[Federal Register Volume 64, Number 10 (Friday, January 15, 1999)]
[Proposed Rules]
[Pages 2606-2610]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-701]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[REG-115433-98]
RIN 1545-AW81


Timely Mailing Treated as Timely Filing/Electronic Postmark

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking; and, withdrawal of previous 
notice of proposed rulemaking.

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SUMMARY: This document contains proposed regulations relating to timely 
mailing treated as timely filing and paying under section 7502. The 
proposed regulations generally reflect changes to the law made since 
1960. The proposed regulations affect taxpayers that file documents or 
make payments or deposits. This document also withdraws a previous 
notice of proposed rulemaking published in the Federal Register of 
December 11, 1979.

DATES: Written comments and requests for a public hearing must be 
received by April 15, 1999. The notice of proposed rulemaking published 
at 44 FR 71430, December 11, 1979, is withdrawn as of January 15, 1999.

ADDRESSES: Send submissions to: CC:DOM:CORP:R (REG-115433-98), room 
5226, Internal Revenue Service, POB 7604, Ben Franklin Station, 
Washington, DC 20044. Submissions may be hand delivered Monday through 
Friday between the hours of 8 a.m. and 5 p.m. to: CC:DOM:CORP:R (REG-
115433-98), Courier's Desk, Internal Revenue Service, 1111 Constitution 
Avenue NW, Washington, DC. Alternatively, taxpayers may submit comments 
electronically via the Internet by selecting the ``Tax Regs'' option on 
the IRS Home Page, or by submitting comments directly to the IRS 
Internet site at http://www.irs.ustreas.gov/prod/tax__regs/
comments.html.

FOR FURTHER INFORMATION CONTACT: Concerning submissions, Michael 
Slaughter, (202) 622-7180; concerning the regulations, Charles A. Hall, 
(202) 622-4940 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

    This document contains proposed 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. As 
originally enacted in the Internal Revenue Code of 1954, Public Law 
591, ch. 736 (68A Stat. 895 (1954)), section 7502 provided that if any 
claim, statement, or other document is delivered to the appropriate 
agency, officer, or office after the filing date, the date of the 
United States postmark will be deemed to be the date of delivery if the 
postmark date is on or before the filing due date. In the case of 
registered mail, section 7502 provided that the registration will be 
prima facie evidence of delivery and the date of registration will be 
deemed the postmark date. At the time, section 7502 did not apply to 
the mailing of tax returns or payments.
    The Technical Amendments Act of 1958, Public Law 85-866 (72 Stat. 
1665 (1958)), amended section 7502 by authorizing the Secretary to 
provide by regulations the extent to which the provisions with respect 
to prima facie evidence of delivery and the postmark date will apply to 
certified mail.
    Section 5(a) of the Act of November 2, 1966, Public Law 89-713 (80 
Stat. 1110 (1966)), amended section 7502 to apply the timely mailing 
rules to returns and the payment of taxes. Section 106(a) of the 
Revenue and Expenditure Control Act of 1968, Public Law 90-364 (82 
Stat. 266 (1968)), extended these rules to the mailing of deposits of 
tax. The Deficit Reduction Act of 1984, Public Law 98-369 (98 Stat. 695 
(1984)), limited the timely mailing rules to deposits of less than 
$20,000 in the case of any person who is required to deposit more than 
once a month.
    Minor changes were also made to section 7502 by the Tax Reform Act 
of 1976, Public Law 94-455 (90 Stat. 1831 and 1834 (1976)), the Act of 
October 28, 1977, Public Law 95-147 (91 Stat. 1228 (1977)), and the Tax 
Reform Act of 1986,

[[Page 2607]]

