SECTION 5. PROCEDURES

CONCERNING REQUESTS FOR AN EXTENSION OF TIME OR A WAIVER OF PENALTY

.01 Extension of time to pay the late payment amount . Prior to the expiration of the 180-day period described in section 3.01(1), an issuer may request that the Service grant it an extension of 180 days to pay the late payment amount determined under section 3.01(1). The request should be submitted to Internal Revenue Service, ATTENTION: SE:T:GE:TEB:O, 1111 Constitution Avenue, N.W., PE–5T2, Washington, D.C. 20224. The request should include the explanation required by section 3.04 and should address the unusual circumstances upon which the extension should be granted. Within 90 days after receiving a request for extension, the Service will notify the issuer in writing whether the extension is approved. If the Service does not notify the issuer in writing within that 90-day period, the issuer’s request for extension is approved. If a request for extension is approved, and payment is made within 180 days after the expiration of the 180-day period, then the late payment amount is the rebate amount that the issuer failed to pay, plus interest, as determined under section 3.01(1). If a request for extension is not approved, the issuer must pay either: (1) if within the 180-day period, the amount determined under section 3.01(1); or (2) if after the 180-day period, the amount determined under section 3.01(2).

.02 Waiver of penalty . Within 180 days after the expiration of the 180-day period described in section 3.01(1), an issuer may request that the Service grant it a waiver of the penalty described in section 3.02. The request for a waiver of penalty must be submitted to the Internal

Revenue Service, Ogden Submission Processing Center, Ogden, Utah 84201, and must be accompanied by payment of the amount determined under section 3.01(2), together with Form 8038–T ( Arbitrage Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate ). The request for a waiver of penalty should include the explanation required by section 3.04 and should address the unusual circumstances that justify waiver of the penalty. The Ogden Submission Processing Center will process the payment and immediately forward the request to SE:T:GE:TEB:O. Within 90 days after receiving a request for a waiver of penalty, the Service will notify the issuer in writing whether any portion of the penalty is waived and, if applicable, will promptly thereafter refund to the issuer any amount so waived. If the Service does not approve a waiver request with respect to any portion of the penalty, the issuer will be entitled, upon request, to a conference with the Service. If a conference is held, then, within 30 days after the conference, the Service will notify the issuer in writing whether any portion of the penalty is waived and, if applicable, will promptly thereafter refund to the issuer any amount so waived.

.03 Date of notification or refund . For purposes of this section 5, a notification in writing (or a refund) is made on the date the written notification (or refund) is sent.