n-15-38.pdf

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Part III - Administrative, Procedural, and Miscellaneous

Designation of Private Delivery Services

Notice 2015-38

This notice updates the list of designated private delivery services (“designated
PDSs”) set forth in Notice 2004-83, 2004-2 C.B. 1030, for purposes of the timely mailing
treated as timely filing/paying rule of section 7502 of the Internal Revenue Code,
provides rules for determining the postmark date for these services, and provides a new
address for submitting documents to the Internal Revenue Service (“IRS”) with respect
to an application for designation as a designated PDS. These changes are effective
May 6, 2015.

BACKGROUND

Section 7502(f) authorizes the Secretary to designate certain private delivery
services (“PDSs”) for the timely mailing treated as timely filing/paying rule of section
7502. Revenue Procedure 97-19, 1997-1 C.B. 644, provided rules to apply to be a
designated PDS, as well as setting forth the criteria for eligibility for designation as a
PDS. Originally, under Rev. Proc. 97-19, there was a semi-annual application period
for designation as a PDS with set dates for announcing the list of designated PDSs to

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the public. The current rules provide that there is one annual application period to
apply for designation, ending on June 30th, and the list of designated PDSs is updated
as PDSs are added or removed from the list. See Notice 97-50, 1997-2 C.B. 305, and
Notice 99-41, 1999-2 C.B. 325. In addition, the address for submitting applications
listed in Rev. Proc. 97-19 was updated in Notice 2001-62, 2001-2 C.B. 307.
Notice 97-26, 1997-1 C.B. 413, provided the first list of designated PDSs as well
as special rules to determine the date that will be treated as the postmark date for
purposes of section 7502, including certain presumption rules and rules for overcoming
the presumption. The list of designated PDS services was updated by Notice 97-50,
Notice 99-41, Notice 2001-62, Notice 2002-62, 2002-2 C.B. 574, and Notice 2004-83.

NATURE OF CHANGES
The IRS is adding four new delivery services to the list of designated delivery
services. Federal Express Corporation (“FedEx”): FedEx First Overnight, FedEx
International First Next Flight Out, and FedEx International Economy; and United Parcel
Service (“UPS”): UPS Next Day Air Early AM are added to the list published in Notice
2004-83.
In addition, the IRS is removing five delivery services previously designated that
are no longer provided. Notice 2004-83 contained five services provided by DHL
Express (DHL Same Day Service; DHL Next Day 10:30 am; DHL Next Day 12:00 pm;
DHL Next Day 3:00 pm; and DHL 2nd Day Service) that had been designated for

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purposes of section 7502. Since the publication of Notice 2004-83, DHL Express
substantially altered or discontinued its delivery services within the domestic United
States, and the DHL Express services listed in Notice 2004-83 are no longer provided.
Accordingly, the DHL Express services listed in Notice 2004-83 are no longer
designated.
This notice also updates, and consolidates in one place, the rules for determining
the postmark date for documents delivered by a designated delivery service.
Finally, this notice modifies Rev. Proc. 97-19, as modified by Notice 2001-62, to
provide a new address to submit an application for PDS designation. This new address
may also be used to request administrative review of a letter of denial of designation,
appeal a letter confirming the denial of designation, provide written notification of any
change in application information, and appeal a proposed revocation letter.

LIST OF DESIGNATED PDSs
Effective May 6, 2015, the list of designated PDSs is as follows:
FedEx:
1. FedEx First Overnight
2. FedEx Priority Overnight
3. FedEx Standard Overnight
4. FedEx 2 Day
5. FedEx International Next Flight Out

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6. FedEx International Priority
7. FedEx International First
8. FedEx International Economy
UPS:
1. UPS Next Day Air Early AM
2. UPS Next Day Air
3. UPS Next Day Air Saver
4. UPS 2nd Day Air
5. UPS 2nd Day Air A.M.
6. UPS Worldwide Express Plus
7. UPS Worldwide Express.
Only the specific delivery services enumerated in this list are designated delivery
services for purposes of section 7502(f). FedEx and UPS are not designated with
respect to any type of delivery service not enumerated in this list. Taxpayers are
cautioned that merely because a delivery service is provided by FedEx or UPS, it does
not mean that the service is designated for purposes of the timely mailing treated as
timely filing/paying rule of section 7502.
This list of designated PDSs and designated services will remain in effect until
further notice. The IRS will publish a subsequent notice setting forth a new list only if a
designated PDS (or service) is added to, or removed from, the current list, or if there is
a change to the application and/or appeal procedures. Delivery services requesting to

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be designated in time for an upcoming filing season must submit applications by June
30th of the year preceding that filing season, as required by Rev. Proc. 97-19, as
modified by Notice 97-50.

SPECIAL RULES FOR DETERMINING POSTMARK DATE IN THE CASE OF A PDS
Section 7502(f)(2)(C) requires a PDS to either (1) record electronically to its data
base (kept in the regular course of its business) the date on which an item was given to
the PDS for delivery or (2) mark on the cover of the item the date on which an item was
given to the PDS for delivery. Under section 7502(f)(1), the date recorded or the date
marked by the PDS under section 7502(f)(2)(C) is treated as the postmark date for
purposes of section 7502.
For each PDS designated in this notice, the delivery service records
electronically the date on which an item was given to it for delivery, which is treated as
the postmark date for purposes of section 7502. Under this notice, the postmark date
for an item delivered after the due date is presumed to be the day that precedes the
delivery date by an amount of time that equals the amount of time it would normally take
for an item to be delivered under the terms of the specific type of delivery service used
(e.g., two days before the actual delivery date for a two-day delivery service).
Taxpayers who wish to overcome this presumption must provide information that shows
that the date recorded in the delivery service’s electronic data base is on or before the
due date, such as a written confirmation produced and issued by the delivery service.

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Each delivery service stores the date recorded in its database only for a finite period,
but for no less than six months. Senders or recipients using a designated delivery
service can obtain information concerning the date recorded by contacting the
designated delivery service. Contact information for each delivery service is available
on the company’s website.

NEW ADDRESS FOR SUBMITTING APPLICATIONS

The application address first provided in Rev. Proc. 97-19 and modified by Notice
2001-62 is no longer correct. Effective May 6, 2015, applications must be submitted to:
Internal Revenue Service
Postal and Transport Policy Section, PDS
MC 7015 NDAL
4050 Alpha Road
Dallas, TX 75244
The above address is also where a PDS may write to: (1) obtain administrative review
of a letter of denial of designation under section 9.03 of Rev. Proc. 97-19; (2) appeal a
letter confirming the denial of designation under section 9.06 of Rev. Proc. 97-19; (3)
provide prompt written notification to the IRS of any change in application information
under section 10.01 of Rev. Proc. 97-19; and (4) appeal the issuance of a proposed
revocation letter under section 12.03 of Rev. Proc. 97-19.
EFFECT ON OTHER DOCUMENTS
Revenue Procedure 97-19 is modified. Notice 97-26, Notice 2001-62, Notice
2002-62 and Notice 2004-83 are superseded.

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EFFECTIVE DATE
This notice is effective on May 6, 2015.

FOR FURTHER INFORMATION

The principal author of this notice is Steven L. Karon of the Office of Associate
Chief Counsel (Procedure & Administration). For further information regarding this
notice contact Steven L. Karon at (202) 317-6834 (not a toll-free call).