[Federal Register Volume 68, Number 112 (Wednesday, June 11, 2003)]
[Proposed Rules]
[Pages 34875-34877]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-14604]



[[Page 34875]]

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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 1, 25, 31, 53, 55, and 156

[REG-107618-02]
RIN 1545-BB29


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

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to temporary 
regulations.

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SUMMARY: In the Rules and Regulations section of this issue of the 
Federal Register, the IRS is issuing temporary regulations providing an 
automatic extension of time to file certain information returns and 
exempt organization returns. The text of those regulations also serves 
as the text of these proposed regulations.

DATES: Written or electronic comments and requests for a public hearing 
must be received by September 9, 2003.

ADDRESSES: Send submissions to: CC:PA:RU (REG-107618-02), room 5226, 
Internal Revenue Service, POB 7604, Ben Franklin Station, Washington, 
DC 20044. Submissions may be hand-delivered between the hours of 8 a.m. 
and 4 p.m. to CC:PA:RU (REG-107618-02), Courier's Desk, Internal 
Revenue Service, 1111 Constitution Avenue, NW., Washington, DC. 
Alternatively, taxpayers may submit electronic comments directly to the 
IRS Internet site at: http://www.irs.gov/regs.

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

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

    The collection of information contained in this notice of proposed 
rulemaking has been submitted to the Office of Management and Budget 
for review in accordance with the Paperwork Reduction Act of 1995 (44 
U.S.C. 3507(d)). Comments on the collection of information should be 
sent to the Office of Management and Budget, Attn: Desk Officer for the 
Department of the Treasury, Office of Information and Regulatory 
Affairs, Washington, DC 20503, with copies to the Internal Revenue 
Service, Attn: IRS Reports Clearance Officer, W:CAR:MP:T:T:SP 
Washington, DC 20224. Comments on the collection of information should 
be received by August 11, 2003. Comments are specifically requested 
concerning:
    Whether the proposed collection of information is necessary for the 
proper performance of the functions of the IRS, including whether the 
information will have practical utility;
    The accuracy of the estimated burden associated with the proposed 
collection of information (see below);
    How the quality, utility, and clarity of the information to be 
collected may be enhanced;
    How the burden of complying with the proposed collection of 
information may be minimized, including through the application of 
automated collection techniques or other forms of information 
technology; and
    Estimates of capital or start-up costs and costs of operation, 
maintenance, and purchase of services to provide information.
    The collection of information in this proposed regulation is in 
Sec.  1.6081-8T and Sec.  1.6081-9T. This collection of information is 
required by the IRS for taxpayers to obtain a benefit (an automatic 30-
day extension of time to file certain information returns and an 
automatic three-month extension of time to file exempt organization 
returns). The respondents are taxpayers required to file certain 
information returns or exempt organization returns.
    Estimates of the reporting burden in Sec.  1.6081-8T of these 
proposed regulations are reflected in the burden estimates of Form 
8809, ``Request for Extension of Time to File Information Returns.''
    Estimated total annual reporting burden for 2001 for Form 8809: 
155,000 hours.
    Estimated number of responses for 2001 Form 8809: 50,000.
    Estimated average annual burden hours per response for 2001 Form 
8809: 3 hours and 6 minutes.
    Estimates of the reporting burden in Sec.  1.6081-9T of these 
proposed regulations are reflected in the burden estimates of Form 
8868, ``Application for Extension of Time To File an Exempt 
Organization Return.''
    Estimated total annual reporting burden for 2001 for Form 8868: 
1,373,335 hours.
    Estimated number of responses for 2001 Form 8868: 248,932.
    Estimated average annual burden hours per response for 2001 Form 
8809: 5 hours and 31 minutes.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a valid 
control number assigned by the Office of Management and Budget.
    Books or 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 and Explanation of Provisions

    Temporary regulations in the Rules and Regulations section of this 
issue of the Federal Register amend 26 CFR parts 1 and 31. The 
temporary regulations provide that filers and transmitters of certain 
information returns may obtain an automatic 30-day extension of time to 
file. The temporary regulations also provide that exempt organizations 
may obtain an automatic three-month extension of time to file an exempt 
organization return. The text of those regulations also serves as the 
text of these regulations. The preamble to the temporary regulations 
explains the temporary regulations and these proposed regulations. In 
addition, these regulations also propose other minor changes to conform 
the regulations under section 6081 to current law and practice.

Special Analyses

    It has been determined that this notice of proposed rulemaking 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. It is hereby 
certified that the collection of information in these regulations will 
not have a significant economic impact on a substantial number of small 
entities. This certification is based upon the fact that the collection 
of information imposed by this regulation is not significant because 
the burden in these regulations is more than offset by the reduction of 
the burden in Forms 8809 and 8868. These regulations reduce the burden 
in those forms by removing the signature requirement and the 
requirement to provide an explanation of the need for the extension of 
time to file. Therefore, a Regulatory Flexibility Analysis under the 
Regulatory Flexibility Act (5 U.S.C. chapter 6) is not required. 
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

[[Page 34876]]

Administration for comment on their impact on small business.

Comments and Requests for Public Hearing

    Before these proposed regulations are adopted as final regulations, 
consideration will be given to any written (preferably a signed 
original and 8 copies) or electronic comments 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 will be scheduled if requested in writing by 
any person that timely submits written or electronic comments. If a 
public hearing is scheduled, notice of the date, time, and place for 
the public hearing will be published in the Federal Register.

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 25

    Gift 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 53

    Excise taxes, Foundations, Investments, Lobbying, Reporting and 
recordkeeping requirements.