Public Law 99-514 (100 Stat. 2833 (1986)).
    The existing regulations (TD 6232) under section 7502 were last 
amended on October 25, 1960 (25 FR 10247) to implement changes made by 
the Technical Amendments Act of 1958. The regulations provide that the 
prima facie evidence of delivery and postmark date rules apply to 
certified mail.
    A notice of proposed rulemaking (REG-209351-71, formerly LR-1406) 
was published on December 11, 1979 (44 FR 71430) to implement changes 
made by the Act of November 2, 1966, the Revenue and Expenditure 
Control Act of 1968, the Tax Reform Act of 1976, and the Act of October 
28, 1977. The proposed regulations would have conformed the existing 
regulations to these changes. Because the proposed changes are 
incorporated in this document, the earlier notice of proposed 
rulemaking is withdrawn.
    In 1996, section 1210 of The Taxpayer Bill of Rights 2, Public Law 
104-168 (110 Stat. 1474 (1996)), added section 7502(f) to provide that 
the term United States mail includes a designated delivery service and 
that the term postmark includes the date recorded or marked by a 
designated delivery service. The provision allows the IRS to determine 
whether a service of a private delivery service (PDS) is a designated 
delivery service. Section 7502(f) also allows the IRS to provide a rule 
that equates a service provided by a PDS to United States registered or 
certified mail. The IRS has determined that certain delivery services 
of four PDSs are designated for purposes of section 7502(f). However, 
the IRS has not yet determined that any service of a PDS is 
substantially equivalent to United States registered or certified mail. 
See Notice 98-47 (1998--37 I.R.B. 8 (September 14, 1998)).
    Finally, 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 proposed regulations propose to add a new Sec. 301.7502-1(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 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. 301.7502-1(d)(2).
    The remainder of the changes contained in Secs. 301.7502-1 and 
301.7502-2 conform the regulations to the expanded scope of section 
7502 as amended over the years. For instance, Sec. 301.7502-1 provides 
that the timely mailing treated as timely filing rule extends to the 
mailing of tax returns and payments. Additionally, Sec. 301.7502-2 
provides guidance on the timely mailing of deposits.
    In 1980, IRS and the Treasury Department received comments in 
response to the notice of proposed rulemaking. Comments have not been 
requested since that time. Accordingly, the public is encouraged to 
make comments regarding this notice of proposed rulemaking, including 
comments regarding whether section 7502 should apply to claims for 
refunds made on delinquent original income tax returns or whether the 
prima facie evidence of delivery rule for registered mail should be 
extended to services of a PDS or to electronic filing of documents.

Effect on Other Documents

    The notice of proposed rulemaking published in the Federal Register 
for December 11, 1979 (REG-209351-71, formerly LR-1406, 44 FR 71430) is 
withdrawn as of January 15, 1999.

Special Analyses

    It has been determined that this notice of proposed rulemaking 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, this 
notice of proposed rulemaking will be submitted to the Chief Counsel 
for Advocacy of the Small Business Administration for comment on its 
impact on small business.

Comments and Requests for a Public Hearing

    Before these proposed regulations are adopted as final regulations, 
consideration will be given to any comments (a signed original and 
eight (8) copies) that are submitted timely to the IRS. The IRS and 
Treasury Department request comments on the clarity of the proposed 
rules 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 by any person that timely submits comments. If a 
public hearing is scheduled, notice of the date, time, and place for 
the hearing will be published in the Federal Register.
    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.

Proposed Amendments to the Regulations

    Accordingly, 26 CFR part 301 is proposed to be amended as follows:

PART 301--PROCEDURE AND ADMINISTRATION

    Paragraph 1. The authority citation for part 301 is amended by 
adding entries in numerical order to read as follows:


[[Page 2608]]


    Authority: 26 U.S.C. 7805 * * *
    Section 301.7502-1 also issued under 26 U.S.C. 7502 * * *
    Section 301.7502-2 also issued under 26 U.S.C. 7502 * * *

    Par. 2. Section 301.7502-1 is revised to read as follows:


Sec. 301.7502-1  Timely mailing of documents and payments treated as 
timely filing and paying.

