September 11 filing relief for tax credit forms

Signed letter (official PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2002/TEGL22-01.pdf)

EMPLOYMENT AND TRAINING ADMINISTRATION ADVISORY SYSTEM U.S. DEPARTMENT OF LABOR Washington, D.C. 20210 CLASSIFICATION: “21-Day” Filing Req. CORRESPONDENCE SYMBOL: OWS DATE: April 5, 2002

TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 22-01
TO : ALL STATE WORKFORCE LIAISONS
ALL STATE WORKFORCE AGENCIES
ALL STATE WORKER ADJUSTMENT LIAISONS
ALL ONE-STOP CENTER SYSTEM LEADS
/S/
FROM : EMILY STOVER DeROCCO
Assistant Secretary
SUBJECT : Tax Relief Period Granted by the Internal Revenue Service (IRS) to Employers Affected by the September 11, 2001, Terrorist Attacks for the “21-Day” Filing Requirement.

1. Purpose. To transmit to the State Workforce Agencies (SWAs) guidance
   on the availability of relief from the “21-day” requirement for submitting IRS Form 8850, under the Work Opportunity Tax Credit (WOTC) Program and the Welfare-to-Work Tax Credit (WtWTC).
2. References. IRS Notices 2001-61, 2001-63 and 2001-68, IRS Revenue
   Procedure 2001-53, the Ticket to Work and Work Incentives Improvement Act of 1999, (P.L. 106-170); Internal Revenue Code (IRC) of 1986, 26 USC §51 and §51A, as amended; and ETA Handbook No. 408, Second Edition, November 1998.
3. Background. The Small Business Job Protection Act of 1996, P.L.
   105-34, as amended, created the WOTC Program. One of its key provisions is the “21-day period” filing requirement, which all participating employers and/or their consultants must meet in order to qualify for receiving a Certification. This statutory provision requires that all requests for certification under the WOTC Program or the Welfare-to-Work Tax Credit, created in 1997, must be sent to the State Workforce Agencies (SWAs) within 21 days after the employment start day of the new hire. The terrorist attacks that took place on September 11, 2001, in New York and Virginia affected many participating employers/consultants. The IRS created and granted a “relief” period to address these unique circumstances.
4. Information. The President issued federal disaster declarations on
   September 11 and 13, 2001, on account of the September 11 terrorist attacks. The September 11 declaration covers five New York Counties: Bronx, Kings, New York (boroughs of Brooklyn and Manhattan), Queens and Richmond. The September 13 declaration covers Arlington County in the Commonwealth of Virginia. RECISSIONS: [blank in source] EXPIRATION DATE: Continuing

On November 2, 2001, the IRS released Revenue Procedure 2001-53 and Notice 2001-68. Revenue Procedure 2001-53 lists various additional tax-related acts for which a postponement may be granted. Section 15 of the “Revenue Procedure” lists the act of submitting IRS Form 8850 to the SWAs. The notice, in turn, provides to “affected taxpayers” a “120-day postponement of the deadline to submit IRS Form 8850, if the deadline falls within the period beginning on September 11, and ends on November 30, 2001. This relief applies retroactively to September 11, 2001. Employers that believe they are entitled to this relief should mark “September 11, 2001, Terrorist Attack” in red ink on the top of their IRS Form 8850s. The information contained in Notices 2001-61 and 2001-63 does not pertain to employers/consultants. Notice 2001-61 defines “affected taxpayers.” This definition is used in Notice 2001-68, which grants the 120-day postponement only to “affected taxpayers.” Notice 2001-63, grants a short postponement to al taxpayers. This postponement applies to all IRS Forms 8850, that were filed with the State Workforce Agencies (SWAs) between September 10 and September 24. Thus, if an employer’s 21st day was September 12, the due date for the IRS Form 8850, would be September 24. Please note that, for all applicable deadlines described above, a timely postmark or equivalent from a private delivery service serves as sufficient evidence of timely filing, if the SWA receives IRS Form 8850 after the postponement deadline. For a list of acceptable private delivery services for purposes of submitting IRS Form 8850 to the SWAs, See IRS Notice 2001-62, attached.

5. Guidance. The following questions explain how this relief applies to
   employers submitting IRS Form 8850.
   a. Who are “affected taxpayers” for purposes of the 120-day postponement of the IRS form 8850? As relevant to IRS Form 8850, “affected taxpayers” means: 1) those employers whose principal place of business is located in the areas named in the President’s federal disaster declarations of September 11 and 13, 2001, and 2) those employers whose principal place of business is located elsewhere but whose records necessary to meet the submission deadline are located in one of these areas. b. If an IRS Form 8850 is not marked “September 11, 2001, Terrorist Attack,” will that prevent the employer from qualifying for the 120-day postponement? No. Employers should mark the forms as described above to assist in the processing, but the marking is not required. If not marked, subsequent correspondence may be necessary. c. How should SWAs process IRS Forms 8850, that are late and not marked as described above, but would be timely if the submitting employer qualifies for relief? The SWAs should not automatically reject these forms. If the form was due between September 10 and September 24, 2001, it must be

