[Federal Register Volume 70, Number 214 (Monday, November 7, 2005)]
[Rules and Regulations]
[Pages 67356-67364]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-21981]


-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

26 CFR Parts 1, 25, 26, 53, 55, 156, 157, 301

[TD 9229]
RIN 1545-BE63


Extension of Time for Filing Returns

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final and temporary regulations.

-----------------------------------------------------------------------

SUMMARY: This document contains final and temporary regulations 
relating to the simplification of procedures for obtaining automatic 
extensions of time to file certain returns. The portions of this 
document that are final regulations provide necessary cross-references 
to the temporary regulations. The temporary regulations allow 
individual income taxpayers and certain other taxpayers to obtain an 
automatic six-month extension of time to file certain returns by filing 
a single request. For these returns, the temporary regulations also 
remove the requirements for a signature and an explanation of the need 
for an extension of time to file. The temporary regulations affect 
taxpayers who are required to file certain returns and need an 
extension of time to file. The text of the temporary regulations also 
serves as the text of the proposed regulations 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 November 7, 
2005.
    Applicability Dates: For dates of applicability of these 
regulations, see Sec. Sec.  1.6081-2T(i), 1.6081-3T(e)(2), 1.6081-
4T(f), 1.6081-5T(g), 1.6081-6T(g), 1.6081-7T(g), 1.6081-10T(f), 1.6081-
11T(e), 25.6081-1T(f), 26.6081-1T(f), 53.6081-1T(f), 55.6081-1T(f), 
156.6081-1T(f), 157.6081-1T(f), and 301.6081-2T(e).

FOR FURTHER INFORMATION CONTACT: Allen D. Madison, (202) 622-4940 (not 
a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    This document contains amendments to 26 CFR parts 1, 25, 26, 53, 
55, 156, 157, and 301 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 six months. The regulations under section 6081 provide specific 
rules taxpayers must follow to request an extension of time to file 
Federal tax returns. A taxpayer must generally submit a written 
application for the extension on or before the due date of the return. 
An extension of time for filing a return does not extend the time for 
payment of tax.

Explanation of Provisions

Rationale for Change

    Currently, most taxpayers other than corporations can receive a 
full six-month extension of time to file their income tax returns, but 
to obtain the full six-month extension they must file one application 
for an initial extension of time and then file a second application to 
obtain an extension for the balance of the six months. For example, 
individual income taxpayers request an initial four-month automatic 
extension on one form and then use a second form to request a two-month 
discretionary extension. Similarly, trusts and partnerships request an 
initial three-month automatic extension on one form and then use a 
second form to request a three-month discretionary extension. Requiring 
these taxpayers to file two different forms to obtain the full six-
month extension creates an unnecessary burden on taxpayers and the IRS, 
and it can cause unnecessary confusion.
    To reduce the complexity of the current extension process, and to 
provide cost savings and other benefits to taxpayers and the IRS, these 
temporary regulations simplify the extension process by allowing 
certain taxpayers to file a single request for an automatic six-month 
extension of time to file certain returns. Because the extension is 
automatic, these taxpayers do not need to sign the extension request or 
provide an explanation of the reasons for requesting an extension. 
Simplifying, consolidating, and standardizing extension forms will 
reduce taxpayer burden and will also reduce taxpayer confusion and 
error in filing the correct form. In addition, taxpayers will save 
considerable time and expense by not having to complete and file a 
second request to obtain the full six-month extension. This 
simplification will also lower processing costs and facilitate 
increased efficiency for the IRS. According to IRS research, 
simplification of the extension process will save taxpayers between 
$73-94 million annually and will save the IRS $4.6 million annually.

Individual Income Taxpayers

    Currently, individual income taxpayers submit Form 4868

[[Page 67357]]

``Application for Automatic Extension of Time To File a U.S. Individual 
Income Tax Return,'' for an initial four-month extension of time to 
file an individual income tax return. The Form 4868 must be filed by 
the original due date of the return. Taxpayers do not have to sign or 
give a reason for the extension request. Taxpayers must, however, 
provide a proper estimate of their tax liability.
    Form 4868 does not extend the time for payment of tax. Although no 
payment of tax is necessary in order to receive the extension, 
penalties and interest may apply on any amounts that are not paid as of 
the original due date of the return. Individual income taxpayers can 
seek an additional two-month extension of time to file on Form 2688, 
``Application for Additional Extension of Time To File U.S. Individual 
Income Tax Return,'' which requires taxpayers to provide an explanation 
of the need for an extension and must be signed under penalties of 
perjury.
    To reduce burden on taxpayers and the IRS, the temporary 
regulations provide an automatic six-month extension to taxpayers who 
must file an individual income tax return if they submit a timely, 
completed application for extension on Form 4868. Taxpayers do not have 
to sign the request or explain why an extension is needed in order to 
receive the automatic six-month extension of time to file. An automatic 
extension under the temporary regulations does not extend the time for 
payment of tax. Accordingly, taxpayers must make a proper estimate of 
any tax due. While no payment of tax is required in order to obtain the 
extension, failure to pay any tax as of the original due date of the 
return may subject the taxpayer to penalties and interest.

Corporate Income Taxpayers

    These temporary regulations do not change the rules regarding 
filing extensions for corporate income tax returns. Currently, 
corporations may obtain an automatic six-month extension of time to 
file their income tax returns by submitting Form 7004, ``Application 
for Automatic Extension of Time To File Corporation Income Tax 
Return.'' Corporations do not have to sign the extension request or 
give a reason for their request. The Form 7004 does not extend the time 
for payment of tax. Accordingly, corporations filing Form 7004 must 
compute the total amount of their tentative tax and make a remittance 
of any balance due. Although these regulations do not change the rules 
regarding filing extensions for corporations, they do change the title 
to and appearance of Form 7004. Taxpayers filing certain other types of 
returns will now also use Form 7004 to request an automatic six-month 
extension of time to file. The new Form 7004 will be titled 
``Application for Automatic 6-Month Extension of Time to File Certain 
Business Income Tax, Information, and Other Returns' and will apply to 
a larger number of returns than the prior form.

