[Federal Register Volume 68, Number 112 (Wednesday, June 11, 2003)]
[Rules and Regulations]
[Pages 34797-34799]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-14603]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 1, 31, and 602

[TD 9061]
RIN 1545-BB55


Automatic Extension of Time To File Certain Information Returns 
and Exempt Organization Returns

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final and temporary regulations.

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SUMMARY: This document contains temporary regulations providing an 
automatic extension of time to file certain information returns and 
exempt organization returns. The temporary regulations remove the 
requirement for a signature and an explanation to obtain an automatic 
extension of time to file these returns. The temporary regulations 
affect taxpayers who are required to file certain information returns 
and/or exempt organization returns and need an extension of time to 
file. The text of the temporary regulations also serves as a portion of 
the text of the proposed regulations set forth in the notice of 
proposed rulemaking on this subject in the Proposed Rules section in 
this issue of the Federal Register.

DATES: Effective Date: These regulations are effective on June 11, 
2003.
    Applicability Date: For dates of applicability for these 
regulations, see Sec. Sec.  1.6081-8T, 1.6081-9T, and 31.6081(a)-1T(d).

FOR FURTHER INFORMATION CONTACT: Charles A. Hall, (202) 622-4940 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

    These temporary regulations are being issued without prior notice 
and public procedure pursuant to the Administrative Procedure Act (5 
U.S.C. 553). For this reason, the collection of information contained 
in these regulations has been reviewed and, pending receipt and 
evaluation of public comments, approved by the Office of Management and 
Budget under OMB control number 1545-1840. Responses to this collection 
of information are required by the IRS for taxpayers to obtain a 
benefit (an automatic extension of time to file certain information or 
exempt organization returns).
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless the collection of 
information displays a valid control number.
    For further information concerning this collection of information, 
and where to submit comments on the collection of information and the 
accuracy of the estimated burden, and suggestions for reducing this 
burden, please refer to the preamble to the cross-referencing notice of 
proposed rulemaking published in the Proposed Rules section of this 
issue of the Federal Register.
    Books and records relating to a collection of information must be 
retained as long as their contents may become material in the 
administration of any internal revenue law. Generally, tax returns and 
tax return information are confidential, as required by 26 U.S.C. 6103.

Background

    This document contains amendments to 26 CFR parts 1, 31, and 602 
under section 6081 of the Internal Revenue Code. Section 6081(a) 
provides that the Secretary may grant a reasonable extension of time 
for filing any return, declaration, statement, or other document 
required by Title 26 or by regulations. Except in the case of taxpayers 
who are abroad, no such extension shall be for more than 6 months. The 
regulations under section 6081 provide specific rules taxpayers must 
follow to request an extension of time to file Federal tax returns.
    Under the generally applicable rule, a taxpayer must submit an 
application for the extension on or before the due date of the return. 
The application must be in writing, must be properly signed by the 
taxpayer or his duly authorized agent, and must clearly set forth the 
particular tax return for which the extension of the time for filing is 
desired and a full recital of the reasons for requesting the extension. 
These rules apply to all returns other than those for which the 
regulations provide special rules. In addition, the Employment Tax 
Regulations provide rules for employers to obtain an extension of time 
to file the Social Security Administration copy of Forms W-2 and W-3. 
Under those rules, the request must contain a concise statement of the 
reasons for requesting the extension.

Explanation of Provisions

Information Returns

    Filers and transmitters of information returns on Form 1099 
(series), 1098 (series), 5498 (series), W-2 (series), W-2G, 1042-S, and 
8027 can obtain an extension of time to file these information returns 
by submitting a signed paper Form 8809, ``Request for Extension of Time 
to File Information Returns.'' The extensions are most often for a 
period of 30 days. Filers and transmitters may thereafter request an 
additional 30-day extension. The extensions apply only to the filing 
with the government. The filer or transmitter is still required to 
provide statements to the recipients by the date specified in the Code 
or the regulations.
    Currently, in compliance with the regulations, Form 8809 requires a 
signature and asks for an explanation of the reasons for the request 
for an extension. In current practice, however, the explanation is not 
a determining factor for the initial extension. If the filer supplies 
the name, address, Employer Identification Number, tax year, and type 
of form(s), the initial extension is routinely granted. An extension 
beyond the initial 30-day period will not be granted, however, unless 
the filer provides a detailed explanation.
    These temporary regulations allow filers and transmitters to 
request an automatic 30-day extension of time to file without having to 
sign Form 8809 and provide an explanation. An explanation and a 
signature are required if filers and transmitters need additional time 
to file after receiving the automatic 30-day extension. These 
regulations also permit employers to obtain an extension of time to 
file the Social Security Administration copy of Forms W-2 and W-3 
without providing a statement of the reasons for requesting the 
extension.

