Federal Register / Vol. 70, No. 214 / Monday, November 7, 2005 / Proposed Rules 67397 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

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

and 301 

[REG–144898–04] 

RIN 1545–BE62 

Extension of Time for Filing Returns 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice of proposed rulemaking 

and notice of proposed rulemaking by 

cross-reference to temporary 

regulations. 

SUMMARY: In the Rules and Regulations 

section of this issue of the Federal 

Register, the IRS is issuing final and 

temporary regulations relating to the 

simplification of procedures for 

automatic extensions of time to file 

certain returns. The text of those 

regulations also serves as the text of 

these proposed regulations. 

DATES: Written or electronically 

generated comments and requests for a 

public hearing must be received by 

February 6, 2006. 

ADDRESSES: Send submissions to: 

CC:PA:LPD:PR (REG–144898–04), room 

5203, Internal Revenue Service, PO Box 

7604, Ben Franklin Station, Washington, 

DC 20044. Submissions may be hand 

delivered Monday through Friday 

between the hours of 8 am and 4 pm to: 

CC:PA:LPD:PR (REG–144898–04), 

Courier’s Desk, Internal Revenue 

Service, 1111 Constitution Avenue, 

NW., Washington, DC. Alternatively, 

taxpayers may submit comments 

electronically via the IRS Internet site at 

http://www.irs.gov/regs or via the 

Federal eRulemaking Portal at http:// 

www.regulations.gov (IRS and REG–

144898–04). 

FOR FURTHER INFORMATION CONTACT: 

Concerning the proposed regulations, 

Allen D. Madison, (202) 622–4940; 

concerning submissions of comments 

and requests for a public hearing, LaNita 

Van Dyke (202) 622–7180 (not toll-free 

numbers). 

SUPPLEMENTARY INFORMATION: 

Background and Explanation of 

Provisions 

Temporary regulations in the Rules 

and Regulations section of this issue of 

the Federal Register amend 26 CFR 

parts 1, 25, 26, 53, 55, 156, 157, and 301 

relating to section 6081. The temporary 

regulations allow taxpayers required to 

file an individual income tax return an 

automatic six-month extension if 

taxpayers submit an application on 

Form 4868, ‘‘Application for Automatic 

Extension of Time To File a U.S. 

Individual Income Tax Return.’’ The 

temporary regulations also allow 

taxpayers who previously submitted 

three-month extension requests on Form 

8736, ‘‘Application for Automatic 

Extension of Time to File U.S. Return 

for a Partnership, REMIC, or for Certain 

Trusts’’ and requests for additional 

three-month extensions on Form 8800, 

‘‘Application for Additional Extension 

of Time to File U.S. Return for a 

Partnership, REMIC, or for Certain 

Trusts,’’ an automatic six-month 

extension of time to file if an 

application is submitted on Form 7004, 

‘‘Application for Automatic 6-Month 

Extension of Time to File Certain 

Business Income Tax, Information, and 

Other Returns.’’

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 as much as 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 15th. This 

filing anomaly existed under prior 

regulations when the pass-through 

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 six-month 

extension in this regulation 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 Requests for a Public 

Hearing’’ portion of this preamble. 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 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. 

The temporary regulations also 

provide that taxpayers that 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 now request an 

automatic six-month extension of time 

to file by filing Form 7004. 

The 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 entities requesting an extension to 

use 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. 

The temporary regulations also allow 

donors who do not request an extension 

of time to file an income tax return to 

request an automatic six-month 

extension of time to file Form 709, 

‘‘United States Gift (and GenerationSkipping Transfer) Tax Return’’ by filing 

Form 8892, ‘‘Payment of Gift/GST Tax 

and/or Application for Extension of 

Time to File Form 709.’’

The text of those regulations also 

serves as the text of these proposed 

regulations. The preamble to the 

temporary regulations explains the 

amendments. 

Special Analyses 

It has been determined that this notice 

of proposed rulemaking 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, this notice of proposed 

67398 Federal Register / Vol. 70, No. 214 / Monday, November 7, 2005 / Proposed Rules 

rulemaking will be submitted to the 

Chief Counsel for Advocacy of the Small 

Business Administration for comment 

on their impact. 

Comments and Requests for a Public 

Hearing 

Before these proposed regulations are 

adopted as final regulations, 

consideration will be given to any 

written (a signed original and 8 copies) 

and electronic comments that are 

submitted timely to the IRS. The IRS 

and Treasury specifically request 

comments on the clarity of the proposed 

regulations and how they can be made 

easier to understand. All comments will 

be available for public inspection and 

copying. A public hearing may be 

scheduled if requested in writing by any 

person that timely submits comments. If 

a public hearing is scheduled, notice of 

the date, time, and place for the public 

hearing will be published in the Federal 

Register. 

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. 

Proposed Amendments to the 

Regulations 

Accordingly, 26 CFR parts 1, 25, 26, 

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

to be amended to read 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 1.6081–1 is amended 

by revising paragraphs (b)(1) and (b)(5) 

to read as follows: 

§ 1.6081–1 Extension of time for filing 

returns. 