Taxpayers Previously Filing Form 2758 to Request an Extension of Time

    Under these regulations, taxpayers that previously requested 
additional time to file certain excise, income, information, and other 
returns by submitting Form 2758, ``Application for Extension of Time To 
File Certain Excise, Income, Information, and Other Returns,'' may 
request an automatic six-month extension of time to file by filing the 
new Form 7004, ``Application for Automatic 6-Month Extension of Time to 
File Certain Business Income Tax, Information, and Other Returns.'' 
Previously, these taxpayers filed Form 2758 in order to obtain a 90-day 
extension. To obtain the extension, these taxpayers had to sign the 
form and provide an explanation of the need for the extension. To 
obtain additional time beyond the 90-day period, these taxpayers had to 
file Form 2758 a second time, once again signing the request and 
providing an explanation why the initial extension was not sufficient. 
The total extension was capped at the statutory maximum of six months. 
The Form 2758 has been obsoleted by these regulations.

Partnership, REMIC, and Certain Trust Taxpayers

    Prior regulations required partnerships, real estate mortgage 
investment conduits (REMICs) and certain trusts to request three-month 
automatic extensions of time to file by submitting Form 8736, 
``Application for Automatic Extension of Time to File U.S. Return for a 
Partnership, REMIC, or for Certain Trusts.'' These entities could then 
file a second request for an additional three-month extension of time 
to file on Form 8800, ``Application for Additional Extension of Time to 
File U.S. Return for a Partnership, REMIC, or for Certain Trusts.'' In 
order to promote simplified extension procedures, the temporary 
regulations allow these taxpayers to file an automatic six-month 
extension of time to file on one application, the new Form 7004, 
``Application for Automatic 6-Month Extension of Time to File Certain 
Business Income Tax, Information, and Other Returns.'' These taxpayers 
do not have to sign the Form 7004 or provide an explanation for their 
request in order to receive the automatic six-month extension of time 
to file. Forms 8736 and 8800 have been obsoleted by these regulations.
    The six-month automatic extension of time to file set forth in 
these temporary regulations applies to returns of pass-through 
entities, e.g., Form 1065 for partnerships. The Treasury Department and 
the IRS recognize that because the six-month automatic extension is 
available for returns of pass-through entities, some taxpayers may not 
receive information returns from the pass-through entities that they 
need in order to complete their own income tax returns before those 
returns are due. For example, an individual income taxpayer with a six-
month extension of time to October 15 to file the Form 1040 may not 
receive a Schedule K-1 from a partnership in which the taxpayer holds 
an interest until after the partnership files its Form 1065 on its 
extended due date of October 15. Similarly, a C-corporation with a six-
month extension to September 15 to file its Form 1120 may not receive a 
Schedule K-1 from a calendar year partnership in which it holds an 
interest until 30 days after its return is due if the partnership files 
its Form 1065 and sends out the Schedule K-1s on its extended due date 
of October 15. This filing anomaly existed under prior regulations when 
the pass-through entity received an extension of time to file to a date 
on or after the extended due date for the pass-through interest holder, 
but the automatic six-month extension in these regulations may cause 
this to happen with more frequency.
    Because of this filing anomaly, the availability of a six-month 
extension of time to file for pass-through entities may result in 
taxpayers filing an increased number of amended income tax returns. 
Therefore, it may be appropriate for pass-through entities to have a 
shorter extension period than their partners or shareholders. The 
Treasury Department and the IRS request comments on whether a shorter 
extension of time to file for pass-through entities might reduce 
overall taxpayer burden. Please follow the instructions in the 
``Comments and Public Hearing'' section in the notice of proposed 
rulemaking accompanying these temporary regulations in this issue of 
the Federal Register.
    In order to minimize the burden that might be imposed as a result 
of this filing anomaly, the Treasury Department and the IRS encourage 
pass-through entities that request an extension of time

[[Page 67358]]

to file to minimize the impact that such extension might have on their 
partners' or members' ability to timely file (with an extension) their 
own tax returns.

Transition Rule

    These temporary regulations are effective for applications for an 
automatic extension of time to file certain returns filed after 
December 31, 2005. Therefore, the temporary regulations apply to 
applications for extension of time to file tax year 2005 returns. In 
addition, these temporary regulations also apply to applications for 
extension of time to file some tax year 2004 returns for certain fiscal 
year taxpayers because these returns are due after December 31, 2005. 
Although these fiscal year taxpayers should continue to use the tax 
year 2004 extension forms, the IRS will grant a six-month extension of 
time to file if an extension request made on one of these forms would 
otherwise qualify under these temporary regulations, except for use of 
the specified form.

Certain Employee Plan Returns

    These temporary regulations also allow administrators and sponsors 
of employee benefit plans subject to Employee Retirement Income 
Security Act of 1974 (ERISA) to report information concerning the plans 
and direct filing entities to use a new version of Form 5558, 
``Application for Extension of Time To File Certain Employee Plan 
Returns,'' for an automatic two and one-half-month extension of time to 
file. Under these regulations, the Form 5558 no longer requires 
taxpayers to provide an explanation of the need for the extension of 
time to file or a signature.

Gift Tax Returns

    Under section 6075(b)(2), individuals who make a transfer by gift 
and who request an automatic extension of time to file the individual's 
income tax return are deemed to have an extension of time to file the 
return required by section 6019. The temporary regulations also allow 
donors who do not request an extension of time to file an income tax 
return to request an automatic six-month extension of time to file Form 
709, ``United States Gift (and Generation-Skipping Transfer) Tax 
Return'' by filing a new version of Form 8892, ``Payment of Gift/GST 
Tax and/or Application for Extension of Time to File Form 709.'' Under 
these regulations, the Form 8892 no longer requires an explanation of 
the need for the extension of time to file or a signature.

