Extension of Time for Filing Returns, 37362-37371 [E8-14902]

Agencies

• Internal Revenue Service
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 73, Number 127 (Tuesday, July 1, 2008)]
[Rules and Regulations]
[Pages 37362-37371]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-14902]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 1, 25, 26, 53, 55, 156, 157, and 301

[TD 9407]
RIN 1545-BE62


Extension of Time for Filing Returns

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final and temporary regulations and removal of temporary 
regulations.

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SUMMARY: This document contains final and temporary regulations 
relating to the simplification of procedures for obtaining automatic 
extensions of time to file certain returns. For these returns, the 
final and temporary regulations also remove the requirements for a 
signature and an explanation of the need for an extension of time to 
file. The final and temporary regulations affect taxpayers who are 
required to file certain returns and need an extension of time to file. 
The text of the temporary regulations also serves as the text of the 
proposed regulations set forth in the notice of proposed rulemaking on 
this subject in the Proposed Rules section of this issue of the Federal 
Register.

DATES: Effective Date: These regulations are effective on July 1, 2008.
    Applicability Date: For dates of applicability of these regulations 
see Sec. Sec.  1.6081-1(c), 1.6081-2T(i), 1.6081-3(e), 1.6081-4(f), 
1.6081-5(f), 1.6081-6T(h), 1.6081-7(g), 1.6081-10(f), 1.6081-11(e), 
25.6081-1(f), 26.6081-1(f), 53.6081-1(f), 55.6081-1(f), 156.6081-1(f), 
157.6081-1(f), and 301.6081-2(e).

FOR FURTHER INFORMATION CONTACT: Matthew P. Howard, (202) 622-4910 (not 
a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    This document contains amendments to 26 CFR parts 1, 25, 26, 53, 
55, 156, 157, and 301 under section 6081 of the Internal Revenue Code 
(Code). On November 8, 2005, a temporary regulation (TD 9229) relating 
to the simplification of procedures for obtaining automatic extensions 
of time to file certain returns was published in the Federal Register 
(70 FR 67356). A notice of proposed rulemaking (REG-144898-04) cross-
referencing the temporary regulations was published in the Federal 
Register for the same day (70 FR 67397). No public hearing was 
requested or held. Written or electronic comments responding to the 
notice of proposed rulemaking were received. After consideration of all 
the comments, the proposed regulations are adopted as revised by this 
Treasury decision containing both final and temporary regulations. The 
revisions are discussed in this preamble. A notice of proposed 
rulemaking (REG-115457-08) cross-referencing the temporary regulations 
appears in the Proposed Rules section of this issue of the Federal 
Register.

Summary of Comments and Explanation of Revisions

    These final and temporary regulations simplify the extension 
process by allowing certain taxpayers to file a single request for an 
automatic extension of time to file certain returns. Because the 
extension is automatic, these taxpayers do not need to sign the

[[Page 37363]]

extension request or provide an explanation of the reasons for 
requesting an extension. Simplifying, consolidating, and standardizing 
extension forms will reduce taxpayer burden. This simplification will 
also lower processing costs and facilitate increased efficiency for the 
IRS.

Individual Income Taxpayers

    The proposed regulations provided an automatic six-month extension 
to taxpayers who must file an individual income tax return if they 
submit a timely, completed application for extension on Form 4868 
``Application for Automatic Extension of Time To File a U.S. Individual 
Income Tax Return.'' This new procedure, adopted in the final 
regulations, replaces the process where 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.'' In connection with the new procedure, 
the IRS eliminated Form 2688.
    One commentator noted that individuals who are abroad may qualify 
for an extension beyond six months and previously applied for this 
extension using Form 2688. The commentator suggests that the 
elimination of this form places an added administrative burden on these 
individual taxpayers who are abroad. The commentator notes that without 
Form 2688, the alternative for requesting an additional extension 
beyond six months is to write a letter in accordance with Treas. Reg. 
Sec.  1.6081-1(b). Thus, the commentator requests that Form 2688 be 
retained for use by taxpayers who are abroad and require more than a 
six-month extension of time to file.
    The primary goal for these regulatory revisions is to reduce 
taxpayer burden by simplifying the extension process through the 
elimination of unnecessary forms and required information. The 
elimination of Form 2688 is among those measures aimed at streamlining 
the extension process. Although previously used by some taxpayers who 
are abroad to apply for an additional extension beyond six months, the 
Treasury Department and the IRS have determined that retention of this 
form for such a limited purpose and small class of taxpayers would not 
be efficient. The Treasury Department and the IRS have also determined 
that due to the discretionary nature of any additional extension for 
taxpayers who are abroad, requiring a letter explaining the need for 
the extension is the most appropriate procedure. There is no additional 
administrative burden from this decision as in both situations the 
taxpayer must file a document containing substantially the same 
information and the IRS must process it. Thus, the comment is not 
adopted and the final regulations eliminate all references to the 
obsoleted Form 2688.
    Individual taxpayers who are abroad seeking guidance on applying 
for an additional extension of time to file beyond six months should 
refer to IRS Publication 54, Tax Guide for U.S. Citizens and Resident 
Aliens Abroad, or the IRS Internet site at https://www.irs.gov/
formspubs/article/0,,id=154856,00.html.

Corporate Income Taxpayers

    The proposed regulations did not change the rules regarding filing 
extensions for corporations but merely changed the appearance and title 
of Form 7004, now titled ``Application for Automatic Extension of Time 
to File Certain Business Income Tax, Information, and Other Returns.''
    While not specifically addressed by the proposed regulations, one 
comment was received regarding extensions for affiliated groups of 
corporations filing a consolidated return. The commentator suggests 
that the requirement under Sec.  1.6081-3(a)(4) to include a statement 
listing the name and address of each member of the affiliated group if 
the affiliated group will file a consolidated return is inconsistent 
with Sec.  1.1502-75(a). Section 1.1502-75(a) allows a group which did 
not file a consolidated return for the immediately preceding taxable 
year to file a consolidated return, provided that each member of the 
group that is eligible to do so files a Form 1122, ``Authorization & 
Consent of Subsidiary Corporation to be included in a Consolidated 
Income Tax Return,'' not later than the last day prescribed by law 
(including extensions of time) for the filing of the common parent's 
return. The commentator contends that Sec.  1.6081-3 suggests that in 
order to have a valid extension all members of the affiliated group 
must be listed with the extension request even though the affiliated 
group may not have decided at the time the extension is filed if a 
consolidated return will be elected. Although, Sec.  1.6081-3 requires 
a listing of subsidiaries with the extension request, the commentator 
suggests that, because Sec.  1.1502-75(a) does not require the members 
of an affiliated group to elect to file a consolidated return until the 
common parent's extended due date, the failure to include the name and 
address of a member of the affiliated group that will be filed as part 
of the consolidated return should not invalidate a request for an 
automatic extension of time to file.
    The IRS and Treasury Department find no inconsistency between these 
regulations. If, at the time the extension request is due, the 
affiliated entities have not decided whether to file a consolidated 
return, the various affiliated entities must either file separate 
returns or individually request an extension of time to file. The 
failure to do either will result in a late return. Additionally, by 
including a list of affiliated members with the extension request, each 
member is deemed to be applying for an extension of time to file. In 
the event that a subsidiary does not file as part of a consolidated 
return, that entity will have a valid extension to file its own return. 
Therefore, the final regulations retain the requirement to list the 
name and address of each member of the affiliated group with the 
extension request. To address the commentator's concern, the final 
regulations explicitly state that the attached list will grant an 
extension for each member's separate return in the event that the 
member does not file as part of the consolidated group.

