[Code of Federal Regulations]
[Title 26, Volume 17]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR53.6161-1]

[Page 244-245]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 53_FOUNDATION AND SIMILAR EXCISE TAXES--Table of Contents
 
                 Subpart L_Procedure and Administration
 
Sec. 53.6161-1  Extension of time for paying tax or deficiency.

    (a) In general--(1) Tax shown or required to be shown on return. A 
reasonable extension of the time for payment of the amount of any tax 
imposed by Chapter 42 and shown or required to be shown on any return, 
may be granted by the district directors and directors of the service 
centers at the request of the taxpayer. The period of such extension 
shall not be in excess of 6 months from the date fixed for payment of 
such tax, except that if the taxpayer is abroad the period of the 
extension may be in excess of 6 months.
    (2) Deficiency. The time for payment of any amount determined as a 
deficiency in respect of tax imposed by Chapter 42 may, at the request 
of the taxpayer, be extended by the internal revenue officer to whom the 
tax is required to be paid for a period not to exceed 18 months from the 
date fixed for payment of the deficiency, as shown on the notice and 
demand, and, in exceptional cases for a further period not in excess of 
12 months. No extension of the time for payment of a deficiency shall be 
granted if the deficiency is due to negligence, to intentional disregard 
of rules and regulations, or to fraud with intent to evade tax.
    (3) Extension of time for filing distinguished. The granting of an 
extension of time for filing a return does not operate to extend the 
time for the payment of the tax or any part thereof unless so specified 
in the extension.
    (b) Undue hardship required for extension. An extension of the time 
for payment shall be granted only upon a satisfactory showing that 
payment on the due date of the amount with respect to which the 
extension is desired will result in an undue hardship. The extension 
will not be granted upon a general statement of hardship. The term 
``undue hardship'' means more than an inconvenience to the taxpayer. It 
must appear that substantial financial loss, for example, loss due to 
the sale of property at a sacrifice price, will result to the taxpayer 
from making payment on the due date of the amount with respect to which 
the extension is desired.

[[Page 245]]

If a market exists, the sale of property at the current market price is 
not ordinarily considered as resulting in an undue hardship.
    (c) Application for extension. An application for an extension of 
the time for payment of the tax shown or required to be shown on any 
return, or for the payment of any amount determined as a deficiency 
shall be made on Form 1127 and shall be accompanied by evidence showing 
the undue hardship that would result to the taxpayer if the extension 
were refused. Such application shall also be accompanied by a statement 
of the assets and liabilities of the taxpayer and an itemized statement 
showing all receipts and disbursements for each of the three months 
immediately preceding the due date of the amount to which the 
application relates. The application, with supporting documents, must be 
filed on or before the date prescribed for payment of the amount with 
respect to which the extension is desired with the internal revenue 
officer to whom the tax is to be paid. The application will be examined, 
and within 30 days, if possible, will be denied, granted, or tentatively 
granted subject to certain conditions of which the taxpayer will be 
notified. If an additional extension is desired, the request therefor 
must be made on or before the expiration of the period for which the 
prior extension is granted.
    (d) Payment pursuant to extension. If an extension of time for 
payment is granted, the amount the time for payment of which is so 
extended shall be paid on or before the expiration of the period of the 
extension without the necessity of notice and demand. The granting of an 
extension of the time for payment of the tax or deficiency does not 
relieve the taxpayer from liability for the payment of interest thereon 
during the period of the extension. See section 6601 and Sec. 301.6601-
1 of this chapter (Regulations on Procedure and Administration).