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 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. 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 these regulations is Tracey B. Leibowitz of 
the Office of the 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 26

    Generation-skipping transfer taxes, Reporting and recordkeeping 
requirements.

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.

26 CFR Part 157

    Excise taxes, Reporting and recordkeeping requirements.

26 CFR Part 301

    Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income 
taxes, Penalties, Reporting and recordkeeping requirements.

Amendments to the Regulations

0
Accordingly, 26 CFR parts 1, 25, 26, 53, 55, 156, 157, and 301 are 
amended as follows:

PART 1--INCOME TAXES

0
Paragraph 1. The authority citation for part 1 is amended by removing 
the entries for Sec.  1.6081-2, Sec.  1.6081-4, Sec.  1.6081-6, and 
Sec.  1.6081-7 and adding entries in numerical order to read, in part, 
as follows:

    Authority: 26 U.S.C. 7805 * * *
    Section 1.6081-2T also issued under 26 U.S.C. 6081.
    Section 1.6081-4T also issued under 26 U.S.C. 6081.
    Section 1.6081-6T also issued under 26 U.S.C. 6081.
    Section 1.6081-7T also issued under 26 U.S.C. 6081.
    Section 1.6081-10T also issued under 26 U.S.C. 6081.
    Section 1.6081-11T also issued under 26 U.S.C. 6081. * * *


Sec.  1.6081-2  [Removed]

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

0
Par. 3. Section 1.6081-2T is added to read as follows:


Sec.  1.6081-2T  Automatic extension of time to file certain returns 
filed by partnerships (temporary).

    (a) In general. A partnership required to file Form 1065, ``U.S. 
Partnership Return of Income,'' or Form 8804, ``Annual Return for 
Partnership Withholding Tax,'' for any taxable year will be allowed an 
automatic 6-month extension of time to file the return after the date 
prescribed for filing the return if the partnership files an 
application under this section in accordance with paragraph (b) of this 
section. In the case of a partnership described in Sec.  1.6081-
5(a)(1), the automatic extension of time to file allowed under this 
section runs concurrently with an extension of time to file granted 
pursuant to Sec.  1.6081-5(a).
    (b) Requirements. To satisfy this paragraph (b), the partnership 
must--
    (1) Submit a complete application on Form 7004, ``Application for 
Automatic 6-Month Extension of Time to File Certain Business Income 
Tax, Information, and Other Returns,'' or in any other manner 
prescribed by the Commissioner;
    (2) File the application on or before the later of--
    (i) The date prescribed for filing the return of the partnership; 
or
    (ii) The expiration of any extension of time to file granted under 
Sec.  1.6081-5(a); and
    (3) File the application with the Internal Revenue Service office

[[Page 67359]]

designated in the application's instructions.
    (c) Payment of section 7519 amount. An automatic extension of time 
for filing a partnership return of income granted under paragraph (a) 
of this section does not extend the time for payment of any amount due 
under section 7519, relating to required payments for entities electing 
not to have a required taxable year.
    (d) Section 444 election. An automatic extension of time for filing 
a partnership return of income will run concurrently with any extension 
of time for filing a return allowed because of section 444, relating to 
the election of a taxable year other than a required taxable year.
    (e) Effect of extension on partner. An automatic extension of time 
for filing a partnership return of income under this section does not 
extend the time for filing a partner's income tax return or the time 
for the payment of any tax due on a partner's income tax return.
    (f) Termination of automatic extension. The Commissioner may 
terminate an automatic extension at any time by mailing to the 
partnership a notice of termination at least 10 days prior to the 
termination date designated in such notice. The Commissioner must mail 
the notice of termination to the address shown on the Form 7004 or to 
the partnership's last known address. For further guidance regarding 
the definition of last known address, see Sec.  301.6212-2 of this 
chapter.
    (g) Penalties. See section 6698 for failure to file a partnership 
return.
    (h) Effective dates. This section is applicable for applications 
for an automatic extension of time to file the partnership returns 
listed in paragraph (a) of this section filed after December 31, 2005. 
The applicability of this section expires on November 4, 2008.

0
Par. 4. Section 1.6081-3 is amended by revising paragraphs (a)(1) and 
(e).


Sec.  1.6081-3  Automatic extension of time for filing corporation 
income tax returns.

    (a) * * *
    (1) [Reserved]. For guidance on the form to file to request a 6-
month extension of time to file corporation income tax returns after 
December 31, 2005, see Sec.  1.6081-3T.
* * * * *
    (e) For guidance on the applicability date of this section, see 
Sec.  1.6081-3T.

0
Par. 5. Section 1.6081-3T is added to read as follows:


Sec.  1.6081-3T  Automatic extension of time for filing corporation 
income tax returns (temporary).

    (a) [Reserved]. For further guidance, see Sec.  1.6081-3(a).
    (1) An application must be submitted on Form 7004, ``Application 
for Automatic 6-Month Extension of Time to File Certain Business Income 
Tax, Information, and Other Returns,'' or in any other manner 
prescribed by the Commissioner.
    (a)(2) through (d) [Reserved]. For further guidance, see Sec.  
1.6081-3(a)(2) through (d).
    (e) Effective dates. (1) Except as provided in paragraph (e)(2) of 
this section, this section applies to requests for extensions of time 
to file corporation income tax returns due after December 7, 2004.
    (2) Paragraph (a)(1) of this section applies to applications for an 
automatic extension of time to file corporation income tax returns 
filed after December 31, 2005. The applicability of this section 
expires on November 4, 2008.


Sec.  1.6081-4  [Removed]

0
Par. 6. Section 1.6081-4 is removed.

0
Par. 7. Section 1.6081-4T is added to read as follows:


Sec.  1.6081-4T  Automatic extension of time for filing individual 
income tax return (temporary).

