IRS Lists Time-Sensitive Acts That May Be Postponed.
NOV. 18, 2002
Rev. Proc. 2002-71; 2002-2 C.B. 850
DOCUMENT ATTRIBUTES
- Institutional AuthorsInternal Revenue Service
- Code Sections
- Subject Areas/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2002-25525 (22 original pages)
- Tax Analysts Electronic Citation2002 TNT 222-52
Citations: Rev. Proc. 2002-71; 2002-2 C.B. 850
Superseded by Rev. Proc. 2004-13
Rev. Proc. 2002-71
SECTION 1. PURPOSE
.01 This revenue procedure provides an updated list of time-sensitive acts, the performance of which may be postponed under sections 7508 and 7508A of the Internal Revenue Code (Code). Section 7508 of the Code postpones specified acts for individuals serving in the Armed Forces of the United States or serving in support of such Armed Forces in a combat zone. Section 7508A of the Code permits a postponement of specified acts for taxpayers affected by a Presidentially declared disaster or a terroristic or military action. The list of acts in this revenue procedure supplements the list of postponed acts in section 7508(a)(1) of the Code and section 301-7508A-1(b) of the Regulations on Procedure and Administration.
.02 This revenue procedure does not, by itself, provide any postponements under sections 7508 or 7508A. In order for taxpayers to be entitled to a postponement of any act listed in this revenue procedure, the IRS generally will publish a Notice or issue other guidance (including an IRS News Release) providing relief with respect to a specific combat zone, Presidentially declared disaster, or a terroristic or military action.
.03 This revenue procedure will be updated as needed when the IRS determines that additional acts should be included in the list of postponed acts or that certain acts should be removed from the list. Also, taxpayers may recommend that additional acts be considered for postponement under sections 7508 and 7508A. See section 17 of this revenue procedure.
SECTION 2. BACKGROUND
.01 Section 7509(a)(1) of the Internal Revenue Code permits a postponement of certain time-sensitive acts for individuals serving in the Armed Forces or in support of such Armed Forces in an area designated by the President as a combat zone under section 112. Among these acts are the filing of returns, the payment of tax, the filing of a Tax Court petition, and the filing of a refund claim. In the event of service in a combat zone, the acts specified in section 7508(a)(1) of the Code are automatically postponed. In addition, if the Service publishes a Notice or other guidance providing additional relief under section 7508, some or all of the acts listed in this revenue procedure may be postponed. Likewise, acts not listed in this revenue procedure may be included in published guidance.
.02 Section 7508A of the Code provides that certain acts performed by taxpayers and the government may be postponed if the taxpayer is affected by a Presidentially declared disaster or a terroristic or military action. A "Presidentially declared disaster" is defined in section 1033(h)(3) of the Code. A "terroristic or military action" is defined in section 692(c)(2) of the Code. Section 301.7508A1(d)(1) of the regulations defines seven types of affected taxpayers, including any individual whose principal residence (for purposes of section 1033(h)(4)) is located in a "covered disaster area" and any business entity or sole proprietor whose principal place of business is located in a "covered disaster area." Postponements under section 7508A are not available simply because a disaster or a terroristic or military action has occurred. Generally, the IRS will publish a Notice or issue other guidance (including an IRS News Release) authorizing the postponement. Such guidance will describe the acts postponed, the duration of the postponement, and the location of the covered disaster area. See, for example, Notice 2001-68, 2001-2 C.B. 504, supplementing Notice 2001-61, 2001-2 C.B. 305. When a Notice or other guidance for a particular disaster is published, or issued, the guidance generally will refer to this revenue procedure and may provide for a postponement for all the acts listed in the regulations and this revenue procedure. Alternatively, the guidance may provide that only certain acts listed in this revenue procedure are postponed based on the time when the disaster occurred, its severity, and other factors.
SECTION 3. SCOPE
This revenue procedure applies to individuals serving in the Armed Forces in a combat zone, or in support of such Armed Forces, to affected taxpayers within the meaning of section 301.7508A-1(d)(1) of the regulations, and to taxpayers whom the IRS determines are affected by a terroristic or military action.
SECTION 4. APPLICATION
.01 The tables below list sections of the Internal Revenue Code and Treasury Regulations requiring the timely performance of specified acts that may be postponed under sections 7508 and 7508A.
.02 In order to avoid unnecessary duplication, the following tables do not include acts specified in sections 7508 or 7508A or the regulations thereunder. Thus, for example, no mention is made in the following tables of the filing of tax returns or the payment of taxes (or an installment thereof) because these acts are already covered by sections 7508 and 7508A and the regulations thereunder. Also, the following tables do not refer to the making of accounting method elections or any other elections required to be made on tax returns or attachments thereto. Reference to these elections is not necessary because postponement of the filing of a tax return automatically postpones the making of any election required to be made on the return or an attachment thereto.
.03 The following tables refer only to postponement of acts performed by taxpayers. Additional guidance will be published in the Internal Revenue Bulletin if a decision is made that acts performed by the government may be postponed under section 7508 or section 7508A.
SECTION 5. ACCOUNTING METHODS AND PERIODS
Statute or Regulation Act Postponed
1. Chapter 1, Subchapter E Any act relating to the adoption,
of the Code election, retention, or change
of any accounting method or
accounting period, or to the
use of an accounting method
or accounting period, that is
required to be performed on
or before the due date of a
tax return (including
extensions). Examples of such
acts include (a) the
requirements in Rev. Proc.
2002-37, 2002-38, and 2002-39
that Form 1128, Application
to Adopt, Change, or Retain a
Tax Year, be filed with the
Director, Internal Revenue
Service Center, on or before
the due date (or the due date
including extensions) of the
tax return for the short
period required to effect the
change in accounting period;
and (b) the requirement in
Rev. Proc. 2002-9,
2002-3 I.R.B. 327, section 6.02 (3)
that a copy of Form 3115 must
be filed with the national
office no later than when the
original Form 3115 is filed
with the timely filed tax
return for the year of the
accounting method change.
2. Treas. Reg. If the acquiring corporation is
§ 1.381(c)(4)-1(d)(2) not permitted to use the method
of accounting used by the
acquiring corporation, the
method of accounting used by
the distributor/transferor
corporation, or the principal
method of accounting; or if
the corporation wishes to use
a new method of accounting,
then the acquiring
corporation must apply to the
Commissioner to use another
method. Treas. Reg.
§ 1.381(c)(4)-1(d)(2)
requires applications to be
filed not later than 90 days
after the date of distribution
or transfer. Rev. Proc. 83-77,
1983-2 C.B. 594, provides an
automatic 90-day extension.
3. Treas. Reg. If the acquiring corporation is
§ 1.381(c)(5)-1(d)(2) not permitted to use the inventory
method used by the acquiring
corporation, the inventory
method used by the
distributor/transferor
corporation, or the principal
method of accounting, or wishes
to use a new method of
accounting, then the
acquiring corporation must
apply to the Commissioner to
use another method. Treas.
Reg. § 1.381(c)(5)-1(d)(2)
requires applications to be
filed not later than 90 days
after the date of distribution
or transfer. Rev. Proc. 83-77
provides an automatic 90-day
extension.
4. Treas. Reg. § 1.442-1(b)(1) In order to secure prior
approval of an adoption,
change or retention of a
taxpayer's annual accounting
period, the taxpayer
generally must file an
application on Form 1128,
Application to Adopt, Change,
or Retain a Tax Year, with
the Commissioner within such
time as is provided in
administrative procedures
published by the Commissioner
from time to time. See, for
example, Rev. Proc. 66-50,
1966-2 C.B. 1260, Rev. Proc.
2002-37, 2002-22 I.R,B. 1030,
Rev. Proc. 2002-38, 2002-22
I.R.B. 1037, and Rev. Proc.
2002-39, 2002-22 I.R.B. 1046.
5. Treas, Reg. § 1.444-3T(b)(1) A section 444 election must
be made by filing Form 8716,
Election to Have a Tax Year
Other Than a Required Tax
Year, with the Service
Center. Generally, Form 8716
must be filed by the earlier
of (a) the 15th day of the
fifth month following the
month that includes the
first day of the taxable year
for which the election will
first be effective, or
(b) the due date (without regard
to extensions) of the income
tax return resulting from the
section 444 election.
6. Treas. Reg. Section 6 of Rev. Proc. 2002-9,
§ 1.446-1(e)(2)(i) 2002-3 I.R.B. 327, 341,
allows a taxpayer to change a
method of accounting within
the terms of the revenue
procedure by attaching the
application form to the
timely filed return for the
year of change. Section
6.02(3)(b) grants an
automatic extension of 6
months within which to file
an amended return with the
application for the change
following a timely filed
original return for the year
of change.
7. Treas. Reg. § 1.446-1(e)(3)(i) To secure the Commissioner's
consent to a change in method
of accounting, the taxpayer
must file an application on
Form 3115, Application for
Change in Accounting Method,
with the Commissioner during
the taxable year in which the
taxpayer desires to make the
change in method of
accounting (i.e., must be
filed by the last day of such
taxable year). This filing
requirement is also in Rev.
Proc. 97-27, 1997-1 C.B. 680.
(But see Rev. Proc. 2002-9
for automatic changes in
method of accounting that can
be made with the return.)
