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SECTION 6. BUSINESS AND

Internal Revenue Bulletin 2004-4 · 2026-10-03 edition · updated 2026-10-04 · United States

INDIVIDUAL TAX ISSUES

Statute or Regulation Act Postponed
1. Treas. Reg. § 1.71–1T(b),
Q&A–7
A payer spouse may send cash to a third party on behalf of a spouse that qualifies for
alimony or separate maintenance payments if the payments are made to the third party at
the written request or consent of the payee spouse. The request or consent must state that
the parties intend the payment to be treated as an alimony payment to the payee spouse
subject to the rules of section 71. The payer spouse must receive the request or consent
prior to the date of filing of the payer spouse’s first return of tax for the taxable year
in which the payment was made.
2. Treas. Reg. § 1.77–1 A taxpayer who receives a loan from the Commodity Credit Corporation may elect to
include the amount of the loan in his gross income for the taxable year in which the loan is
received. The taxpayer in subsequent taxable years must include in his gross income all
amounts received during those years as loans from the Commodity Credit Corporation,
unless he secures the permission of the Commissioner to change to a different method of
accounting. Treas. Reg. § 1.77–1 requires such requests to be filed within 90 days after
the beginning of the taxable year of change. Rev. Proc. 83–77 provides an automatic
90-day extension.
3. Treas. Reg.
§ 1.110–1(b)(4)(ii)(A)
The lessee must expend its construction allowance on the qualified long-term real
property within eight and one-half months after the close of the taxable year in which
the construction allowance was received.
4. Sec. 118(c)(2) A contribution in aid of construction received by a regulated public utility that provides
water or sewerage disposal services must be expended by the utility on qualifying
property before the end of the second taxable year after the year in which it was received
by the utility.
5. Treas. Reg. § 1.170A–5(a)(2) A contribution of an undivided present interest in tangible personal property shall be
treated as made upon receipt by the donee of a formally executed and acknowledged
deed of gift. The period of initial possession by the donee may not be deferred for more
than one year.
6. Sec. 172(b)(3) A taxpayer entitled to a carryback period under section 172(b)(1) may elect to relinquish
the entire carryback period. The taxpayer must make the election by the due date of the
taxpayer’s federal income tax return (including extensions) for the taxable year of the net
operating loss for which the election is to be effective.
7. Sec. 172(f)(6) A taxpayer entitled to a 10-year carryback under section 172(b)(1)(C) (relating to certain
specified liability losses) from any loss year may elect to have the carryback period with
respect to such loss year determined without regard to that section. The taxpayer must
make the election by the due date of the taxpayer’s federal income tax return (including
extensions) for the taxable year of the net operating loss.
8. Sec. 172(i)(3) A taxpayer entitled to a 5-year carryback period under section 172(b)(1)(G) (relating to
certain farming losses) from any loss year may elect to have the carryback period with
respect to such loss year determined without regard to that section. The taxpayer must
make the election by the due date of the taxpayer’s federal income tax return (including
extensions) for the taxable year of the net operating loss.
9. Sec. 172(j) A taxpayer entitled to a 5-year carryback period under section 172(h)(1)(H) (relating to
taxable years ending during 2001 and 2002) from any loss year may elect to have the
carryback period with respect to such loss year determined without regard to that section.
The taxpayer must make the election by the due date of the taxpayer’s federal income tax
return (including extensions) for the taxable year of the net operating loss.
10. Sec. 468A(g) A taxpayer that makes payments to a nuclear decommissioning fund with respect to a
taxable year must make the payments within 21/2 months after the close of such taxable
year (the deemed payment date).

January 26, 2004 338 2004-4 I.R.B.

Statute or Regulation Act Postponed
11. Sec. 530(h) A trustee of a Coverdell education savings account must provide certain information
concerning the account to the beneficiary by January 31 following the calendar year to
which the information relates. In addition, Form 5498 must be filed with the IRS by May
31 following the calendar year to which the information relates.
12. Sec. 563(a) In the determination of the dividends paid deduction for purposes of the accumulated
earnings tax imposed by section 531, a dividend paid after the close of any taxable year
and on or before the 15th day of the third month following the close of such taxable year
shall be considered as paid during such taxable year. The close of the taxable year is not
affected by this revenue procedure; the 31/2-month period within which the dividend is
paid is the period extended.
13. Sec. 563(b) In the determination of the dividends paid deduction for purposes of the personal holding
company tax imposed by section 541, a dividend paid after the close of any taxable year
and on or before the 15th day of the third month following the close of such taxable year
shall, to the extent the taxpayer elects on its return for the taxable year, be considered as
paid during such taxable year. The close of the taxable year is not affected by this revenue
procedure; the 31/2-month period within which the dividend is paid is the period extended.
14. Sec. 563(c) In the determination of the dividends paid deduction for purposes of part III, a dividend
paid after the close of any taxable year and on or before the 15th day of the third month
following the close of such taxable year shall, to the extent the company designates such
dividend as being taken into account, be considered as paid during such taxable year. The
close of the taxable year is not affected by this revenue procedure; the 31/2-month period
within which the dividend is paid is the period extended.
15. Sec. 563(d) For the purpose of applying section 562(a), with respect to distributions under subsection
(a), (b), or (c) of section 562, a distribution made after the close of the taxable year and
on or before the 15th day of the third month following the close of the taxable year shall
be considered as made on the last day of such taxable year. The close of the taxable
year is not affected by this revenue procedure; the 31/2-month period within which the
dividend is paid is the period extended.
16. Treas. Reg.
§ 1.468A–3(h)(1)(v)
A taxpayer must file a request for a schedule of ruling amounts for a nuclear
decommissioning fund by the deemed payment date (21/2-months after the close of the
taxable year for which the schedule of ruling amounts is sought).
17. Treas. Reg.
§ 1.468A–3(h)(1)(vii)
A taxpayer has 30 days to provide additional requested information with respect to a
request for a schedule of ruling amounts. If the information is not provided within the 30
days, the request will not be considered filed until the date the information is provided.
18. Sec. 529(c)(3)(C)(i) A rollover contribution to another qualified tuition program must be made no later than
the 60th day after the date of a distribution from a qualified tuition program.
19. Sec. 530(d)(4)(C)(i) Excess contributions to a Coverdell education savings account must be distributed before
a specified time in the taxable year following the taxable year in which the contribution
is made.
20. Sec. 530(d)(5) A rollover contribution to another Coverdell education savings account must be made
no later than the 60th day after the date of a payment or distribution from a Coverdell
education savings account.
21. Sec. 1031(a) Any property received by the taxpayer shall be treated as property which is not like-kind
property if - (A) such property is not identified as property to be received in the exchange
on or before the day which is 45 days after the date on which the taxpayer transfers the
property relinquished in the exchange, or (B) such property is received after the earlier of
(i) the day which is 180 days after the date on which the taxpayer transfers the property
relinquished in the exchange, or (ii) the due date (determined with regard to extension) for
the transferor’s return of the tax imposed by this chapter for the taxable year in which the
transfer of the relinquished property occurs.

2004-4 I.R.B. 339 January 26, 2004

Statute or Regulation Act Postponed
22. Treas. Reg. § 1.1033(c)(3) Certain elections respecting the non recognition of gain on the involuntary conversion of
property (Treas. Reg. §§ 1.1033(c)(1) and (2)) are required to be made within the time
periods specified in Treas. Reg. § 1.1033(c)(3).
23. Sec. 1043(a) If an eligible person (as defined under section 1043(b)) sells any property pursuant to a
certificate of divestiture, then at the election of the taxpayer, gain from such sale shall
be recognized only to the extent that the amount realized on such sale exceeds the cost
of any permitted property purchased by the taxpayer during the 60-day period beginning
on the date of such sale.
24. Sec. 1045(a) A taxpayer other than a corporation may elect to roll over gain from the sale of qualified
small business stock held for more than six months if other qualified small business stock
is purchased by the taxpayer during the 60-day period beginning on the date of sale.
25. Sec. 1382(d) An organization, to which section 1382(d) applies, is required to pay a patronage dividend
within 81/2 months after the close of the year.
26. Sec. 1388(j)(3)(A) Any cooperative organization that exercises its option to net patronage gains and losses
is required to give notice to its patrons of the netting by the 15th day of the 9th month
following the close of the taxable year.
27. Treas. Reg. § 301.7701–3(c) The effective date of an entity classification election (Form 8832) cannot be more than 75
days prior to the date on which the election is filed.
28. Treas. Reg.
§ 301.9100–2(a)(1)
An automatic extension of 12 months from the due date for making a regulatory election
is granted to make certain elections, including the election to use other than the required
taxable year under section 444, and the election to use LIFO under section 472.
29. Treas. Reg.
§§ 301.9100–2(b)–(d)
An automatic extension of 6 months from the due date of a return, excluding extensions, is
granted to make the regulatory or statutory elections whose due dates are the due date of
the return or the due date of the return including extensions (for example, a taxpayer has
an automatic 6 month extension to file an application to change a method of accounting
under Rev. Proc. 2002–9), provided the taxpayer (a) timely filed its return for the year of
election, (b) within that 6-month extension period, takes the required corrective action to
file the election in accordance with the statute, regulations, revenue procedure, revenue
ruling, notice or announcement permitting the election, and (c) writes at the top of the
return, statement of election or other form “FILED PURSUANT TO § 301.9100–2.”
30. Notice 2002–25 Notice 2002–25, 2002–1 C.B. 743, relaxes the contemporaneous written acknowledgment
requirement for charitable contributions of $250 or more made after September 10, 2001,
and before January 1, 2002, if taxpayers obtain the written acknowledgment or have
evidence of a good-faith attempt to obtain it by October 15, 2002.

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