n-01-30.pdf

Preserve advance releases and the authoritative Internal Revenue Bulletin rendition; directory timestamps are file-publication metadata, not legal effective dates. HTML bulletins begin June 2003; earlier available issues require full PDF parsing.

This collection currently includes the publisher’s available advance-release directory. Historical bulletin renditions are discovered separately; an advance-release record alone does not certify the collection archive complete.

Part III - Administrative, Procedural, and Miscellaneous
Disaster relief for taxpayers affected by the Cerro Grande Fire.
Notice 2001-30
PURPOSE
This notice provides tax relief under sections 6081, 6161, 6404(h), 6654(e)(3),
and 7508A of the Internal Revenue Code for taxpayers affected by the Cerro Grande
Fire, which burned more than 40,000 acres in New Mexico in 2000. This fire started on
May 4, 2000, when the National Park Service initiated a prescribed burn at Bandelier
National Monument in New Mexico. The President issued a federal disaster declaration
on May 13, 2000. The declaration covers 21 New Mexico counties: Los Alamos, Rio
Arriba, Sandoval, Sante Fe, Bernalillo, Cibola, McKinley, Mora, San Juan, San Miguel,
Taos, Chaves, DeBaca, Dona Ana, Eddy, Guadalupe, Lincoln, Otero, Sierra, Socorra,
and Torrance (“affected counties”). These counties constitute a “covered disaster
area” within the meaning of section 301.7508A-1(d)(2) of the Procedure and
Administration Regulations.
SUMMARY OF RELIEF
(1) Individuals located in the affected counties and other individuals who are
“affected taxpayers” as defined by section 301.7508A-1(d)(1) of the regulations will

-2-
have a postponement to January 16, 2002, to file certain federal tax returns for
calendar year 2000 that would otherwise be due on April 16, 2001 (April 15, 2001 is a
Sunday). A postponement to January 16, 2002, is also granted to pay the amount of
tax (or any installment of tax) shown or required to be shown on those returns. These
returns include individual income tax returns (Forms 1040, 1040A, 1040EZ, 1040NR, or
1040NR-EZ) and gift tax returns (Forms 709 and 709-A).
(2) Interest (and penalties relating to a failure to timely file or pay) will be abated
through January 16, 2002, with respect to individual income tax returns for calendar
year 2000 originally due on April 16, 2001, for individuals located in the affected
counties and other individuals who are “affected taxpayers” as defined by section
301.7508A-1(d)(1).
(3) Affected taxpayers as defined by section 301.7508A-1(d)(1) of the
regulations other than individuals are granted both a 90 day postponement under
section 7508A and a six month extension under sections 6081 and 6161 to file certain
federal tax returns otherwise due on or after May 4, 2000, and on or before April 16,
2001, and to pay the tax shown or required to be shown on those returns. These
returns include partnership returns, corporate income tax returns, estate and trust
income tax returns, estate tax returns, annual returns filed by tax-exempt organizations,
certain excise tax returns and employment tax returns. See section 301.7508A-1(c)(1)
for a list of affected returns.
(4) The due date of any estimated tax payment originally due on or after May 4,
2000, and on or before April 16, 2001, for taxpayers located in the affected counties,

-3-
and other affected taxpayers, is postponed by 90 days and extended by an additional
six months. This applies to estimated tax payments made by individuals, corporations,
estates, and trusts. Individuals, trusts, and calendar year corporations will not be
subject to penalties for failure to pay estimated tax installments for 2000 with respect to
installments that were originally due on or after May 4, 2000. Individuals, estates,
trusts, and calendar year corporations will not be subject to penalties with respect to the
estimated tax installment due for 2001 that was originally due on or before April 16,
2001, as long as the installment is paid by January 16, 2002. Fiscal year corporations
and estates will not be subject to penalties for failure to pay estimated tax installments
due on or after May 4, 2000, and on or before April 16, 2001, as long as such
installments are paid by the extended and postponed due date.
(5) In addition the Internal Revenue Service has granted a 90 day postponement
of time to the “affected taxpayers” to perform the other acts described in section
301.7508A-1(c)(1) of the regulations, including the making of contributions to certain
pension plans and individual retirement accounts.
BACKGROUND
Section 6081 of the Code provides that the Secretary may grant a reasonable
extension of time (generally not to exceed 6 months) for filing any return, declaration,
statement, or other document required by the Internal Revenue Code or by regulations
thereunder.
Section 6161 of the Code provides that the Secretary may grant a reasonable
extension of time (generally not to exceed 6 months) for paying the amount (or any

