Rev. Rul. 83-27

1983-1 C.B. 337, 1983-6 I.R.B. 8.

                       Internal Revenue Service
                                 Revenue Ruling

                           EXTENSION OF TIME TO FILE

                          Published: February 7, 1983

SECTION 6081. - -EXTENSION OF TIME FOR FILING RETURNS, 26 CFR 1.6081-1: Extension of time for filing returns

  Extension of time to file.  An extension of time to file a Form 1040, U.S. Individual Income Tax Return, is null and void, and the filer may be subject to the addition to the tax for failure to file timely, if false and misleading statements were made on the request for extension.

ISSUE

  Whether an extension of time to file Form 1040, U.S. Individual Income Tax Return, can be nullified in the situation described below.

FACTS

  A filed Form 2688, Application for Extension of Time to File U.S. Individual Income Tax Return.  Based upon the explanation presented by A on the form, the Internal Revenue Service granted the extension.  A subsequently filed the return within the extension period.  When the Service later examined the return, it determined that A had made false and misleading statements on the Form 2688.  Had the true facts been presented an extension would not have been granted.

LAW AND ANALYSIS

  Section 6081(a) of the Internal Revenue Code permits the Secretary to grant a reasonable extension of time to file a return.  Except for taxpayers who are abroad, no extension may be granted for more than 6 months.

  Under section 1.6081-1(b) of the Income Tax Regulations, a taxpayer must file a written application properly signed, specifying the particular return for which the extension of time for filing is desired, and a full explanation of the reasons for requesting the extension.

  The granting or withholding of an extension is a discretionary function which, like other discretionary authority, must be exercised within the limits of the authority granted.  The Code is clear that an extension should be based on "reasonable cause."  Consent cannot be granted if no reason other than the taxpayer's own laxity exists.  In granting an extension, the Service must determine that sufficient facts have been presented to allow the filing time to be extended.  An extension is valid only to the extent the facts presented in the request comport with a reasonable judgment as to the true facts.  If, in fact, the circumstances are not as the taxpayer states, and if under the true facts of the case the extension would not have been granted, the extension is void from inception.

HOLDING

  The extension to file is null and void.  A is subject to the addition to the tax for failure to file timely as provided under section 6651 of the Code.

Rev. Rul. 83-27, 1983-1 C.B. 337, 1983-6 I.R.B. 8.