Partnership, Trust, and Estate Taxpayers

    The proposed regulations provided for an automatic six-month 
extension of time to file returns for certain entities not taxed at the 
entity level (pass-through entities). Recognizing the potential that 
some taxpayers may not receive timely information returns from pass-
through entities (for example, Schedule K-1s from partnerships) needed 
to complete their own income tax returns, the proposed regulations 
specifically requested comments on whether a shorter extension of time 
to file for pass-through entities might reduce overall taxpayer burden. 
Several comments addressing this issue were received. Four commentators 
suggested that the filing date for pass-through entities should be 
moved back to March 15th instead of April 15th. This would allow these 
entities to receive six-month extensions of time to file (until 
September 15th ) but still allow individual taxpayers with ownership 
interests in the pass-through entities to receive information needed to 
file a timely and complete income tax return by the October 15th 
extended due date. The filing dates for these pass-through entity 
returns are governed by statute. See for example, sections 6012(a), and 
6072. Accordingly, without legislative action, the Treasury Department 
and the IRS are unable to change the filing due dates for these pass-
through entities.

[[Page 37364]]

    The remaining comments on this topic suggested that an extension 
period for pass-through entities of five months or less would benefit 
individual taxpayers with ownership interests in pass-through entities 
in preparation of their own individual income tax returns. Three 
commentators suggested that the proposed regulations would actually 
increase taxpayer burden by making it easier for pass-through entities 
to delay the filing of their returns. Two commentators also pointed out 
that the five-month extension period would not alleviate the burden on 
corporate taxpayers with ownership interests in pass-through entities. 
These commentators expressed a concern that even a five-month extension 
period for pass-through entities would, in most cases, simply align the 
extended due date for pass-through entities with the extended due date 
for corporate returns, resulting in the same delay of information to 
corporate owners of pass-through entities. This delay, the commentators 
contend, would greatly increase the need for filing amended returns. 
These commentators suggested shortening the automatic extension for 
pass-through entities to a period of less than five months, which would 
ultimately reduce burden on both taxpayers and the IRS.
    In response to these comments, the Treasury Department and IRS have 
adopted temporary regulations which will provide for a five-month 
automatic extension period with no additional extension for certain 
pass-through entities. These entities are 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.'' While 
some commentators suggested adopting an extension period shorter than 
five months, the Treasury Department and the IRS believe a five-month 
automatic extension period for certain partnerships, trusts, and 
estates, strikes a reasonable balance and reduces the overall burden on 
taxpayers. The Treasury Department and IRS believe the five-month 
extension period allows pass-through entities, including complex and 
tiered entities, an adequate time for preparation of the required pass-
through return and also ensures the timely and accurate dissemination 
of information to a large number of taxpayers who require that 
information for completion of their own income tax returns. It is 
recognized that some corporations with ownership interests in pass-
through entities may continue to experience delayed receipt of 
information needed to complete their own corporate returns and some 
pass-through entities may find it difficult to complete their returns. 
Thus the Treasury Department and the IRS request comments on whether 
the five-month automatic extension of time to file for these pass-
through entities increases or reduces overall taxpayer burden. Please 
follow the instructions in the ``Comments and Public Hearing'' section 
in the notice of proposed rulemaking accompanying these temporary 
regulations in this issue of the Federal Register.

Transitional Rule for Pass-Through Entities

    The temporary regulations allowing certain pass-through entities to 
obtain an automatic five-month extension apply to applications by these 
entities for an automatic extension of time to file certain returns due 
on or after January 1, 2009. These entities will be allowed to obtain 
an automatic six-month extension of time to file the applicable 
returns, which are required to be filed before January 1, 2009.

Special Analyses

    It has been determined that this Treasury decision is not a 
significant regulatory action as defined in Executive Order 12866. 
Therefore, a regulatory assessment is not required. It also has been 
determined that section 553(b) of the Administrative Procedure Act (5 
U.S.C. chapter 5) does not apply to these regulations. Although these 
final regulations reference forms that are approved under the Paperwork 
Reduction Act (44 U.S.C. chapter 35), the regulations themselves do not 
impose a collection of information on small entities. Therefore the 
Regulatory Flexibility Act (5 U.S.C. chapter 6) does not apply. For the 
applicability of the Regulatory Flexibility Act to the temporary 
regulations, refer to the Special Analyses section of the preamble to 
the cross-reference notice of proposed rulemaking published in the 
Proposed Rules section of this issue of the Federal Register. Pursuant 
to section 7805(f) of the Internal Revenue Code, the notice of proposed 
rulemaking preceding these regulations was submitted to the Chief 
Counsel for Advocacy of the Small Business Administration for comment 
on its impact on small businesses. Pursuant to the same provision, the 
temporary regulations contained in this Treasury Decision will be 
submitted for comment on their impact on small businesses.

Drafting Information

    The principal author of these regulations is Matthew P. Howard of 
the Office of the Associate Chief Counsel (Procedure and 
Administration).

List of Subjects

26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

26 CFR Part 25

    Gift taxes, Reporting and recordkeeping requirements.

26 CFR Part 26

    Generation-skipping transfer taxes, Reporting and recordkeeping 
requirements.

26 CFR Part 53

    Excise taxes, Foundations, Investments, Lobbying, Reporting and 
recordkeeping requirements.

26 CFR Part 55

    Excise taxes, Investments, Reporting and recordkeeping 
requirements.

26 CFR Part 156

    Excise taxes, Reporting and recordkeeping requirements.

26 CFR Part 157

    Excise taxes, Reporting and recordkeeping requirements.

26 CFR Part 301

    Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income 
taxes, Penalties, Reporting and recordkeeping requirements.

