rp-05-27.pdf

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Part III

Administrative, Procedural, and Miscellaneous

26 CFR 301.7508-1: Time for performing certain acts postponed by reason of service in
a combat zone or a Presidentially declared disaster.
(Also Part I, §§ 7508, 7508A; §§ 301.7508-1, 301.7508A-1.)

Rev. Proc. 2005-27

SECTION 1. PURPOSE AND NATURE OF CHANGES

.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 the time to perform
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, or serving with respect to a
contingency operation (as defined in 10 U.S.C. 101(a)(3)). Section 7508A of the Code
permits a postponement of the time to perform 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
section 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
Presidentially declared disaster, or a terroristic or military action.

.03 For purposes of section 7508, this revenue procedure sets forth such other acts
as contemplated by section 7508(a)(1)(K). Unlike section 7508A, when a taxpayer
qualifies under section 7508, all the acts listed in section 7508(a)(1) are postponed.
Therefore, when a taxpayer qualifies under section 7508, the acts listed in this revenue
procedure are also postponed for that taxpayer, whether or not the IRS publishes a

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Notice or issues other guidance.

.04 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 19 of
this revenue procedure.

05. Significant Changes
(1) This Revenue Procedure clarifies that the acts listed below are automatically
postponed for taxpayers afforded relief pursuant to section 7508.
(2) New section 17 expands the categories of taxpayers qualifying for relief, and
provides additional postponements of deadlines solely with respect to section 1031 like-
kind exchange transactions that are affected by a Presidentially declared disaster.

SECTION 2. BACKGROUND

.01 Section 7508(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 or serving with respect to a contingency operation (as defined in 10 U.S.C.
101(a)(3)). 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 or service with respect to a contingency operation, the acts specified in section
7508(a)(1) of the Code are
automatically postponed
. This revenue procedure sets forth
such other acts as contemplated by section 7508(a)(1)(K). Thus, the acts listed in this
revenue procedure are also automatically postponed. In addition, the Service may
include acts not listed in this revenue procedure in any other published guidance
(including an IRS News Release) related to the combat zone or contingency operation.

.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 301.7508A-1(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,

3
the guidance generally will refer to this revenue procedure and may provide for a
postponement of 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, individuals serving with respect to
contingency operations, affected taxpayers by reason of Presidentially declared
disasters within the meaning of section 301.7508A-1(d)(1) of the regulations, and
taxpayers whom the IRS determines are affected by a terroristic or military action.

SECTION 4. APPLICATION

.01 The tables below list provisions of the internal revenue laws requiring the timely
performance of specified acts that may be postponed under sections 7508 and 7508A.
In addition, section 17 of this revenue procedure expands the categories of taxpayers
qualifying for relief and provides additional postponements of deadlines solely with
respect to section 1031 like-kind exchange transactions that are affected by a
Presidentially declared disaster. Taxpayers may use the postponement rules provided
in section 17 in lieu of the general extension dates provided by an IRS News Release or
other guidance issued with respect to a specific Presidentially declared disaster.
Taxpayers who are covered by the rules of section 17, but who are not otherwise
treated as “affected taxpayers” by the IRS News Release or other guidance or section
301.7508A-1(d)(1) are not eligible for relief under section 7508A, except for the relief for
section 1031 like-kind exchanges.

.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 7508A.

SECTION 5. ACCOUNTING METHODS AND PERIODS

4

Statute or
Regulation
Act Postponed
1. Chapter 1,
Subchapter E
of the Code
Any act relating to the adoption, 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. Procs. 2002-37, 2002-1 C.B. 1030, 2002-
38, 2002-1 C.B. 1037 and 2002-39, 2002-1 C.B. 1046., and
2003-62, 2003-32 I.R.B. 299, 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, 2002-1 C.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.
§ 1.381(c)(4)-
1(d)(2)

If the acquiring corporation is 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.
Section1.381(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.
§ 1.381(c)(5)-
1(d)(2)

If the acquiring corporation is 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. Section1.381(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. Procs. 2002-37, 2002-38, 2002-39 and 2003-62.

5
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 15
th
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.
§ 1.446-
1(e)(2)(i)
Section 6 of Rev. Proc. 2002-9, 2002-1 C.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, 1997-21 I.R.B. 11. (
But

see
Rev. Proc. 2002-9 for automatic changes in method of
accounting that can be made with the return.)
8. Sec. 451(e) Section 451(e) permits a taxpayer using the cash receipts and
disbursements method of accounting who derives income from
the sale or exchange of livestock in excess of the number he
would sell if he followed his usual business practices to elect
(which election is deemed valid if made within the period
described in section 1033(e)(2)) to include such income for the
taxable year following the taxable year of such sale or exchange
if, under his usual business practices, the sale or exchange
would not have occurred if it were not for drought, flood, or
other weather-related conditions and that such conditions
resulted in the area being designated as eligible for Federal
assistance.
9. 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.

