[Federal Register Volume 61, Number 158 (Wednesday, August 14, 1996)]
[Rules and Regulations]
[Pages 42178-42179]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-20625]


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DEPARTMENT OF THE TREASURY
26 CFR Part 301

[TD 8681]
RIN 1545-AT22


Time for Performance of Acts Where Last Day Falls on Saturday, 
Sunday, or Legal Holiday

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations.

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SUMMARY: This document contains final regulations relating to the time 
for performance of acts by taxpayers and by the Commissioner, a 
district director, or the director of a regional service center, when 
the last day for performance falls on a Saturday, Sunday, or legal 
holiday. In particular, these regulations replace the list of legal 
holidays with a citation to the District of Columbia law that is the 
source of the list.

EFFECTIVE DATE: These regulations are effective August 14, 1996.

FOR FURTHER INFORMATION CONTACT: Judith A. Lintz (202) 622-6232 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    On September 25, 1995, the IRS published in the Federal Register 
(60 FR 49356) a notice of proposed rulemaking (IA-36-91 [1995-2 C.B. 
470]) relating to the time for performance of acts when the last day 
for performance falls on a Saturday, Sunday, or legal holiday. When the 
last day for performance of an act by a taxpayer or an employee or 
administrator of the IRS falls on a Saturday, Sunday, or legal holiday, 
section 7503 of the Internal Revenue Code (Code) extends the time for 
performing the act. Under the extension, the act must be performed by 
the next day that is not a Saturday, Sunday, or legal holiday. The 
current regulations explain and supplement section 7503. This document 
contains final regulations that simplify and update the current 
regulations. In particular, the final regulations replace the list of 
holidays, which are determined by reference to the law in the District 
of Columbia, with a citation to that law.
    The IRS received oral and written comments on the notice of 
proposed rulemaking. No public hearing was held or requested. After 
consideration of the comments, which are addressed below, the proposed 
regulations under section 7503 are adopted as published in the notice.

Explanation of Provisions and Summary of Comments

    In response to the notice of proposed rulemaking for the 
regulations under section 7503, three categories of comments were 
received. First, there was some concern that replacing the list of 
legal holidays with a citation to the law in the District of Columbia 
would mean the list of holidays would no longer be accessible. It was 
suggested that the IRS annually publish the holidays by announcement or 
some other method. The final regulations do not retain the list of 
holidays because such a list requires regulatory revision whenever a 
change in the law occurs with respect to the holidays. However, a tax 
calendar that lists the legal holidays is annually made available 
through IRS Publication 509. This free publication can be obtained by 
calling the toll free telephone number 1-800-TAX-FORM (1-800-829-3676), 
or by contacting an IRS Forms Distribution Center.
    Second, it was requested that the IRS address the impact of a 
federal government shutdown on the time for performance of acts when 
the last day for performance is a day when the government is closed. 
Section 7503 of the Code is limited to extending the time for 
performance of acts when the last day for performance falls on a 
Saturday, Sunday, or legal holiday. Therefore, the regulations for 
section 7503 are not appropriate for clarifying the effect of a federal 
government shutdown on the time allowed for performance of an act.
    Third and last, it was requested that the regulations outline the 
kinds of acts to which the extension of time provided under section 
7503 applies. The final regulations do not include this information. 
The purpose of the current regulatory project is to replace the list of 
holidays and revise other outdated material in the regulations. 
Outlining the kinds of acts to which section 7503 applies is not within 
the scope of the current project.

[[Page 42179]]

Special Analyses

    It has been determined that this Treasury decision is not a 
significant regulatory action as defined in EO 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) 
and the Regulatory Flexibility Act (5 U.S.C. chapter 6) do not apply to 
these regulations, and, therefore, a Regulatory Flexibility Analysis is 
not required. Pursuant to section 7805(f) of the Internal Revenue Code, 
the notice of proposed rulemaking preceding these regulations was 
submitted to the Chief Counsel for Advocacy of the Small Business 
Administration for comment on its impact on small business.

Drafting Information

    The principal author of these regulations is Judith A. Lintz, 
Office of Assistant Chief Counsel (Income Tax & Accounting), Internal 
Revenue Service. However, other personnel from the IRS and Treasury 
Department participated in their development.

List of Subjects in 26 CFR Part 301

    Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income 
taxes, Penalties, Reporting and recordkeeping requirements.

Adoption of Amendments to the Regulations

    Accordingly, 26 CFR part 301 is amended as follows:

PART 301--PROCEDURE AND ADMINISTRATION

    Paragraph 1. The authority citation for part 301 continues to read 
in part as follows:

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

    Par. 2. Section 301.7503-1 is amended as follows:

    1. In the fourth sentence of paragraph (a), the language 
``Thursday, November 22, 1956 (Thanksgiving Day), the suit will be 
timely if filed on Friday, November 23, 1956, in the Court of Claims'' 
is removed and the language ``Thursday, November 23, 1995 (Thanksgiving 
Day), the suit will be timely if filed on Friday, November 24, 1995, in 
the Court of Federal Claims'' is added in its place.
    2. Paragraph (b) is revised as set forth below.
    3. Paragraph (c) is removed. The revision reads as follows:


Sec. 301.7503-1  Time for performance of acts where last day falls on 
Saturday, Sunday, or legal holiday.

* * * * *
    (b) Legal holidays. For the purpose of section 7503, the term legal 
holiday includes the legal holidays in the District of Columbia as 
found in D.C. Code Ann. 28-2701. In the case of any return, statement, 
or other document required to be filed, or any other act required under 
the authority of the internal revenue laws to be performed, at an 
office of the Internal Revenue Service, or any other office or agency 
of the United States, located outside the District of Columbia but 
within an internal revenue district, the term legal holiday includes, 
in addition to the legal holidays in the District of Columbia, any 
statewide legal holiday of the state where the act is required to be 
performed. If the act is performed in accordance with law at an office 
of the Internal Revenue Service or any other office or agency of the 
United States located in a territory or possession of the United 
States, the term legal holiday includes, in addition to the legal 
holidays in the District of Columbia, any legal holiday that is 
recognized throughout the territory or possession in which the office 
is located.
Margaret Milner Richardson,
Commissioner of Internal Revenue.

    Approved: June 20, 1996.

Donald C. Lubick,
Acting Assistant Secretary of the Treasury.
[FR Doc. 96-20625 Filed 8-13-96; 8:45 am]
BILLING CODE 4830-01-U