[[Page 34798]]

    The new rules will allow the IRS to develop an effective online 
version of the extension request. Filers and transmitters will benefit 
from the simplified extension procedure that will provide immediate 
approval. The IRS will benefit from the efficiencies inherent in such a 
system and will move closer to achieving electronic filing goals.
    Filers and transmitters are eligible for only one automatic 
extension of time to file. Filers and transmitters filing Forms W-2 on 
an expedited basis under section 31.6071(a)-1(a)(3)(ii) may receive an 
automatic extension of time to file Forms W-2 under Rev. Proc. 96-57, 
1996-2 C.B. 389. These filers and transmitters are not eligible to 
obtain the 30-day automatic extension under Sec.  1.6081-8T(b). If 
these filers and transmitters need additional time, they may request an 
extension under the generally applicable procedures for obtaining 
additional extensions of time to file Form W-2.

Exempt Organization Returns

    These temporary regulations also allow an exempt organization 
required to file a return on Form 990 (series), 1041-A, 4720, 5227, 
6069, or 8870 an automatic three-month extension of time to file if (a) 
an application is submitted on Form 8868, ``Application for Extension 
of Time To File an Exempt Organization Return,'' (b) the application is 
filed on or before the date the return is due, (c) the application 
shows the full amount properly estimated as tax, and (d) the 
application is accompanied by full remittance of the amount properly 
estimated as tax that is unpaid as of the date prescribed for the 
filing of the return.
    A signature and an explanation of the reasons for requesting the 
extension are not required for an exempt organization to receive the 
automatic three-month extension of time to file. If an exempt 
organization needs additional time to file a return after receiving the 
automatic three-month extension, the exempt organization may file a 
signed Form 8868 that explains in detail why the additional time is 
needed. The IRS may grant an additional three months for the exempt 
organization to file.

Deadwood Provisions

    These regulations also remove Sec.  1.6081-1T and Sec. Sec.  
31.6011(a)-5(b)(1) and 31.6081(a)-1(a)(2). Section 1.6081-1T is removed 
because it relates only to returns for tax years ending before February 
1, 1985. Sections 31.6011(a)-5(b)(1) and 31.6081(a)-1(a)(2) are removed 
because they relate to information returns that are no longer required.

Special Analyses

    It has been determined that this Treasury decision is not a 
significant regulatory action as defined in Executive Order 12866. 
Therefore, a regulatory assessment is not required. It has also been 
determined that section 553(b) of the Administrative Procedure Act (5 
U.S.C. chapter 5) does not apply to the regulations. For the 
applicability of the Regulatory Flexibility Act (5 U.S.C. chapter 6), 
refer to the Special Analyses section of the preamble to the cross-
reference notice of proposed rulemaking published in the Proposed Rules 
section of this issue of the Federal Register. Pursuant to section 
7805(f) of the Internal Revenue Code, these temporary regulations will 
be submitted to the Chief Counsel for Advocacy of the Small Business 
Administration for comment on their impact on small businesses.

Drafting Information

    The principal author of the regulations is Charles A. Hall of the 
Office of Associate Chief Counsel, Procedure and Administration 
(Administrative Provisions and Judicial Practice Division).

List of Subjects

26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

26 CFR Part 31

    Employment taxes, Income taxes, Penalties, Pensions, Railroad 
retirement, Reporting and recordkeeping requirements, Social security, 
Unemployment compensation.

26 CFR Part 602

    Reporting and recordkeeping requirements.