6
10. Treas. Reg.
§ 1.7519-
2T(a)(2),(3)
and (4)
A partnership or S corporation 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.
11. 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 benefited 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),
Q&A-7
A payer spouse may send cash 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. Section 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.
§ 1.110-
1(b)(4)(ii)(A)
The lessee must expend its 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.

7
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.
The period of initial possession by the donee may not be
deferred for more than one year.
6. Sec. 172(b)(3)

A taxpayer entitled to a carryback period under section
172(b)(1) may elect to relinquish the entire carryback period.
The taxpayer must make the election by the due date of the
taxpayer’s federal income tax return (including extensions) for
the taxable year of the net operating loss for which the election
is to be effective.
7. Sec. 172(f)(6)

A taxpayer entitled to a 10-year carryback under section
172(b)(1)(C) (relating to certain specified liability losses) from
any loss year may elect to have the carryback period with
respect to such loss year determined without regard to that
section. The taxpayer must make the election by the due date
of the taxpayer’s federal income tax return (including
extensions) for the taxable year of the net operating loss.
8. Sec. 172(i)(3) A taxpayer entitled to a 5-year carryback period under section
172(b)(1)(G) (relating to certain farming losses) from any loss
year may elect to have the carryback period with respect to
such loss year determined without regard to that section. The
taxpayer must make the election by the due date of the
taxpayer’s federal income tax return (including extensions) for
the taxable year of the net operating loss.
9. Sec. 468A(g) A taxpayer that makes payments to a nuclear decommissioning
fund with respect to a taxable year must make the payments
within 2½-months after the close of such taxable year (the
deemed payment date).
10. Treas. Reg.
§ 1.468A-
3(h)(1)(v)
A taxpayer must file a request for a schedule of ruling amounts
for a nuclear decommissioning fund by the deemed payment
date (2½-months after the close of the taxable year for which
the schedule of ruling amounts is sought).
11. Treas. Reg.
§ 1.468A-
3(h)(1)(vii)
A taxpayer has 30 days to 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.

8
12. 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, Individual
Retirement Arrangement Information, must be filed with the IRS
by May 31 following the calendar year to which the information
relates.
13. Sec. 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 15
th
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 3½-month period within which the
dividend is paid is the period extended.
14. Sec. 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 15
th
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 3½-month period within
which the dividend is paid is the period extended.
15. 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 15
th
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
3½-month period within which the dividend is paid is the period
extended.
16. 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 15
th
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 3½-month period within which
the dividend is paid is the period extended.
17. Sec. 529
(c)(3)(C)(i)
A rollover contribution to another qualified tuition program must
be made no later than the 60
th
day after the date of a
distribution from a qualified tuition program.

9
18. 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.
19. Sec. 530(d)(5)A rollover contribution to another Coverdell education savings
account must be made no later than the 60
th
day after the date
of a payment or distribution from a Coverdell education savings
account.
20. Sec.
1031(a)(3)
In a deferred exchange, property otherwise qualified as like-kind
property under section 1031 is treated as like-kind property if
the 45-day identification period and the 180-day exchange
period requirements under section 1031(a)(3) and section
1.1031(k)-1(b)(2) are met.
See
also section 17 of this revenue
procedure.
21. Sec. 1031 Property held in a qualified exchange accommodation
arrangement may qualify as “replacement property” or
“relinquished property” under section 1031 if the requirements
of section 4 of Rev. Proc. 2000-37, 2000-2 C.B. 308, modified
by Rev. Proc. 2004-51, 2004-33 I.R.B. 294, are met, including
the 5-business day period to enter into a qualified exchange
accommodation agreement (QEAA), the 45-day identification
period, the 180-day exchange period, and the 180-day
combined time period.
See
also section 17 of this revenue
procedure.
22. Sec. 1033 An election respecting the nonrecognition of gain on the
involuntary conversion of property (section 1.1033(a)-2(c)(1)
and (2)) is required to be made within the time periods specified
in section 1.1033(a)-2(c)(3), section 1.1033(g)-1(c), section
1033(e)(2)(A), or section 1033(h)(1)(B), as applicable.
23. 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.
24. 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.
25. Sec. 1382(d)

An organization, to which section 1382(d) applies, is required to
pay a patronage dividend within 8½-months after the close of
the year.

10
26. 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 15
th
day of the 9
th
month following
the close of the taxable year.
27. Treas. Reg.
§ 301.7701-
3(c)
The effective date of an entity classification election (Form
8832, Entity Classification Election) cannot be more than 75
days prior to the date on which the election is filed.
28. 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.
29. Treas. Reg.
§§ 301.9100-
2(b)-(d)
An automatic extension of 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 section 301.9100-2.”

