67356 Federal Register / Vol. 70, No. 214 / Monday, November 7, 2005 / Rules and Regulations 

IRS. However, other personnel from the 

IRS and Treasury Department 

participated in their development. 

List of Subjects in 26 CFR Part 1 

Income taxes, Reporting and 

recordkeeping requirements. 

Adoption of Amendments to the 

Regulations 

■ Accordingly, 26 CFR part 1 is 

amended as follows: 

PART 1—INCOME TAXES 

■ Paragraph 1. The authority citation 

for part 1 continues to read, in part, as 

follows: 

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

■ Par. 2. Section 1.42–1 is amended by 

revising paragraphs (h) and (j) to read as 

follows: 

§ 1.42–1 Limitation on low-income housing 

credit allowed with respect to qualified lowincome buildings receiving housing credit 

allocations from a State or local housing 

credit agency. 

* * * * * 

(h) Filing of forms. Unless otherwise 

provided in forms or instructions, a 

completed Form 8586, ‘‘Low-Income 

Housing Credit,’’ (or any successor 

form) must be filed with the owner’s 

Federal income tax return for each 

taxable year the owner of a qualified 

low-income building is claiming the 

low-income housing credit under 

section 42(a). Unless otherwise 

provided in forms or instructions, a 

completed Form 8609, ‘‘Low-Income 

Housing Credit Allocation and 

Certification,’’ (or any successor form) 

must be filed by the building owner 

with the IRS. The requirements for 

completing and filing Forms 8586 and 

8609 are addressed in the instructions to 

the forms. 

* * * * * 

(j) Effective dates. Section 1.42–1(h) 

applies to forms filed on or after 

November 7, 2005. The rules that apply 

for forms filed before November 7, 2005 

are contained in § 1.42–1T(h) and 

§ 1.42–1(h) (see 26 CFR part 1 revised as 

of April 1, 2003, and April 1, 2005). 

Approved: October 26, 2005. 

Mark E. Matthews, 

Deputy Commissioner for Services and 

Enforcement. 

Eric Solomon, 

Acting Deputy Assistant Secretary of the 

Treasury. 

[FR Doc. 05–21784 Filed 11–4–05; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF THE TREASURY 

26 CFR Parts 1, 25, 26, 53, 55, 156, 157, 

301 

[TD 9229] 

RIN 1545–BE63 

Extension of Time for Filing Returns 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final and temporary 

regulations. 

SUMMARY: This document contains final 

and temporary regulations relating to 

the simplification of procedures for 

obtaining automatic extensions of time 

to file certain returns. The portions of 

this document that are final regulations 

provide necessary cross-references to 

the temporary regulations. The 

temporary regulations allow individual 

income taxpayers and certain other 

taxpayers to obtain an automatic sixmonth extension of time to file certain 

returns by filing a single request. For 

these returns, the temporary regulations 

also remove the requirements for a 

signature and an explanation of the 

need for an extension of time to file. The 

temporary regulations affect taxpayers 

who are required to file certain returns 

and need an extension of time to file. 

The text of the temporary regulations 

also serves as the text of the proposed 

regulations 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: These regulations 

are effective November 7, 2005. 

Applicability Dates: For dates of 

applicability of these regulations, see 

§§ 1.6081–2T(i), 1.6081–3T(e)(2), 

1.6081–4T(f), 1.6081–5T(g), 1.6081–

6T(g), 1.6081–7T(g), 1.6081–10T(f), 

1.6081–11T(e), 25.6081–1T(f), 26.6081–

1T(f), 53.6081–1T(f), 55.6081–1T(f), 

156.6081–1T(f), 157.6081–1T(f), and 

301.6081–2T(e). 

FOR FURTHER INFORMATION CONTACT: 

Allen D. Madison, (202) 622–4940 (not 

a toll-free number). 

SUPPLEMENTARY INFORMATION: 

Background 

This document contains amendments 

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

157, and 301 under section 6081 of the 

Internal Revenue Code. Section 6081(a) 

provides that the Secretary may grant a 

reasonable extension of time for filing 

any return, declaration, statement, or 

other document required by Title 26 or 

by regulations. Except in the case of 

taxpayers who are abroad, no such 

extension shall be for more than six 

months. The regulations under section 

6081 provide specific rules taxpayers 

must follow to request an extension of 

time to file Federal tax returns. A 

taxpayer must generally submit a 

written application for the extension on 

or before the due date of the return. An 

extension of time for filing a return does 

not extend the time for payment of tax. 

Explanation of Provisions 

Rationale for Change 

Currently, most taxpayers other than 

corporations can receive a full sixmonth extension of time to file their 

income tax returns, but to obtain the full 

six-month extension they must file one 

application for an initial extension of 

time and then file a second application 

to obtain an extension for the balance of 

the six months. For example, individual 

income taxpayers request an initial fourmonth automatic extension on one form 

and then use a second form to request 

a two-month discretionary extension. 

Similarly, trusts and partnerships 

request an initial three-month automatic 

extension on one form and then use a 

second form to request a three-month 

discretionary extension. Requiring these 

taxpayers to file two different forms to 

obtain the full six-month extension 

creates an unnecessary burden on 

taxpayers and the IRS, and it can cause 

unnecessary confusion. 

To reduce the complexity of the 

current extension process, and to 

provide cost savings and other benefits 

to taxpayers and the IRS, these 

temporary regulations simplify the 

extension process by allowing certain 

taxpayers to file a single request for an 

automatic six-month extension of time 

to file certain returns. Because the 

extension is automatic, these taxpayers 

do not need to sign the extension 

request or provide an explanation of the 

reasons for requesting an extension. 

Simplifying, consolidating, and 

standardizing extension forms will 

reduce taxpayer burden and will also 

reduce taxpayer confusion and error in 

filing the correct form. In addition, 

taxpayers will save considerable time 

and expense by not having to complete 

and file a second request to obtain the 

full six-month extension. This 

simplification will also lower 

processing costs and facilitate increased 

efficiency for the IRS. According to IRS 

research, simplification of the extension 

process will save taxpayers between 

$73–94 million annually and will save 

the IRS $4.6 million annually. 

Individual Income Taxpayers 

Currently, individual income 

taxpayers submit Form 4868 

Federal Register / Vol. 70, No. 214 / Monday, November 7, 2005 / Rules and Regulations 67357 

‘‘Application for Automatic Extension 

of Time To File a U.S. Individual 

Income Tax Return,’’ for an initial fourmonth extension of time to file an 

individual income tax return. The Form 

4868 must be filed by the original due 

date of the return. Taxpayers do not 

have to sign or give a reason for the 

extension request. Taxpayers must, 

however, provide a proper estimate of 

their tax liability. 

Form 4868 does not extend the time 

for payment of tax. Although no 

payment of tax is necessary in order to 

receive the extension, penalties and 

interest may apply on any amounts that 

are not paid as of the original due date 

of the return. Individual income 

taxpayers can seek an additional twomonth extension of time to file on Form 

2688, ‘‘Application for Additional 

Extension of Time To File U.S. 

Individual Income Tax Return,’’ which 

requires taxpayers to provide an 

explanation of the need for an extension 

and must be signed under penalties of 

perjury. 

