Deadline Extension

[Guest andmik]

This may seem like a straightforward question but confirmation will be greatly appreciated.

March 15th is a saturday this year. Is the 2 1/2 month deadline extended to March 17th for ADP/ACP corrections under IRS rules?

Thanks.

[Alf]

Should be.

IRS Pub. 509 states that "if a due date for performing any act for tax purposes fall on on a Saturday, Sunday, or legal holiday, it is delayed until the next business day."

So the next Monday rule does not just apply to IRS filing deadlines.

[Guest andmik]

Alf, Thanks very much for the quick confirmation and the source that references the allowance for extension.

Sincerely,

andmik

[Guest jody303]

In the explanation in the ERISA Outline Book, Sal Tripodi isn't so sure that the weekend/holiday extension rule applies. He explains that the IRS holds the position that the weekend/holiday extension rule only applies to acts required to be taken specifically for the determination, collection or refund of taxes.

[E as in ERISA]

I believe that I have seen specific guidance on an operational issue (maybe funding for DB plans?) that said that the deadline wasn't extended if the 15th fell on a weekend.

[Guest JCatt]

TITLE 26 > Subtitle F > CHAPTER 77 > Sec. 7503. Prev | Next

Sec. 7503. - Time for performance of acts where last day falls on Saturday, Sunday, or legal holiday

When the last day prescribed under authority of the internal revenue laws for performing any act falls on Saturday, Sunday, or a legal holiday, the performance of such act shall be considered timely if it is performed on the next succeeding day which is not a Saturday, Sunday, or a legal holiday. For purposes of this section, the last day for the performance of any act shall be determined by including any authorized extension of time; the term ''legal holiday'' means a legal holiday in the District of Columbia; and in the case of any return, statement, or other document required to be filed, or any other act required under authority of the internal revenue laws to be performed, at any office of the Secretary or at any other office of the United States or any agency thereof, located outside the District of Columbia but within an internal revenue district, the term ''legal holiday'' also means a Statewide legal holiday in the State where such office is located

[Guest jody303]

IRC Section 7503 is the section Sal is referring to in the ERISA Outline Book. According to Sal, the IRS is interpreting this section to refer only to specific acts involved in the determination, collection or refund of taxes. And, apparently, the IRS has made some interpretations in the past that lead Sal to believe they may feel that excess refunds may not fit into that category.

[Alf]

I understand the conservative approach, but (1) the statutory language "any other act required under authority of the internal revenue laws to be performed" is so broad that the IRS can't seriously use resources to argue this point (aren't there shelter promoters out there to catch or something) and (2) ADP/ACP refunds do directly relate to the "determination, collection or refund of taxes" anyway, don't they?

[mbozek]

As Justice Scalia would say, the statute must be applied as it is written. " When the last day prescribed under the authority of the internal revenue laws for performing any act falls on a sat, sun or holiday, etc," includes any act, e.g., notice under IRC for ACP/ADP corrections. The practical reason for this provision is that the weekends and holidays are not business days so neither taxpayers or their agents can perform such acts until the next business day after the deadline.

[MGB]

Although I can't remember the reference right now (it was something to do with DB plans), I too, have heard the IRS say in the past year that this extension does not apply to acts that are not interacting with the government.

[Guest SueJ]

Don't know if any of you subscribe to TAG (Technical Answer Group), but they are advising that the deadline is extended to March 17.