    (a) In general. An individual who is required to file an individual 
income tax return will be allowed an automatic 6-month extension of 
time to file the return after the date prescribed for filing the return 
if the individual files an application under this section in accordance 
with paragraph (b) of this section. In the case of an individual 
described in Sec.  1.6081-5(a)(5) or (6), the automatic 6-month 
extension will run concurrently with the extension of time to file 
granted pursuant to Sec.  1.6081-5.
    (b) Requirements. To satisfy this paragraph (b), an individual 
must--
    (1) Submit a complete application on Form 4868, ``Application for 
Automatic Extension of Time To File U.S Individual Income Tax Return,'' 
or in any other manner prescribed by the Commissioner;
    (2) File the application on or before the later of--
    (i) The date prescribed for filing the return; or
    (ii) The expiration of any extension of time to file granted 
pursuant to Sec.  1.6081-5;
    (3) File the application with the Internal Revenue Service office 
designated in the application's instructions; and
    (4) Show on the application the full amount properly estimated as 
tax for the taxable year.
    (c) No extension of time for the payment of tax. An automatic 
extension of time for filing a return granted under paragraph (a) of 
this section will not extend the time for payment of any tax due on 
such return.
    (d) Termination of automatic extension. The Commissioner may 
terminate an automatic extension at any time by mailing to the 
individual a notice of termination at least 10 days prior to the 
termination date designated in such notice. The Commissioner must mail 
the notice of termination to the address shown on the Form 4868 or to 
the individual's last known address. For further guidance regarding the 
definition of last known address, see Sec.  301.6212-2 of this chapter.
    (e) Penalties. See section 6651 for failure to file an individual 
income tax return or failure to pay the amount shown as tax on the 
return. In particular, see Sec.  301.6651-1(c)(3) of this chapter 
(relating to a presumption of reasonable cause in certain circumstances 
involving an automatic extension of time for filing an individual 
income tax return).
    (f) Effective dates. This section is applicable for applications 
for an automatic extension of time to file an individual income tax 
return filed after December 31, 2005. The applicability of this section 
expires on November 4, 2008.

0
Par. 8. Section 1.6081-5 is amended by revising paragraph (b) to read 
as follows:


Sec.  1.6081-5  Extensions of time in the case of certain partnerships, 
corporations, and U.S. citizens and residents.

* * * * *
    (b) [Reserved]. For guidance on how a person should demonstrate 
that the person qualified for the extension in paragraph (a) of this 
section after December 31, 2005, see Sec.  1.6081-5T.
* * * * *

0
Par. 9. Section 1.6081-5T is added to read as follows:


Sec.  1.6081-5T  Extensions of time in the case of certain 
partnerships, corporations, and U.S. citizens and residents 
(temporary).

    (a) [Reserved]. For further guidance, see Sec.  1.6081-5(a).
    (b) In order to qualify for the extension under this section--
    (1) A statement must be attached to the return showing that the 
person for whom the return is made is a person described in paragraph 
(a) of this section; or
    (2) If a person described in paragraph (a) of this section requests 
additional time to file, the person must request the extension on or 
before the fifteenth day of the sixth month following the close of the 
taxable year and check the appropriate box on Form 4868,

[[Page 67360]]

``Application for Automatic Extension of Time To File a U.S. Individual 
Income Tax Return,'' or Form 7004, ``Application for Automatic 6-Month 
Extension of Time To File Certain Business Income Tax, Information, and 
Other Returns,'' whichever is applicable, or in any other manner 
prescribed by the Commissioner.
    (c) through (f) [Reserved]. For further guidance, see Sec.  1.6081-
5(c) through (f).
    (g) Effective date. This section is applicable for applications for 
an automatic extension of time to file returns of income for taxpayers 
listed in paragraph (a) of this section filed after December 31, 2005. 
The applicability of this section expires on November 4, 2008.


Sec.  1.6081-6  [Removed]

0
Par. 10. Section 1.6081-6 is removed.

0
Par. 11. Section 1.6081-6T is added to read as follows:


Sec.  1.6081-6T  Automatic extension of time to file estate or trust 
income tax return (temporary).

    (a) In general. An estate or trust required to file an income tax 
return on Form 1041, ``U.S. Income Tax Return for Estates and Trusts,'' 
will be allowed an automatic 6-month extension of time to file the 
return after the date prescribed for filing the return if the estate or 
trust files an application under this section in accordance with 
paragraph (b) of this section.
    (b) Requirements. To satisfy this paragraph (b), an estate or trust 
must--
    (1) Submit a complete application on Form 7004, ``Application for 
Automatic 6-Month Extension of Time To File Certain Business Income 
Tax, Information, and Other Returns,'' or in any other manner 
prescribed by the Commissioner;
    (2) File the application on or before the date prescribed for 
filing the return with the Internal Revenue Service office designated 
in the application's instructions; and
    (3) Show on the application the amount properly estimated as tax 
for the estate or trust for the taxable year.
    (c) No extension of time for the payment of tax. An automatic 
extension of time for filing a return granted under paragraph (a) of 
this section will not extend the time for payment of any tax due on 
such return.
    (d) Effect of extension on beneficiary. An automatic extension of 
time to file an estate or trust income tax return under this section 
will not extend the time for filing the income tax return of a 
beneficiary of the estate or trust or the time for the payment of any 
tax due on the beneficiary's income tax return.
    (e) Termination of automatic extension. The Commissioner may 
terminate an automatic extension at any time by mailing to the estate 
or trust a notice of termination at least 10 days prior to the 
termination date designated in such notice. The Commissioner must mail 
the notice of termination to the address shown on the Form 7004 or to 
the estate or trust's last known address. For further guidance 
regarding the definition of last known address, see Sec.  301.6212-2 of 
this chapter.
    (f) Penalties. See section 6651 for failure to file an estate or 
trust income tax return or failure to pay the amount shown as tax on 
the return.
    (g) Effective dates. This section is applicable for applications 
for an automatic extension of time to file an estate or trust income 
tax return filed after December 31, 2005. The applicability of this 
section expires on November 4, 2008.