To reduce burden on taxpayers and 

the IRS, the temporary regulations 

provide an automatic six-month 

extension to taxpayers who must file an 

individual income tax return if they 

submit a timely, completed application 

for extension on Form 4868. Taxpayers 

do not have to sign the request or 

explain why an extension is needed in 

order to receive the automatic six-month 

extension of time to file. An automatic 

extension under the temporary 

regulations does not extend the time for 

payment of tax. Accordingly, taxpayers 

must make a proper estimate of any tax 

due. While no payment of tax is 

required in order to obtain the 

extension, failure to pay any tax as of 

the original due date of the return may 

subject the taxpayer to penalties and 

interest. 

Corporate Income Taxpayers 

These temporary regulations do not 

change the rules regarding filing 

extensions for corporate income tax 

returns. Currently, corporations may 

obtain an automatic six-month 

extension of time to file their income tax 

returns by submitting Form 7004, 

‘‘Application for Automatic Extension 

of Time To File Corporation Income Tax 

Return.’’ Corporations do not have to 

sign the extension request or give a 

reason for their request. The Form 7004 

does not extend the time for payment of 

tax. Accordingly, corporations filing 

Form 7004 must compute the total 

amount of their tentative tax and make 

a remittance of any balance due. 

Although these regulations do not 

change the rules regarding filing 

extensions for corporations, they do 

change the title to and appearance of 

Form 7004. Taxpayers filing certain 

other types of returns will now also use 

Form 7004 to request an automatic sixmonth extension of time to file. The 

new Form 7004 will be titled 

‘‘Application for Automatic 6-Month 

Extension of Time to File Certain 

Business Income Tax, Information, and 

Other Returns’ and will apply to a larger 

number of returns than the prior form. 

Taxpayers Previously Filing Form 2758 

to Request an Extension of Time 

Under these regulations, taxpayers 

that previously requested additional 

time to file certain excise, income, 

information, and other returns by 

submitting Form 2758, ‘‘Application for 

Extension of Time To File Certain 

Excise, Income, Information, and Other 

Returns,’’ may request an automatic sixmonth extension of time to file by filing 

the new Form 7004, ‘‘Application for 

Automatic 6-Month Extension of Time 

to File Certain Business Income Tax, 

Information, and Other Returns.’’

Previously, these taxpayers filed Form 

2758 in order to obtain a 90-day 

extension. To obtain the extension, 

these taxpayers had to sign the form and 

provide an explanation of the need for 

the extension. To obtain additional time 

beyond the 90-day period, these 

taxpayers had to file Form 2758 a 

second time, once again signing the 

request and providing an explanation 

why the initial extension was not 

sufficient. The total extension was 

capped at the statutory maximum of six 

months. The Form 2758 has been 

obsoleted by these regulations. 

Partnership, REMIC, and Certain Trust 

Taxpayers 

Prior regulations required 

partnerships, real estate mortgage 

investment conduits (REMICs) and 

certain trusts to request three-month 

automatic extensions of time to file by 

submitting Form 8736, ‘‘Application for 

Automatic Extension of Time to File 

U.S. Return for a Partnership, REMIC, or 

for Certain Trusts.’’ These entities could 

then file a second request for an 

additional three-month extension of 

time to file on Form 8800, ‘‘Application 

for Additional Extension of Time to File 

U.S. Return for a Partnership, REMIC, or 

for Certain Trusts.’’ In order to promote 

simplified extension procedures, the 

temporary regulations allow these 

taxpayers to file an automatic six-month 

extension of time to file on one 

application, the new Form 7004, 

‘‘Application for Automatic 6-Month 

Extension of Time to File Certain 

Business Income Tax, Information, and 

Other Returns.’’ These taxpayers do not 

have to sign the Form 7004 or provide 

an explanation for their request in order 

to receive the automatic six-month 

extension of time to file. Forms 8736 

and 8800 have been obsoleted by these 

regulations. 

The six-month automatic extension of 

time to file set forth in these temporary 

regulations applies to returns of passthrough entities, e.g., Form 1065 for 

partnerships. The Treasury Department 

and the IRS recognize that because the 

six-month automatic extension is 

available for returns of pass-through 

entities, some taxpayers may not receive 

information returns from the passthrough entities that they need in order 

to complete their own income tax 

returns before those returns are due. For 

example, an individual income taxpayer 

with a six-month extension of time to 

October 15 to file the Form 1040 may 

not receive a Schedule K–1 from a 

partnership in which the taxpayer holds 

an interest until after the partnership 

files its Form 1065 on its extended due 

date of October 15. Similarly, a Ccorporation with a six-month extension 

to September 15 to file its Form 1120 

may not receive a Schedule K–1 from a 

calendar year partnership in which it 

holds an interest until 30 days after its 

return is due if the partnership files its 

Form 1065 and sends out the Schedule 

K–1s on its extended due date of 

October 15. This filing anomaly existed 

under prior regulations when the passthrough entity received an extension of 

time to file to a date on or after the 

extended due date for the pass-through 

interest holder, but the automatic sixmonth extension in these regulations 

may cause this to happen with more 

frequency. 

Because of this filing anomaly, the 

availability of a six-month extension of 

time to file for pass-through entities may 

result in taxpayers filing an increased 

number of amended income tax returns. 

Therefore, it may be appropriate for 

pass-through entities to have a shorter 

extension period than their partners or 

shareholders. The Treasury Department 

and the IRS request comments on 

whether a shorter extension of time to 

file for pass-through entities might 

reduce overall taxpayer burden. Please 

follow the instructions in the 

‘‘Comments and Public Hearing’’ section 

in the notice of proposed rulemaking 

accompanying these temporary 

regulations in this issue of the Federal 

Register. 

In order to minimize the burden that 

might be imposed as a result of this 

filing anomaly, the Treasury Department 

and the IRS encourage pass-through 

entities that request an extension of time 

67358 Federal Register / Vol. 70, No. 214 / Monday, November 7, 2005 / Rules and Regulations 

to file to minimize the impact that such 

extension might have on their partners’

or members’ ability to timely file (with 

an extension) their own tax returns. 

Transition Rule 

These temporary regulations are 

effective for applications for an 

automatic extension of time to file 

certain returns filed after December 31, 

2005. Therefore, the temporary 

regulations apply to applications for 

extension of time to file tax year 2005 

returns. In addition, these temporary 

regulations also apply to applications 

for extension of time to file some tax 

year 2004 returns for certain fiscal year 

taxpayers because these returns are due 

after December 31, 2005. Although these 

fiscal year taxpayers should continue to 

use the tax year 2004 extension forms, 

the IRS will grant a six-month extension 

of time to file if an extension request 

made on one of these forms would 

otherwise qualify under these temporary 

regulations, except for use of the 

specified form. 

Certain Employee Plan Returns 

These temporary regulations also 

allow administrators and sponsors of 

employee benefit plans subject to 

Employee Retirement Income Security 

Act of 1974 (ERISA) to report 

information concerning the plans and 

direct filing entities to use a new 

version of Form 5558, ‘‘Application for 

Extension of Time To File Certain 

Employee Plan Returns,’’ for an 

automatic two and one-half-month 

extension of time to file. Under these 

regulations, the Form 5558 no longer 

requires taxpayers to provide an 

explanation of the need for the 

extension of time to file or a signature. 

