[Federal Register Volume 80, Number 156 (Thursday, August 13, 2015)]
[Rules and Regulations]
[Pages 48433-48436]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-19932]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9730]
RIN 1545-BM50


Extension of Time To File Certain Information Returns

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final and temporary regulations.

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SUMMARY: This document contains final and temporary regulations that 
remove the automatic extension of time to file information returns on 
forms in the W-2 series (except Form W-2G). The temporary regulations 
allow only a single 30-day non-automatic extension of time to file 
these information returns. These changes are being implemented to 
accelerate the filing of forms in the W-2 series (except Form W-2G) so 
they are available earlier in the filing season for use in the IRS's 
identity theft and refund fraud detection processes. In addition, the 
temporary regulations update the list of information returns subject to 
the rules regarding extensions of time to file. The temporary 
regulations affect taxpayers who are required to file the affected 
information returns and need an extension of time to file. The 
substance of the temporary regulations is included in the proposed 
regulations set forth in the notice of proposed rulemaking on this 
subject in the Proposed Rules section in this issue of the Federal 
Register.

DATES: Effective date: These regulations are effective on July 1, 2016.
    Applicability date: For dates of applicability, see Sec.  1.6081-
8T(g) and (h).

FOR FURTHER INFORMATION CONTACT: Jonathan R. Black, (202) 317-6845 (not 
a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    This document contains amendments to 26 CFR part 1 under section 
6081 of the Internal Revenue Code (Code) regarding extensions of time 
to file certain information returns. Effective for filing season 2017, 
this document removes Sec.  1.6081-8 and adds new Sec.  1.6081-8T. 
Section 1.6081-8 will remain in effect for filing season 2016. Section 
1.6081-8 currently provides an automatic 30-day extension of time to 
file information returns on forms in the W-2 series (including Forms W-
2, W-2AS, W-2G, W-2GU, and W-2VI), 1095 series, 1098 series, 1099 
series, and 5498 series, and on Forms 1042-S and 8027, and allows an 
additional 30-day non-automatic extension of time to file those 
information returns in certain cases.
    The temporary regulations Sec.  1.6081-8T are substantially 
identical to the regulations Sec.  1.6081-8 that will be removed, 
except that the temporary regulations: (1) Add information returns on 
forms in the 1097 series and Forms 1094-C, 3921, and 3922 to the list 
of information returns with procedures prescribed by regulations for 
the extension of time to file; (2) remove information returns on forms 
in the W-2 series (except Form W-2G) from the list of information 
returns eligible for the automatic 30-day extension of time to file, 
and instead provide a single 30-day non-automatic extension of time to 
file those information returns; and (3) clarify that the procedures for 
requesting an extension of time to file in the case of forms in the 
1095 series apply to information returns on Forms 1095-B and 1095-C, 
but not 1095-A.
    The due dates imposed by statute, regulation, or form instruction 
for filing information returns on forms in the W-2 series, 1097 series, 
1098 series, and 1099 series, and Forms 1094-C (when filed as a stand-
alone information return), 1095-B, 1095-C, 3921, 3922, and 8027 on 
paper are either February 28 or the last day of February of the 
calendar year following the calendar year for which the information is 
being reported. The due date for filing these information returns 
electronically is March 31 of the calendar year following the calendar 
year for which the information is being reported. The information 
returns on forms in the 5498 series and the Form 1042-S, whether filed 
on paper or electronically, are due March 15 and May 31, respectively, 
of the calendar year following the calendar year for which the 
information is being reported. All of these information returns are 
filed with the IRS, except for information returns on forms in the W-2 
series (other than Form W-2G), which are filed with the Social Security 
Administration. Filers who fail to timely and accurately file these 
information returns may be subject to penalties under section 6652 
(regarding failure to file certain information returns), section 6693 
(regarding failure to report on certain tax-favored accounts or 
annuities), or section 6721 (regarding failure to timely and accurately 
file information returns defined by section 6724(d)(1)).
    Section 6081(a) generally provides that the Secretary may grant a 
reasonable extension of time, not to exceed 6 months, for filing any 
return,

[[Page 48434]]