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.
§ 1.303-2
A corporation must complete the 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
section 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.

11
4. Sec.
316(b)(2)(A)
and (B)(ii) and
Treas. Reg.
§ 1.316-1(b)(2)
and (5)
A personal holding company may designate as a dividend to a
shareholder all or part of a distribution in complete liquidation
described in section 316(b)(2)(B) and section 1-316-1(b) by,
inter
alia, including such amount as a dividend in Form 1099-
DIV, Dividends and Distributions, filed in respect of such
shareholder pursuant to section 6042(a) and the regulations
thereunder and in a written statement of dividend payments
furnished to such shareholder pursuant to section 6042(c) and
section 1.6042-4.
5. Sec. 332(b)
and
Treas. Reg.
§§ 1.332-3
and 1.332-4
A corporation must completely liquidate a corporate subsidiary
within the specified period.
6. Sec. 338(d)(3)
and (h), and
Treas. Reg.
§ 1.338-2
An acquiring corporation must complete a “qualified stock
purchase” of a target corporation’s stock within the specified
acquisition period.
7. Sec. 338(g)
and Treas.
Reg.
§ 1.338-2
An acquiring corporation may elect to treat certain stock
purchases as asset acquisitions. The election must be made
within the specified period.
8. Sec.
338(h)(10)
and Treas.
Reg.
§ 1.338(h)(10)-
1(c)
An acquiring corporation and 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.
9. Treas. Reg.
§ 1.381(c)(17)-
1(c)
An acquiring corporation files 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 From 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. Procs. 2002-38, 2002-1 C.B. 1037, and 2002-39.

12
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. Sec. 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. Sec. 597 and
Treas. Reg.
§ 1.597-4(g)
A consolidated group of which an Institution (as defined by
section 1.591-1(b)) is a subsidiary may elect irrevocably not to
include the Institution in its affiliated group if the Institution is
placed in Agency (as defined by section 1.591-1(b)) receivership
(whether or not assets or deposit liabilities of the Institution are
transferred to a Bridge Bank (as defined by section 1.591-1(b)).
Except as otherwise provided in section 1.597-4(g)(6), a
consolidated group makes the election by sending a written
statement by certified mail to the affected Institution on or before
the later of 120 days after its placement in Agency (as defined
by section 1.591-1(b)) receivership or May 31, 1996.
14. Sec. 1502 and
Treas. Reg.
§ 1.1502-
75(c)(1)(i)
A common parent must apply for permission to discontinue filing
consolidated returns within a specified period after the date of
enactment of a law affecting the computation of tax liability.
15. Sec. 6425
and Treas.
Reg.
§ 1.6425-1
Corporations applying for an 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 15
th
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.
16. Rev. Proc.
2003-33,
Section 5
If the filer complies with the procedures set forth in the revenue
procedure, including a requirement that the filer file Form 8023,
Elections Under Section 338 for Corporations Making Qualified
Stock Purchases, within the specified period, the filer gets an
automatic extension under section 301.9100-3 to file an election
under section 338.

13
SECTION 8. EMPLOYEE BENEFIT ISSUES

Statute or
Regulation
Act Postponed
1. Sec.
72(p)(2)(B)
and (C), and
Treas. Reg.
§ 1.72(p)-1,
Q&A-10
A loan from a qualified employer plan to a participant in, or a
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
section 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.
§ 1.83-2(b)
If substantially nonvested property to which section 83 applies
is transferred to any person, the service provider may elect to
include the excess of the fair market value of the property over
the amount paid (if any) for the property in gross income for the
taxable year in which such property is transferred. This election
must occur not later than 30 days after the date the property
was transferred.
5. Proposed
Treas. Reg.
§ 1.125-1,
Q&A-15
Cafeteria plan participants will avoid constructive receipt of the
taxable amounts if they elect the benefits they will receive
before the beginning of the period during which the benefits will
be provided.
6. Proposed
Treas. Reg.
§ 1.125-1,
Q&A-14 and
Proposed
Treas. Reg.
§ 1.125-2,
Q&A-7
Cafeteria plan participants will not be in constructive receipt if,
at the end of the plan year, they forfeit amounts elected but not
used during the plan year.
7. Proposed
Treas. Reg.
§ 1.125-2,
Q&A-5

Cafeteria plan participants may 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.

14
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 60
th
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 5498filed with the IRS, by May 31
following the calendar year to which the information relates.
11. Secs.
401(a)(9),
403(a)(1),
403(b)(10),
408(a)(6),
408(b)(3) and
457(d)(2)
The first required minimum distribution from plans subject 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 401(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.

