Rev. Proc. 79-63

Section 1. Purpose

This revenue procedure concerns applications for extensions of the time for making an election or application for relief pursuant to section 1.9100-1 of the Income Tax Regulations. It sets forth information and representations that must be furnished by the taxpayer and some factors that will be taken into consideration in determining whether such extensions will be granted.

Sec. 2. Background

Under section 1.9100-1 of the regulations the Commissioner has discretion, upon a showing of of good cause by a taxpayer, to grant a reasonable extension of the time fixed by the regulations for making an election or application for relief in respect of tax under subtitle A of the Internal Revenue Code, provided:

(1) the time for making the election or application is not expressly prescribed by the statute;

(2) the request for the extension is filed with the Commissioner within a period of time the Commissioner considers reasonable under the circumstances; and

(3) it is shown to the Commissioner's satisfaction that granting the extension will not jeopardize the Government's interests.

Sec. 3. Scope

The scope of this revenue procedure is limited to requests for extensions of the time fixed by the regulations for making an election or application for relief, in accordance with the specific language of section 1.9100-1. Thus, this revenue procedure does not apply to requests for extensions of the time fixed by the Code for making an election or application for relief.

Under section 1.9100-1 of the regulations, the Commissioner has discretionary authority to grant extensions of the time fixed by the regulations for making an election or application for relief. Therefore, each request for an extension will be considered on its own specific facts and circumstances.

Sec. 4. Application

.01 Section 1.9100-1 of the regulations applies to a variety of elections and applications. The following factors generally will be taken into consideration in determining whether, under the facts and circumstances of each situation, good cause for granting the extension has been shown and the other requirements of section 1.9100-1 have been met:

(1) Due diligence of the taxpayer.--What action, if any, did the taxpayer take to determine the existence of and requirements for the election or application? In this regard, did the taxpayer consult an attorney or accountant knowledgeable in tax matters or communicate with a responsible employee of the Service? Further, what action, if any, did the taxpayer take to make the election or application?

(2) Prompt action by the taxpayer.--Is the taxpayer requesting the extension within a reasonable time after discovering a deadline that could not be met or, alternatively, within a reasonable time after discovering a deadline that has already passed? Was the discovery made within a reasonable time after passage of the deadline? Did the taxpayer take reasonable action under all the circumstances to deal promptly with a missed deadline?

(3) Intent of the taxpayer.--Did the taxpayer intend to make the election or application on time? If the taxpayer knew of the election or application, was the taxpayer's failure to elect or apply on time due to mere inadvertence or to significant intervening circumstance beyond the taxpayer's control? Have the taxpayer's actions been consistent with the intent to make the particular election or application or has the taxpayer taken action inconsistent with the intent to make the particular election or application?

(4) Prejudice to the interests of the Government.--Would granting the extension neither prejudice the interests of the Government nor cause undue administrative burden? For example, has the taxpayer used or had the opportunity to use hindsight to the Government's prejudice by actions based on knowledge of events occurring after the time when the taxpayer would have had to act in order timely to make the election or application?

(5) Statutory and regulatory objectives.--Would granting the extension be consistent with the objectives of the underlying statute and the regulatory election or application provision?

.02 Taxpayers requesting extensions of the time for making elections or applications must submit information to the Service that is specifically responsive to each of the questions set forth in 4.01 above. The information submitted should include a chronological account of the events leading to the taxpayer's failure to make the particular election or application. The information also should include the names and current addresses of each person having knowledge or information about the events, affidavits or statements from the persons having knowledge or information about the events that led to the failure to make a timely election or application, and all documents relevant to the questions set forth in section 4.01. Further, the taxpayer may submit any other information or documents bearing on the Service's consideration of the request for extension of the time for making the election or application.

.03 Requests for extensions of the time for making elections or applications and any factual information subsequently submitted must be accompanied by a declaration in the following form: "Under penalties of perjury, I declare that I have examined this request, including accompanying documents, and to the best of my knowledge and belief, the facts presented in support of this request are true, correct, and complete." The declaration must be signed by the taxpayer and not by taxpayer's authorized representative. The person signing for a corporate taxpayer must be an officer of the corporate taxpayer who has knowledge of the facts. Supporting affidavits or statements, if any, by the taxpayer's authorized representative(s) or other person(s) must be accompanied by a declaration by the taxpayer's authorized representative(s) or other person(s) in the following form: "Under penalties of perjury, I declare that, to the best of my knowledge and belief, the facts presented herein are true, correct, and complete."

Requests for extension of the time for making elections or applications must be addressed to Internal Revenue Service, Assistant Commissioner (Technical), 1111 Constitution Avenue, N.W., Washington, D.C. 20224, Attention: T:FP:T, when the Assistant Commissioner (Technical) has jurisdiction over the subject matter of the election or application; or Internal Revenue Service, Assistant Commissioner (Employee Plans and Exempt Organizations), 1111 Constitution Avenue, N.W., Washington, D.C. 20224, Attention: E:AD:C, when the Assistant Commissioner (Employee Plans and Exempt Organizations) has jurisdiction over the subject matter of the election or application.