[Federal Register Volume 64, Number 10 (Friday, January 15, 1999)]
[Rules and Regulations]
[Pages 2568-2569]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-700]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 301
[TD 8807]
RIN 1545-AW82
Timely Mailing Treated as Timely Filing/Electronic Postmark
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Final and temporary regulations.
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SUMMARY: This document contains temporary and final regulations
relating to timely mailing treated as timely filing and paying under
section 7502. The temporary regulations generally reflect changes to
the law made by the Internal Revenue Service Restructuring and Reform
Act of 1998. The temporary regulations affect taxpayers that file
documents or make payments or deposits. The text of the temporary
regulations is also 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 January 15,
1999.
Applicability date: For dates of applicability, see Sec. 301.7502-
1T(f)(3).
FOR FURTHER INFORMATION CONTACT: Charles A. Hall (202) 622-4940 (not a
toll-free call).
SUPPLEMENTARY INFORMATION:
Background
This document contains amendments to the Regulations on Procedure
and Administration (26 CFR part 301) under section 7502 relating to
timely mailing treated as timely filing and paying. Section 7502(c)(2)
was amended by section 2003(b) of the Internal Revenue Service
Restructuring and Reform Act of 1998, Public Law 105-206 (112 Stat. 725
(1998)), to authorize the Secretary to provide the extent to which the
prima facie evidence of delivery and postmark date rules apply to
electronic filing.
Explanation of Provisions
These temporary regulations add Sec. 301.7502-1T(d) to provide that
the date of an electronic postmark given by an authorized electronic
return transmitter will be deemed the filing date if the date of the
electronic postmark is on or before the filing due date. It also
permits the Commissioner to enter into an agreement with an electronic
return transmitter or to prescribe in forms, instructions, or other
appropriate guidance the procedures under which the electronic return
transmitter is authorized to provide taxpayers with an electronic
postmark to acknowledge the date and time that the electronic return
transmitter received the electronically filed document.
An electronic return transmitter is defined for purposes of the
regulation the same as in the revenue procedures governing the
Electronic Filing Program, currently Rev. Proc. 98-50 (1998-38 I.R.B. 8
(September 21, 1998)), and the On-Line Filing Program, currently Rev.
Proc. 98-51 (1998-38 I.R.B. 20 (September 21, 1998)). An electronic
postmark is a record of the date and time that an authorized electronic
return transmitter receives the transmission of the taxpayer's
electronically filed document on its host system.
For tax year 1998, the rules on electronic postmarks are effective
for income tax returns filed through electronic return transmitters
authorized to provide an electronic postmark pursuant to an agreement
under the
[[Page 2569]]
Electronic Tax Administration's Request for Agreement released on
November 26, 1997. For taxable years beginning after 1998, the rules on
electronic postmarks are effective for documents submitted to
electronic return transmitters that are authorized to provide an
electronic postmark pursuant to Sec. 301.7502-1T(d)(2).
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)
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, these
regulations will be submitted to the Chief Counsel for Advocacy of the
Small Business Administration for comment on their impact on small
business.
Drafting information: The principal author of these regulations is
Charles A. Hall, Office of Assistant Chief Counsel (Income Tax &
Accounting). However, other personnel from the IRS and Treasury
Department participated in their development.
List of Subjects in 26 CFR Part 301
Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income
taxes, Penalties, Reporting and recordkeeping requirements.
Adoption of Amendments to the Regulations
Accordingly, 26 CFR part 301 is amended as follows:
PART 301--PROCEDURE AND ADMINISTRATION
Paragraph 1. The authority citation for part 301 is amended by
adding an entry in numerical order to read as follows:
Authority: 26 U.S.C. 7805 * * *
Section 301.7502-1T also issued under 26 U.S.C. 7502(c) * * *
Par. 2. Section 301.7502-1 is amended by:
1. Redesignating paragraphs (d) and (e) as paragraphs (e) and (f)
respectively.
2. Adding new paragraph (d).
The addition reads as follows:
Sec. 301.7502-1 Timely mailing treated as timely filing.
* * * * *
(d) [Reserved]. For further guidance regarding timely filing of
electronically filed documents for taxable years beginning after
December 31, 1997, see Sec. 301.7502-1T(d).
* * * * *
Par. 3. Section 301.7502-1T is added to read as follows:
Sec. 301.7502-1T Timely mailing treated as timely filing (temporary).
(a) through (c) [Reserved]. For further guidance, see
Sec. 301.7502-1(a) through (c).
(d) Electronically filed documents--(1) In general. A document
filed electronically with an electronic return transmitter (as defined
in paragraph (d)(3)(i) of this section and authorized pursuant to
paragraph (d)(2) of this section) in the manner and time prescribed by
the Commissioner is deemed to be filed on the date of the electronic
postmark (as defined in paragraph (d)(3)(ii) of this section) given by
the authorized electronic return transmitter. Thus, if the electronic
postmark is timely, the document is considered filed timely although it
is received by the agency, officer, or office after the last date, or
the last day of the period, prescribed for filing such document.
(2) Authorized electronic return transmitters. The Commissioner may
enter into an agreement with an electronic return transmitter or
prescribe in forms, instructions, or other appropriate guidance the
procedures under which the electronic return transmitter is authorized
to provide taxpayers with an electronic postmark to acknowledge the
date and time that the electronic return transmitter received the
electronically filed document.
(3) Definitions--(i) Electronic return transmitter. For purposes of
this paragraph (d), the term electronic return transmitter has the same
meaning as contained in section 3.02(4) of Rev. Proc. 98-50 (1998-38
I.R.B. 8 (September 21, 1998)), and section 3.02(3) of Rev. Proc. 98-51
(1998-38 I.R.B. 20 (September 21, 1998)) (See Sec. 601.601(d)(2) of
this chapter.), or in procedures subsequently prescribed by the
Commissioner.
(ii) Electronic postmark. For purposes of this paragraph (d), the
term electronic postmark means a record of the date and time (in a
particular time zone) that an authorized electronic return transmitter
receives the transmission of a taxpayer's electronically filed document
on its host system. However, if the taxpayer and the electronic return
transmitter are located in different time zones, it is the time in the
taxpayer's time zone that controls the timeliness of the electronically
filed document.
(e) through (f)(2) [Reserved]. For further guidance, see
Sec. 301.7502-1(e) through (f)(2).
(f)(3) Electronically filed documents--(i) For taxable year 1998.
For taxable year 1998, paragraph (d) of this section only applies to
electronically filed income tax returns transmitted to an electronic
return transmitter that was authorized to provide an electronic
postmark pursuant to an agreement entered into in response to
submissions received in reply to the Electronic Tax Administration's
Request for Agreement released on November 26, 1997.
(ii) For taxable years after 1998. For taxable years after 1998,
paragraph (d) of this section applies to any electronically filed
return, claim, statement, or other document transmitted to an
electronic return transmitter that is authorized to provide an
electronic postmark pursuant to paragraph (d)(2) of this section. This
section expires on January 14, 2002.
Robert E. Wenzel,
Deputy Commissioner of Internal Revenue.
Approved: December 30, 1998.
Donald C. Lubick,
Assistant Secretary of the Treasury.
[FR Doc. 99-700 Filed 1-14-99; 8:45 am]
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