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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