: This regulation is

effective January 11, 2001.

Applicability Date: For dates of

applicability, see § 301.6103(c)–1T(g).