Amendments to the Regulations

0
Accordingly, 26 CFR parts 1, 31, and 602 are amended as follows:

PART 1--INCOME TAXES

0
Paragraph 1. The authority citation for part 1 is amended by adding 
entries in numerical order to read in part as follows:

    Authority: 26 U.S.C. 7805 * * *
    Section 1.6081-8T also issued under 26 U.S.C. 6081.
    Section 1.6081-9T also issued under 26 U.S.C. 6081. * * *


Sec.  1.6081-1T  [Removed]

0
Par. 2. Section 1.6081-1T is removed.

0
Par. 3. Section 1.6081-8T is added to read as follows:


Sec.  1.6081-8T  Automatic extension of time to file certain 
information returns (temporary).

    (a) In general. A person required to file an information return 
(the filer) on Form W-2 series, W-2G, 1042-S, 1098 series, 1099 series, 
5498 series, or 8027 will be allowed an automatic 30-day extension of 
time to file the return after the date prescribed for filing the return 
if the filer or the person transmitting the return for the filer (the 
transmitter) files an application in accordance with paragraph (b) of 
this section.
    (b) Requirements. To satisfy this paragraph (b), an application 
must--
    (1) Be submitted on Form 8809, ``Request for Extension of Time To 
File Information Returns,'' or in any other manner as may be prescribed 
by the Commissioner; and
    (2) Be filed with the Internal Revenue Service office designated in 
the application's instructions on or before the date prescribed for 
filing the information return.
    (c) Penalties. See sections 6652, 6693, 6721, 6722, and 6723 for 
failure to file an information return.
    (d) Additional 30-day extension of time to file--(1) In general. 
This paragraph (d) provides procedures for obtaining an additional 
extension of time for filing an information return on a form listed in 
paragraph (a) of this section. No extension of time will be granted 
under this paragraph (d) unless the filer or transmitter has first 
obtained an automatic extension.
    (2) Procedures. In the case of an information return on a form 
listed in paragraph (a) of this section, one additional 30-day 
extension of time to file the return may be allowed if the filer or 
transmitter submits a request for the additional extension before the 
expiration of the automatic 30-day extension. The request must--
    (i) Be submitted on Form 8809 or in any other manner as may be 
prescribed by the Commissioner;
    (ii) Explain in detail why the additional time is needed;
    (iii) Be signed by the filer or transmitter; and
    (iv) Otherwise satisfy the requirements of Sec.  1.6081-1.
    (e) No effect on time to provide statement to recipients. An 
extension under this section of time to file an information return does 
not extend the due date for providing a statement to the person with 
respect to whom the information is required to be reported.
    (f) Effective date. This section applies to requests for extension 
of time to file

[[Page 34799]]

information returns due after June 11, 2003. The applicability of this 
section expires on June 12, 2006.

0
Par. 4. Section 1.6081-9T is added to read as follows:


Sec.  1.6081-9T  Automatic extension of time to file exempt 
organization returns (temporary).

    (a) In general. An exempt organization required to file a return on 
Form 990 (series), 1041-A, 4720, 5227, 6069, or 8870 will be allowed an 
automatic three-month extension of time to file the return after the 
date prescribed for filing if the exempt organization files an 
application in accordance with paragraph (b) of this section. For 
guidance on extensions of time for an exempt organization to file Form 
1120-POL, U.S. Income Tax Return for Certain Political Organizations, 
see Sec.  1.6081-3.
    (b) Requirements. To satisfy this paragraph (b), an application for 
an automatic extension under this section must--
    (1) Be submitted on Form 8868, ``Application for Extension of Time 
To File an Exempt Organization Return,'' or in any other manner as may 
be prescribed by the Commissioner;
    (2) Be filed with the Internal Revenue Service office designated in 
the application's instructions on or before the date prescribed for 
filing the information return;
    (3) Show the full amount properly estimated as tentative tax for 
the exempt organization for the taxable year; and
    (4) Be accompanied by the full remittance of the amount properly 
estimated as tentative tax which is unpaid as of the date prescribed 
for the filing of the return.
    (c) Termination of automatic extension. The Commissioner may 
terminate an automatic extension at any time by mailing to the exempt 
organization a notice of termination. The notice must be mailed at 
least 10 days prior to the termination date designated in such notice. 
The notice of termination must be mailed to the address shown on the 
application for extension or to the exempt organization's last known 
address. For further guidance regarding the definition of last known 
address, see Sec.  301.6212-2 of this chapter.
    (d) Penalties. See sections 6651 and 6652(c) for failure to file an 
exempt organization return or failure to pay the amount shown as tax on 
the return.
    (e) Coordination with Sec.  1.6081-1. No extension of time will be 
granted under Sec.  1.6081-1 for filing an exempt organization return 
listed in paragraph (a) of this section until an automatic extension 
has been allowed pursuant to this section.
    (f) Effective date. This section applies to requests for extensions 
of time to file an exempt organization return due after June 11, 2003. 
The applicability of this section expires on June 12, 2006.

