regard to any extension of time for filing). The amount imposed by section 6652(e) (1) on the plan administrator is $1 for each participant with respect to whom there is a failure to file the required information, multiplied by the number of days during which the failure continues. However, the total amount imposed by section 6652(e) (1) on the plan administrator with respect to a failure to file on behalf of a plan for a plan year shall not exceed $5,000.

(2) Notification of change in status. The plan administrator (within the meaning of section 414(g)) of an employee retirement benefit plan defined in section 301.6057-1 (a) (3) is liable for the amount imposed by section 6652(e) (2) in each case in which there is a failure to file a notification of a change in plan status, as described in section 6057(b) and § 301.6057-2, at the time and place and in the manner prescribed therefor (determined without regard to any extension of time for filing). The amount imposed by section 6652(e) (2) on the plan administrator is $1 for each day during which the failure to so file a notification of a change in plan status continues. However, the total amount imposed by section 6652 (e) (2) on the plan administrator with respect to a failure to file a notification of a change in plan status shall not exceed $1,000.

during which the failure to file the statement with respect to a merger, consolidation or transfer of assets or liabilities liabilities continues. However, the amount imposed by section 6652(f) on the plan administrator with respect to a failure to file the statement with respect to a merger, consolidation or transfer shall not exceed $5,000.

(5) Information relating to certain trusts and annuity and bond purchase plans. Under section 6652(f) the amount described in this subparagraph is imposed in each case in which there is a failure to file a return or statement required by section 6047 at the time and in the manner prescribed therefor in § 1.6047-1 (determined with regard to any extension of time for filing). The amount is imposed upon the trustee of a trust described in section 401(a), custodian of a custodial account or issuer of an annuity contract, as the case may be (see 1.6047-1 (a) (1) (i) and (ii)). The amount imposed by section 6652 (f) is $10 for each day during which the failure to file with respect to a payee for a calendar year continues. However, the amount imposed with respect to a failure to file with respect to a payee for a calendar year shall not exceed $5,000.

(b) Showing of reasonable cause(1) No amount imposed by section 6652(e) shall apply with respect to a failure to file information relating to

mergers.

[Reserved]

(4) Actuarial statement in case of The plan administrator (within the meaning of section 414 (g)) is liable for an amount imposed by section 6652 (f) in each case in which there is a failure to file the actuarial statement described in section 6058(b) at the time and in the manner prescribed therefor (determined with regard to any extension of time for filing). The amount imposed by section 6652(f) on the plan administrator is $10 for each day.

of a plan participant under section 6057 (a), or a failure to give notice of a change in plan status under section 6057(b), if it is established to the satisfaction of the director of the internal revenue service center at which the information or notice is required to be filed that the failure was due to reasonable cause.

(2) No amount imposed by section 6652(f) shall apply with respect to a failure to file a return or statement required by section 6058 or 6047, or a failure to provide material items of information called for on such a return or statement, if it is established

to the satisfaction of the appropriate district director or the director of the internal revenue service center at which the return or statement is required to be filed that the failure was due to reasonable cause.

(3) An affirmative showing of reasonable cause must be made in the form of a written statement setting forth all the facts alleged as reasonable cause. The statement must contain a declaration by the appropriate individual that the statement is made under the penalties of perjury.

(c) Joint liability. If more than one person is reasponsible for a failure to comply with section 6057 (a) or (b) or section 6058(a) or (b) or section 6047, all such persons shall be jointly and severally liable with respect to the failure.

(d) Manner of payment. An amount imposed under section 6652 (e) or (f) and this section shall be paid in the same manner as a tax upon the issuance of notice and demand therefor.

(e) Effective dates (1) Annual registration statement. With respect to the annual registration statement described in section 6057 (a), this section is effective

(i) In the case of a plan to which only one employer contributes, for plan years beginning after December 31, 1975, with respect to participants who separate from service covered by the plan in plan years beginning after that date, and

(ii) In the case of a plan to which more than one employer contributes, for plan years beginning after December 31, 1977, and with respect to participants who complete two consecutive one-year breaks in service under the plan in service computation periods beginning after December 31, 1974.

(2) Notification of change in status. With respect to the notification of change in plan status required by section 6057(b), this section is effective with respect to a change in status

after December 31, 1975.

(3) Annual return of employee benefit plan. With respect to the annual return of employee benefit plan required by section 6058(a), this section is effective for plan years beginning after September 2, 1974.

(4) Actuarial statement in case of mergers. With respect to the actuarial statement required by section 6058 (b), this section is effective with respect to mergers, consolidations or transfers of assets or liabilities occurring after September 2, 1974.

(5) Information relating to certain trusts and annuity and bond purchase plans. With respect to reports or statements required to be filed by section 6047 and the regulations thereunder, this section is effective with respect to calendar years ending after September 2, 1974.

Par. 4. There is added in the appropriate place the following new section:

§ 301.6690-1 Penalty for fraudulent statement or failure to furnish statement to plan participant.

(a) Penalty. Any plan administrator required by section 6057 (e) and § 301.6051-1 (e) to furnish a statement of deferred vested retirement benefit to a plan participant is subject to a penalty of $50 in each case in which the administrator (1) willfully fails to furnish the statement to the participant in the manner, at the time, and showing the information required. by section 6057 (e) and § 301.6057-1 (e), or (2) willfully furnishes a false or fraudulent statement to the participant. The penalty shall be assessed and collected in the same manner as the tax imposed on employers under the Federal Insurance Contributions Act.

(b) Effective date. This section. shall take effect on September 2, 1974. This Treasury decision is issued under the authority contained in sections 6057 and 7805 of the Internal Revenue Code of 1954 (88 Stat. 943

and 7805).

JEROME KURTZ,
Commissioner of
Internal Revenue.

Approved: August 17, 1978.

DONALD C. LUBICK,
Assistant Secretary

of the Treasury.

(Filed by the Office of the Federal Register on August 24, 1978, 8:45 a.m., and published in the issue of the Federal Register for August 25, 1978, 43 F.R. 38002)

Section 6058.—Information
Required in Connection with
Certain Plans of Deferred
Compensation

26 CFR 301.6058-1: Information required in connection with certain plans of deferred compensation.

(Also Section 6652; 301.6652-3.) T.D. 75511

TITLE 26.-INTERNAL REV

ENUE. CHAPTER I, SUB-
CHAPTER A, PART 1.-IN-
COME TAX; TAXABLE YEARS
BEGINNING AFTER DECEM-
BER 31, 1953; SUBCHAPTER F,
PART 301.-PROCEDURE AND

ADMINISTRATION

lations would provide the public with the guidance needed to comply with ERISA and would also affect all employers and plan administrators with funded plans of deferred compensation.

DATE: The regulations are generally effective for plan years beginning after September 2, 1974.

FOR FURTHER INFORMATION CONTACT: William D. Gibbs of the Legislation and Regulations Division, Office of the Chief Counsel, Internal Revenue Service, 1111 Constitution Avenue, N.W., Washington, D.C. 20224 (Attention: CC:LR:T) (202566-3293) (not a toll-free number). SUPPLEMENTARY

TION:

INFORMA

BACKGROUND

On February 10, 1978, the Federal Register published proposed amendments to the Income Tax Regulations (26 CFR Part 1) under sections 404, 6033 and 6047 and the Procedure and Administration Regulations (26 CFR Part 301) under sections 6058 and 6652 of the Internal Revenue Code of 1954 (43 FR 5854). The amendments were proposed to conform the regulations to section 1031 of the

Act of 1974 (88 Stat. 943). A public hearing was held on April 13, 1978.

ACTION: Final regulations.

SUMMARY: This document provides final regulations relating to the filing of annual returns for employee retirement benefit plans. Changes in the applicable tax law were made by the Employee Retirement Income Security Act of 1974 ("ERISA"), [PubL. 93-406, 1974-3 C.B. 1]. The regu

1 This publication of the Treasury Decision contains the complete text of the regulations. The individual instructions for modifying the notice of proposed rule making have been omitted.

regarding the proposed amendments, those amendments are adopted as revised by this Treasury decision.

RELIEF FROM FILING Section 301.6058-1 (c) (5) of the proposed amendments allowed the Commissioner to relieve an employer or plan administrator from reporting information on the appropriate forms which was reported on other returns to the Service. That discretion has been broadened to allow the Commissioner to relieve employers and plan administrators from reporting information, regardless of whether the in

DELAYED EFFECTIVE DATE
FOR PENALTIES

In the case of forms required to be filed under section 6058 on or before July 31, 1978, no penalties will be imposed under section 6652(f) with respect to a period of time ending before September 1, 1978.

CLARIFYING AMENDMENTS

Several minor clarifying changes have been made to the proposed amendments.

DRAFTING INFORMATION

The principal author of this regulation was William D. Gibbs of the Legislation and Regulations Division of the Office of Chief Counsel, Internal Revenue Service. However, personnel from other offices of the Internal Revenue Service and Treasury Department participated in developing the regulation, both on matters of substance and style.

Adoption of amendments to the regulations

Accordingly, the following amendments are hereby adopted:

INCOME TAX REGULATIONS

ferred compensation shall file the forms prescribed by this section. * * *

section, and for criminal penalty for furnishing fraudulent information under this section, see §§ 301.6652-3 and 301.7207-1, respectively.

*

REGULATIONS ON PROCEDURE AND ADMINISTRATION

(26 CFR Part 301)

Paragraph 6. There is inserted in the appropriate place the following new section:

§ 301.6058-1 Information required in connection with certain plans of deferred compensation. (a) Reporting of information—(1) Annual return. For each funded plan of deferred compensation an annual return must be filed with the Internal Revenue Service. The annual return of the plan is the appropriate Annual Return/Report of Employee Benefit Plan (Form 5500 series) as determined under these forms. The annual period for the annual return of the plan shall be either the plan year or the taxable year of the employer maintaining the plan as determined under these forms. These forms are hereinafter referred to as the "forms prescribed by section. 6058(a).”

(2) Plans subject to requirements. For purposes of this section, the term "funded plan of deferred compensation" means each pension, annuity, stock bonus, profit-sharing, or other funded plan of deferred compensation described in part 1 of subchapter D of chapter 1. Accordingly, the term includes qualified plans under sections 401(a), 403(a), and 405(a); individual retirement accounts and annuities described in sections 408(a) and 408(b); and custodial accounts under section 403(b) (7). The term also includes: funded plans of deferred compensation which are not qualified plans; funded governmental plans and church plans, whether or not qualified (see sections 414(d) and 414(e)); and plans maintained out

side the United States primarily for nonresident aliens (as described in subsection (b) (4) of section 4 of Subtitle A of Title I of the Employee Retirement Income Security Act of 1974 (88 Stat. 840)). The term does not include anuity contracts described in section 403(b) (1) or individual retirement accounts (an individual participant or surveying beneficiary in such account must file under paragraph (d) (2) of this section) and bonds described in sections 408 (c) and 409.

(3) Required Information. The information required to be furnished on the forms prescribed by section 6058 (a) shall include such information. concerning the qualification of the plan, the financial condition of the trust, fund, or custodial or fiduciary account which is a part of the plan, and the operation of the plan as shall be required by the forms, applicable accompanying schedules and related instructions applicable to the annual period.

(4) Time of filing. The forms prescribed by section 6058 (a) shall be filed in the manner and at the time as required by the forms and related instructions applicable to the annual period.

(b) Who must file-(1) In general. The annual return required to be filed under section 6058(a) and paragraph (a) of this section for the annual period shall be filed by either the employer maintaining the plan or the plan administrator (as defined in section 414(g)) of the plan for that annual period. Whether the employer or plan administrator files shall be determined under the forms prescribed by section 6058(a) and related instructions applicable to the annual period. Nothing in these forms shall preclude an employer from filing the return on behalf of the plan administrator, or the plan administrator from filing on behalf of the employer.

(2) Definition of employer. For purposes of subparagraph (1) of this

paragraph, the term "employer” includes a sole proprietor and a partnership.

(c) Other rules applicable to annual returns (1) Extensions of time for filing. For rules relating to the extension of time for filing, see section 6081 and the regulations thereunder and the instructions on the forms prescribed by section 6058(a).

(2) Amended filing. Any form prescribed by this section may be filed as an amendment to a form previously filed under this section with respect to the same annual period pursuant to the instructions for such forms.

(3) Additional information. In addition to the information otherwise required to be furnished by this section, the district director may require any further information that is considered necessary to determine allowable deductions under section 404, qualification under section 401, or the financial condition and operation of the plan.

(4) Records. Records substantiating all data and information required by this section to be filed must be kept at all times available for inspection by internal revenue officers at the principal office or place of business of the employer or plan administrator.

(5) Relief from filing. Notwithstanding paragraph (a) of this section, the Commissioner may, in his discretion, relieve an employer, or plan administrator, from reporting information on the forms prescribed by section 6058(a). This discretion inIcludes the ability to relieve an employer, or plan administrator, from filing the applicable form.

(d) Special rules for individual retirement arrangements—(1) Application. This paragraph, in lieu of paragraph (a) of this section, applies to

an individual retirement account described in section 408(a) and an individual retirement annuity described in section 408(b), including such accounts and annuities for which a deduction is allowable under section 220

(spousal individual retirement arrangements).

(2) General rule. For each taxable year beginning after December 31, 1974, every individual who during such taxable year

(i) Establishes or maintains an individual retirement account described in section 408 (a) (including an individual who is a participant in an individual retirement account described in section 408 (c)),

(ii) Purchases or maintains an individual retirement annuity described in section 408(b), or

(iii) Is a surviving beneficiary with respect to an account or annuity referred to in this subparagraph which is in existence during such taxable year,

shall file Form 5329 (or any other form designated by the Commissioner for this purpose), as an attachment to or part of the Form 1040 filed by such individual for such taxable year, setting forth in full the information required by that form and the accompanying instructions.

(3) Special information returns. If an individual described in subparagraph (2) of this paragraph is not required to file a Form 1040 for such taxable year, such individual shall file a Form 5329 (or any other designated form) with the Internal Revenue Service by the 15th day of the 4th month following the close of such individual's taxable year setting forth in full the information required by that form and the accompanying instructions.

(4) Relief from filing. The Commissioner may, in his discretion, relieve an individual from filing the form prescribed by this paragraph.

(5) Retirement bonds. An individual who purchases, holds, or maintains a retirement bond described in section 409 may be required to file a return under other provisions of the Code.

(e) Actuarial statement in case of mergers, etc. For requirements with respect to the filing of actuarial state

or

ments in the case of a merger, consolidation, or transfer of assets liabilities, see section 6058(b) and section 414(1) and the regulations thereunder.

(f) Effective dates (1) Section 6058 (a) requirements. The rules with respect to annual returns required under section 6058(a) (the rules in this section, other than paragraph (e) thereof) are effective for plan years beginning after September 2, 1974.

(2) Section 6058 (b) requirements. The requirements of section 6058 (b), relating to mergers, etc., and paragraph (e) of this section are effective on September 2, 1974, with respect to events described in section 6058(b) occurring on or after such date.

is

Par. 7. Section 301.6652-3 amended by adding a new paragraph (a) (3) to read as follows:

§ 301.6652-3 Failure to file information with respect to employee retirement benefit plan.2

(a) Amount imposed. * * *

(3) Annual return of funded plan of deferred compensation. Under section 6652(f) the amount described in this subparagraph is imposed in each case in which there is a failure to file the annual return described in section 6058(a) on behalf of a plan described in § 301.6058-1(a) at the time and in the manner prescribed therefor (determined with regard to any extension of time for filing). The employer maintaining the plan is liable for the amount imposed with respect to a failure to so file the annual return in each case in which the employer must file the return under § 301.6058-1 (a). The plan administrator (within the meaning of section 414(g)) is liable for the amount imposed in each case in which the plan administrator must file the return under § 301.60581(a). In the case of an individual retirement account or annuity described in section 408, the individual

The remainder of this section has not yet been adopted as a final regulation.

described in § 301.6058-1 (d) (2) who must file the annual return under § 301.6058-1(d) is liable for the amount imposed with respect to a failure to so file the annual return. The amount imposed is $10 for each. day during which the failure to file the annual return on behalf of a plan for a year continues. However, the total amount imposed with respect to a failure to file on behalf of a plan for any year shall not exceed $5,000.

*

This Treasury decision is issued under the authority contained in sections 6058 and 7805 of the Internal Revenue Code of 1954 (88 Stat. 945 and 68A Stat. 917; 26 U.S.C. 6058 and 7805).

JEROME KURTZ,
Commissioner of
Internal Revenue.

Approved June 29, 1978.

DONALD C. LUBICK,

Assistant Secretary

of the Treasury.

(Filed by the Office of the Federal Register on July 3, 1978; 4:23 p.m., and published in the issue of the Federal Register for July 7, 1978, 43 F.R. 29291)

Subpart F.-Information Concerning Income Tax Return Preparers

Section 6060.-Information Returns of Income Tax Return Preparers

Guidelines for the allocation of moving expenses, deductible from gross income, to earned income excluded from gross income. See Rev. Proc. 78-31, page 531.

26 CFR 1.6081-3: Automatic extension of time for filing corporation income tax re

turns.

T.D. 7567

TITLE

26.-INTERNAL REVENUE. CHAPTER I, SUBCHAPTER A, PART 1.-INCOME TAX; TAXABLE YEARS BEGINNING AFTER DECEMBER 31, 1953

Automatic extension of time for filing Corporate and Individual Income Tax Returns.

AGENCY: Internal Revenue Service, Treasury.

ACTION: Final regulations.

SUMMARY: This document provides final regulations relating to the automatic extension of time for filing Corporate and Individual Income Tax Returns. These regulations provide necessary guidance to the public and affect corporations and individuals seeking an automatic extension of the time for filing income tax returns. DATE: The regulations are effective for applications for automatic extensions filed after October 3, 1978.

FOR FURTHER INFORMATION CONTACT: David Jacobson of the

income tax return preparers.

Whether the lease of facilities and services to an unrelated income tax return preparer makes the lessor an income tax return preparer or the employer of an income tax return preparer. See Rev. Rul. 78-318, page 345.

Part VI.-Extension of Time for Filing Returns

Section 6081.-Extension of Time for Filing Returns

26 CFR 1.6081-1: Extensions of time for filing returns.

Office of the Chief Counsel, Internal Revenue Service, 1111 Constitution Avenue, N.W., Washington, D.C. 20224, Attention: CC:LR:T, 202566-3923, not a toll-free call.