Recent developments: truck and van depreciation, automatic extensions and more.

• Author: Josephs, Stuart R.
• Position: Federal tax

Temporary and proposed regulations (T.D. 9069, REG-138495-02), issued July 7 2003, exclude trucks or vans that are "qualified nonpersonal use vehicles" from the depreciation limits on luxury passenger automobiles [under IRC Sec. 280F(a)].

These vehicles are defined in Temp. Regs. Sec. 1.274-5T(k). They include any vehicle which, by reason of its nature (i.e. design), is not likely to be used more than a de minimis amount for personal purposes. Temp. Regs. Sec. 1.274-5T(k)(2)(ii) lists 18 types of such vehicles.

Qualified nonpersonal use vehicles also include trucks and vans that have been specially modified, such as by installing permanent shelving and painting the vehicle to display advertising or the company's name, so that they are not likely to be used more than a de minimis amount for personal purposes [Temp. Regs. Sec. 1.274-5TK(7)].

These new regulations apply to trucks and vans placed in service after July 6, 2003.

Automatic Extensions for Information and Exempt Organization Returns

Information Returns: Temporary and proposed regulations (T.D. 9061, REG-107618-02), issued June 11, 2003, allow an automatic 30-day extension for filing Forms W-2 (series), W-2 G, W-3, 1042-S, 1098 (series), 1099 (series), 5498 (series) or 8027 with the Social Security Administration or the IRS. However, an extension request must still be made on a timely filed Form 8809, but an explanation and signature are no longer required.

An additional 30 day extension may then be requested on Form 8809, but an explanation and signature are required.

Caution: These extensions apply only to filing with the government. The filer must continue to provide copies of these information returns to the recipients by the original deadline.

Exempt Organization Returns: These regulations also allow an automatic three month extension for filing Forms 990 (series), 1041-A, 4720, 5227, 6069 or 8870 if a request is made on a timely filed Form 8868. An explanation and signature are no longer required. However, Form 8868 must show the full amount properly estimated as the organization's tentative tax for the tax year and be accompanied by the full remittance of this tax which is unpaid as of the date prescribed for filing the return.

An additional three-month extension may then be requested on Form 8868, but an explanation and signature are required.

Effective Date: These regulations apply to extensions requested for returns due after June 11, 2003.

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