In a notice, the IRS updated its “Timely Mailed Is Timely Filed” rule. The IRS added FedEx First Overnight, FedEx International First Next Flight Out, FedEx International delivery, and UPS Next Day Air Early AM. It removed DHL Same Day Service, Next Day 10:30am, Next Day 12:30pm, Next Day 3:00pm, and 2nd Day Service. These were removed because the services no longer exist or modified to no longer conform to the IRS requirements. The full list of services that qualify for the timely mailed rule is charted in Notice 2015-38.
The IRS also points out that each delivery service stores the date recorded in its database only for a finite period, but for no less than six months. Senders or recipients using a designated delivery service can obtain information concerning the date recorded by contacting the designated delivery service. Contact information for each delivery service is available on the company’s website.
While this notice is not a sophisticated merger or acquisition case, I put it here because I want to draw attention to the rule and issues surrounding it. Under the Timely Mailed is Timely Filed rule, taxpayers benefit from being able to file on the last day, but be careful. Not all services qualify. Among the list is USPS first class, USPS registered, and USPS certified. If you choose to go off the list provided, be sure to file well ahead of time.
Whenever mailing a federal or state return that is time sensitive, be sure to send the parcel with some form of proof that it was timely sent. The feds and state are not as cautious as they should be when recording the postmark and several people have had to prove their position. It is better to have positive proof rather than no proof!
By: Basi & Basi at the Center for Financial, Legal and Tax Planning for Transworld M&A Advisors