8. Treas. Reg. § 1.461-1(c)(3)(ii) A taxpayer may elect, with
the consent of the
Commissioner, to accrue real
property taxes ratably in
accordance with section
461(c). A written request for
permission to make such an
election must be submitted
within 90 days after the
beginning of the taxable year
to which the election is
first applicable. Rev. Proc.
83-77 provides an automatic
90-day extension.
9. Treas. Reg. A partnership or S corporation
§ 1.7519-2T(a)(2), (3) and (4) must file the Form 8752,
Required Payment or Refund
Under Section 7519, if the
taxpayer has made an election
under section 444 to use a
taxable year other than its
required taxable year and the
election is still in effect.
The Form 8752 must be filed
and any required payment must
be made by the date stated in
the instructions to Form
8752.
10. Rev. Proc. 92-29, section 6.02
A developer of real estate
requesting the Commissioner's
consent to use the alternative
cost method must file a
private letter ruling request
within 30 days after the
close of the taxable year in
which the first benefitted
property in the project is
sold. The request must
include a consent extending
the period of limitation on
the assessment of income tax
with respect to the use of
the alternative cost method.
SECTION 6. BUSINESS AND INDIVIDUAL TAX ISSUES
Statute or Regulation Act Postponed
1. Treas. Reg. § 1.71-1T(b), A payer spouse may send cash
Q&A-7 to a third party on behalf
of a spouse that qualifies
for alimony or separate
maintenance payments if the
payments are made to the
third party at the written
request or consent of the
payee spouse. The request or
consent must state that the
parties intend the payment to
be treated as an alimony
payment to the payee spouse
subject to the rules of
section 71. The payer spouse
must receive the request or
consent prior to the date of
filing of the payer spouse's
first return of tax for the
taxable year in which the
payment was made.
2. Treas. Reg. § 1.77-1 A taxpayer who receives a
loan from the Commodity
Credit Corporation may elect
to include the amount of the
loan in his gross income for
the taxable year in which the
loan is received. The
taxpayer in subsequent
taxable years must include
in his gross income all
amounts received during those
years as loans from the
Commodity Credit Corporation,
unless he secures the
permission of the
Commissioner to change to a
different method of
accounting. Treas. Reg.
§ 1.77-1 requires such
requests to be filed within
90 days after the beginning
of the taxable year of
change. Rev. Proc. 83-77
provides an automatic 90-day
extension.
3. Treas. Reg. The lessee must expend its
§ 1.110-1(b)(4)(ii)(A) construction allowance on
the qualified long-term
real property within eight
and one-half months after the
'close of the taxable year
in which the construction
allowance was received.
4. Sec. 118(c)(2) A contribution in aid of
construction received by a
regulated public utility that
provides water or sewerage
disposal services must be
expended by the utility on
qualifying property before
the end of the second taxable
year after the year in which
it was received by the
utility.
5. Treas. Reg. § 1.170A-5(a)(2) A contribution of an
undivided present interest in
tangible personal property
shall be treated as made upon
receipt by the donee of a
formally executed and
acknowledged deed of gift.
However, the period of
initial possession by the
donee may not be deferred for
more than one year.
6. Sec. 172(b)(1)(H) Certain taxpayers desiring to
take advantage of the new
5-year carryback period,
and/or desiring to apply for
a tentative carryback
adjustment, must act on or
before a specified date. (See
Rev. Proc. 2002-40, 2002-23
I.R.B. 1096).
7. Sec. 468A(g) A taxpayer that makes payments
to a nuclear decommissioning
find with respect to a
taxable year must make the
payments within 2 1/2 months
after the close of such
taxable year (the deemed
payment date).
8. Sec. 530(h) A trustee of a Coverdell
education savings account
must provide certain
information concerning the
account to the beneficiary by
January 31 following the
calendar year to which the
information relates. In
addition, Form 5498 must be
filed with the IRS by May 31
following the calendar year
to which the information
relates.
9. See. 563(a) In the determination of the
dividends paid deduction for
purposes of the accumulated
earnings tax imposed by
section 531, a dividend paid
after the close of any
taxable year and on or before
the 15th day of the third
month following the close of
such taxable year shall be
considered as paid during
such taxable year. The close
of the taxable year is not
affected by this revenue
procedure; the 3 1/2-month
period within which the
dividend is paid is the
period extended.
10. See. 563(b) In the determination of the
dividends paid deduction for
purposes of the personal
holding company tax imposed
by section 541, a dividend
paid after the close of any
taxable year and on or before
the 15th day of the third
month following the close of
such taxable year shall, to
the extent the taxpayer elects
on its return for the taxable
year, be considered as paid
during such taxable year. The
close of the taxable year is
not affected by this revenue
procedure; the 3 1/2-month
period within which the
dividend is paid is the
period extended.
11. Sec. 563(c) In the determination of the
dividends paid deduction for
purposes of part III, a
dividend paid after the close
of any taxable year and on or
before the 15th day of the
third month following the
close of such taxable year
shall, to the extent the
company designates such
dividend as being taken into
account, be considered as
paid during such taxable
year. The close of the
taxable year is not affected
by this revenue procedure;
the 3 1/2-month period within
which the dividend is paid is
the period extended.
12. Sec. 563(d) For the purpose of applying
section 562(a), with respect
to distributions under
subsection (a), (b), or (c)
of section 562, a
distribution made after the
close of the taxable year and
on or before the 15th day of
the third month following the
close of the taxable year
shall be considered as made
on the last day of such
taxable year. The close of
the taxable year is not
affected by this revenue
procedure; the 3 1/2-month
period within which the
dividend is paid is the
period extended.
13. Treas. Reg. A taxpayer must file a request
§ 1.468A-3(h)(1)(v) for a schedule of ruling amounts
for a nuclear decommissioning
fund by the deemed payment
date (2 1/2-months after the
close of the taxable year for
which the schedule of ruling
amounts is sought).
14. Treas. Reg. A taxpayer has 30 days to
§ 1.468A-3(h)(1)(vii) provide additional requested
information with respect to a
request for a schedule of
ruling amounts. If the
information is not provided
within the 30 days, the
request will not be
considered filed until the
date the information is
provided.
15. Sec. 529(c)(3)(C)(i) A rollover contribution to
another qualified tuition
program must be made no later
than the 60th day after the
date of a distribution from a
qualified tuition program.
16. Sec. 530(d)(4)(C)(i) Excess contributions to a
Coverdell education savings
account must be distributed
before a specified time in
the taxable year following
the taxable year in which the
contribution is made.
17. Sec. 530(d)(5) A rollover contribution to
another Coverdell education
savings account must be made
no later than the 60th day
after the date of a payment
or distribution from a
Coverdell education savings
account.
18. Sec. 1031(a) Any property received by the
taxpayer shall be treated as
property which is not like-
kind property if -- (A) such
property is not identified as
property to be received in
the exchange on or before the
day which is 45 days after
the date on which the
taxpayer transfers the
property relinquished in
the exchange, or (B) such
property is received after
the earlier of (i) the day
which is 180 days after the
date on which the taxpayer
transfers the property
relinquished in the exchange,
or (ii) the due date
(determined with regard to
extension) for the
transferor's return of the
tax imposed by this chapter
for the taxable year in
which the transfer of the
relinquished property occurs.
19. Treas. Reg. § 1.1033(c)(3) Certain elections respecting
the non recognition of gain
on the involuntary conversion
of property (Treas. Reg.
§§ 1.1033(c)(1) and
(2)) are required to be made
within the time periods
specified in Treas. Reg.
§ 1.1033(c)(3).
20. Sec. 1043(a) If an eligible person (as
defined under section
1043(b)) sells any property
pursuant to a certificate of
divestiture, then at the
election of the taxpayer,
gain from such sale shall be
recognized only to the extent
that the amount realized on
such sale exceeds the cost of
any permitted property
purchased by the taxpayer
during the 60-day period
beginning on the date of such
sale.
21. Sec. 1045(a) A taxpayer other than a
corporation may elect to roll
over gain from the sale of
qualified small business
stock held for more than six
months if other qualified
small business stock is
purchased by the taxpayer
during the 60-day period
beginning on the date of sale.
22. Sec. 1382(d) An organization, to which
section 1382(d) applies, is
required to pay a patronage
dividend within 8 1/2 months
after the close of the year.
23. Sec. 1388(j)(3)(A) Any cooperative organization
that exercises its option to
net patronage gains and
losses, is required to give
notice to its patrons of the
netting by the 15th day of
the 9th month following the
close of the taxable year.
24. Treas. Reg. § 301.7701-3(c) The effective date of an
entity classification
election (Form 8832) cannot
be more than 75 days prior to
the date on which the
election is filed.
25. Treas. Reg. § 301.9100-2(a)(1) An automatic extension of 12
months from the due date for
making a regulatory election
is granted to make certain
elections, including the
election to use other than
the required taxable year
under section 444, and the
election to use LIFO under
section 472.
