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					                                           2370             Federal Register / Vol. 74, No. 10 / Thursday, January 15, 2009 / Rules and Regulations

                                           regarding the regulatory amendments,                    DEPARTMENT OF THE TREASURY                             the term ‘‘federally declared disaster’’
                                           and the changes made by HUD at the                                                                             instead of the term ‘‘Presidentially
                                           final rule stage, is provided in the                    Internal Revenue Service                               declared disaster’’ when referring to any
                                           preamble to the November 17, 2008,                                                                             disaster determined by the President of
                                           final rule.                                             26 CFR Part 301                                        the United States to warrant assistance
                                              The effective date of the November                   [TD 9443]                                              by the Federal Government under the
                                           17, 2008, final rule is January 16, 2009.                                                                      Robert T. Stafford Disaster Relief and
                                           However, the final rule provides for an                 RIN 1545–BG16                                          Emergency Assistance Act, 42 U.S.C.
                                           appropriate transition period for certain                                                                      5121, et seq. (the ‘‘Stafford Act’’). Prior
                                                                                                   Postponement of Certain Tax-Related                    versions of these regulations and the
                                           requirements. Other provisions are to be
                                                                                                   Deadlines by Reason of a Federally                     proposed regulations included the term
                                           implemented upon the effective date of                  Declared Disaster or Terroristic or
                                           the final rule.                                                                                                ‘‘Presidentially declared disaster’’ as
                                                                                                   Military Action                                        defined in former Code section
                                              Among those regulatory changes to be
                                           implemented upon the effective date of                  AGENCY: Internal Revenue Service (IRS),                1033(h)(3). Sec. 706(a) of TEAMTRA,
                                           January 16, 2009, is the revised                        Treasury.                                              Div. C of Public Law 110–343 (122 Stat.
                                           definition of the term ‘‘Required use.’’                ACTION: Final regulation.                              3765, 3920), amended Code section
                                           This amendment has become the subject                                                                          1033(h)(3) by replacing the term
                                           of recently initiated litigation. (National             SUMMARY: This document contains final                  ‘‘Presidentially declared disaster’’ with
                                           Association of Home Builders, et al. v.                 regulations relating to postponement of                ‘‘federally declared disaster’’ and
                                           Steve Preston, et al., Civ. Action No. 08–              certain tax-related deadlines either due               providing that the term shall have the
                                           CV–1324, United States District Court                   to service in a combat zone or due to a                meaning given such term by section
                                           for the Eastern District of Virginia,                   federally declared disaster. The                       165(h)(3)(C). Section 165(h)(3)(C), added
                                           Alexandria Division.) For reasons                       regulations reflect changes in the law                 by section 706(a) of TEAMTRA, defines
                                           related to the proper litigation of this                made by the Victims of Terrorism Tax                   the term ‘‘federally declared disaster’’ to
                                           case, HUD is issuing this final rule to                 Relief Act of 2001, the Tax Extenders                  mean any disaster subsequently
                                           delay the effective date of the revised                 and Alternative Minimum Tax Relief                     determined by the President of the
                                                                                                   Act of 2008 (TEAMTRA), and current                     United States to warrant assistance by
                                           definition of ‘‘Required use’’ for an
                                                                                                   IRS practice. The regulations affect                   the Federal Government under the
                                           additional 90 days until April 16, 2009.
                                                                                                   taxpayers serving in a combat zone and                 Stafford Act. This definition is
                                              In general, HUD publishes a rule for
                                                                                                   taxpayers affected by a federally                      substantially the same as the definition
                                           public comment before issuing a rule for                declared disaster.                                     of ‘‘Presidentially declared disaster’’
                                           effect, in accordance with its own
                                                                                                   DATES: Effective Date: These regulations               under former section 1033(h)(C). Thus,
                                           regulations on rulemaking at 24 CFR
                                                                                                   are effective on January 15, 2009.                     these statutory changes in terminology
                                           part 10. Part 10, however, does provide
                                                                                                     Applicability Dates: For dates of                    do not materially impact the meaning of
                                           in § 10.1 for exceptions from that
                                                                                                   applicability, see § 301.7508A–1(g).                   either the proposed or final regulations.
