SECTION 7. EFFECTIVE DATE

This notice applies to an election made for the first taxable year of a trust beginning after December 31, 1996. The provisions of this notice will be incorporated into regulations that will be effective for taxable years beginning after December 31, 1996.

PAPERWORK REDUCTION ACT

The collections of information contained in this notice have been reviewed and approved by the Office of Management and Budget for review in accordance with the Paperwork Reduction Act

If a trust has made estimated tax payments as a foreign trust based on application of new § 7701(a)(30)(E) to the trust, but has not yet filed a Form 1040NR for the 1997 taxable year, when the trust files its Form 1041 for the 1997 taxable year it must note on its Form 1041 that it made estimated tax payments based on treatment as a foreign trust. The Form 1041 must be filed with the Philadelphia Service Center (and not with the service center where the trust ordinarily would file its Form 1041).

If a trust forms part of a qualified stock bonus, pension, or profit sharing plan, the election provided by this notice must be made by attaching the statement to the plan’s annual return required under § 6058 (information return) for the first plan year beginning after December 31, 1996, or to the plan’s information return for the first plan year beginning after December 31, 1997. The statement must be attached to the plan’s information return that is filed no later than the due date for filing the plan’s information return for the first plan year beginning after December 31, 1997, plus extensions. The election will be effective for the first plan year beginning after December 31, 1996, and thereafter, until revoked or terminated.

year, and thereafter, until revoked or terminated.

A group trust under Rev. Rul. 81–100, 1981–1 C.B. 326, (and any other trust that is not described above and that is not required to file a Form 1041 or an information return) need not attach the statement to any return and should file the statement with the Philadelphia Service Center. The trust must make the election provided by this notice by filing the statement by October 15, 1999. The election will be effective for the 1997 taxable year, and thereafter, until revoked or terminated.

.03 Failure to File the Statement in the Required Manner and Time. If a trust fails to file the statement in the manner or time provided in Section 4.01 and 4.02, the trustee may provide a written statement to the district director having jurisdiction over the trust setting forth the reasons for failing to file the statement in the required manner or time. If the district director determines that the failure to file the statement in the required manner or time was due to reasonable cause, the district director may grant the trust an extension of time to file the statement. Whether an extension of time is granted shall be in the sole discretion of the district director. However, the relief provided by this notice is not ordinarily available if the statute of limitations for the trust’s 1997 taxable year has expired. Additionally, if the district director grants an extension of time, it may contain terms with respect to assessment as may be necessary to ensure that the correct amount of tax will be collected from the trust, its owners, and its beneficiaries.