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IRS Audits

Chapter 6. Payer Compliance

Section 1. Information Returns Program (IRP) Scope and Background (Cont. 1)

4.6.1  Information Returns Program (IRP) Scope and Background (Cont. 1)

4.6.1.4 
Extension of Time and Waiver Processing

4.6.1.4.2  (06-20-2002)
Extensions

  1. Filers may request an extension of time to file any of the information returns filed with IRS or SSA.

  2. Although Forms W-2 are filed with SSA, extension of time requests for these documents are sent to IRS.

  3. Payers/employers can request an extension for filing these information returns and for furnishing information statements to the recipients.

  4. Extension requests must be postmarked by the due date of the information returns or information statements.

4.6.1.4.2.1  (06-20-2002)
Extensions For Filing With IRS/SSA

  1. Payers/employers request an extension of time to file information returns by submitting a Form 8809, Request for an Extension of Time to File Information Returns, to MCC.

  2. The Form 8809 may be submitted on paper. However, if a service bureau requests an extension for more than 50 payers/employers, the request must be submitted magnetically or electronically. More information on this filing requirement is contained in Publication 1220, Specifications for Filing Forms 1098, 1099, 5498, and W-2G Magnetically or Electronically.

  3. Form 8809 asks for the filer's name, address, EIN, Transmitter Control Code (only needed if filing magnetically or electronically), name of the person to contact and his/her phone number, the forms for which the extension is requested, and the reason for applying for the extension.

  4. Extensions are normally granted for 30 days. If filers need additional time, they may resubmit the Form 8809 asking for the additional time. In extreme situations, a 60-day extension may be approved.

4.6.1.4.2.2  (06-20-2002)
Extensions For Information Statements

  1. Filers request an extension for providing copies of information returns to recipients by submitting a letter to MCC or their district director. District Directors should notify MCC if these requests are received and approved/denied.

  2. This letter must contain the following:

    1. The filer's name.

    2. The filer's address.

    3. The filer's TIN.

    4. The type of return.

    5. A statement that the request is for providing statements to recipients.

    6. The reason for the delay.

    7. The signature of the payer or authorized agent.

     

  3. These extensions are granted for a maximum of 30 days.

4.6.1.4.2.3  (06-20-2002)
Processing of Extension Requests

  1. Extension requests are received by MCC either via letter, Form 8809, or magnetically/electronically.

  2. The magnetic/electronic requests are processed through a series of computer runs called the Automated Waiver and Extension (AWAX) system.

  3. The paper requests are key-entered onto a database.

  4. IRS responds to all extension requests with either an approval or a denial letter within 30 days of receipt of the request.

4.6.1.4.2.3.1  (06-20-2002)
Approval of Extension

  1. If an extension request is approved, MCC sends the filer a letter advising of the approved extension and the new due date.

4.6.1.4.2.3.2  (06-20-2002)
Denial of Extension

  1. Extension requests may be denied for any of the following reasons:

    1. No name or TIN was provided on the Form 8809.

    2. The request was not postmarked by the due date of the return.

    3. The types of returns for which the extension was requested were not listed on the Form 8809.

    4. The Form 8809 or letter was not signed.

    5. The request was for more than 30 days.

    6. The request was for more than one payer/employer using the same TIN.

    7. The request was illegible.

    8. For magnetic/electronic files, the format of the file was incorrect.

     

  2. Filers are given the opportunity to resubmit an extension which has been denied.

  3. The filer has 20 days to resubmit this request and provide the needed information. The payer should write reconsideration on the top of the Form 8809 when resubmitting the request.

4.6.1.4.2.4  (06-20-2002)
Late Filing Penalties

  1. The extension information contained on the Informix database at MCC is forwarded to the appropriate area when late filing penalties are assessed on information returns.

  2. Filers with an approved extension will not be assessed late filing penalties if their returns were submitted by the end of their extension period.

  3. Information concerning late filing penalties assessed for a particular payer is available using command code PMFOL (Payer Master File on Line).

4.6.1.4.3  (06-20-2002)
Magnetic Media Filing Requirements

  1. IRC section 6011(e)(2)(A) provides that the IRS may require any person, including a corporation, partnership, individual, estate and trust, who is required to file 250 or more information returns, to file such returns magnetically or electronically.

  2. The 250 filing threshold is per type of return. For example, if a company has to file 300 Forms 1099-MISC, and 50 Forms W-2, only the 300 Forms 1099-MISC are required to be filed magnetically or electronically.

  3. All reporting requirements apply to each reporting entity as defined by its separate Taxpayer Identification Number (TIN), usually an Employer Identification Number (EIN). For example, if a corporation with several branches uses the same EIN, the corporation must aggregate the total volume of returns to be filed for that EIN and apply the filing requirements to each type of return accordingly.

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