                                           general rule where HUD finds good                                                                                 Section 301.7508A–1(d)(1) of the final
                                                                                                   FOR FURTHER INFORMATION CONTACT:
                                           cause to omit advance notice and public                                                                        regulations is revised to expand the
                                           participation. The Department finds that                Mary Ellen Keys, (202) 622–4570 (not a
                                                                                                   toll-free number).                                     definition of ‘‘affected taxpayer’’ to
                                           good cause exists to publish this final                                                                        include any individual, business entity,
                                           rule for effect without first soliciting                SUPPLEMENTARY INFORMATION:
                                                                                                                                                          or sole proprietorship not located in a
                                           public comment as public comment is                     Background                                             covered disaster area, but whose records
                                           impracticable, given the litigation                                                                            necessary to meet a deadline for an act
                                                                                                     This document contains amendments
                                           schedule established by the court.                                                                             specified in paragraph (c) of
                                                                                                   to the Procedure and Administration
                                           ■ Accordingly, HUD’s final rule                         Regulations (26 CFR part 301). Section                 § 301.7508A–1 are located in the
                                           published on November 17, 2008 at 73                    7508A of the Internal Revenue Code                     covered disaster area. Section
                                           FR 68204 (Docket No. FR 5180–F–03,                      (Code) relates to the postponement of                  301.7508A–1(d)(1) of the final
                                           FR Doc. E8–27070) is corrected as                       certain tax-related acts by reason of a                regulations further expands the
                                           follows:                                                federally declared disaster or terroristic             definition of affected taxpayer to
                                           ■ 1. On page 68239, beginning in the                    or military action. Section 7508A was                  include any individual visiting the
                                           first column, § 3500.1(b)(1) is corrected               added by section 911(a) of the Taxpayer                covered disaster area who was killed or
                                           to read as follows:                                     Relief Act of 1997, Public Law 105–34                  injured as a result of the disaster. These
                                                                                                   (111 Stat. 788, 877–78 (1997)) (the 1997               changes reflect current IRS practice of
                                           § 3500.1   Designation and applicability.                                                                      broadly defining the term ‘‘affected
                                                                                                   Act), which was effective for any period
                                           *     *    *     *     *                                for performing an act that had not                     taxpayer.’’
                                             (b) * * *                                             expired before December 5, 1997.                          Section 301.7508A–1(f) of the final
                                             (1) The definition of Required use                      A notice of proposed rulemaking                      regulations is revised to include a new
                                           in§ 3500.2 is applicable commencing on                  (REG–142680–06) was published in the                   Example 9. Example 9, which reflects
                                           April 16, 2009; §§ 3500.8(b), 3500.17,                  Federal Register (73 FR 40471–01) on                   current IRS practice, explains the
                                           3500.21, 3500.22 and 3500.23, and                       July 15, 2008. No comments were                        impact of disaster relief on installment
                                           Appendices E and MS–1 are applicable                    received from the public in response to                agreement payments that become due
                                           commencing January 16, 2009.                            the notice of proposed rulemaking, and                 during the postponement period.
                                           *     *    *     *     *                                no public hearing was requested or                     Example 9 explains that the affected
                                                                                                   held. In this Treasury decision, the                   taxpayer’s obligation to make
                                             Dated: January 9, 2009.                                                                                      installment agreement payments is
                                                                                                   proposed regulations are adopted as
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                                           Brian D. Montgomery,                                    revised.                                               suspended during the postponement
                                           Assistant Secretary for Housing-Federal                                                                        period. Example 9 further explains that,
                                           Housing Commissioner.                                   Explanation of Revisions                               because installment agreement
                                           [FR Doc. E9–852 Filed 1–14–09; 8:45 am]                   Section 301.7508A–1 of these final                   payments pertain to pre-existing tax
                                           BILLING CODE 4210–67–P                                  regulations is revised throughout to use               liabilities, interest and penalties


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                                                            Federal Register / Vol. 74, No. 10 / Thursday, January 15, 2009 / Rules and Regulations                                               2371

                                           continue to accrue during the                           determined by the Secretary to be                      a return is due to be filed, the
                                           postponement period.                                    affected by a federally declared disaster              postponement period will not change
                                                                                                   (as defined in section 1033(h)(3)) or a                the due date of the return.