26. Treas. Reg. An automatic extension of
§§ 301.9100-2(b)-(d) 6 months from the due date of
a return, excluding
extensions, is granted to
make the regulatory or
statutory elections whose due
dates are the due date of the
return or the due date of the
return including extensions
(for example, a taxpayer has
an automatic 6 month
extension to file an
application to change a
method of accounting under
Rev. Proc. 2002-9), provided
the taxpayer (a) timely filed
its return for the year of
election, (b) within that
6-month extension period,
takes the required corrective
action to file the election
in accordance with the
statute, regulations, revenue
procedure, revenue ruling,
notice or announcement
permitting the election, and
(c) writes at the top of the
return, statement of election
or other form "FILED PURSUANT
TO § 301.9100-2."
27. Notice 2002-25 Notice 2002-25, 2002-15
I.R.B. 743, relaxes the
contemporaneous written
acknowledgment requirement
for charitable contributions
of $250 or more made after
September 10, 2001, and
before January 1, 2002, if
taxpayers obtain the written
acknowledgment or have
evidence of a good-faith
attempt to obtain it by
October 15, 2002.
SECTION 7. CORPORATE ISSUES
Statute or Regulation Act Postponed
1. Sec. 302(e)(1) A corporation must complete a
distribution in pursuance of a
plan of partial liquidation of
a corporation within the
specified period.
2. Sec. 303 and Treas. Reg. A corporation must complete the
§ 1.303-2 distribution of property to a
shareholder in redemption of
all or part of the stock of
the corporation which (for
Federal estate tax purposes)
is included in determining
the estate of a decedent.
Section 303 and Treas. Reg.
§ 1.303-2 require, among
other things, that the
distribution occur within the
specified period.
3. Sec. 304(b)(3)(C) If certain requirements are
met, section 304(a) does not
apply to a transaction
involving the formation of a
bank holding company. One
requirement is that within a
specified period (generally
2 years) after control of a bank
is acquired, stock
constituting control of the
bank is transferred to a bank
holding company in connection
with the bank holding company's
formation.
4. Sec. 332(b) and Treas. Reg. A corporation must completely
§§ 1.332-3 and 1.332-4 liquidate a corporate subsidiary
within the specified period.
5. See. 338(d)(3) and (h), and An acquiring corporation must
Treas Reg. § 1.338-2 complete a "qualified stock
purchase" of a target
corporation's stock within the
specified acquisition period.
6. Sec. 338(g) and Treas. Reg. An acquiring corporation may
§ 1.339-2 elect to treat certain stock
purchases as asset
acquisitions. The election must
be made within the specified
period.
7. Sec. 338(h)(10) and Treas. Reg. An acquiring corporation and
§ 1.338(h)(10)-1(c) selling group of corporations
may elect to treat certain
stock purchases as asset
purchases, and to avoid gain
or loss upon the stock sale,
The election must be made
within the specified period.
8. Sec. 341 and Treas. Reg. A shareholder of a collapsible
§ 1.341-7 corporation must sell its stock
in the corporation within the
specified period.
9. Treas. Reg. An acquiring corporation files
§ 1.381(c)(17)-1(c) a Form 976, Claim for Deficiency
Dividends Deduction by a Personal
Holding Company, Regulated
Investment Company, or Real
Estate Investment Trust, within
120 days after the date of the
determination under section 547(c)
to claim a deduction of a deficiency
dividend.
10. Treas. Reg. § 1.441-3(b) A personal service corporation may
obtain the approval of the
Commissioner to adopt, change, or
retain an annual accounting period
by filing Form 1128,
Application to Adopt, Change
or Retain a Tax Year within
such time as is provided in
the administrative procedures
published by the Commissioner.
See Rev. Proc. 2002-38 and
Rev. Proc. 2002-39.
11. Sec. 562(b)(1)(B) In the case of a complete
liquidation (except in the case
of a complete liquidation of
a personal holding company or
foreign personal holding company)
occurring within 24 months
after the adoption of a plan of
liquidation, any distribution
within such period pursuant to
such plan shall, to the
extent of the earnings and
profits (computed without
regard to capital losses) of
the corporation for the taxable
year in which such distribution
is made, be treated as a dividend
for purposes of computing the
dividends paid deduction.
12. See. 562(b)(2) In the case of a complete
liquidation of a personal
holding company occurring
within 24 months after the
adoption of a plan of
liquidation, the amount of
any distribution within such
period pursuant to such plan
shall be treated as a
dividend for purposes of
computing the dividends paid
deduction to the extent that
such is distributed to
corporate distributees and
represents such corporate
distributees' allocable share
of the undistributed personal
holding company income for
the taxable year of such
distribution.
13. See. 1502 and Treas. Reg. A common parent must apply for
§ 1. 1502-75(c)(1)(i) permission to discontinue filing
consolidated returns within a
specified period after the date
of enactment of a law affecting
the computation of tax liability.
14. Sec. 6425 and Treas. Reg. Corporations applying for an
§ 1.6425-1 adjustment of an overpayment
of estimated income tax must
file Form 4466, Corporation
Application for Quick Refund
of Overpayment of Estimated
Tax, on or before the 15th
day of the third month after
the taxable year, or before
the date the corporation
first files its income tax
return for such year,
whichever is earlier.
SECTION 8. EMPLOYEE BENEFIT ISSUES
Statute or Regulation Act Postponed
1. Sec. 72(p)(2)(B) and (C), and A loan from a qualified employer
Treas. Reg. § 1.72(p)-1, plan to a participant in, or a
Q&A-10 beneficiary of, such plan must
be repaid according to certain
time schedules specified in
section 72(p)(2)(B) and (C)
(including, if applicable, any
grace period granted pursuant
to Tress. Reg. § 1.72(p)-1,
Q&A-10).
2. Sec. 72(t)(2)(A)(iv) Under section 72(t)(2)(A)(iv),
to avoid the imposition of a
10-percent additional tax on a
distribution from a qualified
retirement plan, the distribution
must be part of a series of
substantially equal periodic
payments, made at least annually.
3. Sec. 72(t)(2)(F) To avoid the imposition of a
10-percent additional tax on a
distribution from an individual
retirement arrangement (IRA) for
a first-time home purchase, such
distribution must be used within
120 days of the distribution to
pay qualified acquisition costs
or rolled into an IRA.
4. Sec. 83(b) and Treas. Reg. Any person who performs services
§ 1.83-2(b) in connection with which property
is transferred to any person may
elect not later than 30 days
after the date of the transfer
of the property to include in
his gross income, for the
taxable year in which such
property is transferred, the
excess of the fair market value
of the property over the amount
(if any) paid for the property.
5. Proposed Treas. Reg. Cafeteria plan participants will
§ 1.125-1, Q&A-15 avoid constructive receipt of the
taxable amounts if they elect the
benefits they wilt receive before
the beginning of the period
during which the benefits will be
provided.
6. Proposed Treas. Reg. Cafeteria plan participants will
§ 1.125-1, Q&A-14 and not be in constructive receipt
Proposed Treas. Reg. if, at the end of the plan year,
§ 1.125-2, Q&A-7 they forfeit amounts elected but
not used during the plan year.
7. Proposed Treas. Reg. Cafeteria plan participants may
§ 1.125-2, Q&A-5 receive in cash the value of
unused vacation days on or before
the earlier of the last day of
the cafeteria plan year or the
last day of the employee's
taxable year to which the unused
days relate.
8. Treas. Reg. § 1.162-27(e)(2) A performance goal is
considered preestablished if
it is established in writing
by the corporation's
compensation committee not
later than 90 days after the
commencement of the period of
service to which the
performance goal relates if
the outcome is substantially
uncertain at the time the
compensation committee
actually establishes the
goal. In no event; however,
will the performance goal be
considered pre-established if
it is established after
25 percent of the period of
service has elapsed.
9. Sec. 220(f)(5) A rollover contribution to an
Archer MSA must be made no
later than the 60th day after
the day on which the holder
receives a payment or
distribution from an Archer
MSA.
10. Sec. 220(h) A trustee or custodian of an
MSA (Archer MSA or
Medicare+Choice MSA) must
provide certain information
concerning the MSA to the
account holder by January 31
following the calendar year
to which the information
relates. In addition, MSA
contribution information must
be furnished to the account
holder, and Form 5498, IRA
Contribution Information,
filed with the IRS, by May 31
following the calendar year
to which the information
relates.
11. Secs. 401(a)(9), 403(a)(1), The first required minimum
403(b)(10), 408(a)(6), 408(b)(3) distribution from plans subject
and 457(d)(2) to the rules in section 401(a)(9)
must be made no later than the
required beginning date.
Subsequent required minimum
distributions must be made by
the end of each distribution
calendar year.
12. Sec. 401(a)(28)(B)(i) A qualified participant in an
ESOP (as defined in section
401(a)(28)(B)(iii)) may elect
within 90 days after the
close of each plan year in
the qualified election period
(as defined in section
40l(a)(28)(B)(iv)) to direct
the plan as to the investment
of at least 25 percent of the
participant's account in the
plan (50 percent in the case
of the last election).
13. Sec. 401(a)(28)(B)(ii) A plan must distribute the
portion of the participant's
account covered by an
election under section
401(a)(28)(B)(i) within 90
days after the period during
which an election can be
made; or the plan must offer
at least 3 investment options
(not inconsistent with
regulations prescribed by the
Secretary) to each
participant making the
election under section
401(a)(28)(B)(i) and within
90 days after the period
during which the election may
be made, the plan must invest
the portion of the
participant's account in
accordance with the
participant's election.