declaration, statement, or other document required by Title 26 or by 
regulation. The regulations under section 6081 generally provide rules 
for extensions of time to file returns. The regulations under Sec.  
1.6081-8 provide specific rules for extensions of time to file certain 
information returns.
    Under Sec.  1.6081-8(a), a person required to file certain 
information returns (the filer), or the person transmitting the return 
for the filer (the transmitter), can currently receive an automatic 30-
day extension of time to file those information returns. A filer or 
transmitter obtains an automatic 30-day extension of time to file by 
submitting a Form 8809, ``Application for Extension of Time to File 
Information Returns,'' to the IRS on or before the due date of the 
information return.
    Section 1.6081-8(d) also currently provides that a filer or 
transmitter that obtains an automatic 30-day extension of time to file 
may request an additional 30-day extension of time to file by 
submitting a second Form 8809 on or before the date that the automatic 
30-day extension of time to file expires. That additional 30-day 
extension of time to file under Sec.  1.6081-8(d) is not automatically 
granted by the IRS. Unlike requests to obtain an automatic 30-day 
extension of time to file under Sec.  1.6081-8(a), a filer or 
transmitter that requests an additional 30-day extension of time to 
file under Sec.  1.6081-8(d) is required to sign the Form 8809 under 
penalties of perjury and include an explanation of why an additional 
extension of time to file is needed. No further extensions of time to 
file are permitted under Sec.  1.6081-8.
    Employers eligible to file information returns on forms in the W-2 
series on an expedited basis under Sec.  31.6071(a)-1(a)(3)(ii) are not 
eligible to obtain the automatic 30-day extension of time to file those 
information returns under Sec.  1.6081-8 because they received an 
automatic extension of time to file information returns on forms in the 
W-2 series under Rev. Proc. 96-57 (1996-2 CB 389), see Sec.  
601.601(d)(2)(ii)(b) of this chapter.
    A filer or transmitter seeking an extension of time to furnish 
statements to recipients is required to separately request an extension 
of time to furnish the statements under rules applicable to those 
statements.

Explanation of Provisions

    The IRS uses third-party information returns to increase voluntary 
compliance, verify accuracy of tax returns, improve collection of 
taxes, and combat fraud, including fraudulent refund claims filed by 
unscrupulous preparers and individuals using the stolen identities of 
legitimate taxpayers. Identity theft and refund fraud is a persistent 
and evolving threat to the nation's tax system. It places an enormous 
burden on the United States Government, with the most painful and 
immediate impact being on the victims whose personal information is 
used to commit the crime and the most pervasive impact being an erosion 
of public confidence in the tax system.
    Identity thieves often electronically file their fraudulent refund 
claims early in the tax filing season, using fictitious wage and other 
information of legitimate taxpayers. Unscrupulous preparers also 
electronically file early in the tax filing season, over-claiming 
deductions and credits and underreporting income for unwitting, as well 
as complicit, taxpayers. In many cases, the IRS is unable to verify the 
wage and other information reported on tax returns filed before April 
15th, in part because the IRS does not receive the information returns 
reporting this information until later in the filing season.
    Although paper information returns are generally due to be filed by 
February 28 or the last day of February of the calendar year following 
the calendar year for which the information is reported, an extension 
of time to file under Sec.  1.6081-8 may currently extend the due date 
until the end of March or, if a non-automatic extension is also 
granted, the end of April. Similarly, although electronically-filed 
information returns are generally due by March 31 of the calendar year 
following the calendar year for which the information is reported, an 
extension of time to file under Sec.  1.6081-8 may extend the due date 
until the end of April or, if a non-automatic extension is also 
granted, the end of May.
    Receipt of information returns earlier in the filing season will 
improve the IRS's ability to identify fraudulent refund claims and stop 
the refunds before they are paid. The United States Government 
Accountability Office (GAO) has cited the IRS's receipt of information 
returns late in the filing season as a contributing factor in payment 
of fraudulent refunds due to identity theft and preparer misconduct. 
See GAO Report GAO-14-633, Identity Theft, Additional Actions Could 
Help IRS Combat the Large, Evolving Threat of Refund Fraud. Removing 
the automatic 30-day extension of time to file is an affirmative step 
to accelerate the filing of information returns so they are available 
earlier in the filing season for use in the IRS's refund fraud 
detection processes.
    Over the next several years, the IRS intends to remove the 30-day 
automatic extension of time to file certain information returns. Under 
Sec.  1.6081-8T, which will not be effective until the 2017 filing 
season, the first information returns subject to these new rules are 
information returns on forms in the W-2 series (except Form W-2G). 
These information returns are particularly helpful to the IRS for 
identifying fraudulent identity theft refund claims and preventing 
their payout. This is because a significant portion of most taxpayers' 
income and withholding information is reported on Forms W-2. Forms W-2 
are also a major source of the false income and withholding that is 
reported by identity thieves and unscrupulous preparers. Having access 
to Forms W-2 earlier in the filing season will improve the IRS's 
ability to conduct pre-refund matching and identify incidences of 
identity theft and tax refund fraud.
    Accordingly, Sec.  1.6081-8T provides a single 30-day non-automatic 
extension of time to file information returns on forms in the W-2 
series (except Form W-2G) due in 2017 that the IRS may, in its 
discretion, grant if the IRS determines that an extension of time to 
file is warranted based on the filer's or transmitter's explanation 
attached to the Form 8809 signed under the penalties of perjury. The 
IRS anticipates that it will grant the non-automatic extension of time 
to file only in limited cases where the filer's or transmitter's 
explanation demonstrates that an extension of time to file is needed as 
a result of extraordinary circumstances or catastrophe, such as a 
natural disaster or fire destroying the books and records a filer needs 
for filing the information returns. If the IRS does not grant the 
extension of time to file, information returns filed after their due 
dates are not timely filed, regardless of whether the application for 
extension of time to file was filed timely.
    The IRS intends to eventually remove the automatic 30-day extension 
of time to file the other forms listed in Sec.  1.6081-8T and replace 
it with a single non-automatic 30-day extension of time to file. 
Therefore, proposed regulations set forth in the notice of proposed 
rulemaking on this subject in the Proposed Rules section in this issue 
of the Federal Register would remove the automatic 30-day extension of 
time to file these other information returns. As currently drafted, the 
proposed regulations would affect information returns due January 1 of 
the calendar year beginning after the date of publication of final 
regulations in the Federal Register, but the preamble to