15
14. Sec.
401(a)(30)
and Treas.
Reg.
§ 1.401(a)-30
and
§ 1.402(g)-1
Excess deferrals for a calendar year, plus income attributable to
the excess, must be distributed no later than the first April 15
following the calendar year.
15. Sec. 401(b)
and Treas.
Reg.
§ 1.401(b)-1
A retirement plan that fails 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.
§ 1.402(g)-1
An individual with excess 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
filed with the IRS, by May 31 following the calendar year to
which the information relates.

16
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. Sec. 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 5
th

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 60
th
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. Sec.
4972(c)(3)
Nondeductible plan contributions must be distributed prior to a
certain date to avoid a 10 percent tax.

17
28. Sec. 4979 and
Treas. Reg.
§ 54.4979-1
A 10 percent tax on the amount 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
2½-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 2½-month period to
avoid the tax.

18
29. Secs. 6033,
6039D, 6047,
6057, 6058,
and 6059
Form 5500, Annual Return/Report of Employee Benefit Plan,
and Form 5500-EZ, Annual Return of One-Participant Pension
Retirement Plan, 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

Individual taxpayers who meet the requirements of section 7508
are entitled to a postponement of time to file the Form 5500 or
Form 5500-EZ under section 7508. The postponement of the
Form 5500 series filing due date 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
section 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.
30. Rev. Proc.
2003-44,
Sections
9.02(1) and
(2)
The correction period for 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.

19
31. Rev. Proc.
2003-44,
Section 12.07
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.
32. Rev. Proc.
2003-44,
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
as paid by the beneficiary. The election shall be made on or
before the 65
th
day after the close of the taxable year of the
trust.
2. Sec. 645 and
Treas. Reg.
§ 1.645-1(c)
An election to treat a qualified revocable trust as part of the
decedent’s estate must be made by filing Form 8855, Election
To Treat a Qualified Revocable Trust as Part of an Estate, by
the due date (including extensions) of the estate’s Federal
income tax return for the estate’s first taxable year, if there is an
executor, or by the due date (including extensions) of the trust’s
Federal income tax return for the trust’s first taxable year
(treating the trust as an estate), if there is no executor.
3. 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. (Section 2011
does not apply to estates of decedents dying after December
31, 2004;
see
section 2058).
4. Sec. 2014(e) The executor of a decedent’s estate must file a claim for foreign
death taxes within 4 years of filing Form 706.
5. Sec. 2016 and
Treas. Reg.
§ 20.2016-1
If an executor of a decedent’s 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. (Section 2016 is amended effective for estates of
decedents dying after December 31, 2004;
see
section 2058).

20
6. Sec. 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.
7. 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.
8. 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.
9. 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.
10. 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.
11. Sec. 2053(d)
and Treas.
Reg.
§§ 20.2053-
9(c) and 10(c)
If the executor of a decedent’s 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).
(Section 2053 is amended effective for estates of decedents
dying after December 31, 2004 to apply only with respect to
foreign death taxes).
12. 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 90
th

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.
13. 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.
14. 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.

21
15. 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. (The section 2057 election is not available
to estates of decedents dying after December 31, 2004).
16. 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.
17. Sec. 2058(d) The executor of a decedent’s estate may deduct estate,
inheritance, legacy, or succession taxes actually paid to any
state or the District of Columbia from the decedent’s gross
estate. With certain exceptions, the deduction is only allowed
provided the taxes are actually paid and the deduction claimed
within 4 years of filing Form 706.
18. 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.
19. 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. 501(h) Under section 501(h), certain eligible 501(c)(3) organizations
may elect on Form 5768, Election/Revocation of Election by an
Eligible Sec. 501(c)(3) Organization to Make Expenditures to
Influence Legislation, to have their legislative activities
measured solely by expenditures. From 5768 is effective
beginning with a taxable period, provided it is filed before the
end of the organization's taxable period
.
2. 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, section
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.