treated as “timely submitted” by September 24, regardless of the employer’s circumstances. For forms submitted after September 24, there are a variety of approaches that a SWA might take. Any reasonable approach is acceptable from the IRS’s perspective and does not require approval from the National Office of the IRS. The choice of approach will be an administrative decision to be made by each SWA, subject to any guidance the SWAs may receive from DOL. As an example of one reasonable approach, a SWA might contact every submitting employer whose IRS Form 8850 appears late, with a letter inquiring whether the employer believes he/she qualifies as an “affected taxpayer” and explain why. As another example, the SWA might make an administrative decision to treat every submitting employer as entitled to the relief on the basis of the date and address information revealed in the form itself.

6. Action Required. State Workforce Agency (SWA) Administrators are
   requested to provide this information and guidance to all WOTC/WtW State Coordinators and ensured it is implemented.
7. Inquiries. Direct all questions to the appropriate Regional
   WOTC/WtWTC Coordinator.
8. Attachments.
   Notice 2001-61
   Notice 2001-62
   Notice 2001-63
   Notice 2001-68
   Revenue Procedure 2001-53

IRS Notice 2001-61 (official PDF linked by ETA: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2002/22-01-n-01-61.pdf)

Part III - Administrative, Procedural, and Miscellaneous Disaster relief for taxpayers affected by the September 11, 2001 Terrorist Attack. Notice 2001-61 PURPOSE This notice provides tax relief under sections 6081, 6161, and 7508A of the Internal Revenue Code for taxpayers affected by the September 11, 2001, Terrorist Attack, which included the destruction of the two World Trade Center towers and other buildings in the World Trade Center complex, damage to the Pentagon, and the airplane crash in Pennsylvania on Tuesday, September 11, 2001. The President issued federal disaster declarations on September 11 and 13, 2001. The September 11, 2001, declaration covers five New York counties: Bronx, Kings, New York (boroughs of Brooklyn and Manhattan), Queens, and Richmond. The September 13, 2001, declaration covers Arlington County in Virginia, where the Pentagon is located. These counties constitute a “covered disaster area” within the meaning of section 301.7508A- 1(d)(2) of the Procedure and Administration Regulations. In addition, the Internal Revenue Service has determined that other taxpayers affected (as defined below) by the terrorist attack are also entitled to relief, regardless of where they reside. Taxpayers who believe they are entitled to relief under this notice should mark

“September 11, 2001 Terrorist Attack” in red ink on the top of their return and other documents submitted to the IRS. BACKGROUND Section 6081 provides that the Secretary may grant a reasonable extension of time (generally not to exceed 6 months) for filing any return, declaration, statement, or other document required by the Internal Revenue Code or by regulations thereunder. Section 6161 provides that the Secretary may grant a reasonable extension of time (generally not to exceed 6 months) for paying the amount (or any installments) of tax shown or required to be shown on any return or declaration required by the Code or by regulations thereunder. Section 7508A provides the Secretary with authority to postpone the time for performing certain acts under the internal revenue laws for a taxpayer affected by a Presidentially declared disaster as defined in section 1033(h)(3). Pursuant to section 7508A(a) and section 301.7508A-1 of the regulations, a period of up to 120 days may be disregarded in determining whether the performance of certain acts is timely under the internal revenue laws. Section 301.7508A-1(c)(1) lists seven acts performed by taxpayers for which section 7508A relief may apply. Among these acts are the filing of certain tax returns; the payment of certain taxes; the making of deductible contributions to certain retirement plans and individual retirement arrangements; the filing of a Tax Court petition; the filing of a claim for credit or refund of tax; and the bringing of a lawsuit upon a claim for credit or refund of tax. Section 301.7508A-1(d)(1) describes the seven types of “affected taxpayers”

eligible for the 120 day postponement. These taxpayers include any individual whose principal residence, and any business entity whose principal place of business, is located in the covered disaster area; any individual who is a relief worker affiliated with a recognized government or philanthropic organization and who is assisting in the covered disaster area; any individual whose principal residence, and any business entity whose principal place of business, is not located in the covered disaster area, but whose records necessary to meet a filing or paying deadline are maintained in the covered disaster area; any estate or trust that has tax records necessary to meet a filing or paying deadline in a covered disaster area; and any spouse of an affected taxpayer, solely with regard to a joint return of the husband and wife. Therefore, taxpayers located outside of the covered disaster area may qualify for relief if they are covered by one of the above mentioned categories. Additionally, under section 301.7508A-1(d)(1)(vii) of the regulations, the Internal Revenue Service may determine that any other person is affected by a Presidentially declared disaster. Accordingly, the Internal Revenue Service has determined that the following persons are also affected by the disaster: (1) victims of the crash (including those on the plane and those on the ground) of the four commercial jet airplanes hijacked on September 11, 2001; (2) all workers assisting in the relief activities in the covered disaster areas and in Pennsylvania, regardless of whether they are affiliated with recognized government or philanthropic organization; and (3) taxpayers whose place of employment is located within the Presidentially declared disaster area. In addition, taxpayers who have difficulty in meeting their federal tax obligations because