Adoption of Amendments to the Regulations

0
Accordingly, 26 CFR parts 1, 25, 26, 53, 55, 156, 157, and 301 are 
amended as follows:

PART 1--INCOME TAXES

0
Paragraph 1. The authority citation for part 1 is amended by removing 
the entries for Sec. Sec.  1.6081-4T, 1.6081-7T, 1.6081-10T, and 
1.6081-11T and adding entries in numerical order to read in part as 
follows:

    Authority: 26 U.S.C. 7805 * * *
    Section 1.6081-1 also issued under 26 U.S.C. 6081.
    Section 1.6081-3 also issued under 26 U.S.C. 6081.
    Section 1.6081-4 also issued under 26 U.S.C. 6081.
    Section 1.6081-5 also issued under 26 U.S.C. 6081.
    Section 1.6081-7 also issued under 26 U.S.C. 6081.
    Section 1.6081-10 also issued under 26 U.S.C. 6081.

[[Page 37365]]

    Section 1.6081-11 also issued under 26 U.S.C. 6081. * * *

Par. 2. Section 1.911-7 is amended by revising paragraph (c)(2) and 
adding paragraph (e) to read as follows:


Sec.  1.911-7  Procedural rules.

* * * * *
    (c) * * *
    (2) Extensions. An individual desiring an extension of time (in 
addition to the automatic extension of time granted by Sec.  1.6081-4) 
for filing a return until after the completion of the qualifying period 
described in paragraph (c)(1) of this section for claiming any 
exclusion or deduction under section 911 may apply for an extension. An 
individual whose moving expense deduction is attributable to services 
performed in two years may apply for an extension of time for filing a 
return until after the end of the second year. The individual may make 
such application on Form 2350, ``Application for Extension of Time to 
File U.S. Income Tax Return'' or in any other manner prescribed by the 
Commissioner. The application must be filed in accordance with the 
instructions to the form or as prescribed by the Commissioner. The 
application must set forth the facts relied on to justify the extension 
of time requested and must include a statement as to the earliest date 
the individual expects to become entitled to any exclusion or deduction 
by reason of completion of the qualifying period.
* * * * *
    (e) Effective/applicability date. This section applies to 
applications for extension of time to file returns filed after July 1, 
2008.

0
Par. 3. Section 1.6081-1 is amended by revising paragraph (b) and 
adding paragraph (c) to read as follows:


Sec.  1.6081-1  Extension of time for filing returns.

* * * * *
    (b) Application for extension of time--(1) In general. Under other 
sections in this chapter, certain taxpayers may request an automatic 
extension of time to file certain returns. Except in undue hardship 
cases, no extension of time to file a return will be allowed under this 
section until an automatic extension of time to file the return has 
been allowed under the applicable section. No extension of time to file 
a return will be granted under this section for a period of time 
greater than that provided for by automatic extension. A taxpayer 
desiring an extension of the time for filing a return, statement, or 
other document shall submit an application for extension on or before 
the due date of such return, statement, or other document. If a form 
exists for the application for an extension, the taxpayer should use 
the form; however, taxpayers may apply for an extension in a letter 
that includes the information required by this paragraph. Except as 
provided in Sec.  301.6091-1(b) of this chapter (relating to hand-
carried documents), the taxpayer should make the application for 
extension to the Internal Revenue Service office where such return, 
statement, or other document is required to be filed. Except for 
requests for automatic extensions of time to file certain returns 
provided for elsewhere in this chapter, the application must be in 
writing, signed by the taxpayer or his duly authorized agent, and must 
clearly set forth--
    (i) The particular tax return, information return, statement, or 
other document, including the taxable year or period thereof, for which 
the taxpayer requests an extension; and
    (ii) An explanation of the reasons for requesting the extension to 
aid the internal revenue officer in determining whether to grant the 
request.
    (2) Taxpayer unable to sign. In any case in which a taxpayer is 
unable, by reason of illness, absence, or other good cause, to sign a 
request for an extension, any person standing in close personal or 
business relationship to the taxpayer may sign the request on his 
behalf, and shall be considered as a duly authorized agent for this 
purpose, provided the request sets forth the reasons for a signature 
other than the taxpayer's and the relationship existing between the 
taxpayer and the signer.
    (c) Effective/applicability dates. This section applies to requests 
for extension of time filed after July 1, 2008.

0
Par. 4. Section 1.6081-2T is revised to read as follows:


Sec.  1.6081-2T  Automatic extension of time to file certain returns 
filed by partnerships (temporary).

    (a) In general. (1) Except as provided in paragraph (h) of this 
section, a partnership required to file Form 1065, ``U.S. Partnership 
Return of Income,'' or Form 8804, ``Annual Return for Partnership 
Withholding Tax,'' for any taxable year will be allowed an automatic 5-
month extension of time to file the return after the date prescribed 
for filing the return if the partnership files an application under 
this section in accordance with paragraph (b) of this section. No 
additional extension will be allowed pursuant to Sec.  1.6081-1(b) 
beyond the automatic 5-month extension provided by this section. In the 
case of a partnership described in Sec.  1.6081-5(a)(1), the automatic 
extension of time to file allowed under this section runs concurrently 
with an extension of time to file granted pursuant to Sec.  1.6081-5.
    (2) An electing large partnership (ELP) required to file Form 1065-
B, ``U.S. Return of Income for Electing Large Partnerships,'' for any 
taxable year will be allowed an automatic 6-month extension of time to 
file the return after the date prescribed for filing the return if the 
partnership files an application under this section in accordance with 
paragraph (b) of this section.
    (b) Requirements. To satisfy this paragraph (b), the partnership 
must--
    (1) Submit a complete application on Form 7004, ``Application for 
Automatic Extension of Time to File Certain Business Income Tax, 
Information, and Other Returns,'' or in any other manner prescribed by 
the Commissioner;
    (2) File the application on or before the later of--
    (i) The date prescribed for filing the return of the partnership; 
or
    (ii) The expiration of any extension of time to file granted under 
Sec.  1.6081-5(a); and
    (3) File the application with the Internal Revenue Service office 
designated in the application's instructions.
    (c) Payment of section 7519 amount. An automatic extension of time 
for filing a partnership return of income granted under paragraph (a) 
of this section does not extend the time for payment of any amount due 
under section 7519, relating to required payments for entities electing 
not to have a required taxable year.
    (d) Section 444 election. An automatic extension of time for filing 
a partnership return of income will run concurrently with any extension 
of time for filing a return allowed because of section 444, relating to 
the election of a taxable year other than a required taxable year.
    (e) Effect of extension on partner. An automatic extension of time 
for filing a partnership return of income under this section does not 
extend the time for filing a partner's income tax return or the time 
for the payment of any tax due on a partner's income tax return.
    (f) Termination of automatic extension. The Commissioner may 
terminate an automatic extension at any time by mailing to the 
partnership a notice of termination at least 10 days prior to the 
termination date designated in such notice. The Commissioner must mail 
the notice of termination to the address shown on the Form 7004 or to 
the partnership's last known address. For further guidance regarding 
the definition of last known address, see Sec.  301.6212-2 of this 
chapter.