Sec.  1.6081-7  [Removed]

0
Par. 12. Section 1.6081-7 is removed.

0
Par. 13. Section 1.6081-7T is added to read as follows:


Sec.  1.6081-7T  Automatic extension of time to file Real Estate 
Mortgage Investment Conduit (REMIC) income tax return (temporary).

    (a) In general. A Real Estate Mortgage Investment Conduit (REMIC) 
required to file an income tax return on Form 1066, ``U.S. Real Estate 
Mortgage Investment Conduit Income Tax Return,'' or Form 8831, ``Excise 
Tax on Excess Inclusions of REMIC Residual Interests,'' for any taxable 
year will be allowed an automatic 6-month extension of time to file the 
return after the date prescribed for filing the return if the REMIC 
files an application under this section in accordance with paragraph 
(b) of this section.
    (b) Requirements. To satisfy this paragraph (b), a REMIC must--
    (1) Submit a complete application on Form 7004, ``Application for 
Automatic 6-Month Extension of Time To File Certain Business Income 
Tax, Information, and Other Returns,'' or in any other manner 
prescribed by the Commissioner;
    (2) File the application on or before the date prescribed for 
filing the return with the Internal Revenue Service office designated 
in the application's instructions; and
    (3) Show on the application the full amount properly estimated as 
tax for the REMIC for the taxable year.
    (c) No extension of time for the payment of tax. An automatic 
extension of time for filing a return granted under paragraph (a) of 
this section will not extend the time for payment of any tax due on 
such return.
    (d) Effect of extension on residual or regular interest holders. An 
automatic extension of time to file a REMIC income tax return under 
this section will not extend the time for filing the income tax return 
of a residual or regular interest holder of the REMIC or the time for 
the payment of any tax due on the residual or regular interest holder's 
income tax return. An automatic extension will also not extend the time 
for payment of any excise tax on excess inclusions of REMIC residual 
interests.
    (e) Termination of automatic extension. The Commissioner may 
terminate an automatic extension at any time by mailing to the REMIC a 
notice of termination at least 10 days prior to the termination date 
designated in such notice. The Commissioner must mail the notice of 
termination to the address shown on the Form 7004 or to the REMIC's 
last known address. For further guidance regarding the definition of 
last known address, see Sec.  301.6212-2 of this chapter.
    (f) Penalties. See sections 6698 and 6651 for failure to file a 
REMIC income tax return or failure to pay an amount shown as tax on the 
return.
    (g) Effective dates. This section is applicable for applications 
for an automatic extension of time to file REMIC income and excise tax 
returns listed in paragraph (a) of this section filed after December 
31, 2005. The applicability of this section expires on November 4, 
2008.

0
Par. 14. Section 1.6081-10T is added to read as follows:


Sec.  1.6081-10T  Automatic extension of time to file withholding tax 
return for U.S. source income of foreign persons (temporary).

    (a) In general. A withholding agent or intermediary required to 
file a return on Form 1042, ``Annual Withholding Tax Return for U.S. 
Source Income of Foreign Persons,'' for any taxable year will be 
allowed an automatic 6-month extension of time to file the return after 
the date prescribed for filing the return if the withholding agent or 
intermediary files an application under this section in accordance with 
paragraph (b) of this section.
    (b) Requirements. To satisfy this paragraph (b), a withholding 
agent or intermediary must--
    (1) Submit a complete application on Form 7004, ``Application for 
Automatic 6-Month Extension of Time To File Certain Business Income 
Tax, Information, and Other Returns,'' or in any other manner 
prescribed by the Commissioner;

[[Page 67361]]

    (2) File the application on or before the date prescribed for 
filing the return with the Internal Revenue Service office designated 
in the application's instructions; and
    (3) Remit the amount of the properly estimated unpaid tax liability 
on or before the date prescribed for payment.
    (c) No extension of time for the payment of tax. An automatic 
extension of time for filing a return granted under paragraph (a) of 
this section will not extend the time for payment of any tax due on 
such return.
    (d) Termination of automatic extension. The Commissioner may 
terminate an automatic extension at any time by mailing to the 
withholding agent or intermediary a notice of termination at least 10 
days prior to the termination date designated in such notice. The 
Commissioner must mail the notice of termination to the address shown 
on the Form 7004 or to the withholding agent or intermediary's last 
known address. For further guidance regarding the definition of last 
known address, see Sec.  301.6212-2 of this chapter.
    (e) Penalties. See section 6651 for failure to file a return or 
failure to pay an amount shown as tax on the return.
    (f) Effective dates. This section is applicable for applications 
for an automatic extension of time to file the withholding tax return 
for U.S. source income of foreign persons return filed after December 
31, 2005. The applicability of this section expires on November 4, 
2008.

0
Par. 15. Section 1.6081-11T is added to read as follows:


Sec.  1.6081-11T  Automatic extension of time for filing certain 
employee plan returns (temporary).

    (a) In general. An administrator or sponsor of an employee benefit 
plan required to file a return under the provisions of chapter 61 or 
the regulations thereunder on Form 5500 (series), ``Annual Return/ 
Report of Employee Benefit Plan,'' will be allowed an automatic 2\1/2\-
month extension of time to file the return after the date prescribed 
for filing the return if the administrator or sponsor files an 
application under this section in accordance with paragraph (b) of this 
section.
    (b) Requirements. To satisfy this paragraph (b), an administrator 
or sponsor must--
    (1) Submit a complete application on Form 5558, ``Application for 
Extension of Time To File Certain Employee Plan Returns,'' or in any 
other manner as may be prescribed by the Commissioner; and
    (2) File the application with the Internal Revenue Service office 
designated in the application's instructions on or before the date 
prescribed for filing the information return.
    (c) Termination of automatic extension. The Commissioner may 
terminate an automatic extension at any time by mailing to the 
administrator or sponsor a notice of termination at least 10 days prior 
to the termination date designated in such notice. The Commissioner 
must mail the notice of termination to the address shown on the Form 
5558 or to the administrator or sponsor'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 6652, 6692, and the Employee Retirement 
Income Security Act of 1974 for penalties for failure to file a timely 
and complete Form 5500.
    (e) Effective dates. This section is applicable for applications 
for an automatic extension of time to file Forms 5500 filed after 
December 31, 2005. The applicability of this section expires on 
November 4, 2008.