14. Sec. 401(a)(30) and Treas. Reg. Excess deferrals for a calendar
§ 1.401(4)730 and year, plus income attributable
§ 1.402(g)-1 to the excess, must be
distributed no later than the
first April 15 following the
calendar year.
15. See. 401(b) and Treas. Reg. A retirement plan that fails
§ 1.401(b)-1 to satisfy the requirements of
section 401(a) or section 403(a)
on any day because of a
disqualifying provision will be
treated as satisfying such
requirements on such day if,
prior to the expiration of the
applicable remedial amendment
period, all plan provisions
necessary to satisfy the
requirements of section 401(a)
or 403(a) are in effect and
have been made effective for
the whole of such period.
16. Sec. 401(k)(8) A cash or deferred arrangement
must distribute excess
contributions for a plan year,
plus income attributable to the
excess, pursuant to the terms
of the arrangement no later than
the close of the following plan
year.
17. Sec. 401(m)(6) A plan subject to section 401(m)
must distribute excess aggregate
contributions for a plan year,
plus income attributable to the
excess, pursuant to the terms of
the plan no later than the close
of the following plan year.
18. Sec. 402(g)(2)(A) and Treas. Reg. An individual with excess
§ 1.402(g)-1 deferrals for a taxable year
must notify a plan, not later
than a specified date
following the taxable year,
that excess deferrals have
been contributed to that plan
for the taxable year. A
distribution of excess
deferrals identified by the
individual, plus income
attributable to the excess,
must be accomplished no later
than the first April 15
following the taxable year of
the excess.
19. Sec. 404(k)(2)(A)(ii) An ESOP receiving dividends
on stock of the C corporation
maintaining the plan must
distribute the dividend in
cash to participants or
beneficiaries not later than
90 days after the close of
the plan year in which the
dividend was paid.
20. Secs. 408(i) and 6047(c) A trustee or issuer of an
individual retirement
arrangement (IRA) must
provide certain information
concerning the IRA to the IRA
owner by January 31 following
the calendar year to which
the information relates. In
addition, IRA contribution
information must be furnished
to the owner, and Form 5498,
Individual Retirement
Arrangement Information,
filed with the IRS, by May 31
following the calendar year
to which the information
relates.
21. Sec. 409(h)(4) An employer required to
repurchase employer
securities under section
409(h)(1)(B) must provide a
put option for a period of at
least 60 days following the
date of distribution of
employer securities to a
participant, and if the put
option is not exercised, for
an additional 60-day period
in the following plan year. A
participant who receives a
distribution of employer
securities under section
409(h)(1)(B) must exercise
the put option provided by
that section within a period
of at least 60 days following
the date of distribution, or
if the put option is not
exercised within that period,
for an additional 60-day
period in the following plan
year.
22. Sec. 409(h)(5) An employer required to
repurchase employer
securities distributed as
part of a total distribution
must pay for the securities
in substantially equal
periodic payments (at least
annually) over a period
beginning not later than 30
days after the exercise of
the put option and not
exceeding 5 years.
23. See. 409(h)(6) An employer required to
repurchase employer
securities distributed as
part of an installment
distribution must pay for the
securities not later than
30 days after the exercise of
the put option under section
409(h)(4).
24. Sec. 409(o) An ESOP must commence the
distribution of a
participant's account
balance, if the participant
elects, not later than 1 year
after the close of the plan
year -- i) in which the
participant separates from
service by reason of
attaining normal retirement
age under the plan, death or
disability; or ii) which is
the 5th plan year following
the plan year in which the
participant otherwise
separates from service
(except if the participant is
reemployed before distribution
is required to begin).
25. Sec. 457(e)(16)(B) An eligible rollover distribution
from a section 457 eligible
governmental plan may be
rolled over to an eligible
retirement plan no later than
the 60th day following the
day the distributee received
the distributed property.
26. Sec. 1042(a)(2) A taxpayer must purchase qualified
replacement property (defined
in section 1042(c)(4)) within the
replacement period, defined in
section 1042(c)(3) as the period
which begins 3 months before
the date of the sale of
qualified securities to an
ESOP and ends 12 months after
the date of such sale.
27. Treas. Reg. § 1.1042-1T, Q&A-3 A taxpayer must notarize any
statement of purchase with
respect to qualified replacement
property required under
Treas. Reg. § 1.1042-1T,
Q&A-3 no later than 30 days after
a purchase of qualified
replacement property.
28. Sec. 4972(c)(3) Nondeductible plan contributions
must be distributed prior to
a certain date to avoid a
10 percent tax.
29. Sec. 4979 and Treas. Reg. A 10 percent tax on the amount
§ 54.4979-1 of excess contributions and
excess aggregate contributions
under a plan for a plan year
will be imposed unless the
excess, plus income
attributable to the excess is
distributed (or, if forfeitable,
forfeited) no later than
2 1/2-months after the close of
the plan year. In the case of
an employer maintaining a
SARSEP, employees must be
notified of the excess by the
employer within the 2 1/2-month
period to avoid the tax.
30. Secs. 6033, 6039D, 6047, 6057, Form 5500 and Form 5500-EZ,
16058, and 6059 which are used to report annual
information concerning employee
benefit plans and fringe benefit
plans, must be filed by a
specified time.
General Advice
Affected filers are advised to
follow the instructions
accompanying the Form 5500 series
(or other guidance published on
the postponement) regarding how
to file the forms when
postponements are granted pursuant
to section 7508 or section 7508A.
Combat Zone Postponements under
Section 7508
In the case of taxpayers who are
individuals, the IRS may permit
a postponement of the filing of
the Form 5500 or Form 5500-EZ
under section 7508, Whatever
postponement of the Form 5500
series filing due date is
permitted by the IRS under
section 7508 will also be
permitted by the Department of
Labor and the Pension Benefit
Guaranty Corporation (PBGC) for
similarly situated individuals
who are plan administrators.
Postponements for Presidentially
Declared Disasters and Terroristic
or Military Actions under
Section 7508A
In the case of "affected
taxpayers," as defined in Treas.
Reg. § 301.7508A-1(d), the
IRS may permit a postponement of
the filing of the Form 5500 or
Form 5500-EZ. Taxpayers who are
unable to obtain on a timely
basis information necessary
for completing the forms from
a bank, insurance company, or
any other service provider
because such service
providers' operations are
located in a covered disaster
area will be treated as
"affected taxpayers."
Whatever postponement of the
Form 5500 series filing due
date is permitted by the IRS
under section 7508A will also
be permitted by the
Department of Labor and PBGC
for similarly situated plan
administrators and direct
filing entities.
31. Rev. Proc. 2002-47, Sections 9.02 The correction period for
(1) and (2) self-correction of operational
failures is the last day of the
second plan year following the
plan year for which the failure
occurred. The correction period
for self-correction of operational
failures for transferred assets
does not end until the last day
of the first plan year that begins
after the corporate merger,
acquisition, or other similar
employer transaction.
32. Rev. Proc. 2002-47, Section 12.08 If the submission involves a
plan with transferred assets
and no new incidents of the
failures in the submission
occurred after the end of the
second plan year that begins
after the corporate merger,
acquisition, or other similar
employer transaction, the
plan sponsor may calculate
the amount of plan assets and
number of plan participants
based on the Form 5500
information that would have
been filed by the plan
sponsor for the plan year
that includes the employer
transaction if the
transferred assets were
maintained as a separate
plan.
33. Rev. Proc. 2002-47, Section 14.03 If an examination involves a
plan with transferred assets
and the IRS determines that
no new incidents of the
failures that relate to the
transferred assets occurred
after the end of the second
plan year that begins after
the corporate merger,
acquisition, or other similar
employer transaction, the
sanction under Audit CAP will
not exceed the sanction that
would apply if the
transferred assets were
maintained as a separate
plan.
SECTION 9. ESTATE, GIFT AND TRUST ISSUES
Statute or Regulation Act Postponed
1. Sec. 643(g) The trustee may elect to
treat certain payments of
estimated tax paid by the
beneficiary. The election
shall be made on or before
the 65th day after the close
of the taxable year of the
trust.
2. Sec. 2011(c) The executor of a decedent's
estate must file a claim for
a credit for state estate,
inheritance, legacy or
succession taxes by filing a
claim within 4 years of
filing Form 706, United
States Estate (and Generation
Skipping Transfer) Tax
Return.
3. Sec. 2014(c) The executor of a decedent's
estate must file a claim for
foreign death taxes within 4
years of filing Form 706,
United States Estate (and
Generation Skipping Transfer)
Tax Return.
4. See. 2016 and Treas. Reg. If an executor of a decedent's
§ 20.2016-1 estate (or any other person)
receives a refund of any
state or foreign death taxes
claimed as a credit on Form 706,
the IRS must be notified
within 30 days of receipt.
5. See. 2031(c) If an executor of a
decedent's estate elects on
Form 706 to exclude a portion
of the value of land that is
subject to a qualified
conservation easement,
agreements relating to
development rights must be
implemented within 2 years
after the date of the
decedent's death.