22
3. Sec. 508 and
Treas. Reg.
§ 1.508-1
A purported section 501(c)(3) 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.
4. Sec. 527(i)(2) Certain political organizations shall not be treated as tax-exempt
section 527 organizations unless each such organization
electronically files a notice (Form 8871, Political Organization
Notice of Section 527 Status) not less than 24 hours after the
date on which the organization is established, or, in the case of
a material change in the information required, not later than 30
days after such material change.
5. Sec. 527(j)(2) Under section 527(j)(2), certain tax-exempt political
organizations that accept contributions or make expenditures
for an exempt function under section 527 during a calendar year
are required to file periodic reports on Form 8872, Political
Organization Report of Contributions and Expenditures,
beginning with the first month or quarter in which they accept
contributions or make expenditures, unless excepted. In
addition, tax-exempt political organizations that make
contributions or expenditures with respect to an election for
federal office may be required to file pre-election reports for that
election. A tax-exempt political organization that does not file
the required Form 8872, or that fails to include the required
information, must pay an amount calculated by multiplying the
amount of the contributions or expenditures that are not
disclosed by the highest corporate tax rate.
6. Sec.6033(g)(1
) and Treas.
Reg.
§ 1.6033-2(e)
Annual information returns, Forms 990, Return of Organization
Exempt From Income Tax, of certain tax-exempt political
organizations described under section 527 must be filed on or
before the 15
th
day of the 5
th
month following the close of the
taxable year.
7. Sec. 6072(e)
and Treas.
Reg.
§ 1. 6033-2(e)
Annual returns of organizations exempt under section 501(a)
must be filed on or before the 15
th
day of the 5
th
month following
the close of the taxable year.
8. Rev. Proc. 80-
27, Section
6.01
The central organization of a group ruling is required to report
information regarding the status of members of the group
annually (at least 90 days before the close of its annual
accounting period).

SECTION 11. EXCISE TAX ISSUES

Statute or
Regulation
Act Postponed

23
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.
§ 48.4221-
2(c)
A manufacturer is allowed to 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.
§ 48.4221-
3(c)
A manufacturer is allowed to 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. Sec.
4221(e)(2)(A)
and Treas.
Reg.
§ 48.4221-
7(c)

A manufacturer is allowed to 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.
§ 1.482-
1(g)(4)(ii)(C)
A claim for a setoff of a 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.
§ 1.482-1(j)(2)
A claim for retroactive 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.
§ 1.482-7(j)(2)
A participant in a cost-sharing arrangement must provide
documentation regarding the arrangement, as well as
documentation specified in sections 1.482-7(b)(4) and 1.482-
7(c)(1), within 30 days of a request by the IRS.
4. Treas. Reg.
§ 1.882-
5(d)(2)(ii)(A)
(2)
Liabilities of a foreign 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.
§ 1.882-
5(d)(2)(iii)(A)
(1)
Liabilities of foreign 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.

24
6. Treas. Reg.
§ 1.884-
2T(b)(3)(i)
Requirement that marketable 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.
§ 1.884-
4(b)(3)(ii)(B)
Requirement that a foreign 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. § 1.922-
1(j) (Q&A-19)
The FSC must appoint a new 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.
§ 1.924(a)-
1T(j)(2)(i)
A taxpayer must execute an 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 FSC 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.
§ 1.924(c)-
1(c)(4)
The FSC must open a new 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.
§ 1.924(c)-
1(d)(1)
The FSC must transfer funds 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.
§ 1.924(c)-
1(d)(2)
The FSC must reimburse from 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.

25
13. Sec. 924(c)(3)
and Treas.
Reg.
§ 1.924(c)-
1(d)(3)
If the Commissioner determines 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 section 1.924(c)-1(d)(2).
14. Sec. 924(e)(4)
and Treas.
Reg.
§ 1.924(e)-
1(d)(2)(iii)
If a payment with respect to 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.
§ 1.925(a)-
1T(e)(4)
A FSC and its related supplier 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 the
statute of limitations for assessment applicable to the party that
has a deficiency in tax on account of the redetermination is
open.
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 section 1.925(a)-
1T(e)(4).
16. Sec.
927(f)(3)(A)
and Treas.
Reg.
§ 1.927(f)-1(b)
(Q&A-12)
A corporation may terminate its 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 revocation was to take effect.
17. Sec. 927 and
Temp. Treas.
Reg.
§ 1.927(a)–1T
(d)(2)(i)(B)
A taxpayer may satisfy the 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.
§ 1.927(b)-
1T(e)(2)(i)
A taxpayer that claims FSC 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.

26
19. Sec. 927 and
Treas. Reg.
§ 1.927(f)-1(a)
(Q&A 4)
A transferee or other recipient 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.
§ 1.936-11
A taxpayer that elects retroactive application of the 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.
21. Treas. Reg.
§§ 1.964 -
1(c)(3)(ii)
and
-1T(g)(2).
An election of, or an adoption of or change in a method of
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.
22. 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 90
th
day after the day such request was mailed.
23. Treas. Reg.
§ 1.988-
1(a)(7)(ii).
An election to have section 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
section 1.988-1(a)(7)(ii). A late election may be made within 30
days after the time prescribed for the election.
24. Sec.
988(c)(1)(E)
(iii)(V)
(qualified
fund) and
Treas. Reg.
§ 1.988-
1(a)(8)(i)(E).
A qualified fund election 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 partnership holds an instrument
described in section 988(c)(1)(E)(i).
25. Treas. Reg.
§ 1.988-3(b)
An election to treat (under certain circumstances) any gain or
loss recognized on a contract described in section 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.
26. 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 sections 1.988-5(a)(8)(i)(A) through (E).
27. 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.