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

0
Par. 16. The authority citation for part 25 is amended by adding an 
entry in numerical order to read, in part, as follows:

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

    Section 25.6081-1T also issued under the authority of 26 U.S.C. 
6081(a). * * *


Sec.  25.6081-1  [Removed]

0
Par. 17. Section 25.6081-1 is removed.
0
Par. 18. Section 25.6081-1T is added to read as follows:


Sec.  25.6081-1T  Automatic extension of time for filing gift tax 
returns (temporary).

    (a) In general. Under section 6075(b)(2), an automatic six-month 
extension of time granted to a donor to file the donor's return of 
income under Sec.  1.6081-4T shall be deemed to also be a six-month 
extension of time granted to file a return on Form 709, ``United States 
Gift (and Generation-Skipping Transfer) Tax Return.'' If a donor does 
not obtain an extension of time to file the donor's return of income 
under Sec.  1.6081-4T, the donor will be allowed an automatic 6-month 
extension of time to file Form 709 after the date prescribed for filing 
if the donor files an application under this section in accordance with 
paragraph (b) of this section. In the case of an individual described 
in Sec.  1.6081-5(a)(5) or (6), the automatic 6-month extension of time 
to file Form 709 will run concurrently with the extension of time to 
file granted pursuant to Sec.  1.6081-5.
    (b) Requirements. To satisfy this paragraph (b), a donor must--
    (1) Submit a complete application on Form 8892, ``Payment of Gift/
GST Tax and/or Application for Extension of Time To File Form 709,'' or 
in any other manner prescribed by the Commissioner;
    (2) File the application on or before the later of--
    (i) The date prescribed for filing the return; or
    (ii) The expiration of any extension of time to file granted 
pursuant to Sec.  1.6081-5; and
    (3) File the application with the Internal Revenue Service office 
designated in the application's instructions.
    (c) No extension of time for the payment of tax. An automatic 
extension of time for filing a return granted under paragraph (a) of 
this section will not extend the time for payment of any tax due on 
such return.
    (d) Termination of automatic extension. The Commissioner may 
terminate an extension at any time by mailing to the donor a notice of 
termination at least 10 days prior to the termination date designated 
in such notice. The Commissioner must mail the notice of termination to 
the address shown on the Form 8892, or to the donor's last known 
address. For further guidance regarding the definition of last known 
address, see Sec.  301.6212-2 of this chapter.
    (e) Penalties. See section 6651 for failure to file a gift tax 
return or failure to pay the amount shown as tax on the return.
    (f) Effective dates. This section is applicable for applications 
for an extension of time to file Form 709 filed after December 31, 
2005. The applicability of this section expires on November 4, 2008.

PART 26--GENERATION-SKIPPING TRANSFER TAX REGULATIONS UNDER THE TAX 
REFORM ACT OF 1986

0
Par. 19. The authority citation for part 26 is amended by adding an 
entry in numerical order to read, in part, as follows:

    Authority: 26 U.S.C. 7805 * * *
    Section 26.6081-1T also issued under the authority of 26 U.S.C. 
6081(a).

    Par. 20. Section 26.6081-1T is added to read as follows:

[[Page 67362]]

Sec.  26.6081-1T  Automatic extension of time for filing generation-
skipping transfer tax returns (temporary).

    (a) In general. A skip person distributee required to file a return 
on Form 706-GS(D), ``Generation-Skipping Transfer Tax Return for 
Distributions,'' or a trustee required to file a return on Form 706-
GS(T), ``Generation-Skipping Transfer Tax Return for Terminations,'' 
will be allowed an automatic 6-month extension of time to file the 
return after the date prescribed for filing if the skip person 
distributee or trustee files an application under this section in 
accordance with paragraph (b) of this section.
    (b) Requirements. To satisfy this paragraph (b), a skip person 
distributee or trustee must--
    (1) Submit a complete application on Form 7004, ``Application for 
Automatic 6-Month Extension of Time to File Certain Business Income 
Tax, Information, and Other Returns,'' or in any other manner 
prescribed by the Commissioner;
    (2) File the application on or before the date prescribed for 
filing the return with the Internal Revenue Service office designated 
in the application's instructions; and
    (3) Remit the amount of the properly estimated unpaid tax liability 
on or before the date prescribed for payment.
    (c) No extension of time for the payment of tax. An automatic 
extension of time for filing a return granted under paragraph (a) of 
this section will not extend the time for payment of any tax due on 
such return.
    (d) Termination of automatic extension. The Commissioner may 
terminate an automatic extension at any time by mailing to the skip 
person distributee or trustee a notice of termination at least 10 days 
prior to the termination date designated in such notice. The 
Commissioner must mail the notice of termination to the address shown 
on the Form 7004 or to the skip person distributee or trustee's last 
known address. For further guidance regarding the definition of last 
known address, see Sec.  301.6212-2 of this chapter.
    (e) Penalties. See section 6651 for failure to file a generation-
skipping transfer tax return or failure to pay the amount shown as tax 
on the return.
    (f) Effective dates. This section is effective for applications for 
an automatic extension of time to file a generation-skipping transfer 
tax return filed after December 31, 2005. The applicability of this 
section expires on November 4, 2008.

PART 53--FOUNDATION AND SIMILAR EXCISE TAXES

0
Par. 21. The authority citation for part 53 is amended by adding an 
entry in numerical order to read, in part, as follows:

    Authority: 26 U.S.C. 7805 * * *
    Section 53.6081-1T also issued under 26 U.S.C. 6081(a).


