Source: https://www.federalregister.gov/documents/2004/07/08/04-15124/excise-tax-relating-to-structured-settlement-factoring-transactions
Timestamp: 2018-07-19 06:09:38
Document Index: 495075858

Matched Legal Cases: ['§\u2009157', '§\u2009157', 'art 157', 'art 157', '§\u2009157', '§\u2009601', 'art 157', '§\u2009157', '§\u2009157', '§\u2009157', '§\u2009157', '§\u2009157', '§\u2009157', '§\u2009157', '§\u20091', '§\u2009602']

TD 9134
04-15124
https://www.federalregister.gov/d/04-15124 https://www.federalregister.gov/d/04-15124
This document contains final regulations relating to the manner and method of reporting and paying the nondeductible 40 percent excise tax Start Printed Page 41193imposed on any person who acquires structured settlement payment rights in a structured settlement factoring transaction. The regulations provide the guidance necessary to comply with the reporting requirements of the excise tax.
Applicability Dates: For dates of applicability, see § 157.5891-1(e).
The collections of information contained in these final regulations have been reviewed and approved by the Office of Management and Budget in accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) under control number 1545-1824. The collections of information in these final regulations are in §§ 157.6001-1, 157.6011-1, 157.6081-1, and 157.6161-1. This information is required by the IRS to verify that the excise tax imposed under section 5891 is properly reported on Form 8876 and timely paid. This information will be used for that purpose.
This document contains final regulations that replace the temporary regulations in 26 CFR part 157. The regulations provide guidance on the proper manner and method of reporting and paying the 40 percent excise tax imposed under section 5891. The regulations reflect the addition to the Internal Revenue Code (Code) of chapter 55 and section 5891 by section 115 of the Victims of Terrorism Tax Relief Act of 2001, Pub. L. 107-134, (115 Stat. 2427, 2436-2439). On February 19, 2003, temporary regulations (TD 9042) adding a new part 157, Excise Tax on Structured Settlement Factoring Transactions, to title 26 of the Code of Federal Regulations were published in the Federal Register (68 FR 7922). A notice of proposed rulemaking (REG-139768-02) cross-referencing the temporary regulations was also published in the Federal Register (68 FR 7956). No public hearing was requested or held. One written comment responding to the notice of proposed rulemaking was received in which the writer commended the issuance of the temporary and proposed regulations and urged that they be finalized without change. The proposed regulations are adopted by this Treasury decision without any substantive changes.
also issued under 26 U.S.C. 6001.
also issued under 26 U.S.C. 6011.
also issued under 26 U.S.C. 6061.
also issued under 26 U.S.C. 6071.
also issued under 26 U.S.C. 6091.
also issued under 26 U.S.C. 6161.
(a) In general. Section 5891 imposes on any person who acquires, directly or indirectly, structured settlement payment rights in a structured settlement factoring transaction a tax equal to 40 percent of the factoring Start Printed Page 41194discount with respect to such factoring transaction.
(e) Effective dates. This section applies to structured settlement factoring transactions entered into on or after July 8, 2004. For structured settlement factoring transactions entered into before July 8, 2004, see § 157.5891-1T of this chapter (2003-1 C.B. 564. See § 601.601(d)(2) of this chapter.), as it appeared in the April 1, 2003, edition of 26 CFR part 157.
Any return, statement, or other document required to be made with respect to a tax imposed by chapter 55 (Structured Settlement Factoring Transactions) of the Internal Revenue Start Printed Page 41195Code or the regulations under chapter 55 must be signed by the person required to file the return, statement, or other document, or by the persons required or duly authorized to sign in accordance with the regulations, forms, or instructions prescribed with respect to such return, statement, or document. An individual's signature on such return, statement, or other document shall be prima facie evidence that the individual is authorized to sign the return, statement, or other document.
(a) In general. Except as provided in paragraph (b) of this section, returns required by § 157.6011-1 (relating to returns of tax with respect to structured settlement factoring transactions) must be filed on or before the ninetieth day following the receipt of structured settlement payment rights in a structured settlement factoring transaction.
(b) Returns relating to structured settlement payment rights received before February 19, 2003. Returns required by § 157.6011-1 that relate to structured settlement payment rights received on or before February 19, 2003, must be filed on or before May 20, 2003.
(a) Application for extension. An application for an extension of time for filing the return required by § 157.6011-1 (relating to returns of tax with respect to structured settlement factoring transactions) must be completed in accordance with the forms and instructions provided by the Internal Revenue Service. It should be made before the expiration of the time within which the return otherwise must be filed, and failure to do so may indicate negligence and constitute sufficient cause for denial. It should, where possible, be made sufficiently early to permit consideration of the matter and reply before what otherwise would be the due date of the return. An extension of time for filing a return shall not extend the time for the payment of the tax or any part thereof unless specified to the contrary in the grant of the extension.
The return required by § 157.6011-1 (relating to returns of tax with respect to structured settlement factoring transactions) must be filed at the place specified in the forms and instructions provided by the Internal Revenue Service.
The tax under chapter 55 (Structured Settlement Factoring Transactions) of the Internal Revenue Code shown on any return must, without assessment or notice and demand, be paid at the time and place specified in the forms and instructions provided by the Internal Revenue Service. For provisions relating to the time and place for filing such return, see § 157.6071-1 and § 157.6091-1. For provisions relating to the extension of time for paying the tax, see § 157.6161-1.
(a) In general— (1) Tax shown or required to be shown on return. The Internal Revenue Service may, at the request of the taxpayer, grant a reasonable extension of time for payment of the amount of any tax imposed by chapter 55 (Structured Settlement Factoring Transactions) of the Internal Revenue Code and shown or required to be shown on any return. The period of such extension shall not exceed 6 months from the date fixed for payment of such tax, except that in the case of a taxpayer that is abroad, such extension may exceed 6 months.
(b) Certain rules relating to extension of time for paying income tax to apply. The provisions of § 1.6161-1(b), (c), and (d) of this chapter (relating to a requirement for undue hardship, to the application for extension, and to payment pursuant to an extension) shall apply to extensions of time for payment of the tax imposed by chapter 55 of the Code.
Par. 3. In § 602.101, paragraph (b) is amended by removing the entries for “157.6001-1T,” “157.6011-1T,” “157.6081-1T,” and “157.6161-1T” and adding entries in numerical order to the table to read, in part, as follows:
Acting, Assistant Secretary of the Treasury.
[FR Doc. 04-15124 Filed 7-7-04; 8:45 am]