27
28. Treas. Reg.
§ 1.988-
5(c)(2)
Taxpayer must identify a hedge and underlying stock or security
under the rules of section 1.988-5(b)(3).
29. 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.
30. Sec. 991 and
Treas. Reg.
§ 1.991-
2(g)(2)
A corporation that filed a tax return as a DISC, but subsequently
determines that it does not wish to be treated as a DISC, must
notify the Commissioner more than 30 days before the
expiration of period of limitations on assessment applicable to
the tax year.
31. Sec. 992 and
Treas. Reg.
§ 1.992-
2(a)(1)(i)
A qualifying corporation must file 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.
32. Sec. 992 and
Treas. Reg.
§ 1.992-
2(b)(2)

A qualifying corporation must 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.
33. Sec. 992 and
Treas. Reg.
§ 1.992-
2(e)(2)
A corporation seeking to 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 revocation 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.
34. Sec. 992 and
Treas. Reg.
§ 1.992-
3(c)(3)
A DISC that makes a deficiency distribution with respect to the
95 percent of gross receipts test or the 95 percent assets test,
or both tests, for a particular taxable year, must make such
distribution within 90 days of the date of the first written
notification from the IRS that the DISC failed to satisfy such
test(s).
35. Sec. 993 and
Treas. Reg.
§ 1.993-
3(d)(2)(i)(b
)
In certain cases, property may not qualify as export property for
DISC purposes unless, among other things, such property is
ultimately delivered, directly used, or directly consumed outside
the U.S. within one year of the date of sale or lease of the
property.

28
36. Sec. 1445
Treas. Reg.
§ 1.1445-1
Form 8288, U.S. Withholding 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 20
th
day after
the date of transfer.
37. 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, and
8805, Foreign Partner’s Information Statement of Section 1446
Withholding Tax, on or before the 15
th
day of the 4
th
month
following the close of the partnership’s taxable year.
38. 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, Partnership
Withholding Tax Payment Voucher (Section 1446), 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 15
th
day of the 4
th
, 6
th
, 9
th
, and 12
th
months of the
partnership’s taxable year for U.S. income tax purposes.
39. Sec.
6038A(d)(2)
and Treas.
Reg.
§ 1.6038A-
4(d)(1)
A reporting corporation must 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.
40. Sec.
6038A(d)(2)
and Treas.
Reg.
§ 1.6038A-
4(d)(1)
A reporting corporation must 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.
41. Sec.
6038A(e)(1)
and Treas.
Reg.
§ 1.6038A-
5(b)
A reporting corporation must furnish an authorization of agent
within 30 days of a request by the IRS to avoid a penalty.

42. Sec.
6038A(e)(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.

29
43. 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.
44. Sec. 6038A
and Treas.
Reg.
§ 1.6038A-
3(b)(3)
A reporting corporation must 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.
45. Sec. 6038A
and Treas.
Reg.
§ 1.6038A-
3(f)(2)
A reporting corporation must, 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.
46. Sec. 6038A
and Treas.
Reg.
§ 1.6038A-
3(f)(2)(i)
A reporting corporation must 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.
47. Sec. 6038A
and Treas.
Reg.
§ 1.6038A-
3(f)(4)
A reporting corporation must 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.
48. 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.
49. Sec. 6662(e)
and Treas.
Reg.
§ 1.6662-
6(d)(2)(iii)(A)
A taxpayer must provide, within 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. § 1.6662-
6(d)(2)(iii)(C) (similar requirement re: background documents).

SECTION 13. PARTNERSHIP AND S CORPORATION ISSUES

Statute or
Regulation
Act Postponed
1. Treas. Reg.
§§ 1.442-
1(b)(1) and (3)
and 1.706-
1(b)(8)
A partnership may obtain 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,
with such time as provided in administrative procedures
published by the Commissioner.

30
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
Treas. Reg. § 1.1361-1(m)(2)(ii).
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
section 1.1361-1(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.