Gift Tax Returns 

Under section 6075(b)(2), individuals 

who make a transfer by gift and who 

request an automatic extension of time 

to file the individual’s income tax return 

are deemed to have an extension of time 

to file the return required by section 

6019. The temporary regulations also 

allow donors who do not request an 

extension of time to file an income tax 

return to request an automatic sixmonth extension of time to file Form 

709, ‘‘United States Gift (and 

Generation-Skipping Transfer) Tax 

Return’’ by filing a new version of Form 

8892, ‘‘Payment of Gift/GST Tax and/or 

Application for Extension of Time to 

File Form 709.’’ Under these 

regulations, the Form 8892 no longer 

requires an explanation of the need for 

the extension of time to file or a 

signature. 

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. For the 

applicability of the Regulatory 

Flexibility Act (5 U.S.C. chapter 6), refer 

to the Special Analyses section of the 

preamble to the cross-reference notice of 

proposed rulemaking published in the 

Proposed Rules section of this issue of 

the Federal Register. Pursuant to 

section 7805(f) of the Internal Revenue 

Code, these temporary regulations will 

be submitted to the Chief Counsel for 

Advocacy of the Small Business 

Administration for comment on their 

impact on small businesses. 

Drafting Information 

The principal author of these 

regulations is Tracey B. Leibowitz of the 

Office of the Associate Chief Counsel 

(Procedure and Administration), 

Administrative Provisions and Judicial 

Practice Division. 

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 26 

Generation-skipping transfer taxes, 

Reporting and recordkeeping 

requirements. 

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 157 

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. 

Amendments to the Regulations 

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

53, 55, 156, 157, and 301 are amended 

as follows: 

PART 1—INCOME TAXES 

■ Paragraph 1. The authority citation 

for part 1 is amended by removing the 

entries for § 1.6081–2, § 1.6081–4, 

§ 1.6081–6, and § 1.6081–7 and adding 

entries in numerical order to read, in 

part, as follows: 

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

Section 1.6081–2T also issued under 26 

U.S.C. 6081. 

Section 1.6081–4T also issued under 26 

U.S.C. 6081. 

Section 1.6081–6T also issued under 26 

U.S.C. 6081. 

Section 1.6081–7T also issued under 26 

U.S.C. 6081. 

Section 1.6081–10T also issued under 26 

U.S.C. 6081. 

Section 1.6081–11T also issued under 26 

U.S.C. 6081. * * * 

§ 1.6081–2 [Removed] 

■ Par. 2. Section 1.6081–2 is removed. 

■ Par. 3. Section 1.6081–2T is added to 

read as follows: 

§ 1.6081–2T Automatic extension of time 

to file certain returns filed by partnerships 

(temporary). 

(a) In general. A partnership required 

to file Form 1065, ‘‘U.S. Partnership 

Return of Income,’’ or Form 8804, 

‘‘Annual Return for Partnership 

Withholding Tax,’’ for any taxable year 

will be allowed an automatic 6-month 

extension of time to file the return after 

the date prescribed for filing the return 

if the partnership files an application 

under this section in accordance with 

paragraph (b) of this section. In the case 

of a partnership described in § 1.6081–

5(a)(1), the automatic extension of time 

to file allowed under this section runs 

concurrently with an extension of time 

to file granted pursuant to § 1.6081–5(a). 

(b) Requirements. To satisfy this 

paragraph (b), the partnership must—

(1) Submit a complete application on 

Form 7004, ‘‘Application for Automatic 

6-Month Extension of Time to File 

Certain Business Income Tax, 

Information, and Other Returns,’’ or in 

any other manner prescribed by the 

Commissioner; 

(2) File the application on or before 

the later of—

(i) The date prescribed for filing the 

return of the partnership; or 

(ii) The expiration of any extension of 

time to file granted under § 1.6081–5(a); 

and 

(3) File the application with the 

Internal Revenue Service office 

Federal Register / Vol. 70, No. 214 / Monday, November 7, 2005 / Rules and Regulations 67359 

designated in the application’s 

instructions. 

(c) Payment of section 7519 amount. 

An automatic extension of time for 

filing a partnership return of income 

granted under paragraph (a) of this 

section does not extend the time for 

payment of any amount due under 

section 7519, relating to required 

payments for entities electing not to 

have a required taxable year. 

(d) Section 444 election. An automatic 

extension of time for filing a partnership 

return of income will run concurrently 

with any extension of time for filing a 

return allowed because of section 444, 

relating to the election of a taxable year 

other than a required taxable year. 

(e) Effect of extension on partner. An 

automatic extension of time for filing a 

partnership return of income under this 

section does not extend the time for 

filing a partner’s income tax return or 

the time for the payment of any tax due 

on a partner’s income tax return. 

(f) Termination of automatic 

extension. The Commissioner may 

terminate an automatic extension at any 

time by mailing to the partnership a 

notice of termination at least 10 days 

prior to the termination date designated 

in such notice. The Commissioner must 

mail the notice of termination to the 

address shown on the Form 7004 or to 

the partnership’s last known address. 

For further guidance regarding the 

definition of last known address, see 

§ 301.6212–2 of this chapter. 

(g) Penalties. See section 6698 for 

failure to file a partnership return. 

(h) Effective dates. This section is 

applicable for applications for an 

automatic extension of time to file the 

partnership returns listed in paragraph 

(a) of this section filed after December 

31, 2005. The applicability of this 

section expires on November 4, 2008. 

■ Par. 4. Section 1.6081–3 is amended 

by revising paragraphs (a)(1) and (e). 

§ 1.6081–3 Automatic extension of time for 

filing corporation income tax returns. 

(a) * * * 

(1) [Reserved]. For guidance on the 

form to file to request a 6-month 

extension of time to file corporation 

income tax returns after December 31, 

2005, see § 1.6081–3T. 

* * * * * 

(e) For guidance on the applicability 

date of this section, see § 1.6081–3T. 

■ Par. 5. Section 1.6081–3T is added to 

read as follows: 

§ 1.6081–3T Automatic extension of time 

for filing corporation income tax returns 

(temporary). 

(a) [Reserved]. For further guidance, 

see § 1.6081–3(a). 

(1) An application must be submitted 

on Form 7004, ‘‘Application for 

Automatic 6-Month Extension of Time 

to File Certain Business Income Tax, 

Information, and Other Returns,’’ or in 

any other manner prescribed by the 

Commissioner. 

(a)(2) through (d) [Reserved]. For 

further guidance, see § 1.6081–3(a)(2) 

through (d). 

(e) Effective dates. (1) Except as 

provided in paragraph (e)(2) of this 

section, this section applies to requests 

for extensions of time to file corporation 

income tax returns due after December 

7, 2004. 

(2) Paragraph (a)(1) of this section 

applies to applications for an automatic 

extension of time to file corporation 

income tax returns filed after December 

31, 2005. The applicability of this 

section expires on November 4, 2008. 

§ 1.6081–4 [Removed] 

■ Par. 6. Section 1.6081–4 is removed. 

■ Par. 7. Section 1.6081–4T is added to 

read as follows: 

§ 1.6081–4T Automatic extension of time 

for filing individual income tax return 

(temporary). 