[[Page 48435]]

those proposed regulations provides that final regulations will not be 
effective any earlier than the 2018 filing season.
    Treasury and the IRS request comments on the appropriate timing of 
the removal of the automatic extension of time to file information 
returns covered by Sec.  1.6081-8T, such as Form 1042-S, including 
whether special transitional considerations should be given for any 
category or categories of forms or filers relative to other forms or 
filers. Please follow the instructions in the ``Comments and Requests 
for Public Hearing'' section in the notice of proposed rulemaking 
accompanying these temporary regulations in this issue of the Federal 
Register.
    Section 1.6081-8T also updates the list of information returns that 
are currently covered by Sec.  1.6081-8. Forms 3921 and 3922 are being 
added to Sec.  1.6081-8T because these forms have been included on Form 
8809 since the June 2009 revision, which coincided with the revision of 
the regulations requiring those forms under section 6039. See TD 9470 
(74 FR 59087) November 17, 2009. Forms in the 1097 series are being 
added because they have similarly been included on Form 8809 since the 
September 2010 revision, which coincided with the publication of the 
notice requiring the filing of the only active form in the 1097 series, 
Notice 2010-28 (2010-15 IRB 541).
    In addition, the Form 1094-C is being added to the list of forms in 
Sec.  1.6081-8T. In most cases the Form 1094-C is filed as a mere 
transmittal with the Form 1095-C and, therefore, the due date of the 
Form 1094-C is the same as the Form 1095-C, including extensions. 
However, in certain cases, the Form 1094-C is filed as a stand-alone 
information return. See TD 9661, (79 FR 13231) March 10, 2014. When 
Form 1094-C is filed as a stand-alone information return, it is subject 
to the same rules regarding extensions of time to file as other 
information returns. Accordingly, Form 1094-C has been added to the 
list of forms subject to extension under Sec.  1.6081-8T.
    Section 1.6081-8T also replaces the general reference to the forms 
in the 1095 series that was added to Sec.  1.6081-8 on March 10, 2014, 
by TD 9660 (79 FR 13220) with specific references to Forms 1095-B and 
1095-C. Form 1095-A was not intended to be included in Sec.  1.6081-8, 
because the timing rules for filing the Form 1095-A are governed by 
Sec.  1.36B-5. See TD 9663 (79 FR 26113) May 7, 2014.

Special Analyses

    Certain IRS regulations, including this one, are exempt from the 
requirements of Executive Order 12866, as supplemented and reaffirmed 
by Executive Order 13563. Therefore, a regulatory assessment is not 
required. It has also been determined that section 553(b) of the 
Administrative Procedure Act (5 U.S.C. chapter 5) does not apply to 
these regulations.
    Pursuant to the Regulatory Flexibility Act (5 U.S.C. chapter 6), it 
is hereby certified that this regulation will not have a significant 
economic impact on a substantial number of small entities. As stated in 
this preamble, these regulations remove the automatic 30-day extension 
of time to file information returns on Forms in the W-2 series (except 
for Form W-2G). Starting in filing season 2017, filers and transmitters 
may request only one 30-day extension of time to file Form W-2 by 
timely submitting a Form 8809, including an explanation of the reasons 
for requesting the extension and signed under penalty of perjury. 
Although the regulation may potentially affect a substantial number of 
small entities, the economic impact on these entities is not expected 
to be significant because filers who are unable to timely file as a 
result of extraordinary circumstances or catastrophe may continue to 
obtain a 30-day extension through the Form 8809 process. The form takes 
approximately 20 minutes to prepare and submit to the IRS. Pursuant to 
section 7805(f) of the Code, these regulations have been submitted to 
the Chief Counsel for Advocacy of the Small Business Administration for 
comment on their impact on small business.

Drafting Information

    The principal author of these regulations is Jonathan R. Black of 
the Office of the Associate Chief Counsel (Procedure and 
Administration).