31
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.
§ 1.1362-
2(a)(2), (4)

If a corporation revokes its subchapter S election after the first
2½-months of 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)(1)
An election under section 1362(a) to be an S corporation may
be made by a small business corporation for any taxable year at
any time during the preceding taxable year, or at any time
during the taxable year and on or before the 15
th
day of the 3d
month of the taxable year.
13. Rev. Proc.
2003-43
This revenue procedure provides a simplified method for
taxpayers requesting relief for late S corporation elections,
Qualified Subchapter S Subsidiary (QSub) elections, Qualified
Subchapter S Trust (QSST) elections, and Electing Small
Business Trust (ESBT) elections. Generally, this revenue
procedure provides that certain eligible entities may file late
elections within 24 months of the due date of the election.
14. Rev. Proc.
2004-48
This revenue procedure provides a simplified method for
taxpayers to request relief for a late S corporation election and a
late corporate classification election which was intended to be
effective on the same date that the S corporation election was
intended to be effective. This revenue procedure provides that
within 6 months after the due date for the tax return, excluding
extensions, for the first year the entity intended to be an S
corporation, the corporation must file a properly completed
Form 2553, Election by a Small Business Corporation, with the
applicable service center.
15. Sec. 1378(b)
and Treas.
Reg. §
1.1378-1(c)
An S or electing S 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
administrative procedures published by the Commissioner.
See

Rev. Procs. 2002-38 and 2002-39.

SECTION 14. PROCEDURE & ADMINISTRATION ISSUES

.01 Bankruptcy and Collection

Statute or
Regulation
Act Postponed

32
1. Treas. Reg.
§ 301.6036-
1(a)(2) and (3)
A court-appointed receiver or fiduciary in a non-bankruptcy
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. Sec.
6320(a)(3)(B)
and (c) and
Treas. Reg. §
301.6320-
1(b), (c) and
(f)
A taxpayer has 30 days after receiving a notice of a lien to
request a Collection Due 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. Sec.
6330(a)(3)(B)
and (d)(1) and
Treas. Reg.
§ 301.6330-
1(b), (c) and
(f)

The taxpayer must request a Collections Due Process (CDP)
administrative hearing within 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.
§ 301.7122-
1(g)(2)
If a taxpayer submits a 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.
6331(k)(2)
and Treas.
Reg.
§ 301.6331-
4(a)(1)
If, within 30 days following the rejection or termination of an
installment agreement, the taxpayer files an appeal with the IRS
Office of Appeals, no levy may be made while the rejection or
termination is being considered by Appeals.
6. Sec.
7122(d)(2)
and Treas.
Reg. §
301.7122-
1(f)(5)(i)
A taxpayer must request administrative review of a rejected
offer in compromise within 30 days after the date on the letter of
rejection.

.02 Information Returns

33
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 15
th
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. 31
st
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, Corporation
Application for Tentative Refund, (for corporations) or Form
1045, Application for Tentative Refund, (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(e)(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. Sec.
42(e)(3)(A)(ii)
A taxpayer has a 24-month measuring period in which the
requisite amount of rehabilitation expenditures has to be
incurred in order to qualify for treatment as a separate new
building.
2. Treas. Reg.
§ 1.42-5(c)(1)
The taxpayer must make certain certifications at least annually
to the Agency.

34
3. Treas. Reg.
§ 1.42-
5(c)(1)(iii)
The taxpayer must receive an annual income certification from
each low-income tenant with documentation to support the
certification.
4. 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 5
th
day following the end of the month
in which the binding agreement was made.
5. Treas. Reg.
§ 1.42-8(b)
(1)(vii)
The taxpayer and an Agency may elect an appropriate
percentage under section 42(b)(2)(A)(ii)(II) by notarizing a
binding agreement by the 5
th
day following the end of the
month in which the tax-exempt bonds are issued.
6. 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.
7. 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.
8. 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.
9. 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.
10. Sec.
47(c)(1)(C)
and Treas.
Reg.
§ 1.48-
12(b)(2)
A taxpayer has a 24- or 60-month measuring period in which
the requisite amount of rehabilitation expenditures have to be
incurred in order to satisfy the "substantial rehabilitation" test.
11. 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 30
th
month, consent to extending the statute of
limitations by submitting a written statement to the Service.

35
12. Sec.
51(d)(12)(A)
(ii)(II) and
51A(d)(1)

An employer seeking the Work 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 21
st

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.
§§ 1.141-
12(d)(3) and
1.142-2(c)(2)
An issuer must provide notice to the Commissioner of the
establishment of a defeasance escrow within 90 days of the
date such defeasance escrow is established in accordance with
sections 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.
§ 1.142(f)(4)-1
A person engaged in the local 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.

36
6. Sec. 148(f)(3)
and Treas.
Reg.
§ 1.148-3(g)
An issuer of a tax-exempt 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
section 1.148-3(f), (g), and (h).
8. Sec.
148(f)(4)(C)
(xvi) and
Treas. Reg.
§ 1.148-
7(k)(1)
As issuer of a tax-exempt 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 15
th
day of
the 2
nd
calendar month after the close of the calendar quarter in
which the municipal obligation is issued.

