News & Information

 

FEATURED PRODUCT

5500 Preparer's Manual for 2012 Plan Years
The premier resource in the field of Form 5500 preparation, 5500 Preparer's Manual will help you handle the required annual Form 5500 filings for both pension benefits and welfare benefit plans.

Learn More »

CCH® PENSION AND BENEFITS — 8/20/08

IRS proposed regs clarify rules for tax deadline postponement due to disaster, terrorism or military action

The IRS has issued proposed regulations, amending existing regulations under Code Sec. 7508A, to clarify rules relating to the postponement of certain tax-related acts by reason of a Presidentially declared disaster or terroristic or military action.

Relief clarified

Under the proposed rules, which reflect the Victims of Terrorism Tax Relief Act of 2001 (P.L. 107134), and current IRS practice, the period of time the Secretary may postpone certain tax-related acts has been increased from 90 days to one year. The Secretary is further authorized to suspend interest, penalties, additional amounts, and additions to tax which would normally accrue during the time the tax-related act is postponed.

When an affected taxpayer is required to perform a tax-related act by a due date that falls within the postponement period, the taxpayer is entitled to postponement of the act and is eligible for relief from interest, penalties, additional amounts, and additions to tax during the postponement period. The affected taxpayer also has until the last day of the postponement period to file for an extension of time to file or pay, but any resulting extension runs from the original due date.

Where the extended due date, but not the original due date, falls within the postponement period, relief under the proposed rules is specific to the type of extension received. Thus, an affected taxpayer who received an extension of time to file, but not an extension of time to pay, is eligible for a postponement of time to file and relief from penalties relating to the failure to file, but not eligible for penalty and interest relief relating to the failure to pay.

Comments requested by October 14, 2008

Written comments on the proposed regulations must be received by October 14, 2008 and submitted to: CC:PA:LPD:PR (REG–142680–06), Room 5203, Internal Revenue Service, PO Box 7604, Ben Franklin Station, Washington, DC 20044; or via the Federal eRulemaking Portal at www.regulations.gov (IRS REG–142680–06).

Visit our News Library to read more news stories.