[Federal Register Volume 70, Number 214 (Monday, November 7, 2005)]
[Proposed Rules]
[Pages 67397-67399]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-21982]



[[Page 67397]]

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DEPARTMENT OF THE TREASURY

Internal Revenue Service

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

[REG-144898-04]
RIN 1545-BE62


Extension of Time for Filing Returns

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking and 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 final and temporary regulations 
relating to the simplification of procedures for automatic extensions 
of time to file certain returns. The text of those regulations also 
serves as the text of these proposed regulations.

DATES: Written or electronically generated comments and requests for a 
public hearing must be received by February 6, 2006.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-144898-04), room 
5203, Internal Revenue Service, PO Box 7604, Ben Franklin Station, 
Washington, DC 20044. Submissions may be hand delivered Monday through 
Friday between the hours of 8 am and 4 pm to: CC:PA:LPD:PR (REG-144898-
04), Courier's Desk, Internal Revenue Service, 1111 Constitution 
Avenue, NW., Washington, DC. Alternatively, taxpayers may submit 
comments electronically via the IRS Internet site at http://www.irs.gov/regs or via the Federal eRulemaking Portal at http://www.regulations.gov (IRS and REG-144898-04).

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
Allen D. Madison, (202) 622-4940; concerning submissions of comments 
and requests for a public hearing, LaNita Van Dyke (202) 622-7180 (not 
toll-free numbers).

SUPPLEMENTARY INFORMATION: 

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, 25, 26, 53, 55, 
156, 157, and 301 relating to section 6081. The temporary regulations 
allow taxpayers required to file an individual income tax return an 
automatic six-month extension if taxpayers submit an application on 
Form 4868, ``Application for Automatic Extension of Time To File a U.S. 
Individual Income Tax Return.'' The temporary regulations also allow 
taxpayers who previously submitted three-month extension requests on 
Form 8736, ``Application for Automatic Extension of Time to File U.S. 
Return for a Partnership, REMIC, or for Certain Trusts'' and requests 
for additional three-month extensions on Form 8800, ``Application for 
Additional Extension of Time to File U.S. Return for a Partnership, 
REMIC, or for Certain Trusts,'' an automatic six-month extension of 
time to file if an application is submitted on Form 7004, ``Application 
for Automatic 6-Month Extension of Time to File Certain Business Income 
Tax, Information, and Other Returns.''
    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 as much as 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 15th. 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 this 
regulation 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 Requests for a Public Hearing'' portion of this 
preamble. 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 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.
    The temporary regulations also provide that taxpayers that 
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 now request an automatic six-month extension of time to 
file by filing Form 7004.
    The 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 entities requesting an extension to use 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.
    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 Form 8892, 
``Payment of Gift/GST Tax and/or Application for Extension of Time to 
File Form 709.''
    The text of those regulations also serves as the text of these 
proposed regulations. The preamble to the temporary regulations 
explains the amendments.

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 also has 
been determined that section 553(b) of the Administrative Procedure Act 
(5 U.S.C. chapter 5) does not apply to these regulations, and, because 
these regulations do not impose a collection of information on small 
entities, the Regulatory Flexibility Act (5 U.S.C. chapter 6) does not 
apply. Pursuant to section 7805(f) of the Internal Revenue Code, this 
notice of proposed

[[Page 67398]]

rulemaking will be submitted to the Chief Counsel for Advocacy of the 
Small Business Administration for comment on their impact.

Comments and Requests for a Public Hearing

    Before these proposed regulations are adopted as final regulations, 
consideration will be given to any written (a signed original and 8 
copies) and electronic comments that are submitted timely to the IRS. 
The IRS and Treasury specifically request comments on the clarity of 
the proposed regulations and how they can be made easier to understand. 
All comments will be available for public inspection and copying. A 
public hearing may be scheduled if requested in writing by any person 
that timely submits 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 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.

Proposed Amendments to the Regulations

    Accordingly, 26 CFR parts 1, 25, 26, 53, 55, 156, 157, and 301 are 
proposed to be amended to read as follows:

PART 1--INCOME TAXES

    Paragraph 1. The authority citation for part 1 continues to read, 
in part, as follows:

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

    Par. 2. Section 1.6081-1 is amended by revising paragraphs (b)(1) 
and (b)(5) to read as follows:


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

* * * * *
    (b) * * *
    (1) In general. A taxpayer desiring an extension of the time for 
filing a return, statement, or other document shall submit an 
application for extension on or before the due date of such return, 
statement, or other document. Except as provided in paragraph (b)(3) of 
this section and paragraph (b) of Sec.  301.6091-1 of this chapter 
(relating to hand-carried documents), the taxpayer should make the 
application for extension to the internal revenue officer with whom 
such return, statement, or other document is required to be filed. The 
application must be in writing, signed by the taxpayer or his duly 
authorized agent, and must clearly set forth--
    (i) The particular tax return, information return, statement, or 
other document, including the taxable year or period thereof, for which 
the taxpayer requests an extension, and
    (ii) An explanation of the reasons for requesting the extension to 
aid the internal revenue officer in determining whether to grant the 
request.
* * * * *
    (5) Form of application. Taxpayers may apply for an extension of 
the time for filing a return, statement, or other document in a letter 
that includes the information required by paragraph (b)(3) of this 
section. In the case of an individual income tax return on Form 1040 
series, however, taxpayers should apply for an extension of the time 
for filing in accordance with Sec.  1.6081-4 of this chapter.
* * * * *
    Par. 3. Section 1.6081-2 is added to read as follows:


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

    [The text of proposed Sec.  1.6081-2 is the same as the text of 
Sec.  1.6081-2T published elsewhere in this issue of the Federal 
Register].
    Par. 4. In Sec.  1.6081-3, paragraph (a)(1) is revised to read as 
follows:


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

    (a) * * *
    (1) [The text of proposed Sec.  1.6081-3(a)(1) is the same as the 
text of Sec.  1.6081-3T(a)(1) published elsewhere in this issue of the 
Federal Register].
* * * * *
    Par. 5. Section 1.6081-4 is added to read as follows:


Sec.  1.6081-4  Automatic extension of time for filing individual 
income tax return.

    [The text of proposed Sec.  1.6081-4 is the same as the text of 
Sec.  1.6081-4T published elsewhere in this issue of the Federal 
Register.]
    Par. 6. 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) [The text of proposed Sec.  1.6081-5(b) is the same as the text 
of Sec.  1.6081-5T(b) published elsewhere in this issue of the Federal 
Register.]
* * * * *
    Par. 7. Section 1.6081-6 is added to read as follows:


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

    [The text of proposed Sec.  1.6081-6 is the same as the text of 
Sec.  1.6081-6T published elsewhere in this issue of the Federal 
Register.]
    Par. 8. Section 1.6081-7 is added to read as follows:


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

    [The text of proposed Sec.  1.6081-7 is the same as the text of 
Sec.  1.6081-7T published elsewhere in this issue of the Federal 
Register.]
    Par. 9. Section 1.6081-10 is added to read as follows:


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

    [The text of proposed Sec.  1.6081-10 is the same as the text of 
Sec.  1.6081-10T published elsewhere in this issue of the Federal 
Register.]
    Par. 10. Section 1.6081-11 is added to read as follows:


Sec.  1.6081-11  Automatic extension of time for filing certain 
employee plan returns.

    [The text of proposed Sec.  1.6081-11 is the same as the text of 
Sec.  1.6081-11T

[[Page 67399]]

published elsewhere in this issue of the Federal Register.]

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

    Par. 11. The authority citation for part 25 continues to read, in 
part, as follows:

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

    Par. 12. Section 25.6081-1 is added to read as follows:


Sec.  25.6081-1  Automatic extension of time for filing gift tax 
returns.

    [The text of proposed Sec.  25.6081-1 is the same as the text of 
Sec.  25.6081-1T published elsewhere in this issue of the Federal 
Register.]

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

    Par. 13. The authority citation for part 26 continues to read, in 
part, as follows:

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

    Par. 14. Section 26.6081-1 is added to read as follows:


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

    [The text of proposed Sec.  26.6081-1 is the same as the text of 
Sec.  26.6081-1T published elsewhere in this issue of the Federal 
Register.]

PART 53--FOUNDATION AND SIMILAR EXCISE TAXES

    Par. 15. The authority citation for part 53 continues to read, in 
part, as follows:

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

    Par. 16. Section 53.6081-1 is added to read as follows:


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

    [The text of proposed Sec.  53.6081-1 is the same as the text of 
Sec.  53.6081-1T published elsewhere in this issue of the Federal 
Register.]

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

    Par. 17. The authority citation for part 55 continues to read, in 
part, as follows:

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

    Par. 18. Section 55.6081-1 is added to read as follows:


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

    [The text of proposed Sec.  55.6081-1 is the same as the text of 
Sec.  55.6081-1T published elsewhere in this issue of the Federal 
Register.]

PART 156--EXCISE TAX ON GREENMAIL

    Par. 19. The authority citation for part 156 continues to read, in 
part, as follows:

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

    Par. 20. Section 156.6081-1 is added to read as follows:


Sec.  156.6081-1  Automatic extension of time for filing a return due 
under Chapter 54.

    [The text of proposed Sec.  156.6081-1 is the same as the text of 
Sec.  156.6081-1T published elsewhere in this issue of the Federal 
Register.]

PART 157--EXCISE TAX ON STRUCTURED SETTLEMENT FACTORING 
TRANSACTIONS

    Par. 21. The authority citation for part 157 continues to read, in 
part, as follows:

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

    Par. 22. Section 157.6081-1 is added to read as follows:


Sec.  157.6081-1  Automatic extension of time for filing a return due 
under Chapter 55.

    [The text of proposed Sec.  157.6081-1 is the same as the text of 
Sec.  157.6081-1T published elsewhere in this issue of the Federal 
Register.]

PART 301--PROCEDURE AND ADMINISTRATION

    Par. 23. The authority citation for part 301 continues to read, in 
part, as follows:

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

    Par. 24. Section 301.6081-2 is added to read as follows:


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

    [The text of proposed Sec.  301.6081-2 is the same as the text of 
Sec.  301.6081-2T published elsewhere in this issue of the Federal 
Register.]

Mark E. Matthews,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 05-21982 Filed 11-4-05; 8:45 am]
BILLING CODE 4830-01-P