Tax News

CCH (cch.taxgroup.com) reports:

  The IRS has issued proposed, final and temporary regulations relating to simplification procedures for obtaining automatic extensions of time to file returns. The final regulations adopt temporary regulations previously issued in T.D. 9229 without significant change.

  The newly issued temporary regulations, however, revise certain of the previously issued temporary regulations by reducing, from six months to five months, the automatic extension period for partnerships filing Form 1065, U.S. Partnership Return of Income, or Form 8804, Annual Return for Partnership Withholding Tax, and estates and trusts filing Form 1041, U.S. Income Tax Return for Estates and Trusts.

  For example, in the case of a calendar-year partnership, Form 1065 will need to be filed by September 15, rather than October 15. This change should enable individual taxpayers to obtain the Schedule K-1 information necessary to complete their returns by their October 15 six-month extended due date. This one-month reduction in the six-month extension period is effective for returns due on or after January 1, 2009. The six-month extension period for partnerships that file Forms 1065 or Form 8804 and trusts and estates that file Form 1041 will continue to apply to returns required to be filed before January 1, 2009.

  CCH Comment. Under the current rules, a calendar-year S corporation with a six-month extension is already required to file its return by October 15 since the unextended due date for Form 1120-S is March 15. Thus, S corporations will continue to receive an automatic six-month extension period.

  The final regulations adopt without change the earlier issued temporary regulations that provided an automatic six-month extension for individual returns if a timely, completed application for extension is filed on Form 4868, Application for Automatic Extension of Time To File a U.S. Individual Income Tax Return. Under the rules in effect prior to issuance of T.D. 9229, an individual could obtain an initial automatic four-month extension by filing Form 4868 and apply for an additional two-month discretionary extension by filing Form 2688, Application for Additional Extension of Time To File U.S. Individual Income Tax Return.

  CCH Comment. A commentator suggested that the elimination of Form 2688 adds an administrative burden on individual taxpayers living abroad who may qualify for an extension beyond six months. The IRS, however, will not retain Form 2688. Taxpayers living abroad will need to file a letter containing the information required by Reg. §1.6081-1(b) that was formerly provided on Form 2688.

  With respect to corporate filing extensions, the final regulations now explicitly state that the requirement to list with an extension request the name and address of each member of an affiliated group has the effect of granting an extension for each member's separate return in the event that the member does not file as part of the consolidated group.

  The final regulations also adopt without change temporary regulations that: (1) provide an automatic six-month extension to file certain excise, income, information and other returns by filing Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns; (2) allow administrators and sponsors of employee benefit plans subject to the Employee Retirement Income Security Act of 1974 (ERISA) to report information concerning the plans and direct entities to obtain an automatic two-and-one-half-month extension of time to file by using Form 5558, Application for Extension of Time To File Certain Employee Plan Returns; and (3) allow donors who do not request an extension of time to file an income tax return to request an automatic six-month extension of time to file Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, by filing Form 8892, Payment of Gift/GST Tax and/or Application for Extension of Time to File Form 709.

  The text of the temporary regulations serves as the text of proposed regulations set forth in NPRM REG-115457-08. Written or electronic comments and requests for a public hearing must be received by September 28, 2008.

IR-2008-84,
2008FED ¶46,495

T.D. 9407, 2008FED ¶47,041

T.D. 9407, FINH ¶43,119

Proposed Regulations, NPRM REG-115457-08, 2008FED ¶49,812

Other References:

 
Code Sec. 911

  CCH Reference - 2008FED ¶28,047

 
Code Sec. 6081

  CCH Reference - 2008FED ¶28,047

  CCH Reference - 2008FED ¶36,781

  CCH Reference - 2008FED ¶36,785

  CCH Reference - 2008FED ¶36,786

  CCH Reference - 2008FED ¶36,786A

  CCH Reference - 2008FED ¶36,786C

  CCH Reference - 2008FED ¶36,788

  CCH Reference - 2008FED ¶36,788C

  CCH Reference - 2008FED ¶36,790

  CCH Reference - 2008FED ¶36,790A

  CCH Reference - 2008FED ¶36,793

  CCH Reference - 2008FED ¶36,795

  CCH Reference - 2008FED ¶36,795A

  CCH Reference - 2008FED ¶36,797

  CCH Reference - 2008FED ¶36,798

  CCH Reference - 2008FED ¶36,798M

  CCH Reference - 2008FED ¶36,798P

  CCH Reference - FINH ¶20,350

  CCH Reference - FINH ¶20,356

  Tax Research Consultant

  CCH Reference -TRC FILEIND: 15,204.05

  CCH Reference -TRC FILEIND: 15,204.10

  CCH Reference -TRC EXPAT: 15,104.20

  CCH Reference -TRC FILEBUS: 12,102.20

  CCH Reference -TRC FILEBUS: 15,102

  CCH Reference - TRC FILEBUS: 15,104.05

  CCH Reference -TRC FILEBUS: 15,104.10

  CCH Reference -TRC FILEBUS: 15,104.15

  CCH Reference - TRC FILEBUS: 15,104.20

  CCH Reference -TRC FILEBUS: 15,104.25

  CCH Reference -TRC FILEBUS: 15,106.05

  CCH Reference -TRC FILEBUS: 15,106.15

  CCH Reference -TRC RIC: 9,052