Tax News

CCH (cch.taxgroup.com) reports:

  The Treasury and IRS have finalized proposed regulations (NPRM REG-142680-06) relating to the postponement of certain tax-related deadlines for taxpayers affected by military or terroristic actions or federally declared disasters. The regulations reflect the Victims of Terrorism Tax Relief Act of 2001 (P.L. 107-134), as well as the Tax Extenders and Alternative Minimum Tax Relief Act of 2008 (TEAMTRA) (P.L.110-343). The rules apply for disasters declared after January 15, 2009.

  The Victims of Terrorism Tax Relief Act of 2001 extended the time period during which the Secretary could postpone certain tax-related acts and allowed the Secretary to suspend the accrual of interest, penalties and additional amounts or additions to tax during the postponement period. The regulations reflect that the Secretary may postpone certain tax-related acts up to one year. The regulations also reflect that the Secretary may suspend the accrual of interest, penalties, additional amounts or additions to tax during the postponement period.

  The regulations describe how postponements are implemented and additionally that:

  --further relief may be granted in revenue rulings, procedures, notices, announcements, new releases or other guidance;

  --specific tax-related acts due on different days within the postponement period may be postponed until the last day of the period;

  --if an affected taxpayer's tax-related due date falls within the postponement period, it will be eligible for relief from interest and penalties, etc.;

  --the postponement period runs concurrently with extensions to file and pay under other Code Secs.; and

  --the relief provided under Code Sec. 7508A, is specific to the type of extension received, for extended due dates that are not original dues dates within the postponement period.

  Consistent with changes made by TEAMTRA, the regulations use the term "federally declared disaster," instead of the term "Presidentially declared disaster." The term "affected taxpayer" is expanded to include any individual, business entity, or sole proprietorship not located in a covered disaster area, but whose records necessary to meet a deadline are in the covered disaster area. Affected taxpayers may also include individuals visiting a covered disaster area who are killed or injured as a result of the disaster.

  Finally, the regulations add Example 9 to illustrate that a taxpayer's obligation to make installment agreement payments is suspended during the postponement period, but interest and penalties continue to accrue since the payments relate to preexisting liabilities.

T.D. 9443, 2009FED ¶47,012

T.D. 9443, FINH ¶43,124

Other References:

 
Code Sec. 7508A

  CCH Reference - 2009FED ¶42,687B

  CCH Reference - FINH ¶22,555

  Tax Research Consultant

  CCH Reference - TRC FILEIND: 18,052.20

  CCH Reference - TRC FILEBUS: 15,100

  CCH Reference - TRC FILEBUS: 15,110

  CCH Reference - TRC FILEBUS: 15,204.25