Sec.  53.6081-1  [Removed]

0
Par. 22. Section 53.6081-1 is removed.
0
Par. 23. Section 53.6081-1T is added to read as follows:


Sec.  53.6081-1T  Automatic extension of time for filing the return to 
report taxes due under section 4951 for self-dealing with a nuclear 
decommissioning fund (temporary).

    (a) In general. A disqualified person for purposes of section 
4951(e)(4) who engaged in self-dealing with a Nuclear Decommissioning 
Fund, and must report tax due under section 4951 on Form 1120-ND, 
``Return for Nuclear Decommissioning Funds and Certain Related 
Persons,'' will be allowed an automatic 6-month extension of time to 
file the return after the date prescribed for filing the return if the 
disqualified person files an application under this section in 
accordance with paragraph (b) of this section. For guidance on 
requesting an extension of time to file Form 1120-ND for purposes of 
reporting contributions received, income earned, administrative 
expenses of operating the fund, and the tax on modified gross income, 
see Sec.  1.6081-3 of this chapter.
    (b) Requirements. To satisfy this paragraph (b), a disqualified 
person must--
    (1) Submit a complete application on Form 7004, ``Application for 
Automatic 6-Month Extension of Time to File Certain Business Income 
Tax, Information, and Other Returns,'' or in any other manner 
prescribed by the Commissioner;
    (2) File the application on or before the date prescribed for 
filing the return with the Internal Revenue Service office designated 
in the application's instructions; and
    (3) Remit the amount of the properly estimated unpaid tax liability 
on or before the date prescribed for payment.
    (c) No extension of time for the payment of tax. An automatic 
extension of time for filing a return granted under paragraph (a) of 
this section will not extend the time for payment of any tax due on 
such return.
    (d) Termination of automatic extension. The Commissioner may 
terminate an automatic extension at any time by mailing to the 
disqualified person a notice of termination at least 10 days prior to 
the termination date designated in such notice. The Commissioner must 
mail the notice of termination to the address shown on the Form 7004 or 
to the disqualified person's last known address. For further guidance 
regarding the definition of last known address, see Sec.  301.6212-2 of 
this chapter.
    (e) Penalties. See section 6651 for failure to file or failure to 
pay the amount shown as tax on the return.
    (f) Effective dates. This section is applicable for applications 
for an automatic extension of time to file a return to report taxes due 
under section 4951 for self-dealing with a Nuclear Decommissioning Fund 
filed after December 31, 2005. The applicability of this section 
expires on November 4, 2008.

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

0
Par. 24. The authority citation is amended by adding an entry in 
numerical order to read, in part, as follows:

    Authority: 26 U.S.C. 6001, 6011, 6071, 6091, and 7805 * * *
    Section 55.6081-1T also issued under 26 U.S.C. 6081(a). * * *


Sec.  55.6081-1  [Removed]

0
Par. 25. Section 55.6081-1 is removed.

0
Par. 26. Section 55.6081-1T is added to read as follows:


Sec.  55.6081-1T  Automatic extension of time for filing a return due 
under Chapter 44 (temporary).

    (a) In general. A Real Estate Investment Trust (REIT) required to 
file a return on Form 8612, ``Return of Excise Tax on Undistributed 
Income of Real Estate Investment Trusts,'' or a Regulated Investment 
Company (RIC) required to file a return on Form 8613, ``Return of 
Excise Tax on Undistributed Income of Regulated Investment Companies,'' 
will be allowed an automatic 6-month extension of time to file the 
return after the date prescribed for filing the return if the REIT or 
RIC files an application under this section in accordance with 
paragraph (b) of this section.
    (b) Requirements. To satisfy this paragraph (b), a REIC or RIC 
must--
    (1) Submit a complete application on Form 7004, ``Application for 
Automatic 6-Month Extension of Time to File Certain Business Income 
Tax, Information, and Other Returns,'' or in

[[Page 67363]]

any other manner prescribed by the Commissioner;
    (2) File the application on or before the date prescribed for 
filing the return with the Internal Revenue Service office designated 
in the application's instructions; and
    (3) Remit the amount of the properly estimated unpaid tax liability 
on or before the date prescribed for payment.
    (c) No extension of time for the payment of tax. An automatic 
extension of time for filing a return granted under paragraph (a) of 
this section will not extend the time for payment of any tax due on 
such return.
    (d) Termination of automatic extension. The Commissioner may 
terminate an automatic extension at any time by mailing to the REIT or 
RIC a notice of termination at least 10 days prior to the termination 
date designated in such notice. The Commissioner must mail the notice 
of termination to the address shown on the Form 7004 or to the REIT or 
RIC's last known address. For further guidance regarding the definition 
of last known address, see Sec.  301.6212-2 of this chapter.
    (e) Penalties. See section 6651 for failure to file or failure to 
pay the amount shown as tax on the return.
    (f) Effective dates. This section is applicable for applications 
for an automatic extension of time to file a return due under chapter 
44, filed after December 31, 2005. The applicability of this section 
expires on November 4, 2008.

PART 156--EXCISE TAX ON GREENMAIL

0
Par. 27. The authority citation is amended by adding an entry in 
numerical order to read, in part, as follows:

    Authority: 26 U.S.C. 6001, 6011, 6061, 6071, 6091, 6161, and 
7805 * * *
    Section 156.6081-1T also issued under 26 U.S.C. 6081(a). * * *


Sec.  156.6081-1  [Removed]

0
Par. 28. Section 156.6081-1 is removed.

0
Par. 29. Section 156.6081-1T is added to read as follows:


Sec.  156.6081-1T  Automatic extension of time for filing a return due 
under chapter 54 (temporary).