    (a) General rule. Section 7502 provides that, if the requirements 
of that section are met, a document or payment (within the meaning of 
paragraph (b) of this section) is deemed to be filed or paid on the 
date of the postmark stamped on the envelope or other appropriate 
wrapper (envelope) in which the document or payment was mailed. Thus, 
if the envelope that contains the document or payment has a timely 
postmark, the document or payment is considered timely filed or paid 
even if it is received after the last date, or the last day of the 
period, prescribed for filing the document or making the payment. 
However, if a document or payment is not considered timely filed or 
timely paid under section 7502, the document or payment is not deemed 
to be filed or paid on the date of the postmark stamped on the envelope 
in which the document or payment was mailed. Thus, section 7502 does 
not apply to determine the period of time during which there is a 
failure to file a return or pay a tax for purposes of computing the 
penalties and additions to tax imposed by section 6651. Except as 
provided in section 7502(e) and Sec. 301.7502-2, relating to the timely 
mailing of deposits, and paragraph (d) of this section, relating to 
electronically filed documents, section 7502 is applicable only to 
those documents or payments as defined in paragraph (b) of this section 
and only if the document or payment is mailed in accordance with 
paragraph (c) of this section and is delivered in accordance with 
paragraph (e) of this section.
    (b) Definitions--(1) Document defined. (i) The term document, as 
used in this section, means any return, claim, statement, or other 
document required to be filed within a prescribed period or on or 
before a prescribed date under authority of any provision of the 
internal revenue laws, except as provided in paragraph (b)(1)(ii), 
(iii), or (iv) of this section.
    (ii) The term does not include returns, claims, statements, or 
other documents that are required under any provision of the internal 
revenue laws or the regulations thereunder to be delivered by any 
method other than mailing.
    (iii) The term does not include any document filed in any court 
other than the Tax Court, but the term does include any document filed 
with the Tax Court, including a petition for redetermination of a 
deficiency and a petition for review of a decision of the Tax Court.
    (iv) The term does not include any document that is required to be 
filed with a bank or other depositary under section 6302. However, see 
Sec. 301.7502-2 for special rules relating to the timeliness of 
deposits and documents required to be filed with deposits.
    (2) Payment defined. (i) The term payment, as used in this section, 
means any payment required to be made within a prescribed period or on 
or before a prescribed date under the authority of any provision of the 
internal revenue laws, except as provided in paragraph (b)(2)(ii), 
(iii), (iv), or (v) of this section.
    (ii) The term does not include any payment that is required under 
any provision of the internal revenue laws or the regulations 
thereunder to be delivered by any method other than mailing. See, for 
example, section 6302(h) and the regulations thereunder regarding 
electronic funds transfer.
    (iii) The term does not include any payment, whether it is made in 
the form of currency or other medium of payment, unless it is actually 
received and accounted for. For example, if a check is used as the form 
of payment, this section does not apply unless the check is honored 
upon presentation.
    (iv) The term does not include any payment to any court other than 
the Tax Court.
    (v) The term does not include any deposit that is required to be 
made with a bank or other depositary under section 6302. However, see 
Sec. 301.7502-2 for rules relating to the timeliness of deposits.
    (3) Last date or last date prescribed. As used in this section, the 
term the last date, or the last day of the period, prescribed for 
filing the document or making the payment includes any extension of 
time granted for that action. When the last date, or the last day of 
the period, prescribed for filing the document or making the payment 
falls on a Saturday, Sunday or legal holiday, section 7503 applies. 
Therefore, in applying the rules of this paragraph (b)(3), the next 
succeeding day that is not a Saturday, Sunday, or legal holiday is 
treated as the last date, or the last day of the period, prescribed for 
filing the document or making the payment.
    (c) Mailing requirements--(1) In general. Section 7502 does not 
apply unless the document or payment is mailed in accordance with the 
following requirements:
    (i) Envelope and address. The document or payment must be contained 
in an envelope, properly addressed to the agency, officer, or office 
with which the document is required to be filed or to which the payment 
is required to be made.
    (ii) Timely deposited in U.S. mail. The document or payment must be 
deposited within the prescribed time in the mail in the United States 
with sufficient postage prepaid. For this purpose, a document or 
payment is deposited in the mail in the United States when it is 
deposited with the domestic mail service of the U.S. Postal Service. 
The domestic mail service of the U.S. Postal Service, as defined by the 
Domestic Mail Manual as incorporated by reference in the postal 
regulations, includes mail transmitted within, among, and between the 
United States of America, its territories and possessions, and Army 
post offices (APO), fleet post offices (FPO), and the United Nations, 
NY. (See Domestic Mail Manual, section G011.2.1, as incorporated by 
reference in 39 CFR 111.1.) Section 7502 does not apply to any document 
or payment that is deposited with the mail service of any other 
country.
    (iii) Postmark--(A) U.S. Postal Service postmark. If the postmark 
on the envelope is made by the U.S. Postal Service, the postmark must 
bear a date on or before the last date, or the last day of the period, 
prescribed for filing the document or making the payment. If the 
postmark does not bear a date on or before the last date, or the last 
day of the period, prescribed for filing the document or making the 
payment, the document or payment is considered not to be timely filed 
or paid, regardless of when the document or payment is deposited in the 
mail. Accordingly, the sender who relies upon the applicability of 
section 7502 assumes the risk that the postmark will bear a date on or 
before the last date, or the last day of the period, prescribed for 
filing the document or making the payment. See, however, paragraph 
(c)(2) of this section with respect to the use of registered mail or 
certified mail to avoid this risk. If the postmark on the envelope is 
made by the U.S. Postal Service but is not legible, the person who is 
required to file the document or make the payment has the burden of 
proving the date that the postmark was made. Furthermore, if the 
envelope that contains a document or payment has a timely postmark made 
by the U.S. Postal Service but it is received after the time when a 
document or payment postmarked and mailed at that