(a) In general. An individual who is 

required to file an individual income tax 

return will be allowed an automatic 6- 

month extension of time to file the 

return after the date prescribed for filing 

the return if the individual files an 

application under this section in 

accordance with paragraph (b) of this 

section. In the case of an individual 

described in § 1.6081–5(a)(5) or (6), the 

automatic 6-month extension will run 

concurrently with the extension of time 

to file granted pursuant to § 1.6081–5. 

(b) Requirements. To satisfy this 

paragraph (b), an individual must—

(1) Submit a complete application on 

Form 4868, ‘‘Application for Automatic 

Extension of Time To File U.S 

Individual Income Tax Return,’’ or in 

any other manner prescribed by the 

Commissioner; 

(2) File the application on or before 

the later of—

(i) The date prescribed for filing the 

return; or 

(ii) The expiration of any extension of 

time to file granted pursuant to 

§ 1.6081–5; 

(3) File the application with the 

Internal Revenue Service office 

designated in the application’s 

instructions; and 

(4) Show on the application the full 

amount properly estimated as tax for the 

taxable year. 

(c) No extension of time for the 

payment of tax. An automatic extension 

of time for filing a return granted under 

paragraph (a) of this section will not 

extend the time for payment of any tax 

due on such return. 

(d) Termination of automatic 

extension. The Commissioner may 

terminate an automatic extension at any 

time by mailing to the individual a 

notice of termination at least 10 days 

prior to the termination date designated 

in such notice. The Commissioner must 

mail the notice of termination to the 

address shown on the Form 4868 or to 

the individual’s last known address. For 

further guidance regarding the 

definition of last known address, see 

§ 301.6212–2 of this chapter. 

(e) Penalties. See section 6651 for 

failure to file an individual income tax 

return or failure to pay the amount 

shown as tax on the return. In 

particular, see § 301.6651–1(c)(3) of this 

chapter (relating to a presumption of 

reasonable cause in certain 

circumstances involving an automatic 

extension of time for filing an 

individual income tax return). 

(f) Effective dates. This section is 

applicable for applications for an 

automatic extension of time to file an 

individual income tax return filed after 

December 31, 2005. The applicability of 

this section expires on November 4, 

2008. 

■ Par. 8. Section 1.6081–5 is amended 

by revising paragraph (b) to read as 

follows: 

§ 1.6081–5 Extensions of time in the case 

of certain partnerships, corporations, and 

U.S. citizens and residents. 

* * * * * 

(b) [Reserved]. For guidance on how 

a person should demonstrate that the 

person qualified for the extension in 

paragraph (a) of this section after 

December 31, 2005, see § 1.6081–5T. 

* * * * * 

■ Par. 9. Section 1.6081–5T is added to 

read as follows: 

§ 1.6081–5T Extensions of time in the case 

of certain partnerships, corporations, and 

U.S. citizens and residents (temporary). 

(a) [Reserved]. For further guidance, 

see § 1.6081–5(a). 

(b) In order to qualify for the 

extension under this section—

(1) A statement must be attached to 

the return showing that the person for 

whom the return is made is a person 

described in paragraph (a) of this 

section; or 

(2) If a person described in paragraph 

(a) of this section requests additional 

time to file, the person must request the 

extension on or before the fifteenth day 

of the sixth month following the close 

of the taxable year and check the 

appropriate box on Form 4868, 

67360 Federal Register / Vol. 70, No. 214 / Monday, November 7, 2005 / Rules and Regulations 

‘‘Application for Automatic Extension 

of Time To File a U.S. Individual 

Income Tax Return,’’ or Form 7004, 

‘‘Application for Automatic 6-Month 

Extension of Time To File Certain 

Business Income Tax, Information, and 

Other Returns,’’ whichever is 

applicable, or in any other manner 

prescribed by the Commissioner. 

(c) through (f) [Reserved]. For further 

guidance, see § 1.6081–5(c) through (f). 

(g) Effective date. This section is 

applicable for applications for an 

automatic extension of time to file 

returns of income for taxpayers listed in 

paragraph (a) of this section filed after 

December 31, 2005. The applicability of 

this section expires on November 4, 

2008. 

§ 1.6081–6 [Removed] 

■ Par. 10. Section 1.6081–6 is removed. 

■ Par. 11. Section 1.6081–6T is added to 

read as follows: 

§ 1.6081–6T Automatic extension of time 

to file estate or trust income tax return 

(temporary). 

(a) In general. An estate or trust 

required to file an income tax return on 

Form 1041, ‘‘U.S. Income Tax Return for 

Estates and Trusts,’’ will be allowed an 

automatic 6-month extension of time to 

file the return after the date prescribed 

for filing the return if the estate or trust 

files an application under this section in 

accordance with paragraph (b) of this 

section. 

(b) Requirements. To satisfy this 

paragraph (b), an estate or trust must—

(1) Submit a complete application on 

Form 7004, ‘‘Application for Automatic 

6-Month Extension of Time To File 

Certain Business Income Tax, 

Information, and Other Returns,’’ or in 

any other manner prescribed by the 

Commissioner; 

(2) File the application on or before 

the date prescribed for filing the return 

with the Internal Revenue Service office 

designated in the application’s 

instructions; and 

(3) Show on the application the 

amount properly estimated as tax for the 

estate or trust for the taxable year. 

(c) No extension of time for the 

payment of tax. An automatic extension 

of time for filing a return granted under 

paragraph (a) of this section will not 

extend the time for payment of any tax 

due on such return. 

(d) Effect of extension on beneficiary. 

An automatic extension of time to file 

an estate or trust income tax return 

under this section will not extend the 

time for filing the income tax return of 

a beneficiary of the estate or trust or the 

time for the payment of any tax due on 

the beneficiary’s income tax return. 

(e) Termination of automatic 

extension. The Commissioner may 

terminate an automatic extension at any 

time by mailing to the estate or trust a 

notice of termination at least 10 days 

prior to the termination date designated 

in such notice. The Commissioner must 

mail the notice of termination to the 

address shown on the Form 7004 or to 

the estate or trust’s last known address. 

For further guidance regarding the 

definition of last known address, see 

§ 301.6212–2 of this chapter. 

(f) Penalties. See section 6651 for 

failure to file an estate or trust income 

tax return or failure to pay the amount 

shown as tax on the return. 

(g) Effective dates. This section is 

applicable for applications for an 

automatic extension of time to file an 

estate or trust income tax return filed 

after December 31, 2005. The 

applicability of this section expires on 

November 4, 2008. 

§ 1.6081–7 [Removed] 

■ Par. 12. Section 1.6081–7 is removed. 

■ Par. 13. Section 1.6081–7T is added to 

read as follows: 

§ 1.6081–7T Automatic extension of time 

to file Real Estate Mortgage Investment 

Conduit (REMIC) income tax return 

(temporary). 

(a) In general. A Real Estate Mortgage 

Investment Conduit (REMIC) required to 

file an income tax return on Form 1066, 

‘‘U.S. Real Estate Mortgage Investment 

Conduit Income Tax Return,’’ or Form 

8831, ‘‘Excise Tax on Excess Inclusions 

of REMIC Residual Interests,’’ for any 

taxable year will be allowed an 

automatic 6-month extension of time to 

file the return after the date prescribed 

for filing the return if the REMIC files 

an application under this section in 

accordance with paragraph (b) of this 

section. 