[[Page 37366]]

    (g) Penalties. See section 6698 for failure to file a partnership 
return.
    (h) Special rule for applications for extensions of time to file 
returns due on or after July 1, 2008 and before January 1, 2009. A 
partnership required to file Form 1065, ``U.S. Partnership Return of 
Income,'' or Form 8804, ``Annual Return for Partnership Withholding 
Tax,'' on or after July 1, 2008 and before January 1, 2009, will be 
allowed an automatic 6-month extension of time to file the return after 
the date prescribed for filing the return if the partnership files an 
application under this section in accordance with paragraph (b) of this 
section.
    (i) Effective/applicability dates. This section applies to 
applications for an automatic extension of time to file the partnership 
returns listed in paragraph (a) of this section filed on or after July 
1, 2008.
    (j) Expiration date. The applicability of this section expires on 
or before June 30, 2011.

0
Par. 5. Section 1.6081-3 is amended by revising paragraphs (a)(1) and 
(4) and (e) to read as follows:


Sec.  1.6081-3  Automatic extension of time for filing corporation 
income tax returns.

    (a) * * *
    (1) An application must be submitted on Form 7004, ``Application 
for Automatic Extension of Time to File Certain Business Income Tax, 
Information, and Other Returns,'' or in any other manner prescribed by 
the Commissioner.
* * * * *
    (4) The application must include a statement listing the name and 
address of each member of the affiliated group if the affiliated group 
will file a consolidated return. Upon the timely filing of Form 7004, 
the 6-month extension of time to file shall be considered as granted to 
the affiliated group for the filing of its consolidated return or for 
the filing of each member's separate return.
* * * * *
    (e) Effective/applicability dates. This section applies to requests 
for extension of time to file corporation income tax returns filed 
after July 1, 2008.


Sec.  1.6081-3T  [Removed]

0
Par. 6. Section 1.6081-3T is removed.

0
Par. 7. Section 1.6081-4 is added to read as follows:


Sec.  1.6081-4  Automatic extension of time for filing individual 
income tax return.

    (a) In general. An individual who is required to file an individual 
income tax return will be allowed an automatic 6-month extension of 
time to file the return after the date prescribed for filing the return 
if the individual files an application under this section in accordance 
with paragraph (b) of this section. In the case of an individual 
described in Sec.  1.6081-5(a)(5) or (6), the automatic 6-month 
extension will run concurrently with the extension of time to file 
granted pursuant to Sec.  1.6081-5.
    (b) Requirements. To satisfy this paragraph (b), an individual 
must--
    (1) Submit a complete application on Form 4868, ``Application for 
Automatic Extension of Time To File U.S. Individual Income Tax 
Return,'' or in any other manner prescribed by the Commissioner;
    (2) File the application on or before the later of--
    (i) The date prescribed for filing the return; or
    (ii) The expiration of any extension of time to file granted 
pursuant to Sec.  1.6081-5;
    (3) File the application with the Internal Revenue Service office 
designated in the application's instructions; and
    (4) Show the full amount properly estimated as tax for the taxable 
year.
    (c) No extension of time for the payment of tax. An automatic 
extension of time for filing a return granted under paragraph (a) of 
this section will not extend the time for payment of any tax due on 
such return.
    (d) Termination of automatic extension. The Commissioner may 
terminate an automatic extension at any time by mailing to the 
individual a notice of termination at least 10 days prior to the 
termination date designated in such notice. The Commissioner must mail 
the notice of termination to the address shown on the Form 4868 or to 
the individual's last known address. For further guidance regarding the 
definition of last known address, see Sec.  301.6212-2 of this chapter.
    (e) Penalties. See section 6651 for failure to file an individual 
income tax return or failure to pay the amount shown as tax on the 
return. In particular, see Sec.  301.6651-1(c)(3) of this chapter 
(relating to a presumption of reasonable cause in certain circumstances 
involving an automatic extension of time for filing an individual 
income tax return).
    (f) Effective/applicability dates. This section is applicable for 
applications for an automatic extension of time to file an individual 
income tax return filed after July 1, 2008.


Sec.  1.6081-4T  [Removed]

0
Par. 8. Section 1.6081-4T is removed.

0
Par. 9. Section 1.6081-5 is amended by revising paragraphs (a), (b), 
and (f) to read as follows:


Sec.  1.6081-5  Extensions of time in the case of certain partnerships, 
corporations, and U.S. citizens and residents.

    (a) An extension of time for filing returns of income and for 
paying any tax shown on the return is hereby granted to and including 
the fifteenth day of the sixth month following the close of the taxable 
year in the case of--
    (1) Partnerships which are required under section 6072(a) to file 
returns on the fifteenth day of the fourth month following the close of 
the taxable year of the partnership, and which keep their records and 
books of account outside the United States and Puerto Rico;
    (2) Domestic corporations which transact their business and keep 
their records and books of account outside the United States and Puerto 
Rico;
    (3) Foreign corporations which maintain an office or place of 
business within the United States;
    (4) Domestic corporations whose principal income is from sources 
within the possessions of the United States;
    (5) United States citizens or residents whose tax homes and abodes, 
in a real and substantial sense, are outside the United States and 
Puerto Rico; and
    (6) United States citizens and residents in military or naval 
service on duty, including non-permanent or short term duty, outside 
the United States and Puerto Rico.
    (b) In order to qualify for the extension under this section--
    (1) A statement must be attached to the return showing that the 
person for whom the return is made is a person described in paragraph 
(a) of this section; or
    (2) If a person described in paragraph (a) of this section requests 
additional time to file, the person must request the extension on or 
before the fifteenth day of the sixth month following the close of the 
taxable year and check the appropriate box on Form 4868, ``Application 
for Automatic Extension of Time To File a U.S. Individual Income Tax 
Return,'' or Form 7004, ``Application for Automatic Extension of Time 
to File Certain Business Income Tax, Information, and Other Returns,'' 
whichever is applicable, or in any other manner prescribed by the 
Commissioner.
* * * * *
    (f) Effective/applicability date. This section is applicable for 
returns of income due after July 1, 2008.

[[Page 37367]]

Sec.  1.6081-5T  [Removed]

0
Par. 10. Section 1.6081-5T is removed.

0
Par. 11. Section 1.6081-6T is revised to read as follows:


Sec.  1.6081-6T  Automatic extension of time to file estate or trust 
income tax return (temporary).