                                           Special Analyses
                                                                                                   terroristic or military action (as defined                (5) Additional relief. The rules of this
                                             It has been determined that these final               in section 692(c)(2)), the Secretary may               paragraph (b) demonstrate how the IRS
                                           regulations are not a significant                       specify a postponement period (as                      generally implements section 7508A.
                                           regulatory action as defined in                         defined in paragraph (d)(1) of this                    The IRS may determine, however, that
                                           Executive Order 12866. Therefore, a                     section) of up to one year that may be                 additional relief to taxpayers is
                                           regulatory assessment is not required. It               disregarded in determining under the                   appropriate and may provide additional
                                           has been determined that section 553(b)                 internal revenue laws, in respect of any               relief to the extent allowed under
                                           of the Administrative Procedure Act (5                  tax liability of the affected taxpayer (as             section 7508A. To the extent that the
                                           U.S.C. chapter 5) does not apply to these               defined in paragraph (d)(1) of this                    IRS grants additional relief, the IRS will
                                           regulations. The regulations do not                     section)—                                              provide specific guidance on the scope
                                           impose a collection of information                         (i) Whether any or all of the acts                  of relief in the manner provided in
                                           requirement on small business entities,                 described in paragraph (c) of this                     paragraph (e) of this section.
                                           thus the Regulatory Flexibility Act (5                  section were performed within the time                 *      *     *     *     *
                                           U.S.C. chapter 6) does not apply.                       prescribed;                                               (d) * * *
                                           Pursuant to section 7805(f) of the Code,                   (ii) The amount of interest, penalty,                  (1) * * *
                                           the notice of proposed rulemaking                       additional amount, or addition to the                     (vii) Any individual, business entity,
                                           preceding these regulations was                         tax; and                                               or sole proprietorship not located in a
                                           submitted to the Chief Counsel for                         (iii) The amount of credit or refund.               covered disaster area, but whose records
                                           Advocacy of the Small Business                             (2) Effect of postponement period.
                                                                                                                                                          necessary to meet a deadline for an act
                                           Administration for comment on its                       When an affected taxpayer is required to
                                                                                                                                                          specified in paragraph (c) of this section
                                           impact on small business.                               perform a tax-related act by a due date
                                                                                                   that falls within the postponement                     are located in the covered disaster area;
                                           Drafting Information                                                                                              (viii) Any individual visiting the
                                                                                                   period, the affected taxpayer is eligible
                                                                                                                                                          covered disaster area who was killed or
                                             The principal author of these final                   for postponement of time to perform the
                                                                                                                                                          injured as a result of the disaster; or
                                           regulations is Mary Ellen Keys of the                   act until the last day of the period. The
                                                                                                                                                             (ix) Any other person determined by
                                           Office of the Associate Chief Counsel                   affected taxpayer is eligible for relief
                                                                                                                                                          the IRS to be affected by a federally
                                           (Procedure and Administration).                         from interest, penalties, additional
                                                                                                                                                          declared disaster (within the meaning of
                                                                                                   amounts, or additions to tax during the
                                           List of Subjects in 26 CFR Part 301                                                                            section 1033(h)(3)).
                                                                                                   postponement period.
                                                                                                      (3) Interaction between postponement                   (2) Covered disaster area means an
                                             Employment taxes, Estate taxes,                                                                              area of a federally declared disaster
                                           Excise taxes, Gift taxes, Income taxes,                 period and extensions of time to file or
                                                                                                   pay—(i) In general. The postponement                   (within the meaning of section
                                           Penalties, Reporting and recordkeeping                                                                         1033(h)(3)) to which the IRS has
                                           requirements.                                           period under section 7508A runs
                                                                                                   concurrently with extensions of time to                determined paragraph (b) of this section
                                           Adoption of Amendments to the                           file and pay, if any, under other sections             applies.
                                           Regulations                                                                                                       (3) Postponement period means the
                                                                                                   of the Internal Revenue Code.
                                                                                                      (ii) Original due date prior to, but                period of time (up to one year) that the
                                           ■Accordingly, 26 CFR part 301 is                                                                               IRS postpones deadlines for performing
                                           amended as follows:                                     extended due date within, the
                                                                                                   postponement period. When the original                 tax-related acts under section 7508A.