(b) Requirements. To satisfy this 

paragraph (b), a REMIC must—

(1) Submit a complete application on 

Form 7004, ‘‘Application for Automatic 

6-Month Extension of Time To File 

Certain Business Income Tax, 

Information, and Other Returns,’’ or in 

any other manner prescribed by the 

Commissioner; 

(2) File the application on or before 

the date prescribed for filing the return 

with the Internal Revenue Service office 

designated in the application’s 

instructions; and 

(3) Show on the application the full 

amount properly estimated as tax for the 

REMIC for the taxable year. 

(c) No extension of time for the 

payment of tax. An automatic extension 

of time for filing a return granted under 

paragraph (a) of this section will not 

extend the time for payment of any tax 

due on such return. 

(d) Effect of extension on residual or 

regular interest holders. An automatic 

extension of time to file a REMIC 

income tax return under this section 

will not extend the time for filing the 

income tax return of a residual or 

regular interest holder of the REMIC or 

the time for the payment of any tax due 

on the residual or regular interest 

holder’s income tax return. An 

automatic extension will also not extend 

the time for payment of any excise tax 

on excess inclusions of REMIC residual 

interests. 

(e) Termination of automatic 

extension. The Commissioner may 

terminate an automatic extension at any 

time by mailing to the REMIC a notice 

of termination at least 10 days prior to 

the termination date designated in such 

notice. The Commissioner must mail the 

notice of termination to the address 

shown on the Form 7004 or to the 

REMIC’s last known address. For further 

guidance regarding the definition of last 

known address, see § 301.6212–2 of this 

chapter. 

(f) Penalties. See sections 6698 and 

6651 for failure to file a REMIC income 

tax return or failure to pay an amount 

shown as tax on the return. 

(g) Effective dates. This section is 

applicable for applications for an 

automatic extension of time to file 

REMIC income and excise tax returns 

listed in paragraph (a) of this section 

filed after December 31, 2005. The 

applicability of this section expires on 

November 4, 2008. 

■ Par. 14. Section 1.6081–10T is added 

to read as follows: 

§ 1.6081–10T Automatic extension of time 

to file withholding tax return for U.S. source 

income of foreign persons (temporary). 

(a) In general. A withholding agent or 

intermediary required to file a return on 

Form 1042, ‘‘Annual Withholding Tax 

Return for U.S. Source Income of 

Foreign Persons,’’ for any taxable year 

will be allowed an automatic 6-month 

extension of time to file the return after 

the date prescribed for filing the return 

if the withholding agent or intermediary 

files an application under this section in 

accordance with paragraph (b) of this 

section. 

(b) Requirements. To satisfy this 

paragraph (b), a withholding agent or 

intermediary must—

(1) Submit a complete application on 

Form 7004, ‘‘Application for Automatic 

6-Month Extension of Time To File 

Certain Business Income Tax, 

Information, and Other Returns,’’ or in 

any other manner prescribed by the 

Commissioner; 

Federal Register / Vol. 70, No. 214 / Monday, November 7, 2005 / Rules and Regulations 67361 

(2) File the application on or before 

the date prescribed for filing the return 

with the Internal Revenue Service office 

designated in the application’s 

instructions; and 

(3) Remit the amount of the properly 

estimated unpaid tax liability on or 

before the date prescribed for payment. 

(c) No extension of time for the 

payment of tax. An automatic extension 

of time for filing a return granted under 

paragraph (a) of this section will not 

extend the time for payment of any tax 

due on such return. 

(d) Termination of automatic 

extension. The Commissioner may 

terminate an automatic extension at any 

time by mailing to the withholding 

agent or intermediary a notice of 

termination at least 10 days prior to the 

termination date designated in such 

notice. The Commissioner must mail the 

notice of termination to the address 

shown on the Form 7004 or to the 

withholding agent or intermediary’s last 

known address. For further guidance 

regarding the definition of last known 

address, see § 301.6212–2 of this 

chapter. 

(e) Penalties. See section 6651 for 

failure to file a return or failure to pay 

an amount shown as tax on the return. 

(f) Effective dates. This section is 

applicable for applications for an 

automatic extension of time to file the 

withholding tax return for U.S. source 

income of foreign persons return filed 

after December 31, 2005. The 

applicability of this section expires on 

November 4, 2008. 

■ Par. 15. Section 1.6081–11T is added 

to read as follows: 

§ 1.6081–11T Automatic extension of time 

for filing certain employee plan returns 

(temporary). 

(a) In general. An administrator or 

sponsor of an employee benefit plan 

required to file a return under the 

provisions of chapter 61 or the 

regulations thereunder on Form 5500 

(series), ‘‘Annual Return/ Report of 

Employee Benefit Plan,’’ will be allowed 

an automatic 21⁄2-month extension of 

time to file the return after the date 

prescribed for filing the return if the 

administrator or sponsor files an 

application under this section in 

accordance with paragraph (b) of this 

section. 

(b) Requirements. To satisfy this 

paragraph (b), an administrator or 

sponsor must— 

(1) Submit a complete application on 

Form 5558, ‘‘Application for Extension 

of Time To File Certain Employee Plan 

Returns,’’ or in any other manner as may 

be prescribed by the Commissioner; and 

(2) File the application with the 

Internal Revenue Service office 

designated in the application’s 

instructions on or before the date 

prescribed for filing the information 

return. 

(c) Termination of automatic 

extension. The Commissioner may 

terminate an automatic extension at any 

time by mailing to the administrator or 

sponsor a notice of termination at least 

10 days prior to the termination date 

designated in such notice. The 

Commissioner must mail the notice of 

termination to the address shown on the 

Form 5558 or to the administrator or 

sponsor’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 6652, 6692, 

and the Employee Retirement Income 

Security Act of 1974 for penalties for 

failure to file a timely and complete 

Form 5500. 

(e) Effective dates. This section is 

applicable for applications for an 

automatic extension of time to file 

Forms 5500 filed after December 31, 

2005. The applicability of this section 

expires on November 4, 2008. 

PART 25—GIFT TAX; GIFTS MADE 

AFTER DECEMBER 31, 1954 

■ Par. 16. The authority citation for part 

25 is amended by adding an entry in 

numerical order to read, in part, as 

follows: 

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

Section 25.6081–1T also issued under the 

authority of 26 U.S.C. 6081(a). * * * 

§ 25.6081–1 [Removed] 

■ Par. 17. Section 25.6081–1 is 

removed. 

■ Par. 18. Section 25.6081–1T is added 

to read as follows: 

§ 25.6081–1T Automatic extension of time 

for filing gift tax returns (temporary). 

(a) In general. Under section 

6075(b)(2), an automatic six-month 

extension of time granted to a donor to 

file the donor’s return of income under 

§ 1.6081–4T shall be deemed to also be 

a six-month extension of time granted to 

file a return on Form 709, ‘‘United 

States Gift (and Generation-Skipping 

Transfer) Tax Return.’’ If a donor does 

not obtain an extension of time to file 

the donor’s return of income under 

§ 1.6081–4T, the donor will be allowed 

an automatic 6-month extension of time 

to file Form 709 after the date 

prescribed for filing if the donor files an 

application under this section in 

accordance with paragraph (b) of this 

section. In the case of an individual 

described in § 1.6081–5(a)(5) or (6), the 

automatic 6-month extension of time to 

file Form 709 will run concurrently 

with the extension of time to file 

granted pursuant to § 1.6081–5. 

