Reg. § 1.1248(f)-3 Reasonable cause and effective/applicability dates.
(a) Reasonable cause for failure to comply
(1) Request for relief If an 80-percent distributee, a distributee that is a section shareholder, or the domestic distributing corporation (reporting person) fails to timely comply with any requirement under , the failure shall be deemed not to have occurred if the reporting person is able to demonstrate that the failure was due to reasonable cause and not willful neglect using the procedure set forth in of this section. Whether the failure to timely comply was due to reasonable cause and not willful neglect will be determined by the Director of Field Operations, Cross Border Activities Practice Area of Large Business & International (Director) based on all the facts and circumstances.
(2) Procedures for establishing that a failure to timely comply was due to reasonable cause and not willful neglect
(i) Time of submission A reporting person's statement that the failure to timely comply was due to reasonable cause and not willful neglect will be considered only if, promptly after the reporting person becomes aware of the failure, an amended return is filed for the taxable year to which the failure relates that includes the information that should have been included with the original return for such taxable year or that otherwise complies with the rules of this section, and that includes a written statement explaining the reasons for the failure to timely comply.
(ii) Notice requirement In addition to the requirements of of this section, the reporting person must comply with the notice requirements of this . If any taxable year of the reporting person is under examination when the amended return is filed, a copy of the amended return and any information required to be included with such return must be delivered to the Internal Revenue Service personnel conducting the examination. If no taxable year of the reporting person is under examination when the amended return is filed, a copy of the amended return and any information required to be included with such return must be delivered to the Director.
(b) Effective/applicability date
(1) General rule Except as provided in of this section, and apply to distributions occurring on or after April 18, 2013. The provisions of apply to distributions occurring on or after April 17, 2013.
(2) Transactions described in Notice 87-64
(i) Gain not otherwise recognized For distributions occurring on or after September 21, 1987, and before April 18, 2013, section shall not apply to the extent the domestic distributing corporation recognizes gain with respect to the stock of the foreign distributed corporation as a result of the distribution under another provision of subtitle A of the Internal Revenue Code.
(ii) Section 355 distributions Taxpayers may apply the provisions of to distributions occurring on or after September 21, 1987.
[T.D. 9614, 78 FR 17050, Mar. 19, 2013, as amended by T.D. 9760, 81 FR 15169, Mar. 22, 2016]