6. Sec. 2032(d) The executor of a decedent's
estate may elect an alternate
valuation on a late filed
Form 706 if the Form 706 is
not filed later than 1 year
after the due date.
7. Sec. 2032A(c)(7) A qualified heir, with
respect to specially valued
property, is provided a
two-year grace period
immediately following the
date of the decedent's death
in which the failure by the
qualified heir to begin using
the property in a qualified
use will not be considered a
cessation of qualified use
and therefore will not
trigger additional estate
tax.
8. Sec. 2032A(d)(3) The executor of a decedent's
estate has 90 days after
notification of incomplete
information/signatures to
provide the information/
signatures to the IRS regarding
an election on Form 706 with
respect to specially valued
property.
9. Sec. 2046 A taxpayer may make a qualified
disclaimer no later than 9
months after the date on
which the transfer creating
the interest is made, or the
date the person attains age 21.
10. Sec. 2053(d) and Treas. Reg. If the executor of a decedent's
§§ 20.2053-9(c) and 10(c) estate elects to take a
deduction for state and foreign
death tax imposed upon a
transfer for charitable or
other uses, the executor must
file a written notification
to that effect with the IRS
before expiration of the
period of limitations on
assessments (generally 3
years).
11. Sec. 2055(e)(3) A party in interest must commence
a judicial proceeding to
change an interest into a
qualified interest no later
than the 90th day after the
estate tax return (Form 706)
is required to be filed or,
if no return is required, the
last date for filing the
income tax return for the
first taxable year of the
trust.
12. Sec. 2056(d) A qualified domestic trust
(QDOT) election must be made
on Form 706, Schedule M, and
the property must be
transferred to the trust
before the date on which the
return is made. Any
reformation to determine if a
trust is a QDOT requires that
the judicial proceeding be
commenced on or before the
due date for filing the
return.
13. Sec. 2056A(b)(2) The trustee of a QDOT must
file a claim for refund of
excess tax no later than 1 year
after the date of final
determination of the decedent's
estate tax liability.
14. Sec. 2057(i)(3)(G) A qualified heir, with respect
to qualified family owned
business, has a two-year grace
period immediately following
the date of the decedent's
death in which the failure by
the qualified heir to begin
using the property in a
qualified use will not be
considered a cessation of
qualified use and therefore
will not trigger additional
estate tax.
15. Sec. 2057(i)(3)(H) The executor of a decedent's
estate has 90 days after
notification of incomplete
information/signatures to provide
the information/signatures to
the IRS regarding an election
on Form 706 with respect to
specially valued property.
16. Sec. 2516 The IRS will treat certain
transfers as made for full
and adequate consideration in
money or money's worth where
husband and wife enter into a
written agreement relative to
their marital and property
rights and divorce actually
occurs within the 3-year
period beginning on the date
1 year before such agreement
is entered into.
17. Sec. 2518(b) A taxpayer may make a
qualified disclaimer no later
than 9 months after the date
on which the transfer
creating the interest is
made, or the date the person
attains age 21.
SECTION 10. EXEMPT ORGANIZATION ISSUES
Statute or Regulation Act Postponed
1. Sec. 505(c)(1) An organization must give
notice by filing Form 1024,
Application for Recognition
of Exemption Under Section
501(a), to be recognized as
an organization exempt under
section 501(c)(9) or section
501(c)(17). Generally, if the
exemption is to apply for any
period before the giving of
the notice, Treas. Reg.
§ 505(c)-1T, Q&A-6 of
the regulations requires that
Form 1024 be filed within
15 months from the end of the
month in which the
organization was organized.
2. Sec. 508 and Treas. Reg. A purported section 501(c)(3)
§ 1.508-1 organization must generally file
Form 1023, Application for
Recognition of Exemption, to
qualify for exemption. Generally,
if the exemption is to apply for
any period before the giving of
the notice, the Form 1023 must
be filed within 15 months from
the end of the month in which
the organization was organized.
3. Sec. 6072(e) and Treas. Reg. Annual returns of organizations
§ 1.6033-2(e) exempt under section 501(a)
must be filed on or before
the 15th day of the 5th month
following the close of the
taxable year.
SECTION 11. EXCISE TAX ISSUES
Statute or Regulation Act Postponed
1. Treas. Reg. § 48.4101-1(h)(v) A registrant must notify the
IRS of any change in the
information a registrant has
submitted within 10 days.
2. Sec. 4221(b) and Treas. Reg. A manufacturer is allowed to
§ 48.4221-2(c) make a tax-free sale of
articles for resale to a
second purchaser for use in
further manufacture. This
rule ceases to apply six
months after the earlier of
the sale or shipment date
unless the manufacturer
receives certain proof.
3. Sec. 4221(b) and Treas. Reg. A manufacturer is allowed to
§ 48.4221-3(c) make a tax-free sale of
articles for export. This rule
ceases to apply six months
after the earlier of the sale
or shipment date unless the
manufacturer receives certain
proof.
4. See. 4221(e)(2)(A) and Treas. Reg. A manufacturer is allowed to
§ 48-4221-7(c) make a tax-free sale of tires
for use by the purchaser in
connection with the sale of
another article manufactured
or produced by the purchaser.
This rule ceases to apply six
months after the earlier of
the sale or shipment date
unless the manufacturer
receives certain proof.
SECTION 12. INTERNATIONAL ISSUES
Statute or Regulation Act Postponed
1. Sec. 482 and Treas. Reg. A claim for a setoff of a
§ 1.482-1(g)(4)(ii)(C) section 482 allocation by the
IRS must be filed within
30 days of either the date of
the IRS's letter transmitting
an examination report with
notice of the proposed
adjustment or the date of a
notice of deficiency.
2. Sec. 482 and Treas. Reg. A claim for retroactive
§ 1.482-1(j)(2) application of the final
section 482 regulations,
otherwise effective only for
taxable years beginning after
October 6, 1994, must be
filed prior to the expiration
of the statute of limitations
for the year for which
retroactive application is
sought.
3. Sec. 482 and Treas. Reg. A participant in a cost-sharing
§ 1.482-7(j)(2) arrangement must provide
documentation regarding the
arrangement, as well as
documentation specified in
Treas. Reg. §§
1.482-7(b)(4) and
1.482-7(c)(1), within 30 days
of a request by the IRS.
4. Treas. Reg. Liabilities of a foreign
§ 1.882-5(d)(2)(ii)(A)(2) corporation that is not a
bank must be entered on a set
of books at a time reasonably
contemporaneous with the time
the liabilities are incurred.
5. Treas. Reg. Liabilities of foreign
§ 1.882-5(d)(2)(iii)(A)(1) corporations that are engaged
in a banking business must be
entered on a set of books
relating to an activity that
produces ECI before the close
of the day on which the
liability is incurred.
6. Treas. Reg. Requirement that marketable
§ 1.884-2T(b)(3)(i) securities be identified on
the books of a U.S. trade or
business within 30 days of
the date an equivalent amount
of U.S. assets ceases to be
U.S. assets. This requirement
applies when a taxpayer has
elected to be treated as
remaining engaged in a U.S.
trade or business for branch
profits tax purposes.
7. Treas. Reg. Requirement that a foreign
§ 1.884-4(b)(3)(ii)(B) corporation which identifies
liabilities as giving rise to
U.S. branch interest, send a
statement to the recipients
of such interest within two
months of the end of the
calendar year in which the
interest was paid, stating
that such interest was U.S.
source income (if the
corporation did not make a
return pursuant to section
6049 with respect to the
interest payment.
8. Sec. 922(a)(1)(E) and Treas. Reg. The FSC must appoint a new
§ 1.922-1(j) (Q&A-19) non-U.S. resident director
within 30 days of the date of
death, resignation, or
removal of the former
director, in the event that
the sole non-U.S. resident
director of a FSC dies,
resigns, or is removed.
9. Sec. 924(b)(2)(B) and Treas. Reg. A taxpayer must execute an
§ 1.924(a)-1T(j)(2)(i) agreement regarding unequal
apportionment at a time when
at least 12 months remain in
the period of limitations
(including extensions) for
assessment of tax with
respect to each shareholder
of the small PSC in order to
apportion unequally among
shareholders of a small FSC
the $5 million foreign
trading gross receipts used
to determine exempt foreign
trade income.
10. Sec. 924(c)(2) and Treas. Reg. The FSC must open a new
§ 1.924(c)-1(c)(4) qualifying foreign bank
account within 30 days of the
date of termination of the
original bank account, if a
FSC's qualifying foreign bank
account terminates during the
taxable year due to
circumstances beyond the
control of the FSC.
11. Sec. 924(c)(3) and Treas. Reg. The FSC must transfer funds
§ 1.924(c)-1(d)(1) from its foreign bank account
to its U.S. bank account,
equal to the dividends,
salaries or fees disbursed,
and such transfer must take
place within 12 months of the
date of the original
disbursement from the U.S.
bank account, if dividends,
salaries, or fees are
disbursed from a FSC's U.S.
bank account.
12. Sec. 924(c)(3) and Treas. Reg. The FSC must reimburse from
§ 1.924(c)-1(d)(2) its own bank account any
dividends or other expenses
that are paid by a related
person, on or before the due
date (including extensions)
of the FSC's tax return for
the taxable year to which the
reimbursement relates.