(b) Requirements. To satisfy this 

paragraph (b), a donor must— 

(1) Submit a complete application on 

Form 8892, ‘‘Payment of Gift/GST Tax 

and/or Application for Extension of 

Time To File Form 709,’’ or in any other 

manner prescribed by the 

Commissioner; 

(2) File the application on or before 

the later of— 

(i) The date prescribed for filing the 

return; or 

(ii) The expiration of any extension of 

time to file granted pursuant to 

§ 1.6081–5; and 

(3) File the application with the 

Internal Revenue Service office 

designated in the application’s 

instructions. 

(c) No extension of time for the 

payment of tax. An automatic extension 

of time for filing a return granted under 

paragraph (a) of this section will not 

extend the time for payment of any tax 

due on such return. 

(d) Termination of automatic 

extension. The Commissioner may 

terminate an extension at any time by 

mailing to the donor a notice of 

termination at least 10 days prior to the 

termination date designated in such 

notice. The Commissioner must mail the 

notice of termination to the address 

shown on the Form 8892, or to the 

donor’s last known address. For further 

guidance regarding the definition of last 

known address, see § 301.6212–2 of this 

chapter. 

(e) Penalties. See section 6651 for 

failure to file a gift tax return or failure 

to pay the amount shown as tax on the 

return. 

(f) Effective dates. This section is 

applicable for applications for an 

extension of time to file Form 709 filed 

after December 31, 2005. The 

applicability of this section expires on 

November 4, 2008. 

PART 26—GENERATION-SKIPPING 

TRANSFER TAX REGULATIONS 

UNDER THE TAX REFORM ACT OF 

1986 

■ Par. 19. The authority citation for part 

26 is amended by adding an entry in 

numerical order to read, in part, as 

follows: 

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

Section 26.6081–1T also issued under the 

authority of 26 U.S.C. 6081(a). 

Par. 20. Section 26.6081–1T is added 

to read as follows: 

67362 Federal Register / Vol. 70, No. 214 / Monday, November 7, 2005 / Rules and Regulations 

§ 26.6081–1T Automatic extension of time 

for filing generation-skipping transfer tax 

returns (temporary). 

(a) In general. A skip person 

distributee required to file a return on 

Form 706–GS(D), ‘‘Generation-Skipping 

Transfer Tax Return for Distributions,’’

or a trustee required to file a return on 

Form 706–GS(T), ‘‘Generation-Skipping 

Transfer Tax Return for Terminations,’’

will be allowed an automatic 6-month 

extension of time to file the return after 

the date prescribed for filing if the skip 

person distributee or trustee files an 

application under this section in 

accordance with paragraph (b) of this 

section. 

(b) Requirements. To satisfy this 

paragraph (b), a skip person distributee 

or trustee must—

(1) Submit a complete application on 

Form 7004, ‘‘Application for Automatic 

6-Month Extension of Time to File 

Certain Business Income Tax, 

Information, and Other Returns,’’ or in 

any other manner prescribed by the 

Commissioner; 

(2) File the application on or before 

the date prescribed for filing the return 

with the Internal Revenue Service office 

designated in the application’s 

instructions; and 

(3) Remit the amount of the properly 

estimated unpaid tax liability on or 

before the date prescribed for payment. 

(c) No extension of time for the 

payment of tax. An automatic extension 

of time for filing a return granted under 

paragraph (a) of this section will not 

extend the time for payment of any tax 

due on such return. 

(d) Termination of automatic 

extension. The Commissioner may 

terminate an automatic extension at any 

time by mailing to the skip person 

distributee or trustee a notice of 

termination at least 10 days prior to the 

termination date designated in such 

notice. The Commissioner must mail the 

notice of termination to the address 

shown on the Form 7004 or to the skip 

person distributee or trustee’s last 

known address. For further guidance 

regarding the definition of last known 

address, see § 301.6212–2 of this 

chapter. 

(e) Penalties. See section 6651 for 

failure to file a generation-skipping 

transfer tax return or failure to pay the 

amount shown as tax on the return. 

(f) Effective dates. This section is 

effective for applications for an 

automatic extension of time to file a 

generation-skipping transfer tax return 

filed after December 31, 2005. The 

applicability of this section expires on 

November 4, 2008. 

PART 53—FOUNDATION AND SIMILAR 

EXCISE TAXES 

■ Par. 21. The authority citation for part 

53 is amended by adding an entry in 

numerical order to read, in part, as 

follows: 

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

Section 53.6081–1T also issued under 26 

U.S.C. 6081(a). 

§ 53.6081–1 [Removed] 

■ Par. 22. Section 53.6081–1 is 

removed. 

■ Par. 23. Section 53.6081–1T is added 

to read as follows: 

§ 53.6081–1T Automatic extension of time 

for filing the return to report taxes due 

under section 4951 for self-dealing with a 

nuclear decommissioning fund (temporary). 

(a) In general. A disqualified person 

for purposes of section 4951(e)(4) who 

engaged in self-dealing with a Nuclear 

Decommissioning Fund, and must 

report tax due under section 4951 on 

Form 1120–ND, ‘‘Return for Nuclear 

Decommissioning Funds and Certain 

Related Persons,’’ will be allowed an 

automatic 6-month extension of time to 

file the return after the date prescribed 

for filing the return if the disqualified 

person files an application under this 

section in accordance with paragraph 

(b) of this section. For guidance on 

requesting an extension of time to file 

Form 1120–ND for purposes of reporting 

contributions received, income earned, 

administrative expenses of operating the 

fund, and the tax on modified gross 

income, see § 1.6081–3 of this chapter. 

(b) Requirements. To satisfy this 

paragraph (b), a disqualified person 

must—

(1) Submit a complete application on 

Form 7004, ‘‘Application for Automatic 

6-Month Extension of Time to File 

Certain Business Income Tax, 

Information, and Other Returns,’’ or in 

any other manner prescribed by the 

Commissioner; 

(2) File the application on or before 

the date prescribed for filing the return 

with the Internal Revenue Service office 

designated in the application’s 

instructions; and 

(3) Remit the amount of the properly 

estimated unpaid tax liability on or 

before the date prescribed for payment. 

(c) No extension of time for the 

payment of tax. An automatic extension 

of time for filing a return granted under 

paragraph (a) of this section will not 

extend the time for payment of any tax 

due on such return. 

(d) Termination of automatic 

extension. The Commissioner may 

terminate an automatic extension at any 

time by mailing to the disqualified 

person a notice of termination at least 

10 days prior to the termination date 

designated in such notice. The 

Commissioner must mail the notice of 

termination to the address shown on the 

Form 7004 or to the disqualified 

person’s last known address. For further 

guidance regarding the definition of last 

known address, see § 301.6212–2 of this 

chapter. 

(e) Penalties. See section 6651 for 

failure to file or failure to pay the 

amount shown as tax on the return. 