                                                                                                   due date precedes the first day of the                    (e) Notice of postponement of certain
                                           PART 301—PROCEDURE AND                                                                                         acts. If a tax-related deadline is
                                           ADMINISTRATION                                          postponement period and the extended
                                                                                                   due date falls within the postponement                 postponed under section 7508A and this
                                           ■ Paragraph 1. The authority citation                   period, the following rules apply. If an               section, the IRS will publish a revenue
                                           for part 301 continues to read in part as               affected taxpayer received an extension                ruling, revenue procedure, notice,
                                           follows:                                                of time to file, filing will be timely on              announcement, news release, or other
                                                                                                   or before the last day of the                          guidance (see § 601.601(d)(2) of this
                                               Authority: 26 U.S.C. 7805 * * *
                                                                                                   postponement period, and the taxpayer                  chapter) describing the acts postponed,
                                           ■ Par. 2. Section 301.7508A–1 is                        is eligible for relief from penalties or               the postponement period, and the
                                           amended by:                                             additions to tax related to the failure to             location of the covered disaster area.
                                           ■ 1. Revising the section heading and                                                                          Guidance under this paragraph (e) will
                                                                                                   file during the postponement period.
                                           paragraphs (b), (d)(1)(vii), (d)(2), and (e).                                                                  be published as soon as practicable after
                                                                                                   Similarly, if an affected taxpayer
                                           ■ 2. Adding paragraphs (d)(1)(viii) and                                                                        the occurrence of a terroristic or military
                                                                                                   received an extension of time to pay,
                                           (d)(1)(ix), and (d)(3).                                                                                        action or declaration of a federally
                                                                                                   payment will be timely on or before the
                                           ■ 3. Removing paragraph (f),                                                                                   declared disaster.
                                                                                                   last day of the postponement period,
                                           redesignating paragraphs (g) and (h) as                                                                           (f) Examples. The rules of this section
                                                                                                   and the taxpayer is eligible for relief
                                           paragraphs (f) and (g), respectively, and                                                                      are illustrated by the following
                                                                                                   from interest, penalties, additions to tax,
                                           revising them.                                                                                                 examples:
                                                                                                   or additional amounts related to the
                                             The revisions and additions read as                                                                             Example 1. (i) Corporation X, a calendar
                                                                                                   failure to pay during the postponement
                                           follows:                                                                                                       year taxpayer, has its principal place of
                                                                                                   period.
                                                                                                      (4) Due date not extended. The                      business in County M in State W. Pursuant
                                           § 301.7508A–1 Postponement of certain
                                                                                                   postponement of the deadline of a tax-                 to a timely filed request for extension of time
                                           tax-related deadlines by reasons of a
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                                                                                                                                                          to file, Corporation X’s 2008 Form 1120,
                                           federally declared disaster or terroristic or           related act does not extend the due date               ‘‘U.S. Corporation Income Tax Return,’’ is
                                           military action.                                        for the act, but merely allows the IRS to              due on September 15, 2009. Also due on
                                           *     *     *     *     *                               disregard a time period of up to one year              September 15, 2009, is Corporation X’s third
                                             (b) Postponed deadlines—(1) In                        for performance of the act. To the extent              quarter estimated tax payment for 2009.
                                           general. In the case of a taxpayer                      that other statutes may rely on the date               Corporation X’s 2009 third quarter Form 720,



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                                           2372             Federal Register / Vol. 74, No. 10 / Thursday, January 15, 2009 / Rules and Regulations

                                           ‘‘Quarterly Federal Excise Tax Return,’’ and            penalties during the disaster period with              2012 (because April 15, 2012 falls on a
                                           third quarter Form 941, ‘‘Employer’s                    respect to its 2005 income tax liability.              Sunday, H and W’s amended return was due
                                           Quarterly Federal Tax Return,’’ are due on                 Example 3. The facts are the same as in             to be filed on April 16, 2012).