26 CFR Part 55

    Excise taxes, Investments, Reporting and recordkeeping 
requirements.

26 CFR Part 156

    Excise taxes, Reporting and recordkeeping requirements.

Proposed Amendments to the Regulations

    Accordingly, 26 CFR parts 1, 25, 31, 53, 55, and 156 are proposed 
to be amended as follows:

PART 1--INCOME TAXES

    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 1.6081-8 also issued under 26 U.S.C. 6081(a).
    Section 1.6081-9 also issued under 26 U.S.C. 6081(a). * * *

    Par. 2. Section 1.6081-1 is amended by revising paragraph (a) to 
read as follows:


Sec.  1.6081-1  Extension of time for filing returns.

    (a) In general. The Commissioner is authorized to grant a 
reasonable extension of time for filing any return, declaration, 
statement, or other document which relates to any tax imposed by 
subtitle A of the Code and which is required under the provisions of 
subtitle A or F of the Code or the regulations thereunder. However, 
other than in the case of taxpayers who are abroad, such extensions of 
time shall not be granted for more than 6 months, and the extension of 
time for filing the return of a DISC (as defined in section 992(a)), as 
specified in section 6072(b), shall not be granted. An extension of 
time for filing an income tax return shall not operate to extend the 
time for the payment of the tax or any installment thereof unless 
specified to the contrary in the extension. For rules relating to 
extensions of time for paying tax, see Sec.  1.6161-1.
* * * * *
    Par. 3. Section 1.6081-8 is added to read as follows:


Sec.  1.6081-8  Automatic extension of time to file certain information 
returns.

[The text of proposed Sec.  1.6081-8 is the same as the text of 
Sec.  1.6081-8T published elsewhere in this issue of the Federal 
Register].

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


Sec.  1.6081-9  Automatic extension of time to file exempt organization 
returns.

[The text of proposed Sec.  1.6081-9 is the same as the text of 
Sec.  1.6081-9T published elsewhere in this issue of the Federal 
Register].

PART 25--GIFT TAX; GIFTS MADE AFTER DECEMBER 31, 1954

    Par. 5. The authority citation for part 25 continues to read in 
part as follows:

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

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

    Par. 6. The authority citation for part 31 continues to read in 
part as follows:

    Authority: 26 U.S.C. 7805 * * *
    Par. 7. In Sec.  31.6081(a)-1, paragraph(a)(2)(i) is revised to 
read as follows:


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

    (a) * * *
    (2) * * * (i) [The text of proposed Sec.  31.6081(a)-1(a)(2)(i) is 
the same as the text of Sec.  31.6081(a)-1T(a)(2)(i) published 
elsewhere in this issue of the Federal Register].
* * * * *

PART 53--FOUNDATION AND SIMILAR EXCISE TAXES

    Par. 8. The authority citation for part 53 continues to read as 
follows:

    Authority: 26 U.S.C. 7805.

PART 55--EXCISE TAX ON REAL ESTATE INVESTMENT TRUSTS AND REGULATED 
INVESTMENT COMPANIES

    Par. 9. The first sentence of the authority citation for part 55 is 
revised to read as follows:

    Authority: 26 U.S.C. 6001, 6011, 6071, 6091, and 7805. * * *

PART 156--EXCISE TAX ON GREENMAIL

    Par. 10. The authority citation for part 156 is revised to read as 
follows:

    Authority: 26 U.S.C. 6001, 6011, 6061, 6071, 6091, 6161, and 
7805.

    Par. 11. In the list below, for each section indicated in the left 
column, remove the language in the middle column and add the language 
in the right column in its place:

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           Section                   Remove                  Add
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1.6081-2(f), first sentence.  District director,    Commissioner.
                               including the
                               Assistant
                               Commissioner
                               (International), or
                               the director of a
                               service center.

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1.6081-3(d), first sentence.  District director,    Commissioner may.
                               including the
                               Director of
                               International
                               Operations, or the
                               director of a
                               service center may,
                               in his discretion.
1.6081-4(c), first sentence.  District director,    Commissioner.
                               including the
                               Assistant
                               Commissioner
                               (International), or
                               the director of a
                               service center.
1.6081-5(a)(1)..............  1.6031-1(e)(2)......  1.6031(a)-1(e)(2).
1.6081-6(d), first sentence.  District director,    Commissioner.
                               including the
                               Assistant
                               Commissioner
                               (International), or
                               the director of a
                               service center.
1.6081-7(d), first sentence.  District director,    Commissioner.
                               including the
                               Assistant
                               Commissioner
                               (International), or
                               the director of a
                               service center.
25.6081-1, second sentence..  District director or  Commissioner.
                               director of the
                               service center.
31.6081(a)-1(b), first        District director or  Commissioner.
 sentence.                     director of a
                               service center.
53.6081-1(a), first sentence  District directors    The Commissioner is.
                               and directors of
                               service centers are.
53.6081-1(b), first sentence  To the district       In accordance with
                               director or           the instructions to
                               director of the       the extension
                               service center with   request form.
                               whom the return is
                               to be filed.
55.6081-1, first sentence...  District directors    The Commissioner is.
                               and directors of
                               service centers are.
156.6081-1(a), first          District directors    The Commissioner is.
 sentence.                     and directors of
                               service centers are.
156.6081-1(b), first          To the district       In accordance with
 sentence.                     director or           the instructions to
                               director of the       the extension
                               service center with   request form.
                               whom the return is
                               to be filed.
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Judith B. Tomaso,
Acting Deputy Commissioner for Services and Enforcement.
[FR Doc. 03-14604 Filed 6-10-03; 8:45 am]
BILLING CODE 4830-01-P