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Adoptions of Amendments to the Regulations

    Accordingly, 26 CFR part 1 is amended as follows:

PART 1--INCOME TAXES

0
Paragraph 1. The authority citation for part 1 continues to read as 
follows:

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


0
Par. 2. Section 1.6081-8 is revised to read as follows:


Sec.  1.6081-8  Automatic extension of time to file certain information 
returns.

    [Reserved]. For further guidance, see Sec.  1.6081-8T(a) through 
(g).

0
Par. 3. Section 1.6081-8T is added to read as follows:


Sec.  1.6081-8T  Extension of time to file certain information returns 
(temporary).

    (a) Information returns on Form W-2G, 1042-S, 1094-C, 1095-B, 1095-
C, 1097 series, 1098 series, 1099 series, 3921, 3922, 5498 series, or 
8027--(1) Automatic extension of time to file. A person required to 
file an information return (the filer) on Form W-2G, 1042-S, 1094-C, 
1095-B, 1095-C, 1097 series, 1098 series, 1099 series, 3921, 3922, 5498 
series, or 8027 will be allowed one automatic 30-day extension of time 
to file the information return beyond the due date for filing it if the 
filer or the person transmitting the information return for the filer 
(the transmitter) files an application in accordance with paragraph 
(c)(1) of this section.
    (2) Non-automatic extension of time to file. One additional 30-day 
extension of time to file an information return on a form listed in 
paragraph (a)(1) of this section may be allowed if the filer or 
transmitter submits a request for the additional extension of time to 
file before the expiration of the automatic 30-day extension of time to 
file. No extension of time to file will be granted under this paragraph 
(a)(2) unless the filer or transmitter has first obtained an automatic 
extension of time to file under paragraph (a)(1) of this section. To 
request the additional 30-day extension of time to file, the filer or 
transmitter must satisfy the requirements of paragraph (c)(2) of this 
section. No additional extension of time to file will be allowed for an 
information return on a form listed in paragraph (a)(1) of this section 
pursuant to Sec.  1.6081-1 beyond the extensions of time to file 
provided by paragraph (a)(1) of this section and this paragraph (a)(2).
    (b) Information returns on forms in the W-2 series (except Form W-
2G). Except as provided in paragraph (f) of this section, the filer or 
transmitter of an information return on forms in the W-2 series (except 
Form W-2G) may only request one non-automatic 30-day extension of time 
to file the information return beyond the due date for filing it. To 
make such a request, the filer or transmitter must submit an 
application for an extension of time to file in accordance with 
paragraph (c)(2) of this section. No additional extension of time to 
file will be allowed for information returns on forms in the W-2 series 
pursuant to Sec.  1.6081-1 beyond the 30-

[[Page 48436]]

day extension of time to file provided by this paragraph (b).
    (c) Requirements--(1) Automatic extension of time to file. To 
satisfy this paragraph (c)(1), an application must--
    (i) Be submitted on Form 8809, ``Request for Extension of Time to 
File Information Returns,'' or in any other manner as may be prescribed 
by the Commissioner; and
    (ii) Be filed with the Internal Revenue Service office designated 
in the application's instructions on or before the due date for filing 
the information return.
    (2) Non-automatic extension of time to file. To satisfy this 
paragraph (c)(2), a filer or transmitter must--
    (i) Submit a complete application on Form 8809, or in any other 
manner prescribed by the Commissioner, including a detailed explanation 
of why additional time is needed;
    (ii) File the application with the Internal Revenue Service in 
accordance with forms, instructions, or other appropriate guidance on 
or before the due date for filing the information return (for purposes 
of paragraph (a)(2) of this section, determined with regard to the 
extension of time to file under paragraph (a)(1) of this section); and
    (iii) Sign the application under penalties of perjury.
    (d) Penalties. See sections 6652, 6693, and 6721 through 6724 for 
failure to comply with information reporting requirements on 
information returns described in this section.
    (e) No effect on time to furnish statements. An extension of time 
to file an information return under this section does not extend the 
time for furnishing a statement to the person with respect to whom the 
information is required to be reported.
    (f) Form W-2 filed on expedited basis. This section does not apply 
to an information return on a form in the W-2 series if the procedures 
authorized in Rev. Proc. 96-57 (1996-2 CB 389) (or a successor revenue 
procedure) allow an automatic extension of time to file the information 
return. See Sec.  601.601(d)(2)(ii)(b) of this chapter.
    (g) Effective/applicability date. This section applies to requests 
for extensions of time to file information returns due after December 
31, 2016.
    (h) Expiration date. The applicability of this section expires on 
August 10, 2018.

 John Dalrymple,
 Deputy Commissioner for Services and Enforcement.
    Approved: July 31, 2015.
Mark J. Mazur,
Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2015-19932 Filed 8-12-15; 8:45 am]
 BILLING CODE 4830-01-P