                                           October 31, 2009. In addition, Corporation X            Example 2, except that the examination of                 (ii) On April 2, 2012, an earthquake strikes
                                           has an employment tax deposit due on                    the 2005 taxable year was completed earlier            County D. On April 6, 2012, certain counties
                                           September 15, 2009.                                     in 2009, and on July 28, 2009, the IRS mailed          in State G (including County D) are
                                              (ii) On September 1, 2009, a hurricane               a statutory notice of deficiency to                    determined to be disaster areas within the
                                           strikes County M in State W. On September               Corporation X. Without application of this             meaning of section 1033(h)(3) that are
                                           7, 2009, certain counties in State W                    section, Corporation X has 90 days (or until           eligible for assistance by the Federal
                                           (including County M) are determined to be               October 26, 2009) to file a petition with the          government under the Stafford Act. Also on
                                           disaster areas within the meaning of section            Tax Court. However, pursuant to paragraph              April 6, 2012, the IRS determines that County
                                           1033(h)(3) that are eligible for assistance by          (c) of this section, filing a petition with the        D in State G is a covered disaster area and
                                           the Federal government under the Stafford               Tax Court is one of the taxpayer acts for              publishes guidance announcing that the time
                                           Act. Also on September 7, 2009, the IRS                 which a period of up to one year may be                period for affected taxpayers to file returns,
                                           determines that County M in State W is a                disregarded. Because Corporation X is an               pay taxes, and perform other time-sensitive
                                           covered disaster area and publishes guidance            affected taxpayer, Corporation X’s petition to         acts falling on or after April 2, 2012, and on
                                           announcing that the time period for affected            the Tax Court will be timely if filed on or            or before October 2, 2012, has been
                                           taxpayers to file returns, pay taxes, and               before November 30, 2009, the last day of the          postponed to October 2, 2012.
                                           perform other time-sensitive acts falling on or         postponement period.                                      (iii) Under paragraph (c) of this section,
                                           after September 1, 2009, and on or before                  Example 4. (i) H and W, individual                  filing a claim for refund of tax is one of the
                                           November 30, 2009, has been postponed to                calendar year taxpayers, intend to file a joint        taxpayer acts for which the IRS may
                                           November 30, 2009, pursuant to section                  Form 1040, ‘‘U.S. Individual Income Tax                disregard a period of up to one year. The
                                           7508A.                                                  Return,’’ for the 2008 taxable year and are            postponement period for this disaster begins
                                              (iii) Because Corporation X’s principal              required to file a Schedule H, ‘‘Household             on April 2, 2012, and ends on October 2,
                                           place of business is in County M, Corporation           Employment Taxes.’’ The joint return is due            2012. Accordingly, H and W’s claim for
                                           X is an affected taxpayer. Accordingly,                 on April 15, 2009. H and W’s principal                 refund for 2008 taxes will be timely if filed
                                           Corporation X’s 2008 Form 1120 will be                  residence is in County M in State Q.                   on or before October 2, 2012. Moreover, in
                                           timely if filed on or before November 30,                  (ii) On April 2, 2009, a severe ice storm           applying the lookback period in section
                                           2009. Corporation X’s 2009 third quarter                strikes County M. On April 5, 2009, certain            6511(b)(2)(A), which limits the amount of the
                                           estimated tax payment will be timely if made            counties in State Q (including County M) are           allowable refund, the period from October 2,
                                           on or before November 30, 2009. In addition,            determined to be disaster areas within the             2012, back to April 2, 2012, is disregarded
                                           pursuant to paragraph (c) of this section,              meaning of section 1033(h)(3) that are                 under paragraph (b)(1)(iii) of this section.
                                           Corporation X’s 2009 third quarter Form 720             eligible for assistance by the Federal                 Thus, if the claim is filed on or before
                                           and third quarter Form 941 will be timely if            government under the Stafford Act. Also on             October 2, 2012, amounts deemed paid on
                                           filed on or before November 30, 2009.                   April 5, 2009, the IRS determines that County          April 15, 2009, under section 6513(b), such
                                           However, because deposits of taxes are                  M in State Q is a covered disaster area and            as estimated tax and tax withheld from
                                           excluded from the scope of paragraph (c) of             publishes guidance announcing that the time            wages, will have been paid within the
                                           this section, Corporation X’s employment tax            period for affected taxpayers to file returns,         lookback period of section 6511(b)(2)(A).
                                           deposit is due on September 15, 2009. In                pay taxes, and perform other time-sensitive               Example 6. (i) A is an unmarried, calendar
                                           addition, Corporation X’s deposits relating to          acts falling on or after April 2, 2009, and on         year taxpayer whose principal residence is
                                           the third quarter Form 720 are not                      or before June 2, 2009, has been postponed             located in County W in State Q. A intends
                                           postponed. Absent reasonable cause,                     to June 2, 2009.                                       to file a Form 1040 for the 2008 taxable year.