of disruptions in the transportation and delivery of documents by mail or private delivery services resulting from the terrorist attack, and who do not otherwise qualify under section 7508A, are affected taxpayers only for purposes of relief as described in (5) of the Grant of Relief section below. The perpetrators of the attack, and anyone aiding the attack, will not qualify for relief under this notice. GRANT OF RELIEF (1) Individuals located in the affected counties and other individuals who are “affected taxpayers” as defined by section 301.7508A-1(d)(1) of the regulations and by this notice that have extended the time for filing their tax year 2000 federal individual income tax return beyond September 10, 2001, will have a postponement to February 12, 2002, to file their returns. A similar postponement to pay the amount of tax (or any installment of tax) shown or required to be shown on those returns is generally not permitted. This is because the tax was originally due on the due date of the 2000 return, April 16, 2001, and, generally an extension of time to pay is not granted; however, a period of 120 days from September 11, 2001, until January 9, 2002, will be disregarded in the calculation of any failure to pay penalty. Thus, the penalty for failure to pay the tax due would start accruing once again if the tax is not paid by January 9, 2002. These returns include individual income tax returns (Forms 1040, 1040A, 1040EZ, 1040NR, or 1040NR-EZ) and gift tax returns (Forms 709 and 709-A). See section 301.7508A-1(c)(1) for a list of affected returns. (2) Affected taxpayers as defined by section 301.7508A-1(d)(1) of the regulations other than individuals are granted both a 120 day postponement under

section 7508A and a six month extension under sections 6081 and 6161 to file certain federal tax returns otherwise originally due on or after September 11, 2001, and on or before November 30, 2001, and to pay the tax shown or required to be shown on those returns. The 120 day postponement and the six month extension run consecutively. In addition, affected calendar year corporations and other entities that are currently on a six-month extension of time to file their federal tax return that expires between September 11, 2001, and November 30, 2001, will have an additional 120 days to file their returns under section 7508A. Thus, the tax year 2000 return for an affected calendar year corporation that has been extended to September 17, 2001 (September 15, 2001, is a Saturday), will now be due by January 15, 2002. A similar postponement to pay the amount of tax (or any installment of tax) shown or required to be shown on those returns is generally not permitted. This is because the tax was originally due on the due date of the 2000 return, March 15, 2001, for a calendar year corporation and generally, an extension of time to pay is not granted. A period of 120 days from September 11, 2001, until January 9, 2002, will be disregarded in the calculation of any failure to pay penalty. Thus, the penalty for failure to pay the tax due would start accruing once again if the tax was not paid by January 9, 2002. These returns include partnership returns, corporate income tax returns, estate and trust income tax returns, estate tax returns, annual returns filed by tax-exempt organizations, certain excise tax returns and employment tax returns. See section 301.7508A-1(c)(1) for a list of affected returns. (3) The due date of any estimated tax payment for tax year 2001 originally due

on or after September 11, 2001, and before January 15, 2002, for taxpayers located in the affected counties, and other affected taxpayers, is postponed under section 7508A until January 15, 2002. This applies to estimated tax payments made by individuals, corporations, estates, and trusts. Thus, for individuals, the third estimated tax payment for tax year 2001, due on September 17, 2001, is postponed until January 15, 2002. For a calendar year corporation, the third estimated tax payment for tax year 2001, due on October 1, 2001, is postponed until January 15, 2002. Affected taxpayers will not be subject to penalties for failure to pay estimated tax installments for tax year 2001 with respect to installments that were originally due on or after September 11, 2001, and before January 15, 2002, as long as such installments are paid by January 15, 2002. (4) In addition the Internal Revenue Service has granted a 120 day postponement of time to the affected taxpayers to perform the other acts described in section 301.7508A-1(c)(1) of the regulations. The postponement applies to acts required to be performed within the period beginning on September 11, 2001, and ending on November 30, 2001. (5) Taxpayers who have difficulty in meeting their federal tax obligations because of disruption in the transportation and delivery of documents by mail or private delivery services resulting from the terrorist attack, and who do not otherwise qualify for relief as described above, will have until November 15, 2001, to file returns and make payments required to be made from September 11, 2001, through October 31, 2001. (6) As a result of the terrorist attack, taxpayers may have difficulty in making timely federal tax deposits in accordance with section 6302 and the regulations

thereunder. The time for making federal tax deposits, however, cannot be extended under section 6081 or postponed under section 7508A. For deposits required to be made from September 11, 2001, through October 31, 2001, however, the Internal Revenue Service will waive the addition to tax under section 6656 for the failure to timely make any deposit of tax if the deposit is made on or before November 15, 2001, because reasonable cause for the failure exists during this period. The relief from the failure to timely deposit addition to tax under this paragraph is only applicable to taxpayers who are unable to meet their deposit obligations because their (or their service provider’s) records, computers, or other essential supporting services were damaged, or essential personnel were injured, by the attack. DRAFTING INFORMATION The principal author of this notice is Charles Hall of the Office of Associate Chief Counsel, Procedure and Administration (Administrative Provisions and Judicial Practice Division). For further information regarding this notice you may call (202) 622-4940 (not a toll-free call).

IRS Notice 2001-63 (official PDF linked by ETA: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2002/22-01-n-01-63.pdf)

Part III - Administrative, Procedural, and Miscellaneous Additional Disaster Relief for taxpayers on account of the September 11, 2001, Terrorist Attack Notice 2001-63 The Treasury Department and the Internal Revenue Service recognize that the continuing disruption to the nation’s financial markets, transportation system, and telecommunication and computer networks, and continuing security concerns have made it difficult for many taxpayers to meet their September 17, 2001, filing and payment requirements, and for their representatives to assist them in doing so. This notice provides additional tax relief under sections 6081, 6161, and 7508A for taxpayers who, regardless of their location, are continuing to experience difficulties in meeting their filing and tax payment requirements on account of events related to the September 11, 2001, terrorist attack. The Internal Revenue Service has determined that the due date for all federal tax obligations falling between September 10, 2001, and September 24, 2001, is postponed to September 24, 2001. This postponement of time covers the filing of returns and claims for refund, the payment of tax (including estimated tax payments), making elections, and filing any other federal tax documents. The postponement does not apply to deposits of federal taxes. For relief with respect to deposits of federal taxes, see Notice 2001-61 and IRS News Release IR-2001-79. The relief provided by this Notice is in addition to the relief provided in Notice 2001-61 and IRS News Release IR-2001-79.

DRAFTING INFORMATION
The principal author of this notice is Charles Hall of the Office of Associate Chief Counsel, Procedure and Administration (Administrative Provisions and Judicial Practice Division). For further information regarding this notice you may call (202) 622-4940 (not a toll-free call).

IRS Notice 2001-68 (official PDF linked by ETA: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2002/22-01-01-68.pdf)

Part III - Administrative, Procedural, and Miscellaneous Disaster Relief for Taxpayers Affected by the September 11, 2001 Terrorist Attack. Notice 2001-68 PURPOSE This notice supplements the tax relief granted in Notice 2001-61, 2001-40 I.R.B. 305 (October 1, 2001), for taxpayers affected by the September 11, 2001 Terrorist Attack (the “Terrorist Attack”) by clarifying and expanding the definition of affected taxpayer, listing additional acts for which a postponement is granted, and providing other relief. The relief provided to taxpayers in this notice will apply retroactively to September 11, 2001. This notice also postpones the deadlines for certain acts performed by the Internal Revenue Service (IRS). The postponement of these deadlines is not retroactive to September 11, 2001. Thus, the IRS deadlines are postponed only if the last day for performing the act (e.g., making a tax assessment) would otherwise be on or after November 2, 2001. Taxpayers who believe they are entitled to relief under this notice should mark “September 11, 2001 Terrorist Attack” in red ink on the top of their returns and other documents submitted to the IRS and petitions submitted to the United States Tax Court. Taxpayers should not put this notation on envelopes. Doing so may result in a delay in the delivery or processing of the return or document.

Taxpayers that do not qualify for relief under Notice 2001-61 or this notice may still qualify for extensions and relief from penalties for reasonable cause. Reasonable cause relief may also be available to taxpayers who did receive relief under Notice 2001-61 or this notice but who nevertheless could not meet their tax obligations within the relief period. A request for relief from penalties for reasonable cause should be attached to the return with an explanation of the reasons supporting relief. If penalties are assessed, Form 843, Claim for Refund and Request for Abatement, may be completed as a request for reasonable cause relief from penalties. A. MISSING TAXPAYERS Individuals missing as a result of the Terrorist Attack are affected taxpayers as defined in Notice 2001-61 under the term “victims of the crash.” Thus, the relief granted by Notice 2001-61 and this notice applies to individuals missing as a result of the Terrorist Attack. B. POSTPONEMENT OF DEADLINES FOR SECTION 1031 EXCHANGES As explained below, a 120-day postponement of time is granted to affected taxpayers for the acts listed in Rev. Proc. 2001-53, 2001-47 I.R.B (November 19, 2001), if the last day to perform the act would otherwise fall within the period beginning on September 11, 2001, and ending on November 30, 2001. One of the acts listed in Rev. Proc. 2001-53 is an exchange of property under section 1031. This notice provides three types of postponements relating to section 1031 exchanges. (1) If the taxpayer (transferor) is an affected taxpayer under Notice 2001-61, then the last day of the identification period or the exchange period set forth in section 1.1031(k) -1(b)(2) of the regulations, relating to deferred like-kind exchanges, or the last

day of any period set forth in section 4.02(3) through (6) of Rev. Proc. 2000-37, 2000- 40 I.R.B. 308 (October 2, 2000), relating to a qualified exchange accommodation arrangement, is postponed by 120 days if the following requirements are met: (a) The relinquished property was transferred on or before September 11, 2001, or, in a transaction governed by Rev. Proc. 2000-37, property was transferred to the exchange accommodation titleholder on or before September 11, 2001; and (b) Absent application of this notice, the identification period or the exchange period, or any time period set forth in section 4.02(3) through (6) of Rev. Proc. 2000-37, would end on or after September 11, 2001, and on or before November 30, 2001. (2) If a taxpayer (transferor) is not an affected taxpayer under Notice 2001-61, then the last day of the identification period or the exchange period set forth in section 1.1031(k)-1(b)(2), or the last day of any period set forth in section 4.02(3) through (6) of Rev. Proc. 2000-37, is postponed by 120 days if the following requirements are met: (a) The relinquished property was transferred on or before September 11, 2001, or, in a transaction governed by Rev. Proc. 2000-37, property was transferred to the exchange accommodation titleholder on or before September 11, 2001; and (b) Absent application of this notice, the identification period or the exchange period, or any time period set forth in section 4.02(3) through (6) of Rev. Proc. 2000-37, would end on or after September 11, 2001, and on or before November 30, 2001, and (c) It is difficult to meet a deadline set forth in section 1.1031(k)-1(b), or a deadline in section 4.02(3) through (6) of Rev. Proc. 2000-37, due to the Terrorist Attack for the following or similar reasons: (I) The relinquished property or the replacement property is or was located in a

covered disaster area (as defined in Notice 2001-61); or (II) The principal place of business of any party to the transaction other than the transferor (e.g., a qualified intermediary, exchange accommodation titleholder, transferee, settlement attorney, lender, financial institution or a title insurance company) is located in a covered disaster area (as defined in Notice 2001-61); or (III) Any party to the transaction other than the transferor (or an employee of such a party who is or was involved in the section 1031 transaction) was killed, injured, or is missing as a result of the Terrorist Attack; or (IV) A document prepared in connection with the exchange (e.g., the agreement between the transferor and the qualified intermediary or the deed to the relinquished property or replacement property) or land records were destroyed, damaged, or lost as a result of the Terrorist Attack; or (V) A lender decided not to fund a real estate closing due to the Terrorist Attack or refused to fund a loan to the taxpayer because terrorism insurance was not available; or (VI) A title insurance company was not able to provide the required title insurance policy necessary to settle or close a real estate transaction due to the Terrorist Attack. (3) If a postponement is not otherwise granted under paragraphs (1) and (2), a postponement to September 24, 2001, similar to the postponement provided in Notice 2001-63, 2001-40 I.R.B. 308 (October 1, 2001), is granted if the following requirements are met: (a) The relinquished property was transferred on or before September 11, 2001,

or, in a transaction governed by Rev. Proc. 2000-37, property was transferred to the exchange accommodation titleholder on or before September 11, 2001; and (b) Absent application of this notice, the identification period or the exchange period, or any time period set forth in section 4.02(3) through (6) of Rev. Proc. 2000-37, would end on or after September 11, 2001, and on or before September 17, 2001. C. ADDITIONAL GRANT OF RELIEF (1) This notice expands the relief provided by paragraph (2) of the Grant of Relief section of Notice 2001-61. The additional relief is for tax returns on an extension (not on a postponement under section 7508A) that expires on or after December 1, 2001, and on or before January 31, 2002. For these returns, the last date for filing the return is postponed until February 15, 2002, under section 7508A. This additional relief is available only to taxpayers that have difficulty in meeting their federal tax obligations because their records, computers, or other essential supporting services were lost or damaged, or essential personnel were injured or killed, or are missing as a result of the Terrorist Attack. (2) Under paragraph (4) of the Grant of Relief section of Notice 2001-61, the IRS granted to all affected taxpayers a 120-day postponement of time to perform the acts described in section 301.7508A-1(c)(1), if the last day to perform the act fell within the period beginning on September 11, 2001, and ending on November 30, 2001. One of these acts is the filing of any Tax Court petition. Under this notice, the relief provided by paragraph (4) is expanded as follows. If the last date for filing any Tax Court petition would otherwise be on or after December 1, 2001, and on or before December 31, 2001, the last date for filing the petition is postponed by 60 days under section 7508A. (3) In addition to the acts specifically identified in section 301.7508A-1(c)(1), a 120-day postponement is granted for each act listed in Rev. Proc. 2001-53, for affected taxpayers if the last day to perform the act would otherwise fall within the period