SECTION 17. SPECIAL RULES FOR SECTION 1031 LIKE-KIND EXCHANGE
TRANSACTIONS

.01 (1) The last day of a 45-day identification period set forth in section 1.1031(k)-
1(b)(2) of the Income Tax Regulations, the last day of a 180-day exchange period set
forth in section 1.1031(k)-1(b)(2), and the last day of a period set forth in section 4.02(3)
through (6) of Rev. Proc. 2000-37, modified by Rev. Proc. 2004-51, that falls on or after
the date of a Presidentially declared disaster is postponed by 120 days or to the last day
of the general disaster extension period authorized by an IRS News Release or other
guidance announcing tax relief for victims of the specific Presidentially declared
disaster, whichever is later, if such IRS News Release or other guidance provides relief
for acts listed in this revenue procedure.

(2) A taxpayer who is a transferor qualifies for a postponement under section
17.01 only if—

(a) The relinquished property was transferred on or before the date of the
Presidentially declared disaster, or in a transaction governed by Rev. Proc. 2000-37,
modified by Rev. Proc. 2004-51, qualified indicia of ownership were transferred to the
exchange accommodation titleholder on or before that date; and

(b) The taxpayer (transferor)—

37
(i) Is an “affected taxpayer” as defined in the IRS News Release or other
guidance announcing tax relief for the victims of the specific Presidentially declared
disaster; or

(ii) Has difficulty meeting the 45-day identification or 180-day exchange
deadline set forth in section 1.1031(k)-1(b)(2), or a deadline set forth in section 4.02(3)
through (6) of Rev. Proc. 2000-37, modified by Rev. Proc. 2004-51, due to the
Presidentially declared disaster for the following or similar reasons:

(A) The relinquished property or the replacement property is
located in a covered disaster area (as defined in section 301.7508A-
1(d)(2)) as provided in the IRS News Release or other guidance (the
covered disaster area);

(B) The principal place of business of any party to the transaction
(for example, a qualified intermediary, exchange accommodation
titleholder, transferee, settlement attorney, lender, financial institution, or a
title insurance company) is located in the covered disaster area;

(C) Any party to the transaction (or an employee of such a party
who is involved in the section 1031 transaction) is killed, injured, or
missing as a result of the Presidentially declared disaster;

(D) A document prepared in connection with the exchange (for
example, the agreement between the transferor and the qualified
intermediary or the deed to the relinquished property or replacement
property) or a relevant land record is destroyed, damaged, or lost as a
result of the Presidentially declared disaster;

(E) A lender decides not to fund either permanently or temporarily a
real estate closing due to the Presidentially declared disaster or refuses to
fund a loan to the taxpayer because flood, disaster, or other hazard
insurance is not available due to the Presidentially declared disaster; or

(F) A title insurance company is not able to provide the required title
insurance policy necessary to settle or close a real estate transaction due
to the Presidentially declared disaster.

02. The postponement described in section 17.01 also applies to the last day of a 45-
day identification period described in section 1.1031(k)-1(b)(2) and the last day of a 45-
day identification period described in section 4.05(4) of Rev. Proc. 2000-37, modified by
Rev. Proc. 2004-51, that falls prior to the date of a Presidentially declared disaster if an
identified replacement property (in the case of an exchange described in section
1.1031(k)-1), or an identified relinquished property (in the case of an exchange
described in Rev. Proc. 2000-37, modified by Rev. Proc. 2004-51) is substantially
damaged by the Presidentially declared disaster.

38

.03 For purposes of this section 17, the deadlines to which the 120-day postponements
apply do not include the due date of the taxpayer’s tax return in section 1.1031(k)-
1(b)(2), which is used to determine the last day of the exchange period.

.04 If the taxpayer (transferor) qualifies for relief under this section for any reason other
than section 17.01(2)(b)(i), then such taxpayer is not considered an affected taxpayer
for purposes of any other act listed in this revenue procedure or for any acts listed in an
IRS News Release or other published guidance related to the specific Presidentially
declared disaster.

SECTION 18. 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, and
refer to Rev. Proc. 2005-27 in the Subject heading.

SECTION 19. EFFECT ON OTHER REVENUE PROCEDURES

Rev. Proc. 2004-13, 2004-4 I.R.B. 335, is superseded.

SECTION 20. EFFECTIVE DATE

This revenue procedure is effective for acts that may be performed on or after
May 16, 2005.

SECTION 21. DRAFTING INFORMATION

The principal author of this revenue procedure is Dillon Taylor of the Office of
Associate Chief Counsel, Procedure and Administration (Administrative Provisions and
Judicial Practice Division). For further information regarding this revenue procedure,
contact Mr. Taylor at (202) 622-4940 (not a toll-free call).