* * * * * 

(b) * * * 

(1) In general. A taxpayer desiring an 

extension of the time for filing a return, 

statement, or other document shall 

submit an application for extension on 

or before the due date of such return, 

statement, or other document. Except as 

provided in paragraph (b)(3) of this 

section and paragraph (b) of § 301.6091–

1 of this chapter (relating to handcarried documents), the taxpayer should 

make the application for extension to 

the internal revenue officer with whom 

such return, statement, or other 

document is required to be filed. The 

application must be in writing, signed 

by the taxpayer or his duly authorized 

agent, and must clearly set forth—

(i) The particular tax return, 

information return, statement, or other 

document, including the taxable year or 

period thereof, for which the taxpayer 

requests an extension, and 

(ii) An explanation of the reasons for 

requesting the extension to aid the 

internal revenue officer in determining 

whether to grant the request. 

* * * * * 

(5) Form of application. Taxpayers 

may apply for an extension of the time 

for filing a return, statement, or other 

document in a letter that includes the 

information required by paragraph (b)(3) 

of this section. In the case of an 

individual income tax return on Form 

1040 series, however, taxpayers should 

apply for an extension of the time for 

filing in accordance with § 1.6081–4 of 

this chapter. 

* * * * * 

Par. 3. Section 1.6081–2 is added to 

read as follows: 

§ 1.6081–2 Automatic extension of time to 

file certain returns filed by partnerships. 

[The text of proposed § 1.6081–2 is 

the same as the text of § 1.6081–2T 

published elsewhere in this issue of the 

Federal Register]. 

Par. 4. In § 1.6081–3, paragraph (a)(1) 

is revised to read as follows: 

§ 1.6081–3 Automatic extension of time for 

filing corporation income tax returns. 

(a) * * * 

(1) [The text of proposed § 1.6081–

3(a)(1) is the same as the text of 

§ 1.6081–3T(a)(1) published elsewhere 

in this issue of the Federal Register]. 

* * * * * 

Par. 5. Section 1.6081–4 is added to 

read as follows: 

§ 1.6081–4 Automatic extension of time for 

filing individual income tax return. 

[The text of proposed § 1.6081–4 is 

the same as the text of § 1.6081–4T 

published elsewhere in this issue of the 

Federal Register.] 

Par. 6. 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) [The text of proposed § 1.6081–

5(b) is the same as the text of § 1.6081–

5T(b) published elsewhere in this issue 

of the Federal Register.] 

* * * * * 

Par. 7. Section 1.6081–6 is added to 

read as follows: 

§ 1.6081–6 Automatic extension of time to 

file estate or trust income tax return. 

[The text of proposed § 1.6081–6 is 

the same as the text of § 1.6081–6T 

published elsewhere in this issue of the 

Federal Register.] 

Par. 8. Section 1.6081–7 is added to 

read as follows: 

§ 1.6081–7 Automatic extension of time to 

file Real Estate Mortgage Investment 

Conduit (REMIC) income tax return. 

[The text of proposed § 1.6081–7 is 

the same as the text of § 1.6081–7T 

published elsewhere in this issue of the 

Federal Register.] 

Par. 9. Section 1.6081–10 is added to 

read as follows: 

§ 1.6081–10 Automatic extension of time 

to file withholding tax return for U.S. source 

income of foreign persons. 

[The text of proposed § 1.6081–10 is 

the same as the text of § 1.6081–10T 

published elsewhere in this issue of the 

Federal Register.] 

Par. 10. Section 1.6081–11 is added to 

read as follows: 

§ 1.6081–11 Automatic extension of time 

for filing certain employee plan returns. 

[The text of proposed § 1.6081–11 is 

the same as the text of § 1.6081–11T 

Federal Register / Vol. 70, No. 214 / Monday, November 7, 2005 / Proposed Rules 67399 

published elsewhere in this issue of the 

Federal Register.] 

PART 25—GIFT TAX; GIFTS MADE 

AFTER DECEMBER 31, 1954 

Par. 11. The authority citation for part 

25 continues to read, in part, as follows: 

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

Par. 12. Section 25.6081–1 is added to 

read as follows: 

§ 25.6081–1 Automatic extension of time 

for filing gift tax returns. 

[The text of proposed § 25.6081–1 is 

the same as the text of § 25.6081–1T 

published elsewhere in this issue of the 

Federal Register.] 

PART 26—GENERATION-SKIPPING 

TRANSFER TAX REGULATIONS 

UNDER THE TAX REFORM ACT OF 

1986 

Par. 13. The authority citation for part 

26 continues to read, in part, as follows: 

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

Par. 14. Section 26.6081–1 is added to 

read as follows: 

§ 26.6081–1 Automatic extension of time 

for filing generation-skipping transfer tax 

returns. 

[The text of proposed § 26.6081–1 is 

the same as the text of § 26.6081–1T 

published elsewhere in this issue of the 

Federal Register.] 