PART 31--EMPLOYMENT TAXES AND COLLECTION OF INCOME TAX AT SOURCE

0
Par. 5. The authority citation for part 31 continues to read as 
follows:

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

    Section 31.6081(a)-1T also issued under 26 U.S.C. 6081. * * *

0
Par. 6. Section 31.6011(a)-5 is amended by revising paragraph (b) to 
read as follows:


Sec.  31.6011(a)-5  Monthly returns.

* * * * *
    (b) Information returns on Form W-3 and Social Security 
Administration copies of Form W-2. See Sec.  31.6051-2 for requirements 
with respect to information returns on Form W-3 and Social Security 
Administration copies of Form W-2.
* * * * *


Sec.  31.6051-1  [Amended]

0
Par. 7. Section 31.6051-1(d)(2)(i)(c) is amended by removing the 
language ``Sec.  31.6081(a)-1(a)(3)'' and adding ``Sec.  31.6081(a)-
1(a)(2)'' in its place.


Sec.  31.6051-2  [Amended]

0
Par. 8. Section 31.6051-2(c) is amended by removing the language 
``31.6081(a)-1(a)(3)'' and adding ``31.6081(a)-1(a)(2)'' in its place.

0
Par. 9. Section 31.6081(a)-1 is amended by:
0
1. Removing paragraph (a)(2).
0
2. Redesignating paragraph (a)(3) as paragraph (a)(2).
0
3. Revising newly designated paragraph (a)(2)(i).
    The revision reads as follows:


Sec.  31.6081(a)-1  Extensions of time for filing returns and other 
documents.

    (a) * * *
    (2) * * * (i) [Reserved]. For guidance on extensions of time to 
file the Social Security Administration copy of Forms W-2 and W-3 due 
after June 11, 2003, see Sec.  31.6081(a)-1T.
* * * * *

0
Par. 10. Section 31.6081(a)-1T is added to read as follows:


Sec.  31.6081(a)-1T  Extensions of time for filing returns and other 
documents (temporary).

    (a)(1) [Reserved]. For further guidance, see Sec.  31.6081(a)-
1(a)(1).
    (2) Information returns of employers on Forms W-2 and W-3-- (i) In 
general. The Commissioner may grant an extension of time in which to 
file the Social Security Administration copy of Forms W-2 and the 
accompanying transmittal form which constitutes an information return 
under paragraph Sec.  31.6051-2(a). For further guidance regarding 
extensions of time to file the Social Security Administration copy of 
Forms W-2 and W-3, see Sec.  1.6081-8T of this chapter.
    (a)(2)(ii) through (c) [Reserved]. For further guidance, see Sec.  
31.6081(a)-1(a)(2)(ii) through (c).
    (d) Effective date. This section applies to requests for extensions 
of time to file the Social Security Administration copy of Forms W-2 
and W-3 due after June 11, 2003. The applicability of this section 
expires on June 12, 2006.

PART 602--OMB CONTROL NUMBERS UNDER THE PAPERWORK REDUCTION ACT

0
Par. 11. The authority citation for part 602 continues to read as 
follows:

    Authority: 26 U.S.C. 7805.

0
Par. 12. In Sec.  602.101, paragraph (b) is amended by adding the 
following entries in numerical order to the table to read as follows:


Sec.  602.101  OMB Control numbers.

* * * * *
    (b) * * *

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                                                           Current OMB
     CFR part or section identified and described          control No.
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                                * * * * *
1.6081-8T.............................................         1545-1040
1.6081-9T.............................................         1545-1040
                                * * * * *
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David A. Mader,
Assistant Deputy Commissioner of Internal Revenue.
    Approved: May 21, 2003.
Pamela F. Olson,
Assistant Secretary of the Treasury.
[FR Doc. 03-14603 Filed 6-10-03; 8:45 am]
BILLING CODE 4830-01-P