Temp. regs. streamline automatic extension procedures.

• Author: Shin, Won

Temporary regulations issued under Sec. 6081 simplify the procedures for individuals, partnerships and others to obtain an automatic six-month extension of time to file certain income returns by firing a single request (TD 9229, 11/4/05). These rules also remove the requirements for a signature and an explanation of the need for an extension. Forms 2758, Application for Extension of Time To File Certain Excise, Income, Information, and Other Returns; 8736, Application for Automatic Extension of Time to File U.S. Return for a Partnership, REMIC, or for Certain Trusts; and 8800, Application for Additional Extension of Time to File U.S. Return for a Partnership, REMIC, or for Certain Trusts, have been made obsolete. The temporary regulations are effective for applications for an automatic extension to file certain returns due after 2005.

Individuals

For individuals, the submission of a timely and completed application for extension on Form 4868, "Application for Automatic Extension of Time To File a U.S. Individual Income Tax Return," provides an automatic six-month extension with no need for sig- nature or explanation; see Temp. Regs. Sec. 1.6081-4T(b). Of course, this automatic extension does not extend the time for payment of tax; see Temp. Regs. Sec. 1.6081-4T(c). As before, taxpayers must make a proper estimate of any tax due; while no tax payment is required to obtain the extension, failure to pay any tax as of the original return due date may subject the taxpayer to penalties and interest; see Temp. Regs. Sec. 1.6081-4T(e).

Corporations and Other Entities

Temp. Regs. Sec. 1.6081-3T does not change the rules for filing extensions for corporate income tax returns; rather, it expands the scope of formerly titled Form 7004, Application for Automatic Extension of Time to File Corporation Income Tax Return, from just corporate taxpayers, to partnerships, real estate mortgage investment conduits, certain trusts that previously filed Form 8736 (now made obsolete) and taxpayers that previously requested additional time to file certain excise, income, information and other returns by submitting Form 2758 (now made obsolete). Although the regulations do not change the rules for filing corporate extensions, they have resulted in changes to the title and appearance of Form 7004, now titled "Application for Automatic 6-Month Extension of Time to File Certain Business Income Tax, Information, and Other Returns" and will apply to a larger number of...