    (a) In general. (1) Except as provided in paragraph (g) of this 
section, an estate or trust required to file an income tax return on 
Form 1041, ``U.S. Income Tax Return for Estates and Trusts,'' will be 
allowed an automatic 5-month extension of time to file the return after 
the date prescribed for filing the return if the estate or trust files 
an application under this section in accordance with paragraph (b) of 
this section. No additional extension will be allowed pursuant to Sec.  
1.6081-1(b) beyond the automatic 5-month extension provided by this 
section.
    (2) An estate or trust required to file an income tax return on 
Form 1041-N, ``U.S. Income Tax Return for Electing Alaska Native 
Settlement,'' or Form 1041-QFT, ``U.S. Income Tax Return for Qualified 
Funeral Trusts'' for any taxable year will be allowed an automatic 6-
month extension of time to file the return after the date prescribed 
for filing the return if the estate or trust files an application under 
this section in accordance with paragraph (b) of this section.
    (b) Requirements. To satisfy this paragraph (b), an estate or trust 
must--
    (1) Submit a complete application on Form 7004, ``Application for 
Automatic Extension of Time to File Certain Business Income Tax, 
Information, and Other Returns,'' or in any other manner prescribed by 
the Commissioner;
    (2) File the application on or before the date prescribed for 
filing the return with the Internal Revenue Service office designated 
in the application's instructions; and
    (3) Show the amount properly estimated as tax for the estate or 
trust for the taxable year.
    (c) No extension of time for the payment of tax. An automatic 
extension of time for filing a return granted under paragraph (a) of 
this section will not extend the time for payment of any tax due on 
such return.
    (d) Effect of extension on beneficiary. An automatic extension of 
time to file an estate or trust income tax return under this section 
will not extend the time for filing the income tax return of a 
beneficiary of the estate or trust or the time for the payment of any 
tax due on the beneficiary's income tax return.
    (e) Termination of automatic extension. The Commissioner may 
terminate an automatic extension at any time by mailing to the estate 
or trust a notice of termination at least 10 days prior to the 
termination date designated in such notice. The Commissioner must mail 
the notice of termination to the address shown on the Form 7004 or to 
the estate or trust's last known address. For further guidance 
regarding the definition of last known address, see Sec.  301.6212-2 of 
this chapter.
    (f) Penalties. See section 6651 for failure to file an estate or 
trust income tax return or failure to pay the amount shown as tax on 
the return.
    (g) Special rule for applications for extensions of time to file 
returns due on or after July 1, 2008 and before January 1, 2009. An 
estate or trust required to file an income tax return on Form 1041, 
``U.S. Income Tax Return for Estates and Trusts,'' on or after July 1, 
2008 and before January 1, 2009, will be allowed an automatic 6-month 
extension of time to file the return after the date prescribed for 
filing the return if the estate or trust files an application under 
this section in accordance with paragraph (b) of this section.
    (h) Effective/applicability dates. This section applies to 
applications for an automatic extension of time to file an estate or 
trust income tax return filed on or after July 1, 2008.
    (i) Expiration date. The applicability of this section expires on 
or before June 30, 2011.

0
Par. 12. Section 1.6081-7 is added to read as follows:


Sec.  1.6081-7  Automatic extension of time to file Real Estate 
Mortgage Investment Conduit (REMIC) income tax return.

    (a) In general. A Real Estate Mortgage Investment Conduit (REMIC) 
required to file an income tax return on Form 1066, ``U.S. Real Estate 
Mortgage Investment Conduit Income Tax Return,'' or Form 8831, ``Excise 
Tax on Excess Inclusions of REMIC Residual Interests,'' for any taxable 
year will be allowed an automatic 6-month extension of time to file the 
return after the date prescribed for filing the return if the REMIC 
files an application under this section in accordance with paragraph 
(b) of this section.
    (b) Requirements. To satisfy this paragraph (b), a REMIC must--
    (1) Submit a complete application on Form 7004, ``Application for 
Automatic Extension of Time to File Certain Business Income Tax, 
Information, and Other Returns,'' or in any other manner prescribed by 
the Commissioner;
    (2) File the application on or before the date prescribed for 
filing the return with the Internal Revenue Service office designated 
in the application's instructions; and
    (3) Show the full amount properly estimated as tax for the REMIC 
for the taxable year.
    (c) No extension of time for the payment of tax. An automatic 
extension of time for filing a return granted under paragraph (a) of 
this section will not extend the time for payment of any tax due on 
such return.
    (d) Effect of extension on residual or regular interest holders. An 
automatic extension of time to file a REMIC income tax return under 
this section will not extend the time for filing the income tax return 
of a residual or regular interest holder of the REMIC or the time for 
the payment of any tax due on the residual or regular interest holder's 
income tax return. An automatic extension will also not extend the time 
for payment of any excise tax on excess inclusions of REMIC residual 
interests.
    (e) Termination of automatic extension. The Commissioner may 
terminate an automatic extension at any time by mailing to the REMIC a 
notice of termination at least 10 days prior to the termination date 
designated in such notice. The Commissioner must mail the notice of 
termination to the address shown on the Form 7004 or to the REMIC's 
last known address. For further guidance regarding the definition of 
last known address, see Sec.  301.6212-2 of this chapter.
    (f) Penalties. See sections 6698 and 6651 for failure to file a 
REMIC income tax return or failure to pay an amount shown as tax on the 
return.
    (g) Effective/applicability dates. This section applies to 
applications for an automatic extension of time to file REMIC income 
and excise tax returns listed in paragraph (a) of this section filed 
after July 1, 2008.


Sec.  1.6081-7T  [Removed]

0
Par. 13. Section 1.6081-7T is removed.

0
Par. 14. Section 1.6081-10 is added to read as follows:


Sec.  1.6081-10  Automatic extension of time to file withholding tax 
return for U.S. source income of foreign persons.

    (a) In general. A withholding agent or intermediary required to 
file a return on Form 1042, ``Annual Withholding Tax Return for U.S. 
Source Income of Foreign Persons,'' for any taxable year will be 
allowed an automatic 6-month extension of time to file the return after 
the date prescribed for filing the return if the withholding agent or 
intermediary files an application under this section in

[[Page 37368]]

accordance with paragraph (b) of this section.
    (b) Requirements. To satisfy this paragraph (b), a withholding 
agent or intermediary must--
    (1) Submit a complete application on Form 7004, ``Application for 
Automatic Extension of Time to File Certain Business Income Tax, 
Information, and Other Returns,'' or in any other manner prescribed by 
the Commissioner;
    (2) File the application on or before the date prescribed for 
filing the return with the Internal Revenue Service office designated 
in the application's instructions; and
    (3) Remit the amount of the properly estimated unpaid tax liability 
on or before the date prescribed for payment.
    (c) No extension of time for the payment of tax. An automatic 
extension of time for filing a return granted under paragraph (a) of 
this section will not extend the time for payment of any tax due on 
such return.
    (d) Termination of automatic extension. The Commissioner may 
terminate an automatic extension at any time by mailing to the 
withholding agent or intermediary a notice of termination at least 10 
days prior to the termination date designated in such notice. The 
Commissioner must mail the notice of termination to the address shown 
on the Form 7004 or to the withholding agent or intermediary's last 
known address. For further guidance regarding the definition of last 
known address, see Sec.  301.6212-2 of this chapter.
    (e) Penalties. See section 6651 for failure to file a return or 
failure to pay an amount shown as tax on the return.
    (f) Effective/applicability dates. This section is applicable for 
applications for an automatic extension of time to file the withholding 
tax return for U.S. source income of foreign persons return filed after 
July 1, 2008.


