[Federal Register Volume 73, Number 127 (Tuesday, July 1, 2008)]
[Proposed Rules]
[Pages 37389-37390]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-14901]


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 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
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  Federal Register / Vol. 73, No. 127 / Tuesday, July 1, 2008 / 
Proposed Rules  

[[Page 37389]]



DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-115457-08]
RIN 1545-BH88


Extension of Time for Filing Returns

AGENCY: Internal Revenue Service (IRS), Treasury.

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

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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. These simplified procedures are aimed 
at reducing overall taxpayer burden. The text of the temporary 
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 29, 2008.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-115457-08), room 
5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, 
Washington, DC 20044. Submissions may be hand delivered Monday through 
Friday between the hours of 8 a.m. and 4 p.m. to: CC:PA:LPD:PR (REG-
115457-08), Courier's Desk, Internal Revenue Service, 1111 Constitution 
Avenue, NW., Washington, DC. Alternatively, taxpayers may submit 
comments electronically via the Federal eRulemaking Portal at http://www.regulations.gov (IRS REG-115457-08).

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
Matthew P. Howard, (202) 622-4910; concerning submissions of comments 
and requests for a public hearing, Oluwafunmilayo Taylor (202) 622-7180 
(not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background and Explanation of Provisions

Partnerships, Trusts, and Estates

    Final and temporary regulations in the Rules and Regulations 
section of this issue of the Federal Register amend 26 CFR part 1 
relating to section 6081. The text of the temporary regulations also 
serves as the text of these proposed regulations. The preamble to the 
temporary regulations explains the amendments. The temporary 
regulations allow certain pass-through entities (most partnerships, 
estates, and certain trusts) to obtain an automatic five-month 
extension of time to file certain returns if an application is 
submitted on Form 7004, ``Application for Automatic Extension of Time 
to File Certain Business Income Tax, Information, and Other Returns.''
    In a previous notice of proposed rulemaking by cross-reference to 
temporary regulations, it was proposed that pass-through entities be 
allowed to obtain an automatic six-month extension of time to file. In 
response to comments received regarding the automatic six-month 
extension of time to file, and in an attempt to alleviate overall 
taxpayer burden, the Treasury Department and IRS have determined that 
the automatic extension period for certain pass-through entities should 
be five months. As a result, a majority of taxpayers with ownership 
interests in these pass-through entities will receive, in a timely 
manner, information returns from the 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 15th to file the Form 1040, ``U.S. Individual Income 
Tax Return'' will now receive a Schedule K-1, ``Partner's Share of 
Income, Credits, Deductions, etc.'' from a partnership in which the 
taxpayer holds an interest shortly after the partnership files its Form 
1065, ``U.S. Return of Partnership Income'' on its extended due date of 
September 15th.
    Although the Treasury Department and IRS are attempting to 
alleviate overall taxpayer burden, because the automatic extension 
period for certain pass-through entities will now be five months, 
comments are requested on whether a five-month extension of time to 
file for these pass-through entities might increase overall taxpayer 
burden. Please follow the instructions in the ``Comments and Requests 
for a Public Hearing'' portion of this preamble.

Pension Excise Taxes

    This notice of proposed rulemaking also proposes to amend 26 CFR 
part 54. This amendment would allow filers of Form 8928, ``Return of 
Certain Excise Taxes Under Chapter 43 of the Internal Revenue Code,'' 
to obtain an automatic six-month extension of time to file the return 
after the date prescribed for filing the return.

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. Although 
these regulations reference forms that are approved under the Paperwork 
Reduction Act (44 U.S.C. chapter 35), the regulations themselves do not 
impose a collection of information on small entities. Therefore the 
Regulatory Flexibility Act (5 U.S.C. chapter 6) does not apply. 
Pursuant to section 7805(f) of the Internal Revenue Code, this 
regulation has been submitted to the Chief Counsel for Advocacy of the 
Small Business Administration for comment on its 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 Department 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 will 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.

[[Page 37390]]

Drafting Information

    The principal author of these regulations is Matthew P. Howard of 
the Office of the Associate Chief Counsel (Procedure and 
Administration).

List of Subjects

26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

26 CFR Part 54

    Pension excise taxes, Reporting and recordkeeping requirements.

Proposed Amendments to the Regulations

    Accordingly, 26 CFR parts 1 and 54, 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 1.6081-2 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(a) through (i) published elsewhere in this issue of the 
Federal Register].
    Par. 3. 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(a) through (h) published elsewhere in this issue of the 
Federal Register].

PART 54--PENSION EXCISE TAXES

    Par. 4. The authority citation for part 54 is amended by adding an 
entry in numerical order to read in part as follows:

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

    Section 54.6081-1 also issued under authority of 26 U.S.C. 
6081(a).

    Par. 5. Section 54.6081-1 is added to read as follows:


Sec.  54.6081-1  Automatic extension of time for filing returns for 
certain excise taxes under Chapter 43.

    (a) In general. An employer, other person or health plan that is 
required to file a return on Form 8928, ``Return of Certain Excise 
Taxes Under Chapter 43 of the Internal Revenue Code,'' will be allowed 
an automatic 6-month extension of time to file the return after the 
date prescribed for filing the return if the employer, other person or 
health plan files an application under this section in accordance with 
paragraph (b) of this section.
    (b) Requirements. To satisfy this paragraph (b), an employer, other 
person or health plan must--
    (1) Submit a complete application on Form 7004, ``Application for 
Automatic 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 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.
    (e) Penalties. See section 6651 for failure to file a pension 
excise tax return or failure to pay the amount shown as tax on the 
return.
    (f) Effective/applicability date. This section is applicable for 
applications for an automatic extension of time to file a return due 
under chapter 43, filed on or after the date final regulations are 
published in the Federal Register.

Linda E. Stiff,
Deputy Commissioner for Services and Enforcement.
[FR Doc. E8-14901 Filed 6-30-08; 8:45 am]
BILLING CODE 4830-01-P