-4-
installments) of tax shown or required to be shown on any return or declaration required
by the Code or by regulations thereunder.
Section 7508A of the Code provides the Secretary with authority to postpone the
time for performing certain acts under the internal revenue laws for a taxpayer affected
by a Presidentially declared disaster as defined in section 1033(h)(3). Pursuant to
section 7508A(a) and section 301.7508A-1 of the regulations, a period of up to 90 days
may be disregarded in determining whether the performance of certain acts is timely
under the internal revenue laws. Section 301.7508A-1(c)(1) lists seven acts performed
by taxpayers for which section 7508A relief may apply. Among these acts are the filing
of certain tax returns; the payment of certain taxes; the making of contributions to
certain pension plans and individual retirement accounts; the filing of a Tax Court
petition; the filing of a claim for credit or refund of tax; and the bringing of a lawsuit upon
a claim for credit or refund of tax. Section 301.7508A-1(d)(1) describes the seven types
of “affected taxpayers” eligible for the 90 day postponement. These taxpayers include,
among others, any individual whose principal residence, and any business entity whose
principal place of business, is located in the covered disaster area.
Section 6404(h) of the Code provides that if the Secretary extends for any period
the time for filing income tax returns under section 6081 and the time for paying income
tax with respect to such returns under section 6161 for an taxpayer located in a
Presidentially declared disaster area, the Secretary shall abate for such period the
assessment of any interest prescribed under section 6601 on such income tax. Section
301.7508A-1(f) provides that if there is both a postponement under section 7508A and

-5-
extensions of time to file the return and pay the tax under sections 6081 and 6161,
interest will be abated under section 6404(h) for the period of time disregarded under
section 7508A in addition to the period of time covered by the filing and payment
extensions.
GRANT OF RELIEF
The Internal Revenue Service, by the exercise of its authority under section
7508A of the Code, has granted a 90 day postponement of time to taxpayers affected
by the Cerro Grande Fire to perform the acts specified in section 301.7508A-1(c)(1) of
the regulations. The postponement applies to acts required to be performed within the
period beginning on the date of the fire (May 4, 2000) and ending on April 16, 2001.
In addition, the Internal Revenue Service has granted an extension of time to file
returns under section 6081 of the Code and to pay tax under section 6161. In
particular, individual income tax returns for calendar year 2000 originally due on April
16, 2001, are postponed and extended until January 16, 2002 (90 days plus six months
from April 16, 2001). Further, the payment of tax (or any installment of tax) shown or
required to be shown on those returns are correspondingly postponed and extended
until January 16, 2002. Income tax returns of taxpayers other than individuals, and
returns other than income tax returns, originally due on or after May 4, 2000, and on or
before April 16, 2001, are also postponed and extended for a period of 90 days plus six
months.
Further, pursuant to sections 6404(h) and 7508A of the Code and section
301.7508A-1(f) of the regulations, the Internal Revenue Service will abate the

-6-
assessment of any interest on income tax liabilities due under section 6601 for the
period of time disregarded under section 7508A and the period of time covered by the
filing and payment extensions under sections 6081 and 6161. Also, penalties relating
to a failure to timely file or pay will be waived for the period of time disregarded under
section 7508A and the period of time covered by the filing and payment extensions.
Taxpayers filing for relief under this notice should mark “Cerro Grande Fire” in
red ink on the top of their return.
DRAFTING INFORMATION
The principal author of this notice is Charles Hall of the Office of Associate Chief
Counsel, Procedure and Administration (Administrative Provisions and Judicial Practice
Division). For further information regarding this notice contact Charles Hall at (202)
622-4940 (not a toll-free call).