                                           Corporation X is subject to the failure to                 (iii) Because H and W’s principal residence         The return is due on April 15, 2009. A timely
                                           deposit penalty under section 6656 and                  is in County M, H and W are affected                   files Form 4868, ‘‘Application for Automatic
                                           accrual of interest.                                    taxpayers. April 15, 2009, the due date for            Extension of Time to File U.S. Individual
                                              Example 2. The facts are the same as in              the filing of H and W’s 2008 Form 1040 and             Income Tax Return.’’ Due to A’s timely filing
                                           Example 1, except that because of the                   Schedule H, falls within the postponement              of Form 4868, the extended filing deadline
                                           severity of the hurricane, the IRS determines           period described in the IRS published                  for A’s 2008 tax return is October 15, 2009.
                                           that postponement of government acts is                 guidance. Thus, H and W’s return will be               Because A timely requested an extension of
                                           necessary. During 2009, Corporation X’s 2005            timely if filed on or before June 2, 2009. If          time to file, A will not be subject to the
                                           Form 1120 is being examined by the IRS.                 H and W request an extension of time to file           failure to file penalty under section
                                           Pursuant to a timely filed request for                  under section 6081 on or before June 2, 2009,          6651(a)(1), if A files the 2008 Form 1040 on
                                           extension of time to file, Corporation X                the extension is deemed to have been filed             or before October 15, 2009. However, A failed
                                           timely filed its 2005 Form 1120 on                      by April 15, 2009. Thus, H and W’s return              to pay the tax due on the return by April 15,
                                           September 15, 2006. Without application of              will be timely if filed on or before                   2009 and did not receive an extension of time
                                           this section, the statute of limitation on              October 15, 2009.                                      to pay under section 6161. Absent reasonable
                                           assessment for the 2005 income tax year will               (iv) April 15, 2009, is also the due date for       cause, A is subject to the failure to pay
                                           expire on September 15, 2009. However,                  the payment due on the return. This date               penalty under section 6651(a)(2) and accrual
                                           pursuant to paragraph (c) of this section,              falls within the postponement period                   of interest.
                                           assessment of tax is one of the government              described in the IRS published guidance.                  (ii) On September 30, 2009, a blizzard
                                           acts for which up to one year may be                    Thus, the payment of tax due with the return           strikes County W. On October 5, 2009,
                                           disregarded. Because September 15, 2009,                will be timely if paid on or before June 2,            certain counties in State Q (including County
                                           falls within the period in which government             2009 the last day of the postponement                  W) are determined to be disaster areas within
                                           acts are postponed, the statute of limitation           period. If H and W fail to pay the tax due on          the meaning of section 1033(h)(3) that are
                                           on assessment for Corporation X’s 2005                  the 2008 Form 1040 by June 2, 2009, and do             eligible for assistance by the Federal
                                           income tax will expire on November 30,                  not receive an extension of time to pay under          government under the Stafford Act. Also on
                                           2009. Because Corporation X did not timely              section 6161, H and W will be subject to               October 5, 2009, the IRS determines that
                                           file an extension of time to pay, payment of            failure to pay penalties and accrual of                County W in State Q is a covered disaster
                                           its 2005 income tax was due on March 15,                interest beginning on June 3, 2009.                    area and announces that the time period for
                                           2006. As such, Corporation X will be subject               Example 5. (i) H and W, residents of                affected taxpayers to file returns, pay taxes,
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                                           to the failure to pay penalty and related               County D in State G, intend to file an                 and perform other time-sensitive acts falling
                                           interest beginning on March 15, 2006. The               amended return to request a refund of 2008             on or after September 30, 2009, and on or
                                           due date for payment of Corporation X’s 2005            taxes. H and W timely filed their 2008                 before December 2, 2009, has been postponed
                                           income tax preceded the postponement                    income tax return on April 15, 2009. Under             to December 2, 2009.