[[Page 2609]]

time would ordinarily be received, the sender may be required to prove 
that it was timely mailed.
    (B) Postmark made by other than U.S. Postal Service--(1) In 
general. If the postmark on the envelope is made other than by the U.S. 
Postal Service--
    (i) The postmark so made must bear a legible date on or before the 
last date, or the last day of the period, prescribed for filing the 
document or making the payment; and
    (ii) The document or payment must be received by the agency, 
officer, or office with which it is required to be filed not later than 
the time when a document or payment contained in an envelope that is 
properly addressed, mailed, and sent by the same class of mail would 
ordinarily be received if it were postmarked at the same point of 
origin by the U.S. Postal Service on the last date, or the last day of 
the period, prescribed for filing the document or making the payment.
    (2) Document or payment received late. If the document or payment 
is received after the time when a document or payment so mailed and so 
postmarked by the U.S. Postal Service would ordinarily be received, the 
document or payment is treated as having been received at the time when 
a document or payment so mailed and so postmarked would ordinarily be 
received if the person who is required to file the document or make the 
payment establishes--
    (i) That it was actually deposited in the U.S. mail before the last 
collection of the mail from the place of deposit which was postmarked 
(except for the metered mail) by the U.S. Postal Service on or before 
the last date, or the last day of the period, prescribed for filing the 
document or making the payment;
    (ii) That the delay in receiving the document or payment was due to 
a delay in the transmission of the U.S. mail; and
    (iii) The cause of the delay.
    (3) U.S. and non-U.S. postmarks. If the envelope has a postmark 
made by the U.S. Postal Service in addition to the postmark not so 
made, the postmark that was not made by the U.S. Postal Service is 
disregarded, and whether the envelope was mailed in accordance with 
this paragraph (c)(1)(iii)(B) will be determined solely by applying the 
rule of paragraph (c)(1)(iii)(A) of this section.
    (2) Registered or certified mail. If the document or payment is 
sent by U.S. registered mail, the date of registration of the document 
or payment is treated as the postmark date. If the document or payment 
is sent by U.S. certified mail and the sender's receipt is postmarked 
by the postal employee to whom the document or payment is presented, 
the date of the U.S. postmark on the receipt is treated as the postmark 
date of the document or payment. Accordingly, the risk that the 
document or payment will not be postmarked on the day that it is 
deposited in the mail may be eliminated by the use of registered or 
certified mail.
    (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) Delivery. (1) Except as provided in section 7502(f) and 
paragraph (d) of this section, section 7502 is not applicable unless 
the document or payment is delivered by U.S. mail to the agency, 
officer, or office with which the document is required to be filed or 
to which payment is required to be made. However, in the case of a 
document (but not a payment) sent by registered or certified mail, 
proof that the document was properly registered or that a postmarked 
certified mail sender's receipt was properly issued and that the 
envelope was properly addressed to the agency, officer, or office 
constitutes prima facie evidence that the document was delivered to the 
agency, officer, or office.
    (2) Section 7502 is applicable only when the document or payment is 
delivered after the last date, or last day of the period, prescribed 
for filing the document or making the payment. Thus, section 7502 is 
applicable when a claim for credit or refund is delivered after the 
last day of the period specified in section 6511 or in any other 
corresponding provision of law relating to the limit on the amount of 
credit or refund that is allowable. For example, taxpayer A was 
required to file an income tax return for 1993 on or before April 15, 
1994, but A secured an extension until August 15, 1994, to file such 
return. A filed the return on August 15, 1994, but no tax was paid at 
that time because the tax liability disclosed by the return had been 
completely satisfied by the income tax that had been withheld on A's 
wages. On August 14, 1997, A mailed in accordance with the requirements 
of this section a claim for refund of a portion of this 1993 tax. The 
envelope containing the claim was postmarked on August 14, 1997, but it 
was not delivered to the Service Center until August 18, 1997. Under 
section 6511, A's claim for refund is timely if filed within three 
years from August 15, 1994. Thus, since A's claim for refund was mailed 
in accordance with the requirements of this section and was delivered 
after the last day of the period specified in section 6511, section 
7502 is applicable and the claim is deemed to have been filed on August 
14, 1997.
    (f) Effective date--(1) In general. This section applies to any 
payment or document mailed and delivered in accordance with the 
requirements of this section in an envelope bearing a postmark dated 
after January 15, 1999.
    (2) Electronically filed documents--(i) For taxable year 1998. For 
taxable year 1998, 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