PART 53—FOUNDATION AND SIMILAR 

EXCISE TAXES 

Par. 15. The authority citation for part 

53 continues to read, in part, as follows: 

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

Par. 16. Section 53.6081–1 is added to 

read as follows: 

§ 53.6081–1 Automatic extension of time 

for filing the return to report taxes due 

under section 4951 for self-dealing with a 

nuclear decommissioning fund. 

[The text of proposed § 53.6081–1 is 

the same as the text of § 53.6081–1T 

published elsewhere in this issue of the 

Federal Register.] 

PART 55—EXCISE TAX ON REAL 

INVESTMENT TRUSTS AND 

REGULATED INVESTMENT 

COMPANIES 

Par. 17. The authority citation for part 

55 continues to read, in part, as follows: 

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

6091, and 7805 * * * 

Par. 18. Section 55.6081–1 is added to 

read as follows: 

§ 55.6081–1 Automatic extension of time 

for filing a return due under Chapter 44. 

[The text of proposed § 55.6081–1 is 

the same as the text of § 55.6081–1T 

published elsewhere in this issue of the 

Federal Register.] 

PART 156—EXCISE TAX ON 

GREENMAIL 

Par. 19. The authority citation for part 

156 continues to read, in part, as 

follows: 

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

6071, 6091, 6161, and 7805 * * * 

Par. 20. Section 156.6081–1 is added 

to read as follows: 

§ 156.6081–1 Automatic extension of time 

for filing a return due under Chapter 54. 

[The text of proposed § 156.6081–1 is 

the same as the text of § 156.6081–1T 

published elsewhere in this issue of the 

Federal Register.] 

PART 157—EXCISE TAX ON 

STRUCTURED SETTLEMENT 

FACTORING TRANSACTIONS 

Par. 21. The authority citation for part 

157 continues to read, in part, as 

follows: 

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

Par. 22. Section 157.6081–1 is added 

to read as follows: 

§ 157.6081–1 Automatic extension of time 

for filing a return due under Chapter 55. 

[The text of proposed § 157.6081–1 is 

the same as the text of § 157.6081–1T 

published elsewhere in this issue of the 

Federal Register.] 

PART 301—PROCEDURE AND 

ADMINISTRATION 

Par. 23. The authority citation for part 

301 continues to read, in part, as 

follows: 

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

Par. 24. Section 301.6081–2 is added 

to read as follows: 

§ 301.6081–2 Automatic extension of time 

for filing an information return with respect 

to certain foreign trusts. 

[The text of proposed § 301.6081–2 is 

the same as the text of § 301.6081–2T 

published elsewhere in this issue of the 

Federal Register.] 

Mark E. Matthews, 

Deputy Commissioner for Services and 

Enforcement. 

[FR Doc. 05–21982 Filed 11–4–05; 8:45 am] 

BILLING CODE 4830–01–P 

POSTAL SERVICE 

39 CFR Part 111 

Proposal To Require the Electronic 

Verification System (e-VS) for 

Destination Entry Parcel Shipments 

AGENCY: United States Postal Service. 

ACTION: Proposed rule. 

SUMMARY: The Postal Service is 

proposing to require the use of the 

Electronic Verification System (e-VS) 

which is an electronic manifest system, 

for postage manifesting and payment of 

all Parcel Select mailings. This includes 

all Standard Mail machinable parcels or 

other Package Services Parcels (Bound 

Printed Matter, Library Mail, or Media 

Mail) authorized for commingling with 

Parcel Select Mailings. This requirement 

would contribute to reduced costs and 

greater efficiencies. The Postal Service 

is also exploring expanding the program 

to all parcel mailings in the future. The 

proposed rule is being published with 

an intended implementation date of no 

sooner than 1 year from the date of 

publication of the Federal Register final 

rule. The proposed rule would apply as 

follows: 

• Parcel shippers/consolidators and 

mailers claiming Parcel Select rates 

would be required to use e-VS for 

postage manifesting and payment. 

• Parcel shippers/consolidators and 

mailers who commingle Standard Mail 

machinable parcels or other Package 

Services parcels with Parcel Select as 

authorized by Mailing Standards of the 

United States Postal Service, Domestic 

Mail Manual (DMM), 705.6.0 and 

705.7.0, would be required to use e-VS 

for postage manifesting and payment. 

DATES: Comments must be received on 

or before December 7, 2005. 

ADDRESSES: Mail or deliver comments to 

the Manager, Business Mailer Support, 

U.S. Postal Service, 475 L’Enfant Plaza, 

SW., Room 2P846, Washington, DC 

20260–0846. Copies of all written 

comments will be available for 

inspection and photocopying between 9 

a.m. and 4 p.m., Monday through 

Friday, at the Postal Service 

Headquarters Library, 475 L’Enfant 

Plaza, SW., 11th Floor North, 

Washington, DC. 

FOR FURTHER INFORMATION CONTACT: John 

Gullo via e-mail at 

john.f.gullo@usps.gov, by phone at (202) 

268–8057 or by writing to e-VS Program 

Manager, Business Mailer Support, 475 

L’Enfant Plaza, SW., Room 2P846, 

Washington, DC 20260–0846. 

Additionally, the following technical 

guides should be reviewed for detailed 

program information: