26 U.S.C. § 7508A — Authority to postpone certain deadlines

Page 3948 TITLE 26—INTERNAL REVENUE CODE § 7508A 4, 1976, see section 1906(d)(1) of Pub. L. 94–455, set out as a note under section 6013 of this title. EFFECTIVE DATE OF 1975 AMENDMENT Pub. L. 93–597, § 5(b), Jan. 2, 1975, 88 Stat. 1953, pro- vided that: ‘‘The amendments made by subsection (a) [amending this section] shall apply to taxable years ending on or after February 28, 1961.’’ TRANSFER OF FUNCTIONS Office of Postmaster General of Post Office Depart- ment abolished and all functions, powers, and duties of Postmaster General transferred to United States Post- al Service by Pub. L. 91–375, § 4(a), Aug. 12, 1970, 84 Stat. 773, set out as a note under section 201 of Title 39, Post- al Service. Executive Documents EX. ORD. NO. 12750. DESIGNATION OF ARABIAN PENINSULA AREAS, AIRSPACE, AND ADJACENT WATERS AS PERSIAN GULF DESERT SHIELD AREA Ex. Ord. No. 12750, Feb. 14, 1991, 56 F.R. 6785, provided: By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 7508 of the Internal Revenue Code of 1986 (26 U.S.C. 7508), I hereby designate, for pur- poses of that section, the following locations, including the air space above such locations, as the Persian Gulf Desert Shield area in which any individual who per- formed Desert Shield services (including the spouse of such individual) is entitled to the benefits of section 7508 of the Internal Revenue Code of 1986: —the Persian Gulf —the Red Sea —the Gulf of Oman —that portion of the Arabian Sea that lies north of 10 degrees north latitude and west of 68 degrees east longitude —the Gulf of Aden —the total land area of Iraq, Kuwait, Saudi Arabia, Oman, Bahrain, Qatar, and the United Arab Emirates. GEORGE BUSH. § 7508A. Authority to postpone certain deadlines by reason of Federally declared disaster, sig- nificant fire, or terroristic or military actions (a) In general In the case of a taxpayer determined by the Secretary to be affected by a federally declared disaster (as defined by section 165(i)(5)(A)), a sig- nificant fire, or a terroristic or military action (as defined in section 692(c)(2)), the Secretary may specify a period of up to 1 year that may be disregarded in determining, under the internal revenue laws, in respect of any tax liability of such taxpayer— (1) whether any of the acts described in para- graph (1) of section 7508(a) were performed within the time prescribed therefor (deter- mined without regard to extension under any other provision of this subtitle for periods after the date (determined by the Secretary) of such disaster, fire, or action), (2) the amount of any interest, penalty, addi- tional amount, or addition to the tax for peri- ods after such date, and (3) the amount of any credit or refund. (b) Special rules regarding pensions, etc. In the case of a pension or other employee benefit plan, or any sponsor, administrator, par- ticipant, beneficiary, or other person with re- spect to such plan, affected by a disaster, fire, or action described in subsection (a), the Secretary may specify a period of up to 1 year which may be disregarded in determining the date by which any action is required or permitted to be com- pleted under this title. No plan shall be treated as failing to be operated in accordance with the terms of the plan solely as the result of dis- regarding any period by reason of the preceding sentence. (c) Special rules for overpayments The rules of section 7508(b) shall apply for pur- poses of this section. (d) Mandatory 60-day extension (1) In general In the case of any qualified taxpayer, the pe- riod— (A) beginning on the earliest incident date specified in the declaration to which the dis- aster area referred to in paragraph (2) re- lates, and (B) ending on the date which is 60 days after the later of such earliest incident date described in subparagraph (A) or the date such declaration was issued, shall be disregarded in determining, under the internal revenue laws, in respect of any tax li- ability of such qualified taxpayer, whether any of the acts described in subparagraphs (A) through (F) of section 7508(a)(1) were per- formed within the time prescribed therefor (determined without regard to extension under any other provision of this subtitle for periods after the date determined under subparagraph (B)). (2) Qualified taxpayer For purposes of this subsection, the term ‘‘qualified taxpayer’’ means— (A) any individual whose principal resi- dence (for purposes of section 1033(h)(4)) is located in a disaster area, (B) any taxpayer if the taxpayer’s prin- cipal place of business (other than the busi- ness of performing services as an employee) is located in a disaster area, (C) any individual who is a relief worker affiliated with a recognized government or philanthropic organization and who is assist- ing in a disaster area, (D) any taxpayer whose records necessary to meet a deadline for an act described in section 7508(a)(1) are maintained in a dis- aster area, (E) any individual visiting a disaster area who was killed or injured as a result of the disaster, and (F) solely with respect to a joint return, any spouse of an individual described in any preceding subparagraph of this paragraph. (3) Disaster area For purposes of this subsection, the term ‘‘disaster area’’ means an area in which a major disaster for which the President pro- vides financial assistance under section 408 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5174) oc- curs. (4) Application to rules regarding pensions In the case of any person described in sub- section (b), a rule similar to the rule of para- Page 3949 TITLE 26—INTERNAL REVENUE CODE § 7508A graph (1) shall apply for purposes of subsection (b) with respect to— (A) making contributions to a qualified re- tirement plan (within the meaning of sec- tion 4974(c)) under section 219(f)(3), 404(a)(6), 404(h)(1)(B), or 404(m)(2), (B) making distributions under section 408(d)(4), (C) recharacterizing contributions under section 408A(d)(6), and (D) making a rollover under section 402(c), 403(a)(4), 403(b)(8), or 408(d)(3). (5) Coordination with periods specified by the Secretary Any period described in paragraph (1) with respect to any person (including by reason of the application of paragraph (4)) shall be in ad- dition to (or concurrent with, as the case may be) any period specified under subsection (a) or (b) with respect to such person. (6) Multiple declarations For purposes of paragraph (1), in the case of multiple declarations relating to a disaster area which are issued within a 60-day period, a separate period shall be determined under such paragraph with respect to each such dec- laration. (e) Significant fire For purposes of this section, the term ‘‘signifi- cant fire’’ means any fire with respect to which assistance is provided under section 420 of the Robert T. Stafford Disaster Relief and Emer- gency Assistance Act. (Added Pub. L. 105–34, title IX, § 911(a), Aug. 5, 1997, 111 Stat. 877; amended Pub. L. 107–16, title VIII, § 802(a), June 7, 2001, 115 Stat. 149; Pub. L. 107–134, title I, § 112(a), Jan. 23, 2002, 115 Stat. 2433; Pub. L. 110–343, div. C, title VII, § 706(a)(2)(D)(vii), Oct. 3, 2008, 122 Stat. 3922; Pub. L. 115–141, div. U, title IV, § 401(b)(10)(B), Mar. 23, 2018, 132 Stat. 1202; Pub. L. 116–94, div. Q, title II, § 205(a), Dec. 20, 2019, 133 Stat. 3245; Pub. L. 117–58, div. H, title V, §§ 80501(a), 80504(a), (b)(1), Nov. 15, 2021, 135 Stat. 1335, 1336.) Editorial Notes REFERENCES IN TEXT Section 420 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, referred to in subsec. (e), is classified to section 5187 of Title 42, The Public Health and Welfare. AMENDMENTS 2021—Pub. L. 117–58, § 80504(b)(1), substituted ‘‘Feder- ally declared disaster, significant fire,’’ for ‘‘Presi- dentially declared disaster’’ in section catchline. Subsec. (a). Pub. L. 117–58, § 80504(a)(1), which directed insertion of ‘‘, a significant fire,’’ after ‘‘federally de- clared disaster (as defined in section 165(i)(5)(A))’’, was executed by making the insertion after ‘‘federally de- clared disaster (as defined by section 165(i)(5)(A))’’ in introductory provisions, to reflect the probable intent of Congress. Subsec. (a)(1). Pub. L. 117–58, § 80504(a)(2), inserted ‘‘, fire,’’ after ‘‘disaster’’. Subsec. (b). Pub. L. 117–58, § 80504(a)(2), inserted ‘‘, fire,’’ after ‘‘disaster’’. Subsec. (d)(1). Pub. L. 117–58, § 80501(a)(1)(B), in con- cluding provisions, substituted ‘‘in determining, under the internal revenue laws, in respect of any tax liabil- ity of such qualified taxpayer, whether any of the acts described in subparagraphs (A) through (F) of section 7508(a)(1) were performed within the time prescribed therefor (determined without regard to extension under any other provision of this subtitle for periods after the date determined under subparagraph (B))’’ for ‘‘in the same manner as a period specified under subsection (a)’’. Subsec. (d)(1)(B). Pub. L. 117–58, § 80501(a)(1)(A), sub- stituted ‘‘the later of such earliest incident date de- scribed in subparagraph (A) or the date such declara- tion was issued’’ for ‘‘the latest incident date so speci- fied’’. Subsec. (d)(3). Pub. L. 117–58, § 80501(a)(2), added par. (3) and struck out former par. (3) which defined the term ‘‘disaster area’’. Subsec. (d)(6). Pub. L. 117–58, § 80501(a)(3), added par. (6). Subsec. (e). Pub. L. 117–58, § 80504(a)(3), added subsec. (e). 2019—Subsec. (d). Pub. L. 116–94 added subsec. (d). 2018—Subsec. (a). Pub. L. 115–141 substituted ‘‘section 165(i)(5)(A)’’ for ‘‘section 165(h)(3)(C)(i)’’ in introductory provisions. 2008—Subsec. (a). Pub. L. 110–343 substituted ‘‘feder- ally declared disaster (as defined by section 165(h)(3)(C)(i))’’ for ‘‘Presidentially declared disaster (as defined in section 1033(h)(3))’’ in introductory provi- sions. 2002—Pub. L. 107–134 amended section catchline and text generally, substituting present provisions for pro- visions which had: in subsec. (a), authorized Secretary to postpone certain tax-related deadlines by reason of presidentially declared disaster, and in subsec. (b), pro- vided that subsec. (a) would not apply for the purpose of determining interest on any overpayment or under- payment. 2001—Subsec. (a). Pub. L. 107–16 substituted ‘‘120 days’’ for ‘‘90 days’’ in introductory provisions. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2021 AMENDMENT Pub. L. 117–58, div. H, title V, § 80501(b), Nov. 15, 2021, 135 Stat. 1335, provided that: ‘‘The amendment made by this section [amending this section] shall apply to fed- erally declared disasters declared after the date of en- actment of this Act [Nov. 15, 2021].’’ Pub. L. 117–58, div. H, title V, § 80504(c), Nov. 15, 2021, 135 Stat. 1337, provided that: ‘‘The amendments made by this section [amending this section] shall apply to fires for which assistance is provided after the date of the enactment of this Act [Nov. 15, 2021].’’ EFFECTIVE DATE OF 2019 AMENDMENT Pub. L. 116–94, div. Q, title II, § 205(b), Dec. 20, 2019, 133 Stat. 3246, provided that: ‘‘The amendment made by this section [amending this section] shall apply to fed- erally declared disasters declared after the date of the enactment of this Act [Dec. 20, 2019].’’ EFFECTIVE DATE OF 2008 AMENDMENT Amendment by Pub. L. 110–343 applicable to disasters declared in taxable years beginning after Dec. 31, 2007, see section 706(d)(1) of Pub. L. 110–343, set out as a note under section 56 of this title. EFFECTIVE DATE OF 2002 AMENDMENT Amendment by Pub. L. 107–134 applicable to disasters and terroristic or military actions occurring on or after Sept. 11, 2001, with respect to any action of the Sec- retary of the Treasury, the Secretary of Labor, or the Pension Benefit Guaranty Corporation occurring on or after Jan. 23, 2002, see section 112(f) of Pub. L. 107–134, set out as a note under section 6081 of this title. EFFECTIVE DATE OF 2001 AMENDMENT Pub. L. 107–16, title VIII, § 802(b), June 7, 2001, 115 Stat. 149, provided that: ‘‘The amendment made by this Page 3950 TITLE 26—INTERNAL REVENUE CODE § 7508A section [amending this section] shall take effect on the date of enactment of this Act [June 7, 2001].’’ EFFECTIVE DATE Pub. L. 105–34, title IX, § 911(c), Aug. 5, 1997, 111 Stat. 878, provided that: ‘‘The amendments made by this sec- tion [enacting this section] shall apply with respect to any period for performing an act that has not expired before the date of the enactment of this Act [Aug. 5, 1997].’’ SAVINGS PROVISION For provisions that nothing in amendment by Pub. L. 115–141 be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Mar. 23, 2018, for purposes of determining li- ability for tax for periods ending after Mar. 23, 2018, see section 401(e) of Pub. L. 115–141, set out as a note under section 23 of this title. EXTENSION OF CERTAIN DEFERRED PAYROLL TAXES BY REASON OF CORONAVIRUS PANDEMIC Pub. L. 116–260, div. N, title II, § 274, Dec. 27, 2020, 134 Stat. 1978, provided that: ‘‘The Secretary of the Treas- ury (or the Secretary’s delegate) shall ensure that In- ternal Revenue Service Notice 2020–65 (entitled ‘Relief with Respect to Employment Tax Deadlines Applicable to Employers Affected by the Ongoing Coronavirus (COVID–19) Disease 2019 Pandemic’) and any successor or related regulation, notice, or guidance is applied— ‘‘(1) by substituting ‘December 31, 2021’ for ‘April 30, 2021’ each place it appears therein, and ‘‘(2) by substituting ‘January 1, 2022’ for ‘May 1, 2021’ each place it appears therein.’’ AUTHORITY TO POSTPONE CERTAIN TAX-RELATED DEADLINES BY REASON OF Y2K FAILURES Pub. L. 106–170, title V, § 522, Dec. 17, 1999, 113 Stat. 1927, provided that: ‘‘(a) IN GENERAL.—In the case of a taxpayer deter- mined by the Secretary of the Treasury (or the Sec- retary’s delegate) to be affected by a Y2K failure, the Secretary may disregard a period of up to 90 days in de- termining, under the internal revenue laws, in respect of any tax liability (including any interest, penalty, ad- ditional amount, or addition to the tax) of such tax- payer— ‘‘(1) whether any of the acts described in paragraph (1) of section 7508(a) of the Internal Revenue Code of 1986 (without regard to the exceptions in parentheses in subparagraphs (A) and (B)) were performed within the time prescribed therefor; and ‘‘(2) the amount of any credit or refund. ‘‘(b) APPLICABILITY OF CERTAIN RULES.—For purposes of this section, rules similar to the rules of subsections (b) and (e) of section 7508 of the Internal Revenue Code of 1986 shall apply.’’ ABATEMENT OF INTEREST ON UNDERPAYMENTS BY TAX- PAYERS IN PRESIDENTIALLY DECLARED DISASTER AREAS Pub. L. 105–34, title IX, § 915, Aug. 5, 1997, 111 Stat. 879, as amended by Pub. L. 105–277, div. J, title IV, § 4003(e)(1), Oct. 21, 1998, 112 Stat. 2681–909, provided that: ‘‘(a) IN GENERAL.—If the Secretary of the Treasury extends for any period the time for filing income tax returns under section 6081 of the Internal Revenue Code of 1986 and the time for paying income tax with respect to such returns under section 6161 of such Code (and waives any penalties relating to the failure to so file or so pay) for any individual located in a Presidentially declared disaster area, the Secretary shall, notwith- standing section 7508A(b) of such Code, abate for such period the assessment of any interest prescribed under section 6601 of such Code on such income tax. ‘‘(b) PRESIDENTIALLY DECLARED DISASTER AREA.—For purposes of subsection (a), the term ‘Presidentially de- clared disaster area’ means, with respect to any indi- vidual, any area which the President has determined during 1997 or 1998 warrants assistance by the Federal Government under the Robert T. Stafford Disaster Re- lief and Emergency Assistance Act [42 U.S.C. 5121 et seq.]. ‘‘(c) INDIVIDUAL.—For purposes of this section, the term ‘individual’ shall not include any estate or trust. ‘‘(d) EFFECTIVE DATE.—This section shall apply to disasters declared after December 31, 1996.’’ Executive Documents DEFERRING PAYROLL TAX OBLIGATIONS IN LIGHT OF THE ONGOING COVID–19 DISASTER Memorandum of President of the United States, Aug. 8, 2020, 85 F.R. 49587, provided: Memorandum for the Secretary of the Treasury By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered as follows: SECTION 1. Policy. The 2019 novel coronavirus (COVID–19) that originated in the People’s Republic of China has caused significant, sudden, and unexpected disruptions to the American economy. On March 13, 2020, I determined that the COVID–19 pandemic is of sufficient severity and magnitude to warrant an emer- gency declaration under section 501(b) [42 U.S.C. 5191(b)] of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. 5121—5207, and that is still the case today. American workers have been particularly hard hit by this ongoing disaster. While the Department of the Treasury has already un- dertaken historic efforts to alleviate the hardships of our citizens, it is clear that further temporary relief is necessary to support working Americans during these challenging times. To that end, today I am directing the Secretary of the Treasury to use his authority to defer certain payroll tax obligations with respect to the American workers most in need. This modest, targeted action will put money directly in the pockets of Amer- ican workers and generate additional incentives for work and employment, right when the money is needed most. SEC. 2. Deferring Certain Payroll Tax Obligations. The Secretary of the Treasury is hereby directed to use his authority pursuant to 26 U.S.C. 7508A to defer the with- holding, deposit, and payment of the tax imposed by 26 U.S.C. 3101(a), and so much of the tax imposed by 26 U.S.C. 3201 as is attributable to the rate in effect under 26 U.S.C. 3101(a), on wages or compensation, as applica- ble, paid during the period of September 1, 2020, through December 31, 2020, subject to the following con- ditions: (a) The deferral shall be made available with respect to any employee the amount of whose wages or com- pensation, as applicable, payable during any bi-weekly pay period generally is less than $4,000, calculated on a pre-tax basis, or the equivalent amount with respect to other pay periods. (b) Amounts deferred pursuant to the implementation of this memorandum shall be deferred without any pen- alties, interest, additional amount, or addition to the tax. SEC. 3. Authorizing Guidance. The Secretary of the Treasury shall issue guidance to implement this memo- randum. SEC. 4. Tax Forgiveness. The Secretary of the Treasury shall explore avenues, including legislation, to elimi- nate the obligation to pay the taxes deferred pursuant to the implementation of this memorandum. SEC. 5. General Provisions. (a) Nothing in this memo- randum shall be construed to impair or otherwise af- fect: (i) the authority granted by law to an executive de- partment or agency, or the head thereof; or (ii) the functions of the Director of the Office of Man- agement and Budget relating to budgetary, administra- tive, or legislative proposals. Page 3951 TITLE 26—INTERNAL REVENUE CODE § 7512 (b) This memorandum shall be implemented con- sistent with applicable law and subject to the avail- ability of appropriations. (c) This memorandum is not intended to, and does not, create any right or benefit, substantive or proce- dural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person. (d) You are authorized and directed to publish this memorandum in the Federal Register. DONALD J. TRUMP. § 7509. Expenditures incurred by the United States Postal Service The Postmaster General or his delegate shall at least once a month transfer to the Treasury of the United States a statement of the addi- tional expenditures in the District of Columbia and elsewhere incurred by the United States Postal Service in performing the duties, if any, imposed upon such Service with respect to chap- ter 21, relating to the tax under the Federal In- surance Contributions Act, and the Secretary shall be authorized and directed to advance from time to time to the credit of the United States Postal Service, from appropriations made for the collection of the taxes imposed by chapter 21, such sums as may be required for such addi- tional expenditures incurred by the United States Postal Service. (Aug. 16, 1954, ch. 736, 68A Stat. 899; Pub. L. 94–455, title XIX, § 1906(a)(52), (b)(13)(A), Oct. 4, 1976, 90 Stat. 1832, 1834.) Editorial Notes REFERENCES IN TEXT The Federal Insurance Contributions Act, referred to in text, is act Aug. 16, 1954, ch. 736, §§ 3101, 3102, 3111, 3112, 3121 to 3128, 68A Stat. 415, which is classified gen- erally to chapter 21 (§ 3101 et seq.) of this title. For complete classification of this Act to the Code, see sec- tion 3128 of this title and Tables. AMENDMENTS 1976—Pub. L. 94–455 substituted ‘‘United States Postal Service’’ for ‘‘Post Office Department’’ in section catchline and wherever appearing in text, ‘‘such Serv- ice’’ for ‘‘such Department’’, and struck out ‘‘, together with the receipts required to be deposited under section 6803(a),’’ after ‘‘Treasury of the United States’’ and ‘‘or his delegate’’ after ‘‘Secretary’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94–455 effective first day of first month which begins more than 90 days after Oct. 4, 1976, see section 1906(d)(1) of Pub. L. 94–455, set out as a note under section 6013 of this title. § 7510. Exemption from tax of domestic goods purchased for the United States The privilege existing by provision of law on December 1, 1873, or thereafter of purchasing supplies of goods imported from foreign coun- tries for the use of the United States, duty free, shall be extended, under such regulations as the Secretary may prescribe, to all articles of do- mestic production which are subject to tax by the provisions of this title. (Aug. 16, 1954, ch. 736, 68A Stat. 900; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.) Editorial Notes AMENDMENTS 1976—Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’ wherever appearing. [§ 7511. Repealed. Pub. L. 87–456, title III, § 302(d), May 24, 1962, 76 Stat. 77] Section, act Aug. 16, 1954, ch. 736, 68A Stat. 900, re- lated to exemption of consular officers and employees of foreign states from payment of internal revenue taxes on imported articles. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal effective with respect to articles entered, or withdrawn from warehouse, for consumption on or after Aug. 31, 1963, see section 501(a) of Pub. L. 87–456, title V, May 24, 1962, 76 Stat. 78. § 7512. Separate accounting for certain collected taxes, etc. (a) General rule Whenever any person who is required to col- lect, account for, and pay over any tax imposed by subtitle C or chapter 33— (1) at the time and in the manner prescribed by law or regulations (A) fails to collect, truthfully account for, or pay over such tax, or (B) fails to make deposits, payments, or re- turns of such tax, and (2) is notified, by notice delivered in hand to such person, of any such failure, then all the requirements of subsection (b) shall be complied with. In the case of a corporation, partnership, or trust, notice delivered in hand to an officer, partner, or trustee, shall, for purposes of this section, be deemed to be notice delivered in hand to such corporation, partnership, or trust and to all officers, partners, trustees, and employees thereof. (b) Requirements Any person who is required to collect, account for, and pay over any tax imposed by subtitle C or chapter 33, if notice has been delivered to such person in accordance with subsection (a), shall collect the taxes imposed by subtitle C or chapter 33 which become collectible after deliv- ery of such notice, shall (not later than the end of the second banking day after any amount of such taxes is collected) deposit such amount in a separate account in a bank (as defined in sec- tion 581), and shall keep the amount of such taxes in such account until payment over to the United States. Any such account shall be des- ignated as a special fund in trust for the United States, payable to the United States by such person as trustee. (c) Relief from further compliance with sub- section (b) Whenever the Secretary is satisfied, with re- spect to any notification made under subsection (a), that all requirements of law and regulations with respect to the taxes imposed by subtitle C or chapter 33, as the case may be, will hence- forth be complied with, he may cancel such noti- fication. Such cancellation shall take effect at such time as is specified in the notice of such cancellation.