Sec.  1.6081-10T  [Removed]

0
Par. 15. Section 1.6081-10T is removed.

0
Par. 16. Section 1.6081-11 is added to read as follows:


Sec.  1.6081-11  Automatic extension of time for filing certain 
employee plan returns.

    (a) In general. An administrator or sponsor of an employee benefit 
plan required to file a return under the provisions of chapter 61 or 
the regulations under that chapter on Form 5500 (series), ``Annual 
Return/Report of Employee Benefit Plan,'' will be allowed an automatic 
extension of time to file the return until the 15th day of the third 
month following the date prescribed for filing the return if the 
administrator or sponsor files an application under this section in 
accordance with paragraph (b) of this section.
    (b) Requirements. To satisfy this paragraph (b), an administrator 
or sponsor must--
    (1) Submit a complete application on Form 5558, ``Application for 
Extension of Time To File Certain Employee Plan Returns,'' or in any 
other manner as may be prescribed by the Commissioner; and
    (2) File the application with the Internal Revenue Service office 
designated in the application's instructions on or before the date 
prescribed for filing the information return.
    (c) Termination of automatic extension. The Commissioner may 
terminate an automatic extension at any time by mailing to the 
administrator or sponsor a notice of termination at least 10 days prior 
to the termination date designated in such notice. The Commissioner 
must mail the notice of termination to the address shown on the Form 
5558 or to the administrator or sponsor's last known address. For 
further guidance regarding the definition of last known address, see 
Sec.  301.6212-2 of this chapter.
    (d) Penalties. See sections 6652, 6692, and the Employee Retirement 
Income Security Act of 1974 for penalties for failure to file a timely 
and complete Form 5500.
    (e) Effective/applicability dates. This section is applicable for 
applications for an automatic extension of time to file Forms 5500 for 
plan years ending after July 1, 2008.


Sec.  1.6081-11T  [Removed]

0
Par. 17. Section 1.6081-11T is removed.

PART 25--GIFT TAX; GIFTS MADE AFTER DECEMBER 31, 1954

0
Par. 18. The authority citation for part 25 is amended by removing the 
entry for Sec.  25.6081-1T and adding an entry in numerical order to 
read in part as follows:

    Authority: 26 U.S.C. 7805 * * *

    Section 25.6081-1 also issued under the authority of 26 U.S.C. 
6081(a).


0
Par. 19. Section 25.6081-1 is added to read as follows:


Sec.  25.6081-1  Automatic extension of time for filing gift tax 
returns.

    (a) In general. Under section 6075(b)(2), an automatic six-month 
extension of time granted to a donor to file the donor's return of 
income under Sec.  1.6081-4 of this chapter shall be deemed also to be 
a six-month extension of time granted to file a return on Form 709, 
``United States Gift (and Generation-Skipping Transfer) Tax Return.'' 
If a donor does not obtain an extension of time to file the donor's 
return of income under Sec.  1.6081-4 of this chapter, the donor will 
be allowed an automatic 6-month extension of time to file Form 709 
after the date prescribed for filing if the donor files an application 
under this section in accordance with paragraph (b) of this section. In 
the case of an individual described in Sec.  1.6081-5(a)(5) or (6) of 
this chapter, the automatic 6-month extension of time to file Form 709 
will run concurrently with the extension of time to file granted 
pursuant to Sec.  1.6081-5 of this chapter.
    (b) Requirements. To satisfy this paragraph (b), a donor must--
    (1) Submit a complete application on Form 8892, ``Payment of Gift/
GST Tax and/or Application for Extension of Time To File Form 709,'' or 
in any other manner prescribed by the Commissioner;
    (2) File the application on or before the later of--
    (i) The date prescribed for filing the return; or
    (ii) The expiration of any extension of time to file granted 
pursuant to Sec.  1.6081-5 of this chapter; and
    (3) File the application with the Internal Revenue Service office 
designated in the application's instructions.
    (c) No extension of time for the payment of tax. An automatic 
extension of time for filing a return granted under paragraph (a) of 
this section will not extend the time for payment of any tax due on 
such return.
    (d) Termination of automatic extension. The Commissioner may 
terminate an extension at any time by mailing to the donor a notice of 
termination at least 10 days prior to the termination date designated 
in such notice. The Commissioner must mail the notice of termination to 
the address shown on the Form 8892, or to the donor's last known 
address. For further guidance regarding the definition of last known 
address, see Sec.  301.6212-2 of this chapter.
    (e) Penalties. See section 6651 for failure to file a gift tax 
return or failure to pay the amount shown as tax on the return.
    (f) Effective/applicability dates. This section is applicable for 
applications for an extension of time to file Form 709 filed after July 
1, 2008.


Sec.  25.6081-1T  [Removed]

0
Par. 20. Section 25.6081-1T is removed.

[[Page 37369]]

PART 26--GENERATION-SKIPPING TRANSFER TAX REGULATIONS UNDER THE TAX 
REFORM ACT OF 1986

0
Par. 21. The authority citation for part 26 is amended by removing the 
entry for Sec.  26.6081-1T and adding an entry in numerical order to 
read in part as follows:

    Authority: 26 U.S.C. 7805 and 26 U.S.C. 2663 * * *
    Section 26.6081-1 also issued under the authority of 26 U.S.C. 
6081(a).
* * * * *

0
Par. 22. Section 26.6081-1 is added to read as follows:


Sec.  26.6081-1  Automatic extension of time for filing generation-
skipping transfer tax returns.