(f) Effective dates. This section is 

applicable for applications for an 

automatic extension of time to file a 

return to report taxes due under section 

4951 for self-dealing with a Nuclear 

Decommissioning Fund filed after 

December 31, 2005. The applicability of 

this section expires on November 4, 

2008. 

PART 55—EXCISE TAX ON REAL 

INVESTMENT TRUSTS AND 

REGULATED INVESTMENT 

COMPANIES 

■ Par. 24. The authority citation is 

amended by adding an entry in 

numerical order to read, in part, as 

follows: 

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

6091, and 7805 * * * 

Section 55.6081–1T also issued under 26 

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

§ 55.6081–1 [Removed] 

■ Par. 25. Section 55.6081–1 is 

removed. 

■ Par. 26. Section 55.6081–1T is added 

to read as follows: 

§ 55.6081–1T Automatic extension of time 

for filing a return due under Chapter 44 

(temporary). 

(a) In general. A Real Estate 

Investment Trust (REIT) required to file 

a return on Form 8612, ‘‘Return of 

Excise Tax on Undistributed Income of 

Real Estate Investment Trusts,’’ or a 

Regulated Investment Company (RIC) 

required to file a return on Form 8613, 

‘‘Return of Excise Tax on Undistributed 

Income of Regulated Investment 

Companies,’’ will be allowed an 

automatic 6-month extension of time to 

file the return after the date prescribed 

for filing the return if the REIT or RIC 

files an application under this section in 

accordance with paragraph (b) of this 

section. 

(b) Requirements. To satisfy this 

paragraph (b), a REIC or RIC must—

(1) Submit a complete application on 

Form 7004, ‘‘Application for Automatic 

6-Month Extension of Time to File 

Certain Business Income Tax, 

Information, and Other Returns,’’ or in 

Federal Register / Vol. 70, No. 214 / Monday, November 7, 2005 / Rules and Regulations 67363 

any other manner prescribed by the 

Commissioner; 

(2) File the application on or before 

the date prescribed for filing the return 

with the Internal Revenue Service office 

designated in the application’s 

instructions; and 

(3) Remit the amount of the properly 

estimated unpaid tax liability on or 

before the date prescribed for payment. 

(c) No extension of time for the 

payment of tax. An automatic extension 

of time for filing a return granted under 

paragraph (a) of this section will not 

extend the time for payment of any tax 

due on such return. 

(d) Termination of automatic 

extension. The Commissioner may 

terminate an automatic extension at any 

time by mailing to the REIT or RIC a 

notice of termination at least 10 days 

prior to the termination date designated 

in such notice. The Commissioner must 

mail the notice of termination to the 

address shown on the Form 7004 or to 

the REIT or RIC’s last known address. 

For further guidance regarding the 

definition of last known address, see 

§ 301.6212–2 of this chapter. 

(e) Penalties. See section 6651 for 

failure to file or failure to pay the 

amount shown as tax on the return. 

(f) Effective dates. This section is 

applicable for applications for an 

automatic extension of time to file a 

return due under chapter 44, filed after 

December 31, 2005. The applicability of 

this section expires on November 4, 

2008. 

PART 156—EXCISE TAX ON 

GREENMAIL 

■ Par. 27. The authority citation is 

amended by adding an entry in 

numerical order to read, in part, as 

follows: 

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

6071, 6091, 6161, and 7805 * * * 

Section 156.6081–1T also issued under 26 

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

§ 156.6081–1 [Removed] 

■ Par. 28. Section 156.6081–1 is 

removed. 

■ Par. 29. Section 156.6081–1T is added 

to read as follows: 

§ 156.6081–1T Automatic extension of time 

for filing a return due under chapter 54 

(temporary). 

(a) In general. A taxpayer required to 

file a return on Form 8725, ‘‘Excise Tax 

on Greenmail,’’ will be allowed an 

automatic 6-month extension of time to 

file the return after the date prescribed 

for filing the return if the taxpayer files 

an application under this section in 

accordance with paragraph (b) of this 

section. 

(b) Requirements. To satisfy this 

paragraph (b), a taxpayer must—

(1) Submit a complete application on 

Form 7004, ‘‘Application for Automatic 

6-Month Extension of Time to File 

Certain Business Income Tax, 

Information, and Other Returns,’’ or in 

any other manner prescribed by the 

Commissioner; 

(2) File the application on or before 

the date prescribed for filing the return 

with the Internal Revenue Service office 

designated in the application’s 

instructions; and 

(3) Remit the amount of the properly 

estimated unpaid tax liability on or 

before the date prescribed for payment. 

(c) No extension of time for the 

payment of tax. An automatic extension 

of time for filing a return granted under 

paragraph (a) of this section will not 

extend the time for payment of any tax 

due on such return. 

(d) Termination of automatic 

extension. The Commissioner may 

terminate an automatic extension at any 

time by mailing to the taxpayer a notice 

of termination at least 10 days prior to 

the termination date designated in such 

notice. The Commissioner must mail the 

notice of termination to the address 

shown on the Form 7004 or to the 

taxpayer’s last known address. For 

further guidance regarding the 

definition of last known address, see 

§ 301.6212–2 of this chapter. 

(e) Penalties. See section 6651 for 

failure to file or failure to pay the 

amount shown as tax on the return. 

(f) Effective dates. This section is 

applicable for applications for an 

automatic extension of time to file a 

return due under chapter 54, filed after 

December 31, 2005. The applicability of 

this section expires on November 4, 

2008. 

PART 157—EXCISE TAX ON 

STRUCTURED SETTLEMENT 

FACTORING TRANSACTIONS 

■ Par. 30. The authority citation is 

amended by adding an entry in 

numerical order to read, in part, as 

follows: 

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

Section 157.6081–1T also issued under 26 

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

§ 157.6081–1 [Removed] 

■ Par. 31. Section 157.6081–1 is 

removed. 

■ Par. 32. Section 157.6081–1T is added 

to read as follows: 

§ 157.6081–1T Automatic extension of time 

for filing a return due under chapter 55 

(temporary). 

(a) In general. A taxpayer required to 

file a return on Form 8876, ‘‘Excise Tax 

on Structured Settlement Factoring 

Transactions,’’ will be allowed an 

automatic 6-month extension of time to 

file the return after the date prescribed 

for filing the return if the taxpayer files 

an application under this section in 

accordance with paragraph (b) of this 

section. 

(b) Requirements. To satisfy this 

paragraph (b), the taxpayer must—

(1) Submit a complete application on 

Form 7004, ‘‘Application for Automatic 

6-Month Extension of Time to File 

Certain Business Income Tax, 

Information, and Other Returns,’’ or in 

any other manner prescribed by the 

Commissioner; 

(2) File the application on or before 

the date prescribed for filing the return 

with the Internal Revenue Service office 

designated in the application’s 

instructions; and 

(3) Remit the amount of the properly 

estimated unpaid tax liability on or 

before the date prescribed for payment. 

(c) No extension of time for the 

payment of tax. An automatic extension 

of time for filing a return granted under 

paragraph (a) of this section will not 

extend the time for payment of any tax 

due on such return. 