                                           period. Therefore, Corporation X is not                 section 6511(a), H and W’s amended 2008 tax               (iii) Because A’s principal residence is in
                                           entitled to the suspension of interest or               return must be filed on or before April 16,            County W, A is an affected taxpayer. Because



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                                                            Federal Register / Vol. 74, No. 10 / Thursday, January 15, 2009 / Rules and Regulations                                           2373

                                           October 15, 2009, the extended due date to              file. Thus, payments that H and W made on              DEPARTMENT OF LABOR
                                           file A’s 2008 Form 1040, falls within the               or after June 1, 2009 would be eligible to be
                                           postponement period described in the IRS’s              refunded. Because the period from April 15,            Employee Benefits Security
                                           published guidance, A’s return is timely if             2009 to June 1, 2009 is disregarded, the               Administration
                                           filed on or before December 2, 2009.                    payments H and W made on April 15, 2009
                                           However, the payment due date, April 15,
                                                                                                   (including withholding or estimated tax                29 CFR Part 2560
                                           2009, preceded the postponement period.
                                           Thus, A will continue to be subject to failure          payments deemed to have been made on
                                                                                                                                                          RIN 1210–AB24
                                           to pay penalties and accrual of interest                April 15, 2009) would also be included in the
                                           during the postponement period.                         section 6511(b)(2)(A) lookback period. Thus,           Civil Penalties Under ERISA Section
                                              Example 7. (i) H and W, individual                   H and W are entitled to a full refund in the
                                                                                                                                                          502(c)(4)
                                           calendar year taxpayers, intend to file a joint         amount of their overpayment.
                                           Form 1040 for the 2008 taxable year. The                   Example 9. (i) H and W, individual                  Correction
                                           joint return is due on April 15, 2009. After            calendar year taxpayers, entered into an
                                           credits for taxes withheld on wages and                                                                          In rule document Z8–31188 beginning
                                                                                                   installment agreement with respect to their
                                           estimated tax payments, H and W owe tax for                                                                    on page 17 in the issue of Friday,
                                                                                                   2006 tax liabilities. H and W’s installment
                                           the 2008 taxable year. H and W’s principal                                                                     January 2, 2009 make the following
                                                                                                   agreement required H and W to make
                                           residence is in County J in State W.                                                                           correction:
                                              (ii) On March 3, 2009, severe flooding               regularly scheduled installment payments on
                                                                                                                                                            On page 17, in the second column, in
                                           strikes County J. On March 6, 2009, certain             the 15th day of the month for the next 60
                                                                                                   months. H and W’s principal residence is in
                                                                                                                                                          the DATES heading, March 3, 2008
                                           counties in State W (including County J) are                                                                   should read March 3, 2009.
                                           determined to be disaster areas within the              County K in State X.
                                           meaning of section 1033(h)(3) that are                     (ii) On May 1, 2009, severe flooding strikes        [FR Doc. Z8–31188 Filed 1–14–09; 8:45 am]
                                           eligible for assistance by the Federal                  County K. On May 5, 2009, certain counties             BILLING CODE 1505–01–D
                                           government under the Stafford Act. Also on              in State X including County K) are
                                           March 6, 2009, the IRS determines that                  determined by the Federal government to be
                                           County J in State W is a covered disaster area          disaster areas within the meaning of section
                                           and publishes guidance announcing that the                                                                     DEPARTMENT OF HOMELAND
                                                                                                   1033(h)(3), and are eligible for assistance            SECURITY
                                           time period for affected taxpayers to file
                                                                                                   under the Stafford Act. Also on May 5, 2009,
                                           returns, pay taxes, and perform other time-
                                           sensitive acts falling on or after March 3,             the IRS determines that County K in State X            Coast Guard
                                           2009, and on or before June 1, 2009, has been           is a covered disaster area and publishes
                                           postponed to June 1, 2009.                              guidance announcing that the time period for           33 CFR Part 165
                                              (iii) Because H and W’s principal residence          affected taxpayers to file returns, pay taxes,
                                           is in County J, H and W are affected                    and perform other time-sensitive acts falling          [Docket No. USCG–2008–1236]
                                           taxpayers. April 15, 2009, the due date for             on or after May 1, 2009 and on or before July          RIN 1625–AA87
                                           filing the 2008 joint return, falls within the          1, 2009, has been postponed to July 1, 2009.