    (a) In general. A skip person distributee required to file a return 
on Form 706-GS(D), ``Generation-Skipping Transfer Tax Return for 
Distributions,'' or a trustee required to file a return on Form 706-
GS(T), ``Generation-Skipping Transfer Tax Return for Terminations,'' 
will be allowed an automatic 6-month extension of time to file the 
return after the date prescribed for filing if the skip person 
distributee or trustee files an application under this section in 
accordance with paragraph (b) of this section.
    (b) Requirements. To satisfy this paragraph (b), a skip person 
distributee or trustee must--
    (1) Submit a complete application on Form 7004, ``Application for 
Automatic Extension of Time to File Certain Business Income Tax, 
Information, and Other Returns,'' or in any other manner prescribed by 
the Commissioner;
    (2) File the application on or before the date prescribed for 
filing the return with the Internal Revenue Service office designated 
in the application's instructions; and
    (3) Remit the amount of the properly estimated unpaid tax liability 
on or before the date prescribed for payment.
    (c) No extension of time for the payment of tax. An automatic 
extension of time for filing a return granted under paragraph (a) of 
this section will not extend the time for payment of any tax due on 
such return.
    (d) Termination of automatic extension. The Commissioner may 
terminate an automatic extension at any time by mailing to the skip 
person distributee or trustee a notice of termination at least 10 days 
prior to the termination date designated in such notice. The 
Commissioner must mail the notice of termination to the address shown 
on the Form 7004 or to the skip person distributee or trustee's last 
known address. For further guidance regarding the definition of last 
known address, see Sec.  301.6212-2 of this chapter.
    (e) Penalties. See section 6651 for failure to file a generation-
skipping transfer tax return or failure to pay the amount shown as tax 
on the return.
    (f) Effective/applicability dates. This section is applicable for 
applications for an automatic extension of time to file a generation-
skipping transfer tax return filed after July 1, 2008.


Sec.  26.6081-1T  [Removed]

0
Par. 23. Section 26.6081-1T is removed.

PART 53--FOUNDATION AND SIMILAR EXCISE TAXES

0
Par. 24. The authority citation for part 53 is amended by removing the 
entry for Sec.  53.6081-1T and adding an entry in numerical order to 
read in part as follows:

    Authority: 26 U.S.C. 7805 * * *
    Section 53.6081-1 also issued under 26 U.S.C. 6081(a). * * *


0
Par. 25. Section 53.6081-1 is added to read as follows:


Sec.  53.6081-1  Automatic extension of time for filing the return to 
report taxes due under section 4951 for self-dealing with a nuclear 
decommissioning fund.

    (a) In general. A ``disqualified person'' for purposes of section 
4951(e)(4) who engaged in self-dealing with a Nuclear Decommissioning 
Fund, and must report tax due under section 4951 on Form 1120-ND, 
``Return for Nuclear Decommissioning Funds and Certain Related 
Persons,'' will be allowed an automatic 6-month extension of time to 
file the return after the date prescribed for filing the return if the 
disqualified person files an application under this section in 
accordance with paragraph (b) of this section. For guidance on 
requesting an extension of time to file Form 1120-ND for purposes of 
reporting contributions received, income earned, administrative 
expenses of operating the fund, and the tax on modified gross income, 
see Sec.  1.6081-3 of this chapter.
    (b) Requirements. To satisfy this paragraph (b), a disqualified 
person must--
    (1) Submit a complete application on Form 7004, ``Application for 
Automatic Extension of Time to File Certain Business Income Tax, 
Information, and Other Returns,'' or in any other manner prescribed by 
the Commissioner;
    (2) File the application on or before the date prescribed for 
filing the return with the Internal Revenue Service office designated 
in the application's instructions; and
    (3) Remit the amount of the properly estimated unpaid tax liability 
on or before the date prescribed for payment.
    (c) No extension of time for the payment of tax. An automatic 
extension of time for filing a return granted under paragraph (a) of 
this section will not extend the time for payment of any tax due on 
such return.
    (d) Termination of automatic extension. The Commissioner may 
terminate an automatic extension at any time by mailing to the 
disqualified person a notice of termination at least 10 days prior to 
the termination date designated in such notice. The Commissioner must 
mail the notice of termination to the address shown on the Form 7004 or 
to the disqualified person's last known address. For further guidance 
regarding the definition of last known address, see Sec.  301.6212-2 of 
this chapter.
    (e) Penalties. See section 6651 for failure to file or failure to 
pay the amount shown as tax on the return.
    (f) Effective/applicability dates. This section is applicable for 
applications for an automatic extension of time to file a return to 
report taxes due under section 4951 for self-dealing with a Nuclear 
Decommissioning Fund filed after July 1, 2008.


Sec.  53.6081-1T  [Removed]

0
Par. 26. Section 53.6081-1T is removed.

PART 55--EXCISE TAX ON REAL ESTATE INVESTMENT TRUSTS AND REGULATED 
INVESTMENT COMPANIES

0
Par. 27. The authority citation is amended by removing the entry for 
Sec.  55.6081-1T and adding an entry in numerical order to read in part 
as follows:

    Authority: 26 U.S.C. 6001, 6011, 6071, 6091, and 7805 * * *
    Section 55.6081-1 also issued under 26 U.S.C. 6081(a). * * *


0
Par. 28. Section 55.6081-1 is added to read as follows:


Sec.  55.6081-1  Automatic extension of time for filing a return due 
under Chapter 44.

    (a) In general. A Real Estate Investment Trust (REIT) required to 
file a return on Form 8612, ``Return of Excise Tax on Undistributed 
Income of Real Estate Investment Trusts,'' or a Regulated Investment 
Company (RIC) required to file a return on Form 8613, ``Return of 
Excise Tax on Undistributed Income of Regulated Investment Companies,'' 
will be allowed an

[[Page 37370]]

automatic 6-month extension of time to file the return after the date 
prescribed for filing the return if the REIT or RIC files an 
application under this section in accordance with paragraph (b) of this 
section.
    (b) Requirements. To satisfy this paragraph (b), a REIT or RIC 
must--
    (1) Submit a complete application on Form 7004, ``Application for 
Automatic Extension of Time to File Certain Business Income Tax, 
Information, and Other Returns,'' or in any other manner prescribed by 
the Commissioner;
    (2) File the application on or before the date prescribed for 
filing the return with the Internal Revenue Service office designated 
in the application's instructions; and
    (3) Remit the amount of the properly estimated unpaid tax liability 
on or before the date prescribed for payment.
    (c) No extension of time for the payment of tax. An automatic 
extension of time for filing a return granted under paragraph (a) of 
this section will not extend the time for payment of any tax due on 
such return.
    (d) Termination of automatic extension. The Commissioner may 
terminate an automatic extension at any time by mailing to the REIT or 
RIC a notice of termination at least 10 days prior to the termination 
date designated in such notice. The Commissioner must mail the notice 
of termination to the address shown on the Form 7004 or to the REIT or 
RIC's last known address. For further guidance regarding the definition 
of last known address, see Sec.  301.6212-2 of this chapter.
    (e) Penalties. See section 6651 for failure to file or failure to 
pay the amount shown as tax on the return.
    (f) Effective/applicable dates. This section is applicable for 
applications for an automatic extension of time to file a return due 
under chapter 44, filed after July 1, 2008.