(d) Termination of automatic 

extension. The Commissioner may 

terminate an automatic extension at any 

time by mailing to the taxpayer a notice 

of termination at least 10 days prior to 

the termination date designated in such 

notice. The Commissioner must mail the 

notice of termination to the address 

shown on the Form 7004 or to the 

taxpayer’s last known address. For 

further guidance regarding the 

definition of last known address, see 

§ 301.6212–2 of this chapter. 

(e) Penalties. See section 6651 for 

failure to file or failure to pay the 

amount shown as tax on the return. 

(f) Effective dates. This section is 

applicable for applications for an 

automatic extension of time to file a 

return due under chapter 55, filed after 

December 31, 2005. The applicability of 

this section expires on November 4, 

2008. 

PART 301—PROCEDURE AND 

ADMINISTRATION 

■ Par. 33. The authority citation is 

amended by adding an entry in 

numerical order to read, in part, as 

follows: 

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

Section 301.6081–2T also issued under 26 

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

■ Par. 34. Section 301.6081–2T is added 

to read as follows: 

67364 Federal Register / Vol. 70, No. 214 / Monday, November 7, 2005 / Rules and Regulations 

§ 301.6081–2T Automatic extension of time 

for filing an information return with respect 

to certain foreign trusts (temporary). 

(a) In general. A trust required to file 

a return on Form 3520–A, ‘‘Annual 

Information Return of Foreign Trust 

with a U.S. Owner,’’ will be allowed an 

automatic 6-month extension of time to 

file the return after the date prescribed 

for filing the return if the trust files an 

application under this section in 

accordance with paragraph (b) of this 

section. 

(b) Requirements. To satisfy this 

paragraph (b), a trust must—

(1) Submit a complete application on 

Form 7004, ‘‘Application for Automatic 

6-Month Extension of Time to File 

Certain Business Income Tax, 

Information, and Other Returns,’’ or in 

any other manner prescribed by the 

Commissioner; and 

(2) File the application on or before 

the date prescribed for filing the return 

with the Internal Revenue Service office 

designated in the application’s 

instructions. 

(c) Termination of automatic 

extension. The Commissioner may 

terminate an automatic extension at any 

time by mailing to the trust a notice of 

termination at least 10 days prior to the 

termination date designated in such 

notice. The Commissioner must mail the 

notice of termination to the address 

shown on the Form 7004 or to the trust’s 

last known address. For further 

guidance regarding the definition of last 

known address, see § 301.6212–2 of this 

chapter. 

(d) Penalties. See section 6677 for 

failure to file information returns with 

respect to certain foreign trusts. 

(e) Effective dates. This section is 

applicable for applications for an 

automatic extension of time to file an 

information return with respect to 

certain foreign trusts listed in paragraph 

(a) of this section filed after December 

31, 2005. The applicability of this 

section expires on November 4, 2008. 

Mark E. Matthews, 

Deputy Commissioner for Services and 

Enforcement. 

Approved: October 26, 2005. 

Eric Solomon, 

Acting Deputy Assistant Secretary (for Tax 

Policy). 

[FR Doc. 05–21981 Filed 11–4–05; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF THE TREASURY 

Fiscal Service 

31 CFR Part 210 

RIN 1510–AB04 

Federal Government Participation in 

the Automated Clearing House 

AGENCY: Financial Management Service, 

Fiscal Service, Treasury. 

ACTION: Interim final rule with request 

for comments. 

SUMMARY: This interim final rule 

amends our regulation at 31 CFR part 

210 (Part 210), which governs the use of 

the Automated Clearing House (ACH) 

system by Federal agencies. Part 210 

adopts, with some exceptions, the ACH 

Rules developed by NACHA—The 

Electronic Payments Association 

(NACHA) as the rules governing the use 

of the ACH system by Federal agencies. 

We are issuing this rule to address 

changes that NACHA has made to the 

ACH Rules since the publication of 

NACHA’s 2003 rule book. 

DATES: Comments on the interim final 

rule are due January 6, 2006. This rule 

is effective January 6, 2006. The 

incorporation by reference of the 

publication listed in the rule is 

approved by the Director of the Federal 

Register as of January 6, 2006. 

ADDRESSES: You can download this 

interim final rule at the following Web 

site: http://www.fms.treas.gov/ach. You 

may also inspect and copy this rule at: 

Treasury Department Library, Freedom 

of Information Act (FOIA) Collection, 

Room 1428, Main Treasury Building, 

1500 Pennsylvania Avenue, NW., 

Washington, DC 20220. Before visiting, 

you must call (202) 622–0990 for an 

appointment. 

You can view Treasury’s procedural 

guidelines for ACH payments in the 

Green Book at the following Web site: 

http://www.fms.treas.gov/greenbook. 

You may also register at this Web site 

for e-mail notification of updates to the 

Green Book. 

You may submit comments on the 

rule by any of the following methods. 

You may go to the Government-wide 

rulemaking Web site http:// 

www.regulations.gov and follow the 

instructions for sending your comments 

electronically. Alternatively, you may 

email your comments to FMS at 210 

comments@fms.treas.gov. You may also 

mail your comments to Matthew Friend, 

Financial Management Service, 401 

14th Street, SW., Room 401, 

Washington, DC 20227. 

FOR FURTHER INFORMATION CONTACT: 

Matthew Friend, at (202) 874–1251 or 

matthew.friend@fms.treas.gov; or 

Natalie H. Diana, Senior Counsel, at 

(202) 874–6680 or 

natalie.diana@fms.treas.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

Part 210 governs the use of the ACH 

system by Federal agencies. The ACH 

system is a nationwide electronic fund 

transfer (EFT) system that provides for 

the inter-bank clearing of credit and 

debit transactions and for the exchange 

of information among participating 

financial institutions. Part 210 

incorporates the ACH Rules adopted by 

NACHA, with certain exceptions. From 

time to time we amend part 210 in order 

to address changes that NACHA 

periodically makes to the ACH Rules or 

to revise the regulation as otherwise 

appropriate. 

We are issuing an interim final rule 

amending part 210 to reflect certain 

changes that NACHA has made to the 

ACH Rules since the publication of 

NACHA’s 2003 rule book. We are 

publishing this interim final rule in 

order to indicate which amendments to 

the ACH Rules we are accepting and 

which amendments we are rejecting. 

II. Summary of Rule Changes 

Since 2003, NACHA has published 

two sets of changes to the ACH Rules. 

The first set of changes was published 

in NACHA’s 2004 rule book (2004 ACH 

Rule Book), and the second set of 

changes was published in NACHA’s 

2005 rule book (2005 ACH Rule Book). 

We are adopting all of the rule changes 

except those relating to the audit 

provisions of the ACH Rules, which we 

have previously determined not to 

incorporate in part 210. The rule 

changes that we are adopting are largely 

technical operational changes that will 

have little or no impact on Federal 

agencies’ use of the ACH system. For 

example, the changes discussed below 

to the title and description of Return 

Reason Code R12 and the expansion of 

the Automated Accounting Advice 

Standard Entry Class code are changes 

that we believe are beneficial to the 

ACH system, but that do not 

significantly affect the government’s use 

of the ACH system. In addition, some 

changes merely clarify existing 

provisions of the ACH rules (such as the 

addition of a warranty relating to 

authentication of receivers of InternetInitiated Entries) or impose 

requirements that do not affect or 

change government ACH processes 

(such as ACH Operator and Third Party 

Processor requirements).