These are miscellaneous informational tax items of interest to tax
professionals. Some of the information is from the IRS, some from other
government agencies, and some are from public sources. You will find that
the items are very interesting, informative, and perhaps helpful to you
in your practice.
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| Files Already in the Internal Revenue Bulletin |
Bulletin |
IRB Date |
 |
| Notice 2004-84(PDF) |
IRB #2004-52(HTML) |
12/27/2004 |
| Retirement plans; qualification, list of changes. This notice sets forth a list of changes referred to in Announcement 2004-71, 2004-40 I.R.B. 569, pertaining to the statutory, regulatory, and guidance changes needed for certain requests to the Service as well as the designation of the regulations pertaining to a retroactive annuity starting date as a disqualifying provision. |
| Rev. Proc. 2004-72(PDF) |
IRB #2004-52(HTML) |
12/27/2004 |
| This procedure allocates the national limitation of $400 million for year 2005 for Qualified Zone Academy Bonds (QZABs) among the States ("States" includes the District of Columbia and possessions of the U.S. (American Samoa, Northern Marianas, Puerto Rico, Guam, and the Virgin Islands)). The procedure implements the amendments to section 1397E(e)(1) of the Code made by section 304 of the Working Families Tax Relief Act of 2004, which extended the authority to issue QZABs in the amount of $400 million each for years 2004 and 2005. |
| Notice 2004-82(PDF) |
IRB #2004-51(HTML) |
12/20/2004 |
| Weighted average interest rate update; corporate bond indices; 30-year Treasury securities. The weighted average interest rate for December 2004 and the resulting permissible range of interest rates used to calculate current liability and to determine the required contribution are set forth. |
| REG-149519-03(PDF) |
IRB #2004-51(HTML) |
12/20/2004 |
| Proposed regulations under section 707 of the Code provide guidance relating to the treatment of transactions between a partnership and its partners as disguised sales of partnership interests between partners. The regulations describe circumstances in which a transfer of consideration (including the assumption of a liability) by a purchasing partner to a partnership and a transfer of consideration by the partnership to a selling partner constitute a sale of a partnership interest. In addition, the proposed rules require disclosure of certain transfers and assumptions of liabilities to the Service. A public hearing is scheduled for March 8, 2005. |
| Rev. Rul. 2004-111(PDF) |
IRB #2004-51(HTML) |
12/20/2004 |
| Interest rates; underpayments and overpayments. The rate of interest determined under section 6621 of the Code for the calendar quarter beginning January 1, 2005, will be 5 percent for overpayments (4 percent in the case of a corporation), 5 percent for underpayments, and 7 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 2.5 percent. |
| Rev. Rul. 2004-112(PDF) |
IRB #2004-51(HTML) |
12/20/2004 |
| Internet activities. In one situation, the Internet activities conducted by a trade association described in section 501(c)(6) of the Code on a special supplementary section of its Internet website do not constitute unrelated trade or business under section 513(a), because such activities meet the exception for qualified convention and trade show activity under section 513(d)(3)(B). However, in a second situation, the Internet activities of another trade association do not meet the section 513(d)(3)(B) exception. |
| Rev. Proc. 2004-71(PDF) |
IRB #2004-50(HTML) |
12/13/2004 |
| Cost-of-living adjustments for 2005. This procedure provides cost-of-living adjustments for the tax rate tables for individuals, estates, and trusts, the standard deduction amounts, the personal exemption, and several other items that use the adjustment method provided for the tax rate tables. The Service also provides the adjustment for eligible long-term care premiums and another item that uses the adjustment method provided for eligible long-term care premiums. |
| Rev. Rul. 2004-109(PDF) |
IRB #2004-50(HTML) |
12/13/2004 |
| Signing or ratifying bonuses. This ruling holds that certain amounts paid to an employee as a signing bonus for a baseball contract or as a ratifying bonus pursuant to a collective bargaining agreement are wages for purposes of the Federal Insurance Contributions Act (FICA), the Federal Unemployment Tax Act (FUTA), and the Collection of Income Tax at Source on Wages (federal income tax withholding). Rev. Ruls. 58-145 and 74-108 revoked. Rev. Ruls. 69-424 and 71-532 obsoleted. |
| Rev. Rul. 2004-110(PDF) |
IRB #2004-50(HTML) |
12/13/2004 |
| Contract cancellation; employment contract. This ruling holds that an amount paid to an employee as consideration for cancellation of an employment contract and relinquishment of contract rights is ordinary income and wages for purposes of the Federal Insurance Contributions Act (FICA), the Federal Unemployment Tax Act (FUTA), and the Collection of Income Tax at Source (federal income tax withholding). Rev. Ruls. 55-520 and 58-301 modified and superseded. Rev. Ruls. 74-252 and 75-44 modified. |
| Notice 2004-80(PDF) |
IRB #2004-50(HTML) |
12/13/2004 |
| This notice alerts taxpayers to recent amendments to sections 6111, 6112, and 6708 of the Code and provides interim guidance until regulations or other guidance is published. |
| Rev. Proc. 2004-68(PDF) |
IRB #2004-50(HTML) |
12/13/2004 |
| This procedure provides exceptions to the brief asset holding period filter, which is a reportable transaction under section 1.6011-4(b)(7) of the regulations. |
| Rev. Proc. 2004-67(PDF) |
IRB #2004-50(HTML) |
12/13/2004 |
| This procedure provides exceptions to the book-tax filter, which is a reportable transaction under section 1.6011-4(b)(6) of the regulations. Rev. Proc. 2003-25 modified and superseded. |
| Rev. Proc. 2004-66(PDF) |
IRB #2004-50(HTML) |
12/13/2004 |
| This procedure provides exceptions to the loss transaction filter, which is a reportable transaction under section 1.6011-4(b)(5) of the regulations. Rev. Proc. 2003-24 modified and superseded. |
| Rev. Proc. 2004-65(PDF) |
IRB #2004-50(HTML) |
12/13/2004 |
| This procedure provides exceptions to the contractual protection filter, which is a reportable transaction under section 1.6011-4(b)(4) of the regulations. |
| Announcement 2004-98(PDF) |
IRB #2004-50(HTML) |
12/13/2004 |
| Public hearings with Chief Counsel Donald L. Korb and Associate Chief Counsel (International) Hal Hicks will be held on January 5, 2005, and February 1, 2005, to solicit comments and suggestions regarding the operation of the Advance Pricing Agreement program within the Office of Associate Chief Counsel (International). |
| Rev. Proc. 2004-70(PDF) |
IRB #2004-49(HTML) |
12/6/2004 |
| Insurance companies; discounted estimated salvage recoverable. The salvage discount factors are set forth for the 2004 accident year. These factors will be used to compute discounted estimated salvage recoverable under section 832 of the Code. |
| Rev. Proc. 2004-64(PDF) |
IRB #2004-49(HTML) |
12/6/2004 |
| Optional standard mileage rates. This procedure announces 40.5 cents as the optional rate for deducting or accounting for expenses for business use of an automobile, 14 cents as the optional rate for use of an automobile as a charitable contribution, and 15 cents as the optional rate for use of an automobile as a medical or moving expense for 2005. It provides rules for substantiating the deductible expenses of using an automobile for business, moving, medical, or charitable purposes. Rev. Proc. 2003-76 superseded. |
| Rev. Proc. 2004-69(PDF) |
IRB #2004-49(HTML) |
12/6/2004 |
| Insurance companies; loss reserves; discounting unpaid losses. The loss payment patterns and discount factors are set forth for the 2004 accident year. These factors will be used to compute discounted unpaid losses under section 846 of the Code. |
| Notice 2004-79(PDF) |
IRB #2004-49(HTML) |
12/6/2004 |
| This notice provides guidance regarding the definition of dependent under section 106 of the Code. |
| Rev. Rul. 2004-106(PDF) |
IRB #2004-49(HTML) |
12/6/2004 |
| Federal rates; adjusted federal rates; adjusted federal long-term rate and the long-term exempt rate. For purposes of sections 382, 642, 1274, 1288, and other sections of the Code, tables set forth the rates for December 2004. |
| Notice 2004-74(PDF) |
IRB #2004-48(HTML) |
11/29/2004 |
| The Service is suspending certain income limitation requirements under section 42 of the Code for certain low-income housing credit properties in Alabama as a result of the devastation caused by Hurricane Ivan. |
| Notice 2004-75(PDF) |
IRB #2004-48(HTML) |
11/29/2004 |
| The Service is suspending certain income limitation requirements under section 42 of the Code for certain low-income housing credit properties in Ohio as a result of the devastation caused by remnants of Hurricanes Ivan and Frances. |
| Notice 2004-78(PDF) |
IRB #2004-48(HTML) |
11/29/2004 |
| Actuarial assumptions; distributions under section 101 of Pension Funding Equity Act of 2004. This notice provides guidance in question and answer format on the use of actuarial assumptions in determining certain single sum distributions and the limitations of section 415(b)(2) of the Code as a result of section 415(b)(2)(E)(ii) as amended by section 101(b)(4) of the Pension Funding Equity Act of 2004. |
| Notice 2004-76(PDF) |
IRB #2004-48(HTML) |
11/29/2004 |
| The Service is suspending certain income limitation requirements under section 42 of the Code for certain low-income housing credit properties in Florida as a result of the devastation caused by Hurricanes Charley, Frances, Ivan, and Jeanne. Notice 2004-66 amplified and superseded. |
| Notice 2004-77(PDF) |
IRB #2004-47(HTML) |
11/22/2004 |
| Weighted average interest rate update; corporate bond indices; 30-year Treasury securities. The weighted average interest rate for November 2004 and the resulting permissible range of interest rates used to calculate current liability and to determine the required contribution are set forth. |
| Rev. Rul. 2004-108(PDF) |
IRB #2004-47(HTML) |
11/22/2004 |
| CPI adjustment for below-market loans for 2005. The amount that section 7872(g) of the Code permits a taxpayer to lend to a qualified continuing care facility without incurring imputed interest is published and adjusted for inflation for years 1987-2005. Rev. Rul. 2003-118 supplemented and superseded. |