beginning on September 11, 2001, and ending on November 30, 2001. This postponement does not, however, apply to the acts required by section 148(f)(3) and section 1.148-3(g), section 1.148-5(c), section 148(f)(4)(C)(xvi) and section 1.148- 7(k)(1), or section 149(e). Postponements of these acts for issuers of tax exempt bonds were provided in Announcement 2001-101, 2001-43 I.R.B. 374 (October 22, 2001). For purposes of tax-exempt bonds, the term “affected taxpayer” shall include any affected issuer as described in Announcement 2001-101. This postponement also does not apply to the deadline for Form 5500 and Form 5500-EZ filings. The Department of Labor's Pension and Welfare Benefits Administration Press Release No. 01-36 (released September 14, 2001) grants relief extending the deadline for filing Form 5500 and Form 5500-EZ. D. PARTNERS, S CORPORATION SHAREHOLDERS, AND BENEFICIARIES OF TRUSTS AND ESTATES Partners, S corporation shareholders, and beneficiaries of trusts and estates use the information reported to them on Schedule K-1 by their partnerships, corporations, trusts, or estates to prepare their own income tax returns. If the income tax return of the partnership, S corporation, trust or estate was postponed or extended under this notice or Notice 2001-61, the partner, S corporation shareholder, or beneficiary of a trust or estate may not receive the Schedule K-1 prior to the due date or extended due date of the partner’s, shareholder’s, or beneficiary’s income tax return. The income tax return of the partner, shareholder, or beneficiary is not postponed or extended by Notice 2001-61 or this notice solely because the entity (the partnership, S corporation, trust, or estate) is an affected taxpayer.

Partners, shareholders, and beneficiaries of trusts and estates may request extensions of time to file their income tax returns. See I.R.C. ' 6081. If the Schedule K-1 is not received by the extended due date, the partner, shareholder, or beneficiary should prepare and file the income tax return on a timely basis by making a reasonable estimate in good faith of items of income, gain, loss, deduction, and credit attributable to the taxpayer’s interest in the entity. Later, when the Schedule K-1 is received, the taxpayer should prepare an amended return reflecting the items reported on the Schedule K-1. If the taxpayer’s original return underestimated items of income or gain, or overstated items of deduction, loss, or credit, and a late payment penalty attributable to these items is assessed, the taxpayer should request an abatement of the penalty for reasonable cause. If the original return was prepared in good faith based on reasonable estimates of the tax items attributable to the entity, the IRS will waive or abate penalties for late payment. E. RELIEF FROM PENALTY FOR FAILING TO FILE PARTNERSHIP RETURN BY MAGNETIC MEDIA Any partnership that is an affected taxpayer, as defined in Notice 2001-61 and this notice, and that is required to file a partnership return by magnetic media (electronically) under section 6011(e) will not be assessed a penalty under section 6721 for failing to file the partnership return electronically if the partnership elects to file a paper return. This relief is for partnership returns that have an original due date or extended due date (not a postponed due date under section 7508A) on or after September 11, 2001, and on or before November 30, 2001. Taxpayers who qualify should write “September 11, 2001 Terrorist Attack” in red ink on the top of their paper

Form 1065. The IRS will abate any penalty that is improperly assessed. F. ACTS PERFORMED BY THE GOVERNMENT (1) If the last date otherwise prescribed by law for making a tax assessment is on or after November 2, 2001, and the taxpayer received a 120-day postponement of time to file a Tax Court petition under paragraph (4) of the Grant of Relief section of Notice 2001-61, then the last date otherwise prescribed by law for making an assessment is correspondingly postponed by 120 days. This additional time for making an assessment is needed for the following reason. Under section 6503, the period of limitations on assessment is suspended when a statutory notice of deficiency is mailed. The section 6503 suspension period (generally 150 days) includes the period (generally 90 days) after the issuance of a statutory notice of deficiency during which the taxpayer is permitted to file a Tax Court petition and the IRS is prohibited from making an assessment. See I.R.C. '' 6213(a) and 6213(c). Under Notice 2001-61, affected taxpayers are entitled to an additional 120 days to file a Tax Court petition in response to the notice of deficiency. In some cases, the period of limitations on assessment could expire prior to the expiration of the expanded period during which an affected taxpayer may file a Tax Court petition. (2) Similar to paragraph (1), if the last date otherwise prescribed by law for making a tax assessment is on or after November 2, 2001, and the taxpayer receives a 60-day postponement of time to file a Tax Court petition under paragraph (2) of the Additional Grant of Relief section of this notice, the last date otherwise prescribed by law for making a tax assessment is correspondingly postponed by 60 days. (3) Documents maintained by the IRS (including the Office of Chief Counsel) in