    (a) In general. A taxpayer required to file a return on Form 8725, 
``Excise Tax on Greenmail,'' will be allowed an automatic 6-month 
extension of time to file the return after the date prescribed for 
filing the return if the taxpayer files an application under this 
section in accordance with paragraph (b) of this section.
    (b) Requirements. To satisfy this paragraph (b), a taxpayer must--
    (1) Submit a complete application on Form 7004, ``Application for 
Automatic 6-Month Extension of Time to File Certain Business Income 
Tax, Information, and Other Returns,'' or in any other manner 
prescribed by the Commissioner;
    (2) File the application on or before the date prescribed for 
filing the return with the Internal Revenue Service office designated 
in the application's instructions; and
    (3) Remit the amount of the properly estimated unpaid tax liability 
on or before the date prescribed for payment.
    (c) No extension of time for the payment of tax. An automatic 
extension of time for filing a return granted under paragraph (a) of 
this section will not extend the time for payment of any tax due on 
such return.
    (d) Termination of automatic extension. The Commissioner may 
terminate an automatic extension at any time by mailing to the taxpayer 
a notice of termination at least 10 days prior to the termination date 
designated in such notice. The Commissioner must mail the notice of 
termination to the address shown on the Form 7004 or to the taxpayer's 
last known address. For further guidance regarding the definition of 
last known address, see Sec.  301.6212-2 of this chapter.
    (e) Penalties. See section 6651 for failure to file or failure to 
pay the amount shown as tax on the return.
    (f) Effective dates. This section is applicable for applications 
for an automatic extension of time to file a return due under chapter 
54, filed after December 31, 2005. The applicability of this section 
expires on November 4, 2008.

PART 157--EXCISE TAX ON STRUCTURED SETTLEMENT FACTORING 
TRANSACTIONS

0
Par. 30. The authority citation is amended by adding an entry in 
numerical order to read, in part, as follows:

    Authority: 26 U.S.C. 7805 * * *
    Section 157.6081-1T also issued under 26 U.S.C. 6081(a). * * *


Sec.  157.6081-1  [Removed]

0
Par. 31. Section 157.6081-1 is removed.

0
Par. 32. Section 157.6081-1T is added to read as follows:


Sec.  157.6081-1T  Automatic extension of time for filing a return due 
under chapter 55 (temporary).

    (a) In general. A taxpayer required to file a return on Form 8876, 
``Excise Tax on Structured Settlement Factoring Transactions,'' will be 
allowed an automatic 6-month extension of time to file the return after 
the date prescribed for filing the return if the taxpayer files an 
application under this section in accordance with paragraph (b) of this 
section.
    (b) Requirements. To satisfy this paragraph (b), the taxpayer 
must--
    (1) Submit a complete application on Form 7004, ``Application for 
Automatic 6-Month Extension of Time to File Certain Business Income 
Tax, Information, and Other Returns,'' or in any other manner 
prescribed by the Commissioner;
    (2) File the application on or before the date prescribed for 
filing the return with the Internal Revenue Service office designated 
in the application's instructions; and
    (3) Remit the amount of the properly estimated unpaid tax liability 
on or before the date prescribed for payment.
    (c) No extension of time for the payment of tax. An automatic 
extension of time for filing a return granted under paragraph (a) of 
this section will not extend the time for payment of any tax due on 
such return.
    (d) Termination of automatic extension. The Commissioner may 
terminate an automatic extension at any time by mailing to the taxpayer 
a notice of termination at least 10 days prior to the termination date 
designated in such notice. The Commissioner must mail the notice of 
termination to the address shown on the Form 7004 or to the taxpayer's 
last known address. For further guidance regarding the definition of 
last known address, see Sec.  301.6212-2 of this chapter.
    (e) Penalties. See section 6651 for failure to file or failure to 
pay the amount shown as tax on the return.
    (f) Effective dates. This section is applicable for applications 
for an automatic extension of time to file a return due under chapter 
55, filed after December 31, 2005. The applicability of this section 
expires on November 4, 2008.

PART 301--PROCEDURE AND ADMINISTRATION

0
Par. 33. The authority citation is amended by adding an entry in 
numerical order to read, in part, as follows:

    Authority: 26 U.S.C. 7805 * * *
    Section 301.6081-2T also issued under 26 U.S.C. 6081(a). * * *


0
Par. 34. Section 301.6081-2T is added to read as follows:

[[Page 67364]]

Sec.  301.6081-2T  Automatic extension of time for filing an 
information return with respect to certain foreign trusts (temporary).

    (a) In general. A trust required to file a return on Form 3520-A, 
``Annual Information Return of Foreign Trust with a U.S. Owner,'' will 
be allowed an automatic 6-month extension of time to file the return 
after the date prescribed for filing the return if the trust files an 
application under this section in accordance with paragraph (b) of this 
section.
    (b) Requirements. To satisfy this paragraph (b), a trust must--
    (1) Submit a complete application on Form 7004, ``Application for 
Automatic 6-Month Extension of Time to File Certain Business Income 
Tax, Information, and Other Returns,'' or in any other manner 
prescribed by the Commissioner; and
    (2) File the application on or before the date prescribed for 
filing the return with the Internal Revenue Service office designated 
in the application's instructions.
    (c) Termination of automatic extension. The Commissioner may 
terminate an automatic extension at any time by mailing to the trust a 
notice of termination at least 10 days prior to the termination date 
designated in such notice. The Commissioner must mail the notice of 
termination to the address shown on the Form 7004 or to the trust'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 section 6677 for failure to file information 
returns with respect to certain foreign trusts.
    (e) Effective dates. This section is applicable for applications 
for an automatic extension of time to file an information return with 
respect to certain foreign trusts listed in paragraph (a) of this 
section filed after December 31, 2005. The applicability of this 
section expires on November 4, 2008.

Mark E. Matthews,
Deputy Commissioner for Services and Enforcement.
    Approved: October 26, 2005.
Eric Solomon,
Acting Deputy Assistant Secretary (for Tax Policy).
[FR Doc. 05-21981 Filed 11-4-05; 8:45 am]
BILLING CODE 4830-01-P