[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]
BILLING CODE 4830-01-U