New York City were destroyed or lost in the Terrorist Attack, or remain in buildings that are inaccessible. The destruction or loss of these documents (or the IRS’s lack of access to them) will materially interfere with the IRS’s ability to timely administer the Internal Revenue Code with respect to certain taxpayers. The taxpayers to whom these records relate are “affected taxpayers” for the limited purpose of this paragraph. In these cases, a 120-day postponement is granted for the following government acts if the last date for performance of the act is on or after November 2, 2001, and on or before November 30, 2001: making an assessment of any tax; issuing a statutory notice of deficiency; allowing a credit or refund of any tax; collecting by the Secretary, by levy or otherwise, the amount of any liability in respect of any tax; bringing suit by the United States, or any office on its behalf, in respect of any tax liability; returning property under section 6343; and the discharge of an executor from personal liability for a decedent’s taxes under section 6905. The IRS will notify, as soon as practicable, any affected taxpayers, as defined under this paragraph, of the government act or acts that will be postponed. G. TAXPAYER INQUIRIES If you wish to recommend that other acts qualify for postponement under this notice, Notice 2001-61, or Rev. Proc. 2001-53, please write to the Office of Associate Chief Counsel, Procedure and Administration (Administrative Provisions and Judicial Practice Division), CC:PA:APJP:Br2, 1111 Constitution Avenue, NW, Washington, DC 20224, or send an e-mail message to [email protected]. Please write “7508A List” on the envelope or in the subject matter area of the e-mail. H. DRAFTING INFORMATION

This notice was drafted by the Office of Associate Chief Counsel, Procedure and Administration (Administrative Provisions and Judicial Practice Division). For further information regarding this notice you may call the toll-free disaster hotline at (866) 562- 5227 or (202) 622-4940 (not a toll-free call).

IRS News Release IR-2001-105 (official PDF linked by ETA: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2002/22-01-ir01-105.pdf)

Media Relations Office Washington, D.C. Tel. 202.622.4000 For Release: 11/02/01 Release No: IR-2001-105 IRS EXPANDS TAX RELIEF FOR THOSE AFFECTED BY SEPT. 11th ATTACK WASHINGTON – The Internal Revenue Service issued guidance today supplementing the tax relief it earlier granted to taxpayers affected by the terrorist attack of September 11, 2001. The new measures in Notice 2001-68 extend additional tax deadlines for certain “affected taxpayers.” “We want to give appropriate relief to those affected by this terrible tragedy, ” said IRS Commissioner Charles O. Rossotti. “Tax professionals asked us to consider situations beyond those we originally addressed – we have done so and welcome their future suggestions for good tax administration.” Certain taxpayers who have an extended filing deadline falling between December 1, 2001, through January 31, 2002, will have until February 15, 2002, to file any tax returns due. This extension applies to “affected taxpayers” that have difficulty meeting their federal tax obligations because their records, computers, or other essential supporting services were lost or damaged, or essential personnel were injured or killed, in the September 11, 2001, terrorist attack. All “affected taxpayers” whose deadline for filing a Tax Court petition falls in December 2001 will have an additional 60 days to file such petitions. Partnerships that qualify as “affected taxpayers” will not face penalties for failing to file required returns electronically, if they choose to file a paper Form 1065. The IRS will waive late payment penalties for owners or beneficiaries of pass-through entities who do not receive K-1’s in time to file their returns, but who file returns in good faith based on reasonable estimates of pass-through items. The IRS will provide special relief for “affected taxpayers” who are involved in nontaxable exchanges of “like-kind” business or investment property and who must meet certain deadlines that expire between September 11, 2001, and November 30, 2001. (more)

The IRS also released Rev. Proc. 2001-53, which provides a list of possible acts that may be postponed in a disaster. If an “affected taxpayer” has a deadline for performing any of the acts listed in Rev. Proc. 2001-53, the deadline is postponed by 120 days if the deadline would otherwise expire between September 11, 2001, and November 30, 2001. Taxpayers relying on any of the relief provisions that the IRS has granted related to this disaster should put the words “September 11, 2001 Terrorist Attack” in red at the top of their returns or other documents sent to the IRS. These words should not be on the envelope. The IRS has a special toll-free number for those with attack-related tax questions: 1-866-562-5227. Taxpayers with other questions may call the regular IRS toll-free number, 1-800-829-1040. Notice 2001-68 has full details on this latest grant of tax relief related to the September 11, 2001, terrorist attack. It will be available on the IRS Web site at www.irs.gov and will be published in Internal Revenue Bulletin 2001-47, dated November 19, 2001. X X X

IRS Notice 2001-62 (complete notice excerpt from Internal Revenue Bulletin 2001-40, pages 307–308; official PDF linked by ETA: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2002/22-01-irb01-40.pdf)