13. Sec. 924(c)(3) and Treas. Reg. If the Commissioner determines
§ 1.924(c)-1(d)(3) that the taxpayer acted in
good faith, the taxpayer may
comply with the reimbursement
requirement by reimbursing
the funds within 90 days of
the date of the Commissioner's
determination, notwithstanding
a taxpayer's failure to meet
the return-filing-date
reimbursement deadline in
Treas. Reg.
§ 1.924(c)-1(d)(2).
14. Sec. 924(e)(4) and Treas. Reg. If a payment with respect to
§ 1.924(e)-1(d)(2)(iii) a transaction is made directly
to the FSC or the related supplier
in the United States, the
funds must be transferred to
and received by the FSC bank
account outside the United
States no later than 35 days
after the receipt of good
funds (i.e., date of check
clearance) on the transaction.
15. Temp. Treas. Reg. A FSC and its related supplier
§ 1.925(a)-1T(e)(4) may redetermine a transfer
pricing method, the amount of
foreign trading gross receipts,
and costs and expenses, provided
such redetermination occurs
before the expiration of the
statute of limitations for claims
for refund for both the FSC and
related supplier, and provided
such redetermination shall affect
both the FSC and the related
supplier. See Treas. Reg.
§ 1.925(a)-1(c)(8)(i) for
time limitations with respect to
FSC administrative pricing
grouping redeterminations and
for a cross-reference to
Temp. Treas. Reg.
§ 1.925(a)-1T(e)(4).
16. Sec. 927(f)(3)(A) and Treas. Reg. A corporation may terminate its
§ 1-927(f)-1(b) (Q&A-12) election to be treated as a
FSC or a small FSC by
revoking the election during
the first 90 days of the FSC
taxable year (other than the
first year in which the
election is effective) in
which the election was to
take effect.
17. Sec. 927 and Temp. Treas. Reg. A taxpayer may satisfy the
§ 1.927(a)-1T(d)(2)(i)(B) destination test with respect
to property sold or leased by
a seller or lessor if such
property is delivered by the
seller or lessor (or an agent
of the seller or lessor)
within the United States to a
purchaser or lessee, if the
property is ultimately
delivered outside the United
States (including delivery to
a carrier or freight
forwarder for delivery
outside the United States) by
the purchaser or lessee (or a
subsequent purchaser or
sublessee) within one year
after the sale or lease.
18. Sec. 927 and Temp. Treas. Reg. A taxpayer that claims FSC
§ 1.927(b)-1T(e)(2)(i) commission deductions must
designate the sales, leases,
or rentals subject to the FSC
commission agreement no later
than the due date (as
extended) of the tax return
of the FSC for the taxable
year in which the
transaction(s) occurred.
19. Sec. 927 and Treas. Reg. A transferee or other recipient
§ 1.927(f)-1(a) (Q&A-4) of shares in the corporation
(other than a shareholder
that previously consented to
the election) must consent to
be bound by the prior
election within 90 days of
the first day of the FSC's
taxable year to preserve the
status of a corporation that
previously qualified as a FSC
or as a small FSC.
20. Sec. 936 and Treas. Reg. If a "qualified investment"
§ 1.936-10(c) in a Caribbean Basin country
ceases to meet the
qualification requirements,
the taxpayer may correct any
disqualifying events within a
reasonable period of time,
which is defined as not more
than 60 days from the date
that such events came to the
attention of the taxpayer (or
should have come to its
attention by the exercise of
reasonable diligence).
21. Sec. 936 and Treas. Reg. A taxpayer that elects
§ 1.936-11 retroactive application of
the temporary regulation
regarding separate lines of
business for taxable years
beginning after December 31,
1995, must elect to do so
prior to the expiration of
the statute of limitations
for the year in question.
22. Treas. Reg. An election of, or an adoption
§ 1.964-1(c)(3)(ii) of or change in a method of
and - 1T(g)(2). accounting of a CFC
(controlled foreign
corporation) requires the
filing of a written statement
jointly executed by the
controlling U.S. shareholders
of the CFC within 180 days
after the close of the
taxable year of the CFC.
23. Sec. 982(c)(2)(A) Any person to whom a formal
document request is mailed
shall have the right to bring
a proceeding to quash such
request not later than the
90th day after the day such
request was mailed.
24. Treas. Reg. An election to have Treas.
§ 1.988-1(a)(7)(ii) Reg. § 1.988-1(a)(2)(iii)
apply to regulated futures
contracts and nonequity
options must be made on or
before the first day of the
taxable year, or if later, on
or before the first day
during such taxable year on
which the taxpayer holds a
contract described in section
988(c)(1)(D)(ii) and Treas.
Reg. § 1.988-1(a)(7)(ii).
A late election may be made
within 30 days after the time
prescribed for the election.
25. Sec. 988(c)(1)(E)(iii)(V) A qualified fund election
(qualified fund) and Treas. Reg. must be made on or before
§ 1.988-1(a)(8)(i)(E) the first day of the taxable
year, or if later, on or
before the first day during
such taxable year on which
the partnership holds an
instrument described in
section 988(c)(1)(E)(i).
26. Treas. Reg. § 1.988-3(b) An election to treat (under
certain circumstances) any
gain or loss recognized on a
contract described in Treas.
Reg. § 1.988-2(d)(1) as
capital gain or loss must be
made by clearly identifying
such transaction on
taxpayer's books and records
on the date the transaction
is entered into.
27. Treas. Reg. § 1.988-5(a)(8)(i) Taxpayer must establish a
record, and before the close
of the date the hedge is
entered into, the taxpayer
must enter into the record
for each qualified hedging
transaction the information
contained in Treas. Reg.
§§ 1.988-5(a)(8)(i)(A)
through (E).
28. Treas. Reg. § 1.988-5(b)(3)(i) Taxpayer must establish a
record and before the close
of the date the hedge is
entered into, the taxpayer
must enter into the record a
clear description of the
executory contract and the
hedge.
29. Treas. Reg. § 1.988-5(c)(2) Taxpayer must identify a hedge
and underlying stock or security
under the rules of Treas. Reg.
§ 1.988-5(b)(3).
30. Sec. 991 A corporation that elects IC-DISC
treatment (other than in the
corporation's first taxable year)
must file Form 4876-A, Election
To Be Treated as an Interest
Charge DISC, with the regional
service center during the
90-day period prior to the
beginning of the tax year in
which the election is to take
effect.
31. Sec. 991 and Treas. Reg. A corporation that filed a
§ 1.991-1(g)(2) tax return as a DISC, but
subsequently determines that
it does not wish to be
treated as a DISC, must
notify the [district
director] more than 30 days
before the expiration of
period of limitations on
assessment applicable to the
tax year.
32. Sec. 992 and Treas, Reg. A qualifying corporation must file
§ 1.992-2(a)(1)(i) Form 4876-A, or attachments
thereto, containing the
consent of every shareholder
of the corporation to be
treated as a DISC as of the
beginning of the corporation's
first taxable year.
33. Sec. 992 and Treas. Reg. A qualifying corporation must
§ 1.992-2(b)(2) file consents of the
shareholders of the corporation
to be treated as a DISC with
the service center with which
the DISC election was first
filed, within 90 days after
the first day of the taxable
year, or within the time
granted for an extension to
file such consents.
34. Sec. 992 and Treas. Reg. A corporation seeking to
§ 1.992-2(e)(2)(ii) revoke a prior election to be
treated as a DISC, must file
a statement within the first
90 days of the taxable year
in which the election is to
take effect with the service
center with which it filed
the election or, if the
corporation filed an annual
information return, by filing
the statement at the service
center with which it filed
its most recent annual
information return.
35. Sec. 992 and Treas. Reg. A DISC that receives notification
§ 1.992-3(c)(3) that it failed to satisfy the
95 percent of gross receipts
test or the 95 percent assets
test, or both tests, for a
particular taxable year, must
make a corrective deficiency
distribution within 90 days
of the date of the first written
notification from the IRS.
36. Sec. 993 and Treas. Reg. A taxpayer must deliver export
§ 1.993-3(d)(2)(i)(b) property outside the U.S. within
one year of the date of sale
or lease in order to generate
DISC benefits from a qualifying
export transaction.
37. Sec. 1445 Treas. Reg. Form 8288, U.S. Withholding
§ 1.1445-1 Tax Return for Dispositions
by Foreign Persons of U.S.
Real Property Interests, must
be filed by a buyer or other
transferee of a U.S. real
property interest, and a
corporation, partnership, or
fiduciary that is required to
withhold tax. The amount
withheld is to be transmitted
with Form 8288, which is
generally to be filed by the
20th day after the date of
transfer.
38. Sec. 1446 All partnerships with
effectively connected gross
income allocable to a foreign
partner in any tax year must
file forms 8804, Annual
Return for Partnership
Withholding Tax's, and 8805,
Foreign Partner Information
Statement of Section 1446
Withholding Tax, on or before
the 15th day of the 4th month
following the close of the
partnership's taxable year.