                                           postponement period described in the IRS                   (iii) Because H and W’s principal residence         Security Zone; Steam Generator
                                           published guidance. Therefore, H and W’s                is in County K, H and W are affected                   Transit, Captain of the Port Zone San
                                           joint return without extension will be timely           taxpayers. Pursuant to the IRS’s grant of relief       Diego; San Diego, CA
                                           if filed on or before June 1, 2009. Similarly,
                                                                                                   under section 7508A, H and W’s installment
                                           H and W’s 2008 income taxes will be timely                                                                     AGENCY:    Coast Guard, DHS.
                                           paid if paid on or before June 1, 2009.                 agreement payments that become due during
                                                                                                   the postponement period are suspended until            ACTION:   Temporary final rule.
                                              (iv) On April 30, 2009, H and W timely file
                                           Form 4868, ‘‘Application for Automatic                  after the postponement period has ended. H
                                                                                                                                                          SUMMARY: The Coast Guard is
                                           Extension of Time to File U.S. Individual               and W will be required to resume payments
                                                                                                   no later than August 15, 2009. Skipped
                                                                                                                                                          establishing a temporary moving
                                           Income Tax Return.’’ H and W’s extension
                                           will be deemed to have been filed on April              payments will be tacked on at the end of the
                                                                                                                                                          security zone around steam generators
                                           15, 2009. Thus, H and W’s 2008 income tax               installment payment period. Because the                as they transit through and when
                                           return will be timely if filed on or before             installment agreement pertains to prior year           moored in the Captain of the
                                           October 15, 2009.                                       tax liabilities, interest and penalties will           Port(COTP) zone San Diego. This
                                              (v) H and W did not request or receive an            continue to accrue. H and W may, however,              security zone is needed to prevent
                                           extension of time to pay. Therefore, the                                                                       vessels from transiting in the vicinity of
                                                                                                   be entitled to abatement of the failure to pay
                                           payment of tax due with the 2008 joint return                                                                  the generators to help ensure the safety
                                           will be timely if paid on or before June 1,             penalties incurred during the postponement
                                                                                                   period upon establishing reasonable cause.             and security of the operation. Entry into
                                           2009. If H and W fail to pay the tax due on
                                                                                                                                                          this zone will be prohibited unless
                                           the 2008 joint return by June 1, 2009, H and
                                           W will be subject to failure to pay penalties              (g) Effective/applicability date. This              specifically authorized by the Captain of
                                           and accrual of interest beginning on June 2,            section applies to disasters declared                  the Port, San Diego, or his designated
                                           2009.                                                   after January 15, 2009.                                representative.
                                              Example 8. The facts are the same as in                                                                     DATES: This rule is effective from 11:59
                                           Example 7 except that H and W file the joint            Linda E. Stiff,
                                                                                                   Deputy Commissioner for Services and
                                                                                                                                                          p.m. on January 2, 2009, to 11:59 p.m
                                           2008 return and pay the tax due on April 15,
                                           2009. Later, H and W discover additional                Enforcement.                                           on January 22, 2009.
                                           deductions that would lower their taxable                                                                      ADDRESSES: Documents indicated in this
                                                                                                     Approved: January 6, 2009.
                                           income for 2008. On June 1, 2012, H and W                                                                      preamble as being available in the
                                           file a claim for refund under section 6511(a).          Eric Solomon,
                                                                                                                                                          docket are part of docket USCG–2008–
                                           The amount of H and W’s overpayment                     Assistant Secretary of the Treasury (Tax               1236 and are available online at http://
                                           exceeds the amount of taxes paid on April               Policy).                                               www.regulations.gov. They are also
                                           15, 2009. Section 6511(a) generally requires            [FR Doc. E9–767 Filed 1–14–09; 8:45 am]                available for inspection or copying two
mstockstill on PROD1PC66 with RULES




                                           that a claim for refund be filed within three
                                           years from the time the return was filed or
                                                                                                   BILLING CODE 4830–01–P                                 locations: the Docket Management
                                           two years from the time the tax was paid,                                                                      Facility (M–30), U.S. Department of
                                           whichever period expires later. Section                                                                        Transportation, West Building Ground
                                           6511(b)(2)(A) includes within the lookback                                                                     Floor, Room W12–140, 1200 New Jersey
                                           period the period of an extension of time to                                                                   Avenue, SE., Washington, DC 20590,


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