Sec.  55.6081-1T  [Removed]

0
Par. 29. Section 55.6081-1T is removed.

PART 156--EXCISE TAX ON GREENMAIL

0
Par. 30. The authority citation is amended by removing the entry for 
Sec.  156.6081-1T and adding an entry in numerical order to read in 
part as follows:

    Authority: 26 U.S.C. 6001, 6011, 6061, 6071, 6091, 6161, and 
7805 * * *
    Section 156.6081-1 also issued under 26 U.S.C. 6081(a). * * *


0
Par. 31. Section 156.6081-1 is added to read as follows:


Sec.  156.6081-1  Automatic extension of time for filing a return due 
under chapter 54.

    (a) In general. A taxpayer required to file a return on Form 8725, 
``Excise Tax on Greenmail,'' will be allowed an automatic 6-month 
extension of time to file the return after the date prescribed for 
filing the return if the taxpayer files an application under this 
section in accordance with paragraph (b) of this section.
    (b) Requirements. To satisfy this paragraph (b), a taxpayer must--
    (1) Submit a complete application on Form 7004, ``Application for 
Automatic Extension of Time to File Certain Business Income Tax, 
Information, and Other Returns,'' or in any other manner prescribed by 
the Commissioner;
    (2) File the application on or before the date prescribed for 
filing the return with the Internal Revenue Service office designated 
in the application's instructions; and
    (3) Remit the amount of the properly estimated unpaid tax liability 
on or before the date prescribed for payment.
    (c) No extension of time for the payment of tax. An automatic 
extension of time for filing a return granted under paragraph (a) of 
this section will not extend the time for payment of any tax due on 
such return.
    (d) Termination of automatic extension. The Commissioner may 
terminate an automatic extension at any time by mailing to the taxpayer 
a notice of termination at least 10 days prior to the termination date 
designated in such notice. The Commissioner must mail the notice of 
termination to the address shown on the Form 7004 or to the taxpayer's 
last known address. For further guidance regarding the definition of 
last known address, see Sec.  301.6212-2 of this chapter.
    (e) Penalties. See section 6651 for failure to file or failure to 
pay the amount shown as tax on the return.
    (f) Effective/applicable dates. This section is applicable for 
applications for an automatic extension of time to file a return due 
under chapter 54, filed after July 1, 2008.


Sec.  156.6081-1T  [Removed]

0
Par. 32. Section 156.6081-1T is removed.

PART 157-- EXCISE TAX ON STRUCTURED SETTLEMENT FACTORING 
TRANSACTIONS

0
Par. 33. The authority citation is amended by removing the entry for 
Sec.  157.6081-1T and adding an entry in numerical order to read in 
part as follows:

    Authority: 26 U.S.C. 7805 * * *
    Section 157.6081-1 also issued under 26 U.S.C. 6081(a). * * *


0
Par. 34. Section 157.6081-1 is added to read as follows:


Sec.  157.6081-1  Automatic extension of time for filing a return due 
under chapter 55.

    (a) In general. A taxpayer required to file a return on Form 8876, 
``Excise Tax on Structured Settlement Factoring Transactions'', will be 
allowed an automatic 6-month extension of time to file the return after 
the date prescribed for filing the return if the taxpayer files an 
application under this section in accordance with paragraph (b) of this 
section.
    (b) Requirements. To satisfy this paragraph (b), the taxpayer 
must--
    (1) Submit a complete application on Form 7004, ``Application for 
Automatic Extension of Time to File Certain Business Income Tax, 
Information, and Other Returns,'' or in any other manner prescribed by 
the Commissioner;
    (2) File the application on or before the date prescribed for 
filing the return with the Internal Revenue Service office designated 
in the application's instructions; and
    (3) Remit the amount of the properly estimated unpaid tax liability 
on or before the date prescribed for payment.
    (c) No extension of time for the payment of tax. An automatic 
extension of time for filing a return granted under paragraph (a) of 
this section will not extend the time for payment of any tax due on 
such return.
    (d) Termination of automatic extension. The Commissioner may 
terminate an automatic extension at any time by mailing to the taxpayer 
a notice of termination at least 10 days prior to the termination date 
designated in such notice. The Commissioner must mail the notice of 
termination to the address shown on the Form 7004 or to the taxpayer's 
last known address. For further guidance regarding the definition of 
last known address, see Sec.  301.6212-2 of this chapter.
    (e) Penalties. See section 6651 for failure to file or failure to 
pay the amount shown as tax on the return.
    (f) Effective/applicability dates. This section is applicable for 
applications for an automatic extension of time to file a return due 
under chapter 55, filed after July 1, 2008.


Sec.  157.6081-1T  [Removed]

0
Par. 35. Section 157.6081-1T is removed.

PART 301--PROCEDURE AND ADMINISTRATION

0
Par. 36. The authority citation is amended by removing the entry for

[[Page 37371]]

Sec.  301.6081-2T and adding an entry in numerical order to read in 
part as follows:

    Authority: 26 U.S.C. 7805 * * *
    Section 301.6081-2 also issued under 26 U.S.C. 6081(a). * * *


0
Par. 37. Section 301.6081-2 is added to read as follows:


Sec.  301.6081-2  Automatic extension of time for filing an information 
return with respect to certain foreign trusts.

    (a) In general. A trust required to file a return on Form 3520-A, 
``Annual Information Return of Foreign Trust with a U.S. Owner,'' will 
be allowed an automatic 6-month extension of time to file the return 
after the date prescribed for filing the return if the trust files an 
application under this section in accordance with paragraph (b) of this 
section.
    (b) Requirements. To satisfy this paragraph (b), a trust must--
    (1) Submit a complete application on Form 7004, ``Application for 
Automatic Extension of Time to File Certain Business Income Tax, 
Information, and Other Returns,'' or in any other manner prescribed by 
the Commissioner; and
    (2) File the application on or before the date prescribed for 
filing the return with the Internal Revenue Service office designated 
in the application's instructions.
    (c) Termination of automatic extension. The Commissioner may 
terminate an automatic extension at any time by mailing to the trust a 
notice of termination at least 10 days prior to the termination date 
designated in such notice. The Commissioner must mail the notice of 
termination to the address shown on the Form 7004 or to the trust's 
last known address. For further guidance regarding the definition of 
last known address, see Sec.  301.6212-2 of this chapter.
    (d) Penalties. See section 6677 for failure to file information 
returns with respect to certain foreign trusts.
    (e) Effective/applicability dates. This section is applicable for 
applications for an automatic extension of time to file an information 
return with respect to certain foreign trusts listed in paragraph (a) 
of this section filed after July 1, 2008.


Sec.  301.6081-2T  [Removed]

0
Par. 38. Section 301.6081-2T is removed.

Linda E. Stiff,
Deputy Commissioner for Services and Enforcement.
    Approved: June 24, 2008.
Eric Solomon,
Assistant Secretary of the Treasury (Tax Policy).
 [FR Doc. E8-14902 Filed 6-30-08; 8:45 am]
BILLING CODE 4830-01-P