39. Sec. 1446 Form 8813, Partnership
Withholding Tax Payment
Voucher, is used to pay the
withholding tax under section
1446 for all partnerships
with effectively connected
gross income allocable to a
foreign partner in any tax
year. Form 8813 must
accompany each payment of
section 1446 tax made during
the partnership's taxable
year. Form 8813 is to be
filed on or before the 15th
day of the 4th, 6th, 9th, and
12 th months of the
partnership's taxable year
for U.S. income tax purposes.
40. Sec. 6038A(d)(2) and Treas. Reg. A reporting corporation must
§ 1.6038A-4(d)(1) cure any failure to furnish
information or failure to
maintain records within
90 days after the IRS gives
notice of the failure to
avoid the continuation
penalty.
41. Sec. 6038A(d)(2) and Treas. Reg. A reporting corporation must
§ 1.6038A-4(d)(1) cure any failure to furnish
information or failure to
maintain records before the
beginning of each 30-day
period after expiration of
the initial 90-day period to
avoid additional continuation
penalties.
42. Sec. 6038A(e)(1) and Treas. Reg. A reporting corporation must
§ 1.6038A-5(b) furnish an authorization of
agent within 30 days of a
request by the IRS to avoid a
penalty.
43. Sec. 6038A(c)(4)(A) A reporting corporation must
commence any proceeding to
quash a summons filed by the
IRS in connection with an
information request within
90 days of the date the
summons is issued.
44. Sec. 6038A(e)(4)(B) A reporting corporation must
commence any proceeding to
review the IRS's
determination of
noncompliance with a summons
within 90 days of the IRS's
notice of noncompliance.
45. Sec. 6038A and Treas. Reg. A reporting corporation must
§ 1.6038A-3(b)(3) supply an English translation
of records provided pursuant
to a request for production
within 30 days of a request
by the IRS for a translation
to avoid a penalty.
46. Sec. 6038A and Treas. Reg. A reporting corporation must,
§ 1.6038A-3(f)(2) within 60 days of a request
by the IRS for records
maintained outside the United
States, either provide the
records to the IRS, or move
them to the United States and
provide the IRS with an index
to the records to avoid a
penalty.
47. Sec. 6038A and Treas. Reg. A reporting corporation must
§ 1.6038A-3(f)(2)(i) supply English translations
of documents maintained
outside the United States
within 30 days of a request
by the IRS for translation to
avoid a penalty.
48. See. 6038A and Treas. Reg. A reporting corporation must
§ 1-6038A-3(f)(4) request an extension of time
to produce or translate
documents maintained outside
the United States beyond the
period specified in the
regulations within 30 days of
a request by the IRS to avoid
a penalty.
49. Sec. 6662(e) and Treas. Reg. A taxpayer must provide, within
§ 1.6662-6(d)(2)(iii)(A) 30 days of a request by the
IRS, specified "principal
documents" regarding the
taxpayer's selection and
application of transfer
pricing method to avoid
potential penalties in the
event of a final transfer
pricing adjustment by the
IRS. See also Treas. Reg.
§ 1.6666-6(d)(2)(iii)(C)
(similar requirement re:
background documents).
50. Secs. 6038, 6038B, and 6046A The filing of Form 8865,
Return of U.S. Persons With
Respect to Certain Foreign
Partnerships, for those
taxpayers who do not have to
file an income tax return.
The form is due at the time
that an income tax return
would have been due had the
taxpayer been required to
file an income tax return.
SECTION 13. PARTNERSHIP AND S CORPORATION ISSUES
Statute or Regulation Act Postponed
1. Treas. Reg. §§ A partnership may obtain approval
1.442-1(b)(1) and (3) and of the Commissioner to adopt,
1.706-1(b)(8) change or retain an annual
accounting periods by filing
Form 1128, Application to
Adopt, Change, or Retain a
Tax Year with such time as
provided in administrative
procedures published by the
Commissioner.
2. Treas. Reg. § 1.743-1(k)(2) A transferee that acquires,
by sale or exchange, an
interest in a partnership
with an election under
section 754 in effect for the
taxable year of the transfer,
must notify the partnership,
in writing, within 30 days of
the sale or exchange. A
transferee that acquires, on
the death of a partner, an
interest in a partnership
with an election under
section 754 in effect for the
taxable year of the transfer,
must notify the partnership,
in writing, within one year
of the death of the deceased
partner.
3. Treas. Reg. § 1.754-1(c)(1) Generally, a partnership may
revoke a section 754 election
by filing the revocation no
later than 30 days after the
close of the partnership
taxable year with respect to
which the revocation is
intended to take effect.
4. Treas. Reg. § 1.761-2(b)(3) A partnership may generally
elect to be excluded from
subchapter K. The election
will be effective unless
within 90 days after the
formation of the organization
any member of the
organization notifies the
Commissioner that the member
desires subchapter K to apply
to such organization and also
advises the Commissioner that
he has so notified all other
members of the organization.
In addition, an application
to revoke an election to be
excluded from subchapter K
must be submitted no later
than 30 days after the
beginning of the first
taxable year to which the
revocation is to apply.
5. Treas. Reg. § 1.761-2(c) A partnership requesting
permission to be excluded
from certain provisions of
subchapter K must submit the
request to the Commissioner
no later than 90 days after
the beginning of the first
taxable year for which
partial exclusion is desired.
6. Sec. 1361(e) In general, the trustee of
the electing small business
trust (ESBT) must file the
ESBT election within the 2-
month and 16-day period
beginning on the day the
stock is transferred to the
trust. See Notice 97-12,
1997-1 C.B. 385.
7. Treas. Reg. § 1.1361-1(j)(6) The current income
beneficiary of a qualified
subchapter S trust (QSST)
must make a QSST election
within the 2-month and 16-day
period from one of the dates
prescribed in Treas. Reg.
§ 1.1361-(j)(6)(iii).
8. Treas. Reg. § 1.1361-1(j)(10) The successive income
beneficiary of a QSST may
affirmatively refuse to consent
to the QSST election. The
beneficiary must sign the
statement and file the statement
with the IRS within 15 days
and 2 months after the date
on which the successive
income beneficiary becomes
the income beneficiary.
9. Treas. Reg. § 1.1361-3(a)(4) If an S corporation elects to
treat an eligible subsidiary
as a qualified subchapter
S subsidiary (QSUB), the
election cannot be effective
more than 2 months and
15 days prior to the date of
filing the election.
10. Treas. Reg. § 1.1361-3(b)(2) An S corporation may revoke a
QSUB election by filing a
statement with the service
center. The effective date of
a revocation of a QSUB
election cannot be more than
2 months and 15 days prior to
the filing date of the
revocation.
11. Treas. Reg. If a corporation revokes its
§ 1.1362-2(a)(2), (4) subchapter S election after
the first 2 1/2 months its
taxable year, the revocation
will not be effective until
the following taxable year.
An S corporation may rescind
a revocation of an S election
at any time before the
revocation becomes effective.
12. Sec. 1362(b)(3) If a corporation files a
subchapter S election after
the first 2 1/2-months of a
corporation's taxable year,
that corporation will not be
treated as an S corporation
until the taxable year after
the year in which the S election
is made.
13. Sec. 1378(b) and Treas. Reg. An S or electing S corporation
§ 1.1378-1(c) may obtain the approval of the
Commissioner to adopt, change
or retain an annual accounting
period by filing Form 1128,
Application to Adopt, Change, or
Retain a Tax Year, within such
time as is provided in
administrative procedures
published by the Commissioner.
See Rev. Proc. 2002-38
and Rev. Proc. 2002-39.
SECTION 14. PROCEDURE & ADMINISTRATION ISSUES
.01 Bankruptcy and Collection
Statute or Regulation Act Postponed
1. Treas. Reg. A court-appointed receiver or
§§ 301.6036-1(a)(2) fiduciary in a non-bankruptcy
and (3) receivership, a fiduciary in
aid of foreclosure who takes
possession of substantially
all of the debtor's assets,
or an assignee for benefit of
creditors, must give written
notice within ten days of his
appointment to the IRS as to
where the debtor will file
his tax return.
2. Secs. 6320(a)(3)(B), 6320(c) A taxpayer has 30 days after
and Treas. Reg. receiving a notice of a lien
§§ 301.6320-1(b), to request a Collection Due
(c) and (f) Process (CDP) administrative
hearing. After a determination
at the CDP hearing, the taxpayer
may appeal this determination
within 30 days to the United
States Tax Court or a United
States district court.
3. Secs. 6330(a)(3)(B) The taxpayer must request a
and (d)(1) and Treas. Reg. Collections Due Process (CDP)
§§ 301.6330-1(b), administrative hearing within
(c) and (f) 30 days after the IRS sends
notice of a proposed levy.
After a determination at the
CDP hearing, the taxpayer may
appeal this determination
within 30 days to the United
States Tax Court or a United
States district court.
4. Sec. 6331(k)(1) and Treas. Reg. If a taxpayer submits a
§ 301.7122-1T(f)(2)(ii) good-faith revision of a
rejected offer in compromise
within 30 days after the
rejection, the Service will
not levy to collect the
liability before deciding
whether to accept the revised
offer.
5. Sec. 7122(d)(2) and Treas. Reg. A taxpayer must request
§ 301.7122-1T(e)(5)(i) administrative review of a
rejected offer in compromise
within 30 days after the date
on the letter of rejection.