| Rev. Rul. 2004-107(PDF) |
IRB #2004-47(HTML) |
11/22/2004 |
| Section 1274A -- inflation adjusted numbers for 2005. This ruling provides the dollar amounts, increased by the 2005 inflation adjustment, for section 1274A of the Code. Rev. Rul. 2003-119 supplemented and superseded. |
| Rev. Rul. 2004-102(PDF) |
IRB #2004-45(HTML) |
11/8/2004 |
| Federal rates; adjusted federal rates; adjusted federal long-term rate and the long-term exempt rate. For purposes of sections 382, 642, 1274, 1288, and other sections of the Code, tables set forth the rates for November 2004. |
| Announcement 2004-87(PDF) |
IRB #2004-45(HTML) |
11/8/2004 |
| This announcement is a public notice of the suspension of the federal tax exemption under section 501(p) of the Code of a certain organization that has been designated as supporting or engaging in terrorist activity or supporting terrorism. Contributions made to this organization during the period that the organization’s tax-exempt status is suspended are not deductible for federal tax purposes. |
| Rev. Rul. 2004-103(PDF) |
IRB #2004-45(HTML) |
11/8/2004 |
| Modification of Rev. Rul. 95-63. Rev. Rul. 95-63, with respect to countries described in section 901(j)(2)(A) of the Code, is modified by providing that Iraq ceased to be described in that section on June 27, 2004. Rev. Rul. 95-63 modified. |
| Notice 2004-71(PDF) |
IRB #2004-45(HTML) |
11/8/2004 |
| Section 1(h)(11) of the Code provides that certain dividends paid to an individual shareholder from either a domestic corporation or a "qualified foreign corporation" are subject to tax at the reduced rates applicable to certain capital gains. This notice provides guidance for persons required to make returns and provide statements under section 6042 of the Code (e.g., Form 1099-DIV) regarding distributions with respect to securities issued by a foreign corporation, and for individuals receiving such statements. The notice also describes when a security (or an American depositary receipt in respect of such security) issued by a foreign corporation that is other than ordinary or common stock (such as preferred stock) will satisfy the readily tradable test. |
| Announcement 2004-82(PDF) |
IRB #2004-45(HTML) |
11/8/2004 |
| This announcement notifies Archer MSA trustees of their obligation to report the number of Archer MSAs established between January 1, 2004, and June 30, 2004. |
| Notice 2004-70(PDF) |
IRB #2004-44(HTML) |
11/1/2004 |
| This document provides guidance regarding the treatment as qualified dividend income, for purposes of section 1(h)(11) of the Code, of distributions, inclusions, and other amounts from foreign corporations subject to certain anti-deferral regimes. |
| Rev. Proc. 2004-61(PDF) |
IRB #2004-43(HTML) |
10/25/2004 |
| This procedure allocates the national limitation of $400 million for year 2004 for Qualified Zone Academy Bonds (QZABs) among the states ("states" includes the District of Columbia and possessions of the U.S. (American Samoa, Northern Marianas, Puerto Rico, Guam, and the Virgin Islands)). The procedure implements the amendments to section 1397E(e)(1) of the Code made by section 304 of the Working Families Tax Relief Act of 2004, which extended the authority to issue QZABs in the amount of $400 million each for years 2004 and 2005. |
| Notice 2004-69(PDF) |
IRB #2004-43(HTML) |
10/25/2004 |
| Weighted average interest rate update; corporate bond indices; 30-year Treasury securities. The weighted average interest rate for October 2004 and the resulting permissible range of interest rates used to calculate current liability and to determine the required contribution are set forth. |
| Notice 2004-68(PDF) |
IRB #2004-43(HTML) |
10/25/2004 |
| This notice announces that the IRS and Treasury will amend regulations section 301.7701-2(b)(8) to include certain foreign entities on the list of entities always treated as corporations under section 7701 of the Code. |
| Rev. Proc. 2004-61(PDF) |
IRB #2004-43(HTML) |
10/25/2004 |
| This procedure allocates the national limitation of $400 million for year 2004 for Qualified Zone Academy Bonds (QZABs) among the states ("states" includes the District of Columbia and possessions of the U.S. (American Samoa, Northern Marianas, Puerto Rico, Guam, and the Virgin Islands)). The procedure implements the amendments to section 1397E(e)(1) of the Code made by section 304 of the Working Families Tax Relief Act of 2004, which extended the authority to issue QZABs in the amount of $400 million each for years 2004 and 2005. |
| Notice 2004-66(PDF) |
IRB #2004-42(HTML) |
10/18/2004 |
| The Service is suspending certain income limitation requirements under section 42 of the Code for certain low-income housing credit properties in Florida as a result of the devastation caused by Hurricane Charley and Hurricane Frances. |
| Rev. Proc. 2004-60(PDF) |
IRB #2004-42(HTML) |
10/18/2004 |
| Per diem allowances. This procedure provides rules for deeming substantiated the amount of certain reimbursed traveling expenses of an employee as well as optional rules for determining the amount of deductible meals and incidental expenses while traveling away from home. Rev. Proc. 2003-80 superseded. |
| Rev. Rul. 2004-98(PDF) |
IRB #2004-42(HTML) |
10/18/2004 |
| Parking reimbursements. This ruling holds that certain amounts paid to an employee as "reimbursements" for a parking expense that the employee supposedly "paid" through a salary reduction are wages for purposes of the Federal Insurance Contributions Act (FICA), the Federal Unemployment Tax Act (FUTA), and the collection of income tax at source on wages (federal income tax withholding). |
| Rev. Proc. 2004-60(PDF) |
IRB #2004-42(HTML) |
10/18/2004 |
| Per diem allowances. This procedure provides rules for deeming substantiated the amount of certain reimbursed traveling expenses of an employee as well as optional rules for determining the amount of deductible meals and incidental expenses while traveling away from home. Rev. Proc. 2003-80 superseded. |
| Rev. Proc. 2004-59(PDF) |
IRB #2004-42(HTML) |
10/18/2004 |
| This procedure describes the section 1441 Voluntary Compliance Program (VCP) which is available to certain withholding agents with respect to the withholding, payment, and reporting of certain taxes due on payments to foreign persons. |
| Announcement 2004-80(PDF) |
IRB #2004-41(HTML) |
10/12/2004 |
| Form 5500; Schedule B; actuarial data. This announcement clarifies the instructions to line 8c of the 2003 Schedule B of Form 5500. |
| Notice 2004-64(PDF) |
IRB #2004-41(HTML) |
10/12/2004 |
| This notice alerts taxpayers to recent amendments to section 501(c)(15) of the Code that may affect the qualification of entities as tax-exempt property and casualty insurance companies described in section 501(c)(15). The notice advises taxpayers that the Service will continue to scrutinize the eligibility of entities claiming to be tax-exempt property and casualty insurance companies. |
| Notice 2004-65(PDF) |
IRB #2004-41(HTML) |
10/12/2004 |
| This document modifies Notice 2002-70, 2002-2 C.B. 765, and Notice 2003-76, 2003-49 I.R.B. 1181, to remove certain reinsurance arrangements, which involve producer owned reinsurance companies (PORCs) from those identified as a "listed transaction," and notifies taxpayers that the Service will continue to scrutinize such arrangements. Notices 2002-70 and 2003-76 modified. |
| Rev. Rul. 2004-96(PDF) |
IRB #2004-41(HTML) |
10/12/2004 |
| Federal rates; adjusted federal rates; adjusted federal long-term rate and the long-term exempt rate. For purposes of sections 382, 642, 1274, 1288, and other sections of the Code, tables set forth the rates for October 2004. |
| Notice 2004-61(PDF) |
IRB #2004-41(HTML) |
10/12/2004 |
| This notice describes the transition period for purposes of sections 7702 and 7702A of the Code from the 1980 Commissioners Standard Ordinary mortality tables (CSO tables) to the 2001 CSO tables that are to be used by issuers of life insurance products. Notice 88-128 supplemented. |
| Notice 2004-63(PDF) |
IRB #2004-41(HTML) |
10/12/2004 |
| This notice announces that the Service will not assert penalties for failure to report, under section 6050S of the Code, payments of loan origination fees and capitalized interest received in calendar year 2004 on qualified education loans made on or after September 1, 2004. |
| Announcement 2004-77(PDF) |
IRB #2004-41(HTML) |
10/12/2004 |
| This document states that relief from the section 6715 penalty for highway use of dyed diesel fuel in Florida is extended until October 5, 2004. Announcement 2004-70 amended. |
| Notice 2004-67(PDF) |
IRB #2004-41(HTML) |
10/12/2004 |
| This notice sets out transactions that have been identified by the Department of the Treasury and the IRS as "listed transactions" for purposes of the regulations under sections 6011 and 6111 of the Code. Notice 2003-76 supplemented and superseded. |
| Announcement 2004-71(PDF) |
IRB #2004-40(HTML) |
10/4/2004 |
| Qualification; determination letters; staggered remedial amendment periods. This announcement includes a draft revenue procedure that contains the Service’s procedures for issuing letters pursuant to section 401(a) of the Code with respect to a staggered remedial amendment period system for plans that have not been pre-approved as well as for pre-approved plans. This document also invites comments from the public. |
| Notice 2004-62(PDF) |
IRB #2004-40(HTML) |
10/4/2004 |
| Minimum funding standards; disaster relief. The Service, the Employee Benefits Security Administration (EBSA) of the Department of Labor, and the Pension Benefit Guaranty Corporation (PBGC) are providing relief in connection with certain employee benefit plans because of damage in Florida caused by Tropical Storm Bonnie, Hurricane Charley, and Hurricane Frances (Florida Storms). The relief provided by this notice is in addition to the relief already provided by the Service to victims of the Florida Storms. |
| Notice 2004-60(PDF) |
IRB #2004-40(HTML) |
10/4/2004 |
| Weighted average interest rate update; corporate bond indices; 30-year Treasury securities. The weighted average interest rate for September 2004 and the resulting permissible range of interest rates used to calculate current liability and to determine the required contribution are set forth. |
