Tax News

CCH (cch.taxgroup.com) reports:

The IRS has proposed an amendment to Reg. §301.7508A-1 to clarify the rules relating to the postponement of certain tax-related deadlines because of a presidentially declared disaster, terrorist or military actions. The proposed amendment clarifies the scope of relief under Code Sec. 7508A and allows interest to be suspended during the postponement period. The changes reflect amendments to the Code made by the Victims of Terrorism Tax Relief Act of 2001 (P.L. 107-134) and current IRS practice.
The proposed amendment allows the IRS to postpone certain tax-related acts up to one year, up from 90 days. The IRS is also authorized to suspend interest, penalties, additional amounts and additions to tax that normally accrue while a tax-related act is postponed. Moreover, the IRS may grant further relief to taxpayers under Code Sec. 7508A by revenue ruling, revenue procedure, notice, announcement, news release or other guidance. The regulation also clarifies that a postponement of time under Code Sec. 7508A to perform a tax-related act does not extend the due date to perform the act, but merely allows the IRS to disregard a time period of up to one year.
Under the proposed regulation, the postponement period runs concurrently with the extensions of time to file or pay, if any, under other sections of the Code. Thus, when the original due date falls within the postponement period, the taxpayer has until the last day of the postponement period to file for an extension to file or pay, but any resulting extension runs from the original due date. In addition, the relief is specific to the type of extension received. Thus, a taxpayer who received an extension of time to file, but not an extension of time to pay, is eligible only for a postponement of time to file and relief from penalties relating to failure to file, but not for relief from failure to pay penalties as the payment due date was not extended.
Proposed Regulations, NPRM REG-142680-06, 2008FED ¶49,818
Proposed Regulations, NPRM REG-142680-06, FINH ¶41,138
Other References:
Code Sec. 7508A
CCH Reference - 2008FED ¶42,687BD
CCH Reference - FINH ¶22,557
Tax Research Consultant
CCH Reference - TRC FILEBUS: 15,110
CCH Reference - TRC FILEIND: 18,052.20