.02 Information Returns
1. Sec. 6050I Any person engaged in a trade
or business receiving more
than $10,000 cash in one
transaction (or 2 or more
related transactions) must
file an information return,
Form 8300, Report of Cash
Payments over $10,000
Received in a Trade or
Business, by the 15th day
after the date the cash was
received. Additionally, a
statement must be provided
to the person with respect to
whom the information is
required to be furnished by
Jan. 31st of the year
following.
2. Sec. 6050L Returns relating to certain
dispositions of donated
property, Forms 8282, Donee
Information Return, must be
filed within 125 days of the
disposition.
.03 Miscellaneous
1. Sec. 1314(b) A taxpayer may file a claim
for refund or credit of tax
based upon the mitigation
provisions of sections 1311
through 1314 if, as of the
date a determination (as
defined in section 1313(a))
is made, one year remains on
the period for filing a claim
for refund.
2. Sec. 6015 A requesting spouse must
request relief under section
6015 within 2 years of the
first collection activity
against the requesting spouse.
3. Sec. 6411 Taxpayers applying for a
tentative carryback
adjustment of the tax for the
prior taxable year must file
Form 1139 (for corporations)
or Form 1045 (for entities
other than corporations)
within 12 months after the
end of such taxable year that
generates such net operating
loss, net capital loss, or
unused business credit from
which the carryback results.
4. Sec. 6656(c)(2) A taxpayer who is required to
deposit taxes and fails to do
so is subject to a penalty
under section 6656. Under
section 6656(e)(2), the
taxpayer may, within 90 days
of the date of the penalty
notice, designate to which
deposit period within a
specified tax period the
deposits should be applied.
SECTION 15. TAX CREDIT ISSUES
Statute or Regulation Act Postponed
1. Treas. Reg. § 1.42-5(c)(1) The taxpayer must make
certain certifications at
least annually to the Agency.
2. Treas. Reg. The taxpayer must receive an
§ 1.42-5(c)(1)(iii) annual income certification
from each low-income tenant
with documentation to support
the certification.
3. Treas. Reg. § 1.42-8(a)(3)(v) The taxpayer and an Agency
may elect to use an
appropriate percentage under
section 42(b)(2)(A)(ii)(I) by
notarizing a binding
agreement by the 5th day
following the end of the
month in which the binding
agreement was made.
4. Treas. Reg. The taxpayer and an Agency may
§ 1.42-8(b)(1)(vii) elect an appropriate
percentage under section
42(b)(2)(A)(ii)(II) by
notarizing a binding
agreement by the 5th day
following the end of the
month in which the tax-exempt
bonds are issued.
5. Sec. 42(d)(2)(D)(ii)(IV) In order to claim section 42
credits on an existing
building, section
42(d)(2)(B)(ii)(I) requires
that the building must have
been placed in service at
least ten years before the
date the building was
acquired by the taxpayer. A
building is not considered
placed in service for
purposes of section
42(d)(2)(B)(ii) if the
building is resold within a
12-month period after
acquisition by foreclosure of
any purchase-money security
interest.
6. Sec. 42(g)(3)(A) A building shall be treated
as a qualified low-income
building only if the project
meets the minimum set aside
requirement by the close of
the first year of the credit
period of the building.
7. Sec. 42(h)(6)(J) A low-income housing
agreement commitment must be
in effect as of the beginning
of the year for a building to
receive credit. If such a
commitment was not in effect,
the taxpayer has a one-year
period for correcting the
failure.
8. Sec. 42(h)(1)(E) and (F) The taxpayer's basis in the
building project, as of the
later of the date which is
6 months after the date the
allocation was made or the
close of the calendar year in
which the allocation is made,
must be more than 10 percent
of the taxpayer's reasonably
expected basis in the
project.
9. Sec. 47(c)(1)(C) and Treas. Reg. A taxpayer has a 24- or 60-month
§ 1.48-12(b)(2) measuring period in which the
requisite amount of
rehabilitation expenditures
have to be incurred in order
to satisfy the "substantial
rehabilitation" test.
10. Treas. Reg. § 1.48-12(d)(7) In the historic rehabilitation
context, if the taxpayer
fails to receive final
certification of completed
work prior to the date that
is 30 months after the date
that the taxpayer filed the
return on which the credit is
claimed, the taxpayer must,
prior to the last day of the
30th month, consent to
extending the statute of
limitations by submitting a
written statement to the
District Director.
11. Sec. 51(d)(12)(A)(ii)(II) and An employer seeking the Work
51A(d)(1) Opportunity Credit or the
Welfare-to-Work Credit with
respect to an individual must
submit Form 8850, Pre-Screening
Notice and Certification
Request for the Work
Opportunity and Welfare-to-Work
Credits, to the State
Employment Security Agency
not later than the 21st day
after the individual begins
work for the employer.
SECTION 16. TAX-EXEMPT BOND ISSUES
Statute or Regulation Act Postponed
1. Treas. Reg. § 1.25-4T(c) On or before the date of
distribution of mortgage
credit certificates under a
program or December 31, 1987,
the issuer must file an
election not to issue an
amount of qualified mortgage
bonds. An election may be
revoked, in whole or on part,
at any time during the
calendar year in which the
election was made.
2. Treas. Reg. An issuer must provide notice
§§ 1.141-12(d)(3) and to the Commissioner of the
1.142-2(c)(2) establishment of a defeasance
escrow within 90 days of the
date such defeasance escrow is
established in accordance
with Treas. Reg.
§ 1.141-12(d)(1) or
1.142-2(c)(1).
3. Sec. 142(d)(7) An operator of a multi-family
housing project for which an
election was made under
section 142(d) must submit to
the Secretary an annual
certification as to whether
such project continues to
meet the requirements of
section 142(d).
4. Sec. 142(f)(4) and Treas. Reg. A person engaged in the local
§ 1.142(f)(4)-1 furnishing of electric energy
or gas (a local furnisher)
that uses facilities financed
with exempt facility bonds
under section 142(a)(8) and
expands its service area in a
manner inconsistent with the
requirements of sections
142(a)(8) and 142(f), may
make an election to ensure
that those bonds will
continue to be treated as
exempt facility bonds. The
election must be filed with
the IRS on or before 90 days
after the date of the service
area expansion that causes
the bonds to cease to meet
the applicable requirements.
5. Sec. 146(f) and Notice 89-12 If an issuing authority's
volume cap for any calendar
year exceeds the aggregate
amount of tax-exempt private
activity bonds issued during
such calendar year by such
authority, such authority may
elect to treat all (or any
portion) of such excess as a
carryforward for 1 or more
carryforward purposes. Such
election must be filed by the
earlier of (1) February 15 of
the calendar year following
the year in which the excess
amount arises, or (2) the
date of issue of bonds issued
pursuant to the carryforward
election.
6. Sec. 148(f)(3) and Treas. Reg. An issuer of a tax-exempt
§ 1.148-3(g) municipal obligation must make
any required rebate payment
no later than 60 days after
the computation date to which
the payment relates. A rebate
payment is paid when it is
filed with the IRS at the
place or places designated by
the Commissioner. A payment
must be accompanied by the
form provided by the
Commissioner for this
purpose.
7. Treas Reg. § 1.148-5(c) An issuer of a tax-exempt
municipal obligation must
make a yield reduction
payment on or before the date
of required rebate
installment payments as
described in Treas. Reg.
§ 1.148-3(f), (g), and
(h).
8. Sec. 148(f)(4)(C)(xvi) and As issuer of a tax-exempt
Treas Reg. § 1.148-7(k)(1) municipal obligation that
elects to pay certain
penalties in lieu of rebate
must make any required
penalty payments not later
than 90 days after the period
to which the penalty relates.
9. Sec. 149(e) An issuer of a tax-exempt
municipal obligation must
submit to the Secretary a
statement providing certain
information regarding the
municipal obligation not
later than the 15th day of
the 2nd calendar month after
the close of the calendar
quarter in which the
municipal obligation is
issued.
SECTION 17. INQUIRIES
If you wish to recommend that other acts qualify for postponement, please write to the Office of Associate Chief Counsel, Procedure and Administration (Administrative Provisions and Judicial Practice Division), CC:PA:APJP:B2, 1111 Constitution Avenue, NW, Washington, DC 20224. Please mark "7508A List" on the envelope. In the alternative, e-mail your comments to: Notice.Comments@irscounsel.treas.gov.
SECTION 18. EFFECT ON OTHER DOCUMENTS
Rev. Proc. 2001-53, 2001-2 C.B. 506 is superseded.
SECTION 19. EFFECTIVE DATE
This revenue procedure is effective for acts that may be performed on or after November 18, 2002.
SECTION 20. DRAFTING INFORMATION
The principal author of this revenue procedure is Marcy W. Mendelsohn of the Office of Associate Chief Counsel, Procedure and Administration (Administrative Provisions and Judicial Practice Division). For further information regarding this revenue procedure, contact Ms. Mendelsohn at (202) 622-4940 (not a toll-free call).
DOCUMENT ATTRIBUTES
- Institutional AuthorsInternal Revenue Service
- Code Sections
- Subject Areas/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2002-25525 (22 original pages)
- Tax Analysts Electronic Citation2002 TNT 222-52