| Announcement 2004-74(PDF) |
IRB #2004-40(HTML) |
10/4/2004 |
| This announcement is a public notice of the suspension of the federal tax exemption under section 501(p) of the Code of a certain organization that has been designated as supporting or engaging in terrorist activity or supporting terrorism. Contributions made to this organization during the period that the organization’s tax-exempt status is suspended are not deductible for federal tax purposes. |
| Announcement 2004-70(PDF) |
IRB #2004-39(HTML) |
9/27/2004 |
| The Service will not assert the penalty under section 6715 of the Code for diesel fuel that has been delivered or sold in Florida by wholesale dealers to retail dealers for resale to highway users or directly to end users for highway use for the period September 2, 2004, through September 15, 2004. |
| Notice 2004-58(PDF) |
IRB #2004-39(HTML) |
9/27/2004 |
| This notice sets forth a method that the IRS will accept for determining whether subsidiary stock loss is disallowed and subsidiary stock basis is reduced under regulations section 1.337(d)-2T, and requests comments as to what method should be adopted in prospective regulations. |
| Rev. Rul. 2004-97(PDF) |
IRB #2004-39(HTML) |
9/27/2004 |
| Section 7805(b); Rev. Rul. 2004-75. This ruling grants insurance companies section 7805(b) relief from the retroactive application of Rev. Rul. 2004-75. Rev. Rul. 2004-75 will not be applied to payments made to nonresident alien individuals or bona fide residents of Puerto Rico under life insurance or annuity contracts issued by foreign or Puerto Rican branches of U.S. life insurance companies before January 1, 2005, provided such payments are made pursuant to binding life insurance or annuity contracts issued by such branches on or before July 12, 2004. Rev. Rul. 2004-75 amplified. |
| Rev. Proc. 2004-57(PDF) |
IRB #2004-38(HTML) |
9/20/2004 |
| This procedure allows taxpayers additional time to file the written statement required by Rev. Proc. 2004-23, 2004-16 I.R.B. 785, relating to changes in methods of accounting for costs to acquire or create intangible assets. Rev. Proc. 2004-23 modified. |
| Rev. Rul. 2004-92(PDF) |
IRB #2004-37(HTML) |
9/13/2004 |
| Interest rates; underpayments and overpayments. The rate of interest determined under section 6621 of the Code for the calendar quarter beginning October 1, 2004, will be 5 percent for overpayments (4 percent in the case of a corporation), 5 percent for underpayments, and 7 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 2.5 percent. |
| Rev. Rul. 2004-69(PDF) |
IRB #2004-36(HTML) |
9/7/2004 |
| Federal rates; adjusted federal rates; adjusted federal long-term rate and the long-term exempt rate. For purposes of sections 382, 642, 1274, 1288, and other sections of the Code, tables set forth the rates for September 2004. |
| Notice 2004-59(PDF) |
IRB #2004-36(HTML) |
9/7/2004 |
| Alternative deficit reduction election; amendment following election. This notice provides guidance on the restrictions that are placed on plan amendments following an employer’s election of the alternative deficit reduction contribution under § 412(l)(12) of the Code and section 302(d)(12) of the Employee Retirement Income Security Act of 1974, as added by section 102 of the Pension Funding Equity Act of 2004. |
| Notice 2004-56(PDF) |
IRB #2004-35(HTML) |
8/30/2004 |
| Weighted average interest rate update; corporate bond indices; 30-year Treasury securities. The weighted average interest rate for August 2004 and the resulting permissible range of interest rates used to calculate current liability and to determine the required contribution are set forth. |
| Notice 2004-57(PDF) |
IRB #2004-35(HTML) |
8/30/2004 |
| This notice confirms that the Service will continue to assess and collect tax under section 4251 of the Code on all taxable communications services, including those communications services recently litigated with conflicting results. |
| Rev. Proc. 2004-56(PDF) |
IRB #2004-35(HTML) |
8/30/2004 |
| Section 457(b) plan model amendments for governmental plans. This procedure provides model amendments that may be used by a state or local government eligible employer (as defined in section 457(e)(1)(A) of the Code) to amend or draft its eligible section 457(b) plan to reflect the requirements of section 457 and the regulations thereunder. Rev. Proc. 98-41 superseded. |
| Rev. Rul. 2004-82(PDF) |
IRB #2004-35(HTML) |
8/30/2004 |
| Low-income housing credit. This ruling answers 12 questions about the low-income housing credit provisions under section 42 of the Code. |
| Notice 2004-55(PDF) |
IRB #2004-34(HTML) |
8/23/2004 |
| This notice solicits public comments concerning whether the existing final regulations under section 423 of the Code, concerning options granted under an employee stock purchase plan, should be amended. |
| Rev. Proc. 2004-55(PDF) |
IRB #2004-34(HTML) |
8/23/2004 |
| This procedure provides the domestic asset/liability percentages and domestic investment yield percentages needed by foreign insurance companies to compute their minimum effectively connected net investment income for taxable years beginning after December 31, 2002. |
| Rev. Proc. 2004-53(PDF) |
IRB #2004-34(HTML) |
8/23/2004 |
| This procedure explains both the standard procedure and an alternate procedure for preparing and filing Form W-2, Wage and Tax Statement; Form 941, Employer’s Quarterly Federal Tax Return; Form W-4, Employee’s Withholding Allowance Certificate; and Form W-5, Earned Income Credit Advance Payment Certificate, in certain acquisitions. It also provides guidance on the new schedule (Schedule D (Form 941), Report of Discrepancies Caused by Acquisitions, Statutory Mergers, or Consolidations) that employers will be able to use to explain discrepancies between Forms W-2 and 941. Rev. Proc. 96-60 superseded and Rev. Rul. 62-60 amplified. |
| Rev. Proc. 2004-49(PDF) |
IRB #2004-33(HTML) |
8/16/2004 |
| This procedure grants relief to S corporations that had a QSub election of a subsidiary terminate as a result of a transfer described in Situation 2 of Rev. Rul. 2004-85. |
| Rev. Rul. 2004-85(PDF) |
IRB #2004-33(HTML) |
8/16/2004 |
| Effect of mergers on qualified subchapter S subsidiary (QSub) elections. This ruling discusses the effect certain interest transfers have on QSub and entity classification elections. |
| Rev. Rul. 2004-86(PDF) |
IRB #2004-33(HTML) |
8/16/2004 |
| Classification of Delaware statutory trust. This ruling explains how a Delaware statutory trust described in the ruling will be classified for federal tax purposes and whether a taxpayer may acquire an interest in the Delaware statutory trust without recognition of gain or loss under section 1031 of the Code. Rev. Ruls. 78-371 and 92-105 distinguished. |
| Notice 2004-53(PDF) |
IRB #2004-33(HTML) |
8/16/2004 |
| Requests for comments concerning the application of section 761. This notice requests comments regarding the application of section 761 of the Code and whether section 1.761-2(a)(2) of the regulations should be revised, modified, or clarified. |
| Notice 2004-50(PDF) |
IRB #2004-33(HTML) |
8/16/2004 |
| This notice consists of 88 questions and answers on Health Savings Accounts (HSAs) that have not been previously addressed. This notice also provides transition relief for months before January 1, 2005, for health plans, which would otherwise qualify as high deductible health plans (HDHPs) except for the absence of an express limit on out-of-pocket expenses. It also provides transition relief for months before January 1, 2006, for health plans which allow deductibles to be satisfied over a period of more than 12 months. Notice 2004-2 modified. |
| Rev. Proc. 2004-51(PDF) |
IRB #2004-33(HTML) |
8/16/2004 |
| Like-kind exchanges using qualified exchange accommodation arrangements. This procedure modifies Rev. Proc. 2000-37, 2000-2 C.B. 308, to provide that the safe harbor of Rev. Proc. 2000-37 does not apply to replacement property held in a qualified exchange accommodation arrangement if the property is owned by a taxpayer within the 180-day period ending on the date of transfer of qualified indicia of ownership of the property to an exchange accommodation titleholder. Rev. Proc. 2000-37 modified. |
| Rev. Rul. 2004-80(PDF) |
IRB #2004-32(HTML) |
8/9/2004 |
| Retail excise tax; highway tractor; truck. This ruling applies the primarily designed tests in section 145.4051-1(e)(1) and (2) of the regulations under the Highway Revenue Act of 1982 (Pub. L. 97-424) for purposes of determining whether a vehicle is a truck or a highway tractor. |
| Rev. Proc. 2004-48(PDF) |
IRB #2004-32(HTML) |
8/9/2004 |
| This document provides that certain eligible entities may request relief for a late S corporation election and a late election to be classified as an association taxable as a corporation within 18 months of the original due date of the S corporation election (but in no event later than 6 months after the due date of the tax return, excluding extensions, for the first year the entity intended to be an S corporation). |
| Rev. Rul. 2004-83(PDF) |
IRB #2004-32(HTML) |
8/9/2004 |
| Corporate reorganizations. This ruling provides that if, pursuant to an integrated plan, a parent corporation sells the stock of a subsidiary to another subsidiary and the acquired subsidiary liquidates into the acquiring subsidiary, the transaction is a reorganization under section 368(a)(1)(D) of the Code. |
| Rev. Rul. 2004-84(PDF) |
IRB #2004-32(HTML) |
8/9/2004 |
| Federal rates; adjusted federal rates; adjusted federal long-term rate and the long-term exempt rate. For purposes of sections 382, 642, 1274, 1288, and other sections of the Code, tables set forth the rates for August 2004. |
| Notice 2004-52(PDF) |
IRB #2004-32(HTML) |
8/9/2004 |
| This notice requests comments regarding the treatment of certain financial transactions commonly known as credit default swaps (CDSs). |
| Rev. Rul. 2004-87(PDF) |
IRB #2004-32(HTML) |
8/9/2004 |