Designated Private Delivery
Services
Notice 2001–62
This notice updates the list of designated
private delivery services (“designated
PDSs”) set forth in Notice 99–41 (1999–2
C.B. 325) for purposes of the timely mailing treated as timely filing/paying rule of section 7502 of the Internal Revenue Code, effective September 1, 2001. The Internal Revenue Service (IRS) is adding two new delivery services to the list of designated PDSs. Also, this notice modifies Rev. Proc. 97–19 (1997–1 C.B. 644) to provide a new address for a PDS to submit its written application for designation. This new address will also be used to request administrative review of a letter of denial of designation, appeal a letter confirming the denial of designation, provide written notification of any change in application information, and appeal a proposed revocation letter. Section 7502(f) authorizes the Secretary to designate certain PDSs for the timely mailing treated as timely filing/paying rule of section 7502. Rev. Proc. 97–19 provides the criteria currently applicable for designation of a PDS. Notice 97–26 (1997–1 C.B. 413) provides special rules to determine the date that will be treated as the postmark date for purposes of section 7502. Notice 97–50 (1997–2 C.B. 305) modifying Rev. Proc. 97–19 and Notice 97–26, provides that each year there will be only one application period to apply for designation, which will end on June 30th. Notice 99–41 provides that the IRS will publish a subsequent notice providing a new list of designated PDSs only if a designated PDS (or service) is added to, or removed from, the current list. Effective September 1, 2001, the list of designated PDSs is as follows:

1. Airborne Express (Airborne):
   Overnight Air Express Service, Next
   Afternoon Service, and Second Day
   Service;
2. DHL Worldwide Express (DHL): DHL
   “Same Day” Service and DHL USA
   Overnight;
3. Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard
   Overnight, and FedEx 2 Day; and
4. United Parcel Service (UPS): UPS
   Next Day Air, UPS Next Day Air
   Saver, UPS 2nd Day Air, UPS 2nd Day
   Air A.M., UPS Worldwide Express
   Plus, and UPS Worldwide Express.
   UPS Worldwide Express Plus and UPS
   Worldwide Express are added to the list
   published in Notice 99–41. Both of these
   services provide delivery services to the
   United States from foreign countries. Airborne, DHL, FedEx, and UPS are not designated with respect to any type of delivery service not identified above. The list of designated PDSs and services set forth above will remain in effect until further notice. The IRS will publish a subsequent notice setting forth a new list only if a designated PDS (or service) is added to, or removed from, the current list, or if there is a change to the application and/or appeal procedures. Delivery services that wish to be designated in time for an upcoming filing season must continue to submit applications by June 30th of the year preceding that filing season, as required by Rev. Proc. 97–19 (as modified by Notice 97–50). Notice 97–26 continues to provide special rules used to determine the date that will be treated as the postmark date for purposes of section 7502. As a result of the IRS’s reorganization, the application addresses listed in section

6 of Rev. Proc. 97–19 are no longer correct. Section 6 of Rev. Proc. 97–19 is modified to provide that a PDS may now submit its written application by mailing it to: Internal Revenue Service Attn: Director, Submission Processing W:CAS:SP New Carrollton Federal Building 5000 Ellin Road Lanham, MD 20706 Applications will no longer be accepted by hand delivery at the Courier’s Desk located at 1111 Constitution Avenue, N.W. The above address is also where a PDS may write to: (1) obtain administrative review of a letter of denial of designation under section 9.03 of Rev. Proc. 97–19; (2) appeal a letter confirming the denial of designation under section 9.06 of Rev. Proc. 97–19; (3) provide prompt written notification to the IRS of any change in application information under section 10.01 of Rev. Proc. 97–19; and (4) appeal the issuance of a proposed revocation letter under section 12.03 of Rev. Proc. 97–19. EFFECT ON OTHER DOCUMENTS Revenue Procedure 97–19 is modified. Notice 99–41 is modified and, as so modified, is superseded. EFFECTIVE DATE This notice is effective on September 1, 2001. FOR FURTHER INFORMATION The principal author of this notice is Charles A. Hall of the Office of Associate Chief Counsel, Procedure and Administration (Administrative Provisions and Judicial Practice Division). For further information regarding this notice, contact Charles A. Hall at (202) 622-4940 (not a toll-free call).

IRS Revenue Procedure 2001-53, section 15, item 9 (relevant excerpt; official IRS PDF: https://www.irs.gov/pub/irs-drop/rp-01-53.pdf)

SECTION 15. TAX CREDIT ISSUES

9. Sec. 51(d)(12)(A)(ii)(II) and 51A(d)(1). An employer seeking the Work Opportunity Credit or the Welfare-to-Work Credit with respect to an individual must submit Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity and Welfare-to-Work Credits, to the State Employment Security Agency not later than the 21st day after the individual begins work for the employer.