[[Page 2610]]

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, 
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.
    Par. 3. Section 301.7502-2 is added to read as follows:


Sec. 301.7502-2  Timely mailing of deposits. 

    (a) General rule-(1) Two day rule. Section 7502(e) provides that, 
if the requirements of that section are met, a deposit is deemed to be 
received on the date the deposit was mailed even though it is received 
after the date prescribed for making the deposit. The requirements of 
the section are met if the person required to make the deposit 
establishes that the date of mailing was on or before the second day 
preceding the date prescribed for making the deposit. If the date of 
mailing was not established to be on or before the second day preceding 
the date prescribed for making the deposit, the deposit will not be 
considered timely received unless it is actually received on or before 
the date prescribed for making the deposit. Section 7502(e) only 
applies to a deposit mailed to the bank, trust company, domestic 
building and loan association, or credit union authorized to receive 
that deposit. Thus, section 7502(e) does not apply to any remittance 
mailed to an internal revenue service center.
    (2) Deposits of $20,000 or more. Paragraph (a)(1) of this section 
does not apply with respect to any deposit of $20,000 or more by any 
person required to deposit any tax more than once a month. Any such 
deposit must be made by the due date for such deposit, regardless of 
the method of delivery.
    (b) Deposit defined. The term deposit, as used in this section, 
means any deposit of tax required to be made on or before a prescribed 
date pursuant to regulations prescribed under section 6302. For 
information regarding the making of deposits by electronic funds 
transfer, see section 6302(h) and the regulations thereunder.
    (c) Mailing requirements--(1) In general. Section 7502(e) does not 
apply unless the deposit is mailed in accordance with the requirements 
of paragraph (c)(2) of this section.
    (2) Requirements. The date of mailing must fall on or before the 
second day preceding the prescribed date for making a deposit 
(including any extension of time granted for making the deposit). For 
example, if a deposit is due on or before January 15, the date of 
mailing must fall on or before January 13. The deposit must be 
contained in an envelope or other appropriate wrapper approved for use 
in the mails by the U.S. Postal Service, properly addressed to the 
bank, trust company, domestic building and loan association, or credit 
union authorized to receive the deposit. The deposit must be deposited 
with sufficient postage prepaid on or before the second day in the mail 
in the United States within the meaning of Sec. 301.7502-1.
    (3) Registered and certified mail. The provisions of Sec. 301.7502-
1(c)(2) apply to a deposit sent by U.S. registered mail or U.S. 
certified mail as if the deposit were a payment, except that the date 
of registration or the date of the postmark on the sender's receipt is 
considered the date of mailing of such deposit.
    (d) Delivery. Section 7502(e) does not apply unless a deposit is 
actually delivered by U.S. mail to the authorized financial institution 
with which the deposit is required to be made and is accepted by that 
financial institution. For rules relating to the acceptance of deposits 
by authorized financial institutions (see 31 CFR 203.18). The fact that 
a deposit is sent by U.S. registered or U.S. certified mail does not 
constitute prima facie evidence that the deposit was delivered to the 
financial institution authorized to receive the deposit. Section 
7502(e) does not apply unless the deposit is delivered after the date 
prescribed for making the deposit.
    (e) Effective date. This section applies to all deposits required 
to be made after January 15, 1999.
Robert E. Wenzel,
Deputy Commissioner of Internal Revenue.
[FR Doc. 99-701 Filed 1-14-99; 8:45 am]
BILLING CODE 4830-01-U