| Bankruptcy; golden parachute payments. This ruling provides rules for the application of section 280G of the Code, concerning golden parachute payments, in the context of a bankruptcy. Specifically, this ruling addresses whether the acquisition of stock by the former creditors results in a change in ownership or control, whether a corporation whose stock is de-listed is eligible for the exemption for certain corporations whose stock is not readily tradeable on an established securities market if the shareholder approval and disclosure requirements described in the final regulations are satisfied, and whether stock that is de-listed from a securities market is considered readily tradeable if it is traded on an over-the-counter market (such as the pink sheets). |
| Rev. Proc. 2004-43(PDF) |
IRB #2004-31(HTML) |
8/2/2004 |
| This document establishes an optional procedure for payors who make payments in the course of their trade or business through payment cards to determine whether the payments are reportable under sections 6041 and 6041A of the Code and the regulations thereunder. This procedure classifies businesses by Merchant Category Codes (MCCs), or other similar codes, according to whether they predominantly furnish services or predominantly provide goods. |
| Rev. Proc. 2004-45(PDF) |
IRB #2004-31(HTML) |
8/2/2004 |
| This procedure provides alternative disclosure procedures that are deemed to satisfy a taxpayer’s disclosure obligations under section 1.6011–4 of the regulations for transactions with a significant book-tax difference under section 1.6011–4(b)(6). Taxpayers also may continue to follow the disclosure procedures provided in section 1.6011–4 for disclosing transactions described in section 1.6011–4(b)(6). |
| Rev. Proc. 2004-42(PDF) |
IRB #2004-31(HTML) |
8/2/2004 |
| This procedure provides the requirements for a payment card organization to request and obtain an IRS determination that it is a Qualified Payment Card Agent (QPCA) for purposes of the related final regulations under sections 3406 and 6724 of the Code that address the information reporting and backup withholding requirements for payment card transactions. |
| Rev. Rul. 2004-75(PDF) |
IRB #2004-31(HTML) |
8/2/2004 |
| Annuity payments. This ruling addresses the taxation of income received by residents of Puerto Rico and nonresident aliens under life insurance and annuity contracts issued by a foreign branch of a U.S. life insurance company. The ruling holds that income received by nonresident aliens under life insurance and annuity contracts issued by a foreign branch of a U.S. life insurance company is U.S.-source FDAP income. The ruling also holds that income received by bonafide residents of Puerto Rico under life insurance or annuity contracts issued by a Puerto Rican branch of a U.S. life insurance company is U.S.-source income. |
| Rev. Rul. 2004-76(PDF) |
IRB #2004-31(HTML) |
8/2/2004 |
| Dual resident company. This ruling concludes that a dual resident company, resident in both Country Y and Country X under the domestic laws of those countries, is not entitled to claim benefits under the U.S. income tax convention with Coun try X if it is treated as a resident of Country Y and not of Country X for purposes of the income tax convention between Country X and Country Y and, as a result, is not liable to tax in Country X by reason of its residence. Rev. Rul. 73–354 obsoleted. |
| Rev. Rul. 2004-78(PDF) |
IRB #2004-31(HTML) |
8/2/2004 |
| Corporate reorganizations; exchange of debt instruments. This ruling discusses the exchange of a debt security for a debt instrument in a reorganization. |
| Rev. Rul. 2004-79(PDF) |
IRB #2004-31(HTML) |
8/2/2004 |
| Corporate distributions of property. This ruling addresses the tax consequences of the distribution by a subsidiary to its parent of parent indebtedness that the subsidiary previously purchased from a party unrelated to the parent. |
| Rev. Proc. 2004-44(PDF) |
IRB #2004-31(HTML) |
8/2/2004 |
| Minimum funding standards; amortization; extensions. This procedure sets forth guidelines for requesting extensions of the amortization period of the minimum funding standards with respect to defined benefit plans under section 412(e) of the Code. Rev. Proc. 79–61 superseded. Rev. Proc. 2004–4 modified. |
| Announcement 2004-59(PDF) |
IRB #2004-30(HTML) |
7/26/2004 |
| This announcement contains the annual report concerning the Pre-Filing Agreement program of the Large and Mid-Size Business Division of the Service for Calendar Year 2003. |
| Notice 2004-51(PDF) |
IRB #2004-30(HTML) |
7/26/2004 |
| Weighted average interest rate update; corporate bond
indexes; 30-year Treasury securities. The weighted average interest rate for July 2004 and the resulting permissible range of interest rates used to calculate current liability and to determine the required contribution are set |
| Rev. Proc. 2004-41(PDF) |
IRB #2004-30(HTML) |
7/26/2004 |
| This procedure describes circumstances under which an insurance company that makes incentive payments to health care providers will be permitted to deduct those payments without regard to section 404 of the Code. The procedure also provides automatic consent procedures for a taxpayer to change its method of accounting for such payments. Rev. Proc. 2002–9 modified and amplified. |
| Notice 2004-46(PDF) |
IRB #2004-29(HTML) |
7/19/2004 |
| This notice requests comments on whether debit cards may be used to provide qualified transportation fringes described under section 132(f) of the Code. |
| Notice 2004-47(PDF) |
IRB #2004-29(HTML) |
7/19/2004 |
| This notice relieves health insurance providers from preparing IRS Form 1099–H, “Health Coverage Tax Credit (HCTC) Advance Payments,” unless they affirmatively retain that obligation. A contractor of the IRS will prepare the form and file it with the Service and furnish copies to taxpayers. |
| Rev. Proc. 2004-39(PDF) |
IRB #2004-29(HTML) |
7/19/2004 |
| This document sets forth procedures for determining whether a qualified residential rental project is in compliance with the applicable set-aside requirements contained in section 142(d) of the Code during the qualified project period (as defined in section 142(d)(2)(A)). |
| Announcement 2004–58(PDF) |
IRB #2004-29(HTML) |
7/19/2004 |
| Relative value regulations; effective dates; notices; qualified joint and survivor annuities. This announcement postpones, in certain circumstances, the effective date of the relative value regulations. In addition, it responds to questions that have been raised in connection with the regulations. Finally, the announcement states the intention of the Treasury and the Service to clarify the interaction between the QJSA requirements and the requirements of section 417(e)(3). |
| Rev. Proc. 2004-40(PDF) |
IRB #2004-29(HTML) |
7/19/2004 |
| This procedure explains the manner in which taxpayers may request an advance pricing agreement (APA) from the APA Program within the Office of the Associate Chief Counsel (International), the manner in which such a request will be processed by the APA Program, and the effect and administration of APAs. Rev. Proc. 96–53 and Notice 98–65 superseded. |
| Announcement 2004-56(PDF) |
IRB #2004-28(HTML) |
7/12/2004 |
| This announcement is a public notice of the suspension of the federal tax exemption under section 501(p) of the Code of a certain organization that has been designated as supporting or engaging in terrorist activity or supporting terrorism. Contributions made to this organization during the period that the organization’s tax-exempt status is suspended are not deductible for federal tax purposes. |
| Notice 2004-41(PDF) |
IRB #2004-28(HTML) |
7/12/2004 |
| Charitable contributions and conservation easements. This notice informs taxpayers that the Service will, in appropriate cases, reduce or disallow deductions claimed by taxpayers under section 170 of the Code for transfers in connection with conservation easements. This notice also informs participants in these transactions that they may be subject to other adverse tax consequences, including penalties, excise taxes, and loss of tax-exempt status, as appropriate. |
| Notice 2004-45(PDF) |
IRB #2004-28(HTML) |
7/12/2004 |
| This notice advises taxpayers that the Service will challenge the meritless filing position of certain U.S. citizens who claim to be residents of the U.S. Virgin Islands and to have income from sources in the U.S. Virgin Islands or income effectively connected to the conduct of a trade or business in the U.S. Virgin Islands. |
| Notice 2004-44(PDF) |
IRB #2004-28(HTML) |
7/12/2004 |
| Section 368(a)(1)(B). The Service is requesting public comments regarding Rev. Proc. 81–70, 1981–2 C.B. 729, which contains the guidelines for estimating the basis of stock acquired in a B reorganization. |
| Rev. Rul. 2004-67(PDF) |
IRB #2004-28(HTML) |
7/12/2004 |
| Group or pooled trusts; participation; tax-exempt status, model language. This ruling provides that a governmental section 457(b) plan may invest in a second tier group or pooled trust as long as the criteria enumerated in the ruling are met. In addition, the ruling sets forth model language that may be adopted by existing group or pooled trusts so that they need not request determination letters merely to add a provision permitting participation by a governmental section 457(b) plan. Rev. Rul. 81–100 clarified and modified. |
| Rev. Proc. 2004-38(PDF) |
IRB #2004-27(HTML) |
7/6/2004 |
| This procedure informs owners of qualified low-income housing projects how to obtain the waiver of annual recertification of tenant income provided in section 42(g)(8)(B) of the Code. New Form 8877, Request for Waiver of Annual Income Recertification Requirement for the Low-Income Housing Credit, will be used to make the request. Rev. Proc. 94–64 superseded. |
| Announcement 2004-57(PDF) |
IRB #2004-27(HTML) |
7/6/2004 |
| Age-discrimination regulations; proposed withdrawal. Proposed regulations that would have interpreted the provisions of sections 411(b)(1)(H) and 411(b)(2) of the Code will be withdrawn. The mandatory technical advice cases involving cash balance conversions will not be processed while these issues are under consideration by Congress. |
| Rev. Rul. 2004-65(PDF) |
IRB #2004-27(HTML) |
7/6/2004 |
| Post-retirement health benefits; waiver. This ruling holds that an employer has reduced retiree health coverage, within the meaning of section 420(c)(2)(E) of the Code, if an individual who has coverage for retiree health benefits (“covered individual”) accepts an offer from the employer to waive the coverage in exchange for enhanced pension benefits. |
| Notice 2004-43(PDF) |
IRB #2004-27(HTML) |
7/6/2004 |
| This notice provides transition relief for individuals in states where high deductible health plans (HDHPs) are not available because state laws require health plans to provide certain benefits with a low or no deductible. |
| Rev. Rul. 2004-66(PDF) |
IRB #2004-27(HTML) |
7/6/2004 |
| Federal rates; adjusted federal rates; adjusted federal long-term rate and the long-term exempt rate. For purposes of sections 382, 642, 1274, 1288, and other sections of the Code, tables set forth the rates for July 2004. |
| Rev. Proc. 2004-37(PDF) |
IRB #2004-26(HTML) |
6/28/2004 |
| This procedure provides a method for determining the source of a pension payment to a nonresident alien from a defined benefit plan where the trust forming part of the plan is a trust created or organized in the United States that constitutes a qualified trust under section 401(a) of the Code. Rev. Proc. 2004–7 amplified. |
| Rev. Rul. 2004-55(PDF) |
IRB #2004-26(HTML) |
6/28/2004 |
| Disability insurance benefits. This ruling addresses the income tax treatment of short-term and long-term disability benefits under sections 104(a)(3) and 105(a) of the Code. |
| Rev. Rul. 2004-62(PDF) |
IRB #2004-25(HTML) |
6/21/2004 |
| Business expenses; timber fertilization. The costs incurred by a timber grower for the post-establishment fertilization of an established timber stand are ordinary and necessary business expenses deductible under section 162 of the Code. This ruling also provides procedures for a taxpayer to automatically change its method of accounting for post-establishment fertilization costs to the method provided in this ruling. Rev. Proc. 2002–9 modified and amplified. |
| Notice 2004-42(PDF) |
IRB #2004-25(HTML) |
6/21/2004 |
| Weighted average interest rate update; corporate bond indexes; 30-year Treasury securities. The weighted average interest rate for June 2004 and the resulting permissible range of interest rates used to calculate current liability and to determine the required contribution are set forth. |
| Rev. Rul. 2004-60(PDF) |
IRB #2004-24(HTML) |
6/14/2004 |
| Federal Insurance Contributions Act (FICA); options and
deferred compensation transfer on divorce. This ruling concludes that nonqualified stock options and nonqualified deferred compensation transferred by an employee to a former spouse incident to a divorce are subject to the Federal Insurance Contributions Act (FICA), the Federal Unemployment Tax Act (FUTA), and income tax withholding to the same extent as if retained by the employee. The ruling also provides reporting requirements applicable to the wage payments. Notice 2002–31 modified. |
| Rev. Proc. 2004-36(PDF) |
IRB #2004-24(HTML) |
6/14/2004 |
| This procedure provides a safe harbor method of accounting that allows film producers to amortize certain creative property costs ratably over a period of 15 years beginning in the year the creative property costs are written off for book purposes under AICPA Statement of Position (SOP) 00–2, “Accounting for Producers or Distributors of Film.” Rev. Proc. 2002–9 modified and amplified. |
| Rev. Rul. 2004-56(PDF) |
IRB #2004-24(HTML) |
6/14/2004 |
| Interest rates; underpayments and overpayments. The rate of interest determined under section 6621 of the Code for the calendar quarter beginning July 1, 2004, will be 4 per cent for overpayments (3 percent in the case of a corporation), 4 percent for underpayments, and 6 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 1.5 per cent. |
| Announcement 2004-52(PDF) |
IRB #2004-24(HTML) |
6/14/2004 |
| Correction; section 457; Rev. Rul. 2004–57. A transition rule is set forth for a plan established before June 14, 2004, that does not satisfy the requirements of Rev. Rul. 2004–57 solely as a result of being established and maintained by a labor organization instead of being established and maintained by an eligible governmental employer. |
| Rev. Rul. 2004-57(PDF) |
IRB #2004-24(HTML) |
6/14/2004 |
| Governmental plan; union; section 457(b). This ruling holds that a deferred compensation plan does not fail to be an eligible governmental plan under section 457(b) of the Code merely because the plan is created, offered, and administered by a union, provided adoption of the plan meets certain criteria set forth in the ruling. |
| Rev. Rul. 2004-58(PDF) |
IRB #2004-24(HTML) |
6/14/2004 |
| Preproduction costs of creative property. This ruling pro vides that a taxpayer may not deduct as a loss under section 165 of the Code the costs of acquiring and developing creative property if the taxpayer does not establish an intention to abandon the property and an affirmative act of abandonment, or an identifiable event evidencing a closed and completed transac tion establishing the worthlessness of the property. |
| Rev. Rul. 2004-59(PDF) |
IRB #2004-24(HTML) |
6/14/2004 |
| State law conversion from partnership to corporation. This ruling explains the federal tax consequences when an entity classified as a partnership for federal tax purposes converts into a state law corporation under a state statute that does not require an actual transfer of the unincorporated entity’s assets or interests. |
| Rev. Rul. 2004-54(PDF) |
IRB #2004-23(HTML) |
6/7/2004 |
| For purposes of sections 382, 642, 1274, 1288, and other sections of the Code, tables set forth the rates for June 2004. |
| Rev. Proc. 2004-35(PDF) |
IRB #2004-23(HTML) |
6/7/2004 |
| This procedure concerns automatic relief to file certain late shareholder consents to be an S corporation. |
| Notice 2004-40(PDF) |
IRB #2004-23(HTML) |
6/7/2004 |
| Weighted average interest rate update; corporate bond indices; 30-year Treasury securities. The weighted average interest rate for May 2004 and the resulting permissible range of interest rates used to calculate current liability and to determine the required contribution are set forth. |
| Announcement 2004-48(PDF) |
IRB #2004-22(HTML) |
6/1/2004 |
| This announcement provides background information relating to Rev. Proc. 2004-34 in this Bulletin. Rev. Proc. 2004-34 provides a method of accounting under which taxpayers using an accrual method of accounting may defer including all or part of certain advance payments in gross income until the year after the year the payment is received. |
| Rev. Rul. 2004-50(PDF) |
IRB #2004-22(HTML) |
6/1/2004 |
| This ruling provides clarification with regard to an Indian tribal government’s ability to qualify as an eligible shareholder under section 1361 of the Code. Specifically, the ruling explains that a federally recognized Indian tribal government does not qualify as a permissible S corporation shareholder under section 1361(b)(1)(B) because it is not treated as an individual subject to individual income taxes under section 1 of the Code. The ruling also explains that a federally recognized Indian Tribe cannot qualify as a permissible S corporation shareholder under section 1361(c)(6) because it is neither a section 501(c)(3) organization, nor a section 401(a) qualified plan, profit-sharing, or stock bonus plan organization. |
| Rev. Rul. 2004-51(PDF) |
IRB #2004-22(HTML) |
6/1/2004 |
| This ruling illustrates the tax consequences for a section 501(c)(3) organization that enters into a joint venture with a for-profit organization as an insubstantial part of its activities. |
| Rev. Rul. 2004-52(PDF) |
IRB #2004-22(HTML) |
6/1/2004 |
| This ruling holds that credit card annual fees are not interest for federal income tax purposes. Moreover, the ruling holds that credit card annual fees are includible in the gross income by the card issuer when they become due and payable by cardholders under the terms of the credit card agreements. |
| Notice 2004-39(PDF) |
IRB #2004-22(HTML) |
6/1/2004 |
| This notice explains how the changes to section 1(h) of the Code made by the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA) apply to capital gain dividends paid (or accounted for as if paid) by regulated investment companies (RICs) and real estate investment trusts (REITs) in taxable years that end on or after May 6, 2003. |
| Rev. Proc. 2004-34(PDF) |
IRB #2004-22(HTML) |
6/1/2004 |
| This procedure provides a method of accounting under which taxpayers using an accrual method of accounting may defer including all or part of certain advance payments in gross income until the year after the year the payment is received. Rev. Proc. 71-21 modified and superseded and Rev. Proc. 2002-9 modified and amplified. |
| Rev. Proc. 2004-33(PDF) |
IRB #2004-22(HTML) |
6/1/2004 |
| This procedure describes conditions under which the Commissioner will allow a taxpayer to treat its income from credit card late fees as interest income on a pool of credit card loans. This document also provides automatic consent procedures for a taxpayer to change its method of accounting for credit card late fee income to a method that treats these fees as interest that creates or increases the amount of OID on a pool of credit card loans to which the fees relate. Rev. Proc. 2002-9 modified and amplified. |
| Rev. Proc. 2004-32(PDF) |
IRB #2004-22(HTML) |
6/1/2004 |
| This document provides automatic consent procedures for taxpayers to change their method of accounting to a method that complies with Rev. Rul. 2004-52, in this Bulletin, or to the Ratable Inclusion Method for Credit Card Annual Fees described in this revenue procedure. Rev. Proc. 2002-9 modified and amplified. |
| Rev. Proc. 2004-28(PDF) |
IRB #2004-22(HTML) |
6/1/2004 |
| This procedure provides guidance to regulated investment companies (RICs) who must comply with the asset diversification rules of section 851(b)(3) of the Code. The procedure describes conditions under which a RIC may look through a repurchase agreement (repo) to government securities serving as the underlying collateral to treat itself as the owner of the government securities for purposes of these rules. The procedure is effective for repos held by a RIC on or after August 15, 2001. |
| Rev. Rul. 2004-45(PDF) |
IRB #2004-22(HTML) |
6/1/2004 |
| This ruling addresses the interaction between Health Savings Accounts (HSAs), health flexible spending arrangements (health FSAs), and health reimbursement arrangements (HRAs). |
| Rev. Proc. 2004-31(PDF) |
IRB #2004-22(HTML) |
6/1/2004 |
| Changes in method of accounting for transfers to trusts under section 461(f). This document provides procedures for taxpayers to change their method of accounting for deducting under section 461(f) of the Code amounts transferred to trusts in transactions described in Notice 2003-77, 2003-49 I.R.B. 1182. |
| Notice 2004-37(PDF) |
IRB #2004-21(HTML) |
5/24/2004 |
| Section 1504. This notice announces circumstances in which the failure to satisfy the value requirement of section 1504(a)(2)(B) of the Code will be disregarded under section 1504(a)(5)(C) and (D) in determining whether a corporation is treated as a member of an affiliated group. The notice also announces that regulations will be proposed and invites comments. |
| Rev. Rul. 2004-47(PDF) |
IRB #2004-21(HTML) |
5/24/2004 |
| This ruling deals with the application of section 265 of the Code to affiliated corporate groups when one member of the group borrows from outside the group and makes funds available to another member of the group that is a dealer in tax-exempt securities. |
| Rev. Rul. 2004-49(PDF) |
IRB #2004-21(HTML) |
5/24/2004 |
| Partnerships; amortization of intangibles. This ruling provides that if a section 197(f)(9) intangible is amortizable in the hands of a partnership, the anti-churning rules under section 1.197-2(h)(12)(vii)(A) of the regulations do not apply to curative or remedial reverse section 704(c) allocations of amortization. It also provides that if a section 197(f)(9) intangible was not amortizable in the hands of the partnership, then remedial, not curative, reverse section 704(c) allocations of amortization are permitted. |
| Notice 2004-38(PDF) |
IRB #2004-21(HTML) |
5/24/2004 |
| This notice announces that the Service and the Treasury Department will issue temporary and proposed regulations that will modify the definition of "qualified amended return" in regulations section 1.6664-2(c)(3). |
| Announcement 2004-43(PDF) |
IRB #2004-21(HTML) |
5/24/2004 |
| Alternative deficit reduction election; notice to Pension Benefit Guaranty Corporation (PBGC) and plan participants and beneficiaries. This announcement describes how notice must be given to the Pension Benefit Guaranty Corporation and to plan participants and their beneficiaries under section 302(d)(12) of the Employee Retirement Income Security Act of 1974 when an employer elects to make an alternative deficit reduction contribution under section 412(1) of the Code. This announcement also provides special timing and transitional rules. Announcement 2004-38 modified. |
| Rev. Proc. 2004-30(PDF) |
IRB #2004-21(HTML) |
5/24/2004 |
| This procedure provides automatic consent procedures for taxpayers to change their method of accounting for income from REMIC inducement fees to a safe harbor method set forth in T.D. 9128. Rev. Proc. 2002-9 modified and amplified. |
| Announcement 2004-46(PDF) |
IRB #2004-21(HTML) |
5/24/2004 |
| This announcement is a settlement initiative for taxpayers to resolve transactions described in Notice 2000-44, 2000-2 C.B. 255, and substantially similar transactions (Son of Boss transactions). |
| Rev. Proc. 2004-29(PDF) |
IRB #2004-20(HTML) |
5/17/2004 |
| Use of statistical sampling under section 274(n). This procedure provides the statistical sampling methodology by which a taxpayer may establish the amount of meal and entertainment expenses excepted from the 50% deduction disallowance of section 274(n)(1) of the Code. |
| Notice 2004-35(PDF) |
IRB #2004-19(HTML) |
5/10/2004 |
| Net investment income of private foundation. This notice announces that the Treasury Department and the Service intend to propose regulations modifying regulations section 53.4940-1(d)(2) to provide that a private foundation’s net investment income for purposes of section 4940 of the Code does not include distributions from trusts and estates and that until further guidance is promulgated, income distributions from trusts and estates will not retain their character in the hands of a distributee private foundation for purposes of determining the foundation’s net investment income under section 4940(c). This notice also provides instructions on how a private foundation should fill out its applicable returns and how to claim refunds. |
| Notice 2004-36(PDF) |
IRB #2004-19(HTML) |
5/10/2004 |
| Distributable amount of a private foundation. This notice states that the Treasury Department and the Service intend to propose regulations modifying regulations under section 4942 of the Code in a manner consistent with the holding of the Tax Court and the Ninth Circuit in Ann Jackson Family Foundation. It also states that until further guidance is promulgated, private foundations should compute the distributable amount under section 4942(d) without regard to regulations section 53.4942(a)-2(b)(2). Accordingly, income distributions received from section 4947(a)(2) trusts are not included in a private foundation’s distributable amount for purposes of section 4942. The notice also includes instructions for filling out the private foundation’s applicable information and excise tax returns and how to claim a refund pursuant to this notice. |
| Rev. Rul. 2004-44(PDF) |
IRB #2004-19(HTML) |
5/10/2004 |
| Federal rates; adjusted federal rates; adjusted federal long-term rate and the long-term exempt rate. For purposes of sections 382, 642, 1274, 1288, and other sections of the Code, tables set forth the rates for May 2004. |
| Notice 2004-36(PDF) |
IRB #2004-19(HTML) |
5/10/2004 |
| Distributable amount of a private foundation. This notice states that the Treasury Department and the Service intend to propose regulations modifying regulations under section 4942 of the Code in a manner consistent with the holding of the Tax Court and the Ninth Circuit in Ann Jackson Family Foundation. It also states that until further guidance is promulgated, private foundations should compute the distributable amount under section 4942(d) without regard to regulations section 53.4942(a)-2(b)(2). Accordingly, income distributions received from section 4947(a)(2) trusts are not included in a private foundation’s distributable amount for purposes of section 4942. The notice also includes instructions for filling out the private foundation’s applicable information and excise tax returns and how to claim a refund pursuant to this notice. |
| Announcement 2004-38(PDF) |
IRB #2004-18(HTML) |
5/3/2004 |
| Minimum funding standards; alternative deficit reduction election. This announcement describes how an election to make an alternative deficit reduction contribution under section 412(l) of the Code may be made and describes some of the background to that election. |
| Notice 2004-34(PDF) |
IRB #2004-18(HTML) |
5/3/2004 |
| Minimum funding standards; interest rates; section 101 of Pension Funding Equity Act. This notice describes the method for determining the permissible range of interest rates for current liability under section 412 of the Code as amended by section 101 of the Pension Funding Equity Act of 2004. In addition, comments are requested on this notice. |
| Notice 2004-32(PDF) |
IRB #2004-18(HTML) |
5/3/2004 |
| Weighted average interest rate update. The weighted average interest rate for April 2004 and the resulting permissible range of interest rates used to calculate current liability and to determine the required contribution are set forth. |
| Announcement 2004-32(PDF) |
IRB #2004-18(HTML) |
5/3/2004 |
| Employee Plans determination letter program; individually designed plans. This announcement describes the Service’s decisions resulting from its review of comments following the issuance of two white papers on the future of the Employee Plans determination letter program. |
| Announcement 2004-38(PDF) |
IRB #2004-18(HTML) |
5/3/2004 |
| Minimum funding standards; alternative deficit reduction election. This announcement describes how an election to make an alternative deficit reduction contribution under section 412(l) of the Code may be made and describes some of the background to that election. |
| Announcement 2004-33(PDF) |
IRB #2004-18(HTML) |
5/3/2004 |
| Pre-approved employee plans; proposed revenue procedure; request for comments. This announcement describes and contains a draft proposed revenue procedure pertaining to those employee plans (master and prototype (M&P) and volume submitter (VS)) that are pre-approved by the Service. Portions of the draft procedure are reserved pending comments. |
| Rev. Rul. 2004-43(PDF) |
IRB #2004-18(HTML) |
5/3/2004 |
| Partnership mergers. This ruling describes the application of sections 704(c)(1)(B) and 737 of the Code to assets-over partnership mergers. The ruling holds that section 704(c)(1)(B) applies to newly created section 704(c) gain or loss in property contributed by the transferor partnership to the continuing partnership in an assets-over partnership merger, but does not apply to newly created reverse section 704(c) gain or loss resulting from a revaluation of property in the continuing partnership. The ruling also holds that for purposes of section 737(b), net precontribution gain includes newly created section 704(c) gain or loss in property contributed by the transferor partnership to the continuing partnership in an assets-over partnership merger, but does not include newly created reverse section 704(c) gain or loss resulting from a revaluation of property in the continuing partnership. |
| Rev. Proc. 2004-27(PDF) |
IRB #2004-17(HTML) |
4/26/2004 |
| This procedure permits certain owners of royalty interests (RI) to claim the credit for producing fuel from a nonconventional source in the taxable year (including a 2003 taxable year) in which they receive the income from the sale of qualified fuel, rather than in a prior taxable year in which the owner of the operating interest (OI) sold the qualified fuel. |
| Notice 2004-31(PDF) |
IRB #2004-17(HTML) |
4/26/2004 |
| This notice identifies as a listed transaction under section 6111 of the Code certain equity financing structures using partnerships, special allocations of partnership items, and guaranteed payments that are entered into to avoid the limitations of section 163(j). |
| Notice 2004-30(PDF) |
IRB #2004-17(HTML) |
4/26/2004 |
| S corporation tax shelter. This notice advises taxpayers and their representatives about a tax shelter in which a shareholder of an S corporation donates nonvoting stock of the S corporation to an organization described in section 1361(c)(6) of the Code that is not subject to tax on unrelated business income under section 511 or that has UBIT carry-over losses. The transaction is made in order to defer taxation on S corporation income. The notice notifies taxpayers and their representatives that the claimed tax benefits purportedly generated by these transactions are not allowable for federal income tax purposes. The notice also states that this transaction is a listed transaction and warns of the potential penalties that may be imposed if taxpayers participate in such a transaction. |
| Announcement 2004-35(PDF) |
IRB #2004-17(HTML) |
4/26/2004 |
| In Announcement 2003-68, 2003-45 I.R.B. 1050, the Office of Professional Responsibility delayed the implementation of the renewal of enrollment schedule for enrolled agents having social security numbers that end with a 0, 1, 2, or 3 (affected enrolled agents). This announcement provides that June 1, 2004, through July 31, 2004, will be the period for the affected enrolled agents to renew their enrollment. |
| Notice 2004-28(PDF) |
IRB #2004-16(HTML) |
4/19/2004 |
| Frivolous claims for refunds of income or alternative minimum tax incurred upon the exercise of compensatory stock options. This notice describes five claims and explains that in most cases the arguments behind such claims are without merit and will not be respected by the Service. This notice also enumerates the penalties which may be applicable to taxpayers relying on such claims or arguments. |
| Notice 2004-27(PDF) |
IRB #2004-16(HTML) |
4/19/2004 |
| Losses; decrease in stock value. This notice advises taxpayers that the Service will disallow deductions for theft losses claimed on account of decreases in the market value of stock purchased on the open market that may be attributable to fraudulent misrepresentations or other illegal misconduct of corporate officials. A taxpayer generally may deduct as a capital loss such a decrease in value when it is recognized by the taxpayer because the stock is sold or exchanged or becomes wholly worthless. |
| Rev. Proc. 2004-25(PDF) |
IRB #2004-16(HTML) |
4/19/2004 |
| Remedial amendment period; disqualifying provisions; December 31, 2001. This procedure extends the remedial amendment period under section 401(b) of the Code with respect to certain disqualifying provisions of all new plans put into effect after December 31, 2001, until the end of the remedial amendment period for the Economic Growth and Tax Relief Reconciliation Act of 2001. |
| Notice 2004-26(PDF) |
IRB #2004-16(HTML) |
4/19/2004 |
| Public comments are requested for items that should be included on the 2004–2005 Guidance Priority List. Taxpayers may submit recommendations at any time during the year. All recommendations received by April 30, 2004, will be reviewed for possible inclusion on the original 2004–2005 Guidance Priority List. Recommendations received after April 30, 2004, will be reviewed for inclusion in the quarterly updates if received by August 31, 2004; November 30, 2004; or February 28, 2005, respectively. |
| Rev. Proc. 2004-24(PDF) |
IRB #2004-16(HTML) |
4/19/2004 |
| Qualified mortgage bonds; mortgage credit certificates; national median gross income. Guidance is provided concerning the use of the national and area median gross income figures by issuers of qualified mortgage bonds and mortgage credit certificates in determining the housing cost/income ratio described in section 143(f) of the Code. Rev. Proc. 2003–29, obsoleted, except as provided in section 5.02 of this procedure. |
| Rev. Proc. 2004-23(PDF) |
IRB #2004-16(HTML) |
4/19/2004 |
| This document provides administrative procedures under which taxpayers may obtain automatic consent to change to a method of accounting provided in sections 1.263(a)–4, 1.263(a)–5, and 1.167(a)–3(b) of the regulations for the taxpayer’s first taxable year ending on or after December 31, 2003. Rev. Proc. 2002–9 modified and amplified. Announcement 93–60 obsoleted. |
| Notice 2004-23(PDF) |
IRB #2004-15(HTML) |
4/12/2004 |
| This notice provides a safe harbor for preventive care benefits allowed to be provided by a high deductible health plan (HDHP) under section 223(c)(2) of the Code. |
| Notice 2004-25(PDF) |
IRB #2004-15(HTML) |
4/12/2004 |
| This notice provides transition relief from the rule in Notice 2004-2, 2004-2 I.R.B. 269, Q&A 26, that a Health Savings Account (HSA) must pay or reimburse on a tax-free basis only qualified medical expenses incurred after the HSA has been established. The notice provides that for calendar year 2004, an HSA established on or before April 15, 2005, may pay or reimburse otherwise qualified medical expenses on a tax-free basis if the expenses were incurred on or after the later of (1) January 1, 2004, or (2) the first day of the first month the taxpayer became eligible to establish an HSA. Notice 2004-2 modified. |
| Announcement 2004-29(PDF) |
IRB #2004-15(HTML) |
4/12/2004 |
| The definition of tax shelter opinion for purposes of section 10.35 of Treasury Department Circular No. 230 (31 CFR part 10) will not apply, if at all, to written advice concerning municipal bonds rendered less than 120 days after the publication of the final regulations in the Federal Register. |
| Rev. Rul. 2004-38(PDF) |
IRB #2004-15(HTML) |
4/12/2004 |
| Health Savings Accounts (HSAs). This ruling provides that if an individual is covered by both a high deductible health plan (HDHP) that does not cover prescription drugs and by a separate prescription drug plan (or rider) that provides benefits before the minimum annual deductible of the HDHP has been satisfied, that individual is not an eligible individual under section 223(c)(1)(A) of the Code and may not make contributions to a Health Savings Account. |
| Announcement 2004-26(PDF) |
IRB #2004-15(HTML) |
4/12/2004 |
| This document contains the annual report to the public concerning Advance Pricing Agreements (APAs) and the experience of the APA program during calendar year 2003. This document does not provide guidance regarding the application of the arm’s length standard; rather, it reports on the structure and activities of the APA program. |
| Rev. Proc. 2004-22(PDF) |
IRB #2004-15(HTML) |
4/12/2004 |
| This procedure provides transition relief from Rev. Rul. 2004-38 for determining an "eligible individual" under section 223 of the Code who may make contributions to a Health Savings Account (HSA). The transition relief covers the months before January 1, 2006, in the case of an individual who is covered by both a high deductible health plan (HDHP) and by a separate plan or rider that provides prescription drug benefits before the minimum annual deductible of the HDHP is satisfied. Rev. Rul. 2004-38 modified. |
| Rev. Rul. 2004-39(PDF) |
IRB #2004-14(HTML) |
4/5/2004 |
| Federal rates; adjusted federal rates; adjusted federal long-term rate and the long-term exempt rate. For purposes of sections 382, 642, 1274, 1288, and other sections of the Code, tables set forth the rates for April 2004. |
| Rev. Proc. 2004-21(PDF) |
IRB #2004-14(HTML) |
4/5/2004 |
| This procedure modifies the final withholding foreign partnership (WP) and withholding foreign trust (WT) agreements contained in Rev. Proc. 2003-64, 2003-32 I.R.B. 306, by eliminating the $200,000 cap on eligibility for certain pooled reporting. This procedure also makes a conforming change to the portion of the Qualified Intermediary (QI) withholding agreement contained in Rev. Proc. 2003-64. Rev. Proc. 2003-64 modified. |
| Notice 2004-24(PDF) |
IRB #2004-13(HTML) |
3/29/2004 |
| Weighted average interest rate update. The weighted average interest rate for March 2004 and the resulting permissible range of interest rates used to calculate current liability and to determine the required contribution are set forth. |
| Notice 2004-22(PDF) |
IRB #2004-12(HTML) |
3/22/2004 |
| This notice informs and educates taxpayers about how to avoid making frivolous arguments and what will happen if they do. This notice describes many of the frivolous arguments that people have made recently to reduce or eliminate their taxes. It also describes many of the possible civil and criminal penalties that apply to people who pay less tax than they owe or refuse to file their returns based on frivolous arguments. |
| Rev. Rul. 2004-34(PDF) |
IRB #2004-12(HTML) |
3/22/2004 |
| Frivolous tax returns; filing a "zero return." This ruling emphasizes to taxpayers, and to promoters and return preparers who assist taxpayers with tax schemes, that a "zero return" will not succeed in permitting an individual to take the position that the individual or the individual’s income is not subject to federal income tax. The ruling also describes many of the possible civil and criminal penalties that apply to people who file a frivolous "zero return" that requires the Service to conduct a deficiency inquiry. |
| Rev. Rul. 2004-33(PDF) |
IRB #2004-12(HTML) |
3/22/2004 |
| Frivolous tax returns; "reparations tax credit." This ruling emphasizes to taxpayers, and to promoters and return preparers who assist taxpayers with tax schemes, that there is no "reparations tax credit" that permits an individual to take the position that the individual based on certain classifications is entitled to a large refund the individual would not otherwise receive. The ruling also describes many of the possible civil and criminal penalties that apply to people who claim refunds or other tax benefits on their returns based on frivolous reparations tax credits. |
| Rev. Rul. 2004-32(PDF) |
IRB #2004-12(HTML) |
3/22/2004 |
| Frivolous tax returns; meritless home-based business deductions. This ruling emphasizes to taxpayers, and to promoters and return preparers who assist taxpayers with claiming frivolous deductions based on a purported home-based business, that there is no basis for claiming personal, living, and family expenses as business deductions. This return position has no merit and is frivolous. |
| Notice 2004-13(PDF) |
IRB #2004-12(HTML) |
3/22/2004 |
| This notice provides information about common mistakes that individual taxpayers make when they prepare their individual federal income tax returns. Taxpayers who avoid these mistakes can save themselves time in correcting the mistakes and speed up the receipt of any refunds. |
| Rev. Rul. 2004-29(PDF) |
IRB #2004-12(HTML) |
3/22/2004 |
| Frivolous tax returns; meritless "claim of right" arguments. This ruling emphasizes to taxpayers, and to promoters and return preparers who assist taxpayers with frivolous tax schemes, that there is no "claim of right" doctrine that permits an individual to take the position that either the individual or the individual’s income is not subject to federal income tax. The ruling also describes many of the possible civil and criminal penalties that apply to people who make frivolous "claim of right" arguments to evade tax. |
| Rev. Rul. 2004-28(PDF) |
IRB #2004-12(HTML) |
3/22/2004 |
| Frivolous tax returns; excluding gross income under section 911. This ruling emphasizes to taxpayers, and to promoters and return preparers who assist taxpayers with frivolous tax schemes, that there is no basis for excluding income earned in a State, Commonwealth, or Territory of the United States under section 911 of the Code. The ruling also describes many of the possible civil and criminal penalties that apply to people who claim tax benefits on their return based on frivolous claims under section 911. |
| Rev. Rul. 2004-31(PDF) |
IRB #2004-12(HTML) |
3/22/2004 |
| Frivolous tax returns; meritless "removal arguments." This ruling emphasizes to taxpayers, and to promoters and return preparers who assist taxpayers with schemes, that there is no law, court decision or other authority that permits a taxpayer to remove himself from the federal tax system in order to avoid otherwise applicable taxes. Arguments to the contrary are not only wrong, but frivolous. |
| Rev. Rul. 2004-30(PDF) |
IRB #2004-12(HTML) |
3/22/2004 |
| Frivolous tax returns; attempting to avoid taxes under section 861. This ruling emphasizes to taxpayers, and to promoters and return preparers who assist taxpayers with tax schemes, that there is no authority in sections 861 through 865 of the Code that permits an individual to take the position that either the individual or the individual’s U.S. based income is not subject to federal income tax. The ruling also describes many of the possible civil and criminal penalties that apply to people who make frivolous section 861 arguments to evade tax. |
| Rev. Rul. 2004-27(PDF) |
IRB #2004-12(HTML) |
3/22/2004 |
| Tax avoidance schemes; meritless "corporation sole" arguments. This ruling emphasizes to taxpayers, tax scheme promoters and return preparers that, while a "corporation sole" is a legitimate corporate form that may be used by a religious leader to hold property and conduct business for the benefit of the religious entity, a taxpayer cannot avoid income tax by establishing a religious organization for tax avoidance purposes. |
| Rev. Rul. 2004-37(PDF) |
IRB #2004-11(HTML) |
3/15/2004 |
| Reduction in stated principal amount of a recourse note issued by employee to employer to acquire employer stock. This ruling provides guidance in cases where an employer and employee reduce the stated principal amount of a recourse note issued by an employee to the employer to acquire employer stock. This ruling holds that the employee recognizes compensation income equal to the amount of the reduction. |
| Rev. Rul. 2004-26(PDF) |
IRB #2004-11(HTML) |
3/15/2004 |
| Interest rates; underpayments and overpayments. The rate of interest determined under section 6621 of the Code for the calendar quarter beginning April 1, 2004, will be 5 percent for overpayments (4 percent in the case of a corporation), 5 percent for underpayments, and 7 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 2.5 percent. |
| Notice 2004-17(PDF) |
IRB #2004-11(HTML) |
3/15/2004 |
| This notice provides that benefits received under the Smallpox Emergency Personnel Protection Act of 2003 (SEPPA) are exempt from income and employment taxes. |
| Rev. Rul. 2004-25(PDF) |
IRB #2004-11(HTML) |
3/15/2004 |
| Federal rates; adjusted federal rates; adjusted federal long-term rate and the long-term exempt rate. For purposes of sections 382, 642, 1274, 1288, and other sections of the Code, tables set forth the rates for March 2004. |
| Notice 2004-18(PDF) |
IRB #2004-11(HTML) |
3/15/2004 |
| This notice requests public comment regarding the proper treatment of capitalized amounts that facilitate an acquisition of a trade or business, change in the capital structure of a business entity, and certain other transactions. |
| Rev. Rul. 2004-23(PDF) |
IRB #2004-11(HTML) |
3/15/2004 |
| Section 355; stock distribution. This ruling examines whether a distribution that is expected to increase aggregate stock value satisfies the business purpose requirement section 355 of the Code when the increased value is expected to serve both a corporate business purpose and a shareholder purpose. |
| Notice 2004-19(PDF) |
IRB #2004-11(HTML) |
3/15/2004 |
| This notice withdraws Notice 98-5, but announces that the IRS will continue to scrutinize abusive transactions that are designed to generate foreign tax credits and will challenge the claimed tax consequences of such transactions under principles of existing law. The notice also describes the approach that Treasury and the IRS are using to address transactions involving inappropriate foreign tax credit results. Notice 98-5 withdrawn and Notice 2003-76 modified. |
| Notice 2004-20(PDF) |
IRB #2004-11(HTML) |
3/15/2004 |
| This notice describes a transaction involving the purported acquisition of stock of a foreign target corporation, an election under section 338, and a prearranged plan to sell the target corporation’s assets in a transaction that gives rise to foreign tax without corresponding income for U.S. tax purposes. The notice identifies this transaction, and substantially similar transactions, as listed transactions that are subject to reporting, registration, and list maintenance requirements. |
| Rev. Rul. 2004-22(PDF) |
IRB #2004-10(HTML) |
3/8/2004 |
| COBRA and Medicare entitlement. The COBRA continuation coverage period can be expanded from 18 to 36 months if a second qualifying event occurs. Medicare entitlement of a covered employee is one of the listed events that can be a second qualifying event. This ruling holds that Medicare entitlement is not a second qualifying event unless (ignoring the first qualifying event) it would result in a loss of coverage under the group health plan. |
| Rev. Rul. 2004-21(PDF) |
IRB #2004-10(HTML) |
3/8/2004 |
| Nondiscrimination; section 412(i) plan. This ruling provides an example where a plan that is funded, in whole or in part, with life insurance contracts may not satisfy the requirements of Code section 401(a)(4) prohibiting discrimination in favor of highly compensated employees. |
| Rev. Rul. 2004-20(PDF) |
IRB #2004-10(HTML) |
3/8/2004 |
| Section 412(i) plans; deductibility; listed transactions. This ruling gives an example where a qualified pension plan cannot be a section 412(i) plan if the plan holds life insurance contracts and annuity contracts for the benefit of a participant that provide for benefits at normal retirement age in excess of the participant’s benefits at normal retirement age under the terms of the plan. The ruling also addresses when certain employer contributions to purchase life insurance coverage for a participant in a defined benefit plan are deductible and whether those transactions are “listed transactions.” Rev. Rul. 55-748 modified and superseded. |
| Rev. Proc. 2004-16(PDF) |
IRB #2004-10(HTML) |
3/8/2004 |
| Fair market value; distributions; qualified retirement plans. This procedure provides interim guidance on how fair market value may be determined in the instance of distributions from a qualified retirement plan. |
| Announcement 2004-11(PDF) |
IRB #2004-10(HTML) |
3/8/2004 |
| This announcement provides information regarding changes to the reporting for certain 2002 forms by certain fiscal year pass-through entities affected by pending technical corrections to the qualified dividend rules. Partnerships, S corporations, and estates (including revocable trusts treated as part of an estate) with a fiscal year beginning in 2002 that received qualified dividends in 2003 must reflect the changes required by this announcement in their reporting for the tax year. Announcement 2003-56 modified. |
| Rev. Proc. 2004-17(PDF) |
IRB #2004-10(HTML) |
3/8/2004 |
| This procedure provides guidance to individuals who fail to meet the eligibility requirements of section 911(d)(1) of the Code because adverse conditions in a foreign country preclude the individual from meeting those requirements. A current list of countries and the dates those countries are subject to the section 911(d)(4) waiver is provided. Rev. Proc. 2003-26 supplemented. |
| Notice 2004-12(PDF) |
IRB #2004-10(HTML) |
3/8/2004 |
| This notice contains a proposed revenue procedure that sets forth generally applicable standards for determining whether service in the employ of certain public or private nonprofit schools, colleges, universities, or affiliated organizations described in section 509(a)(3) of the Code performed by a student qualifies for the exception from Federal Insurance Contributions Act (FICA) tax provided under section 3121(b)(10). Rev. Proc. 98-16 suspended. |
| Notice 2004-14(PDF) |
IRB #2004-09(HTML) |
3/1/2004 |
| Weighted average interest rate update. The weighted average interest rate for February 2004 and the resulting permissible range of interest rates used to calculate current liability and to determine the required contribution are set forth. |
| Rev. Proc. 2004-12(PDF) |
IRB #2004-09(HTML) |
3/1/2004 |
| This procedure provides guidance on how a state elects a health program to be qualified health insurance for purposes of the health coverage tax credit (HCTC) under section 35 of the Code. |
| Rev. Proc. 2004-18(PDF) |
IRB #2004-09(HTML) |
3/1/2004 |
| This procedure provides issuers of qualified mortgage bonds and qualified mortgage credit certificates with average area purchase price safe-harbors for statistical areas in the United States and with a nationwide average purchase price for residences in the United States for purposes of the mortgage revenue bond rules under section 143 of the Code (and the mortgage credit certificate rules under section 25). Rev. Procs. 87-19, 93-15, and 94-55 obsoleted in part. |
| Notice 2004-16(PDF) |
IRB #2004-09(HTML) |
3/1/2004 |
| This notice provides relief from the application of the information reporting rules set forth in Rev. Rul. 2003-43, 2003-1 C.B. 935, with respect to payments for medical care under health flexible spending arrangements and health reimbursement arrangement. |
| Rev. Rul. 2004-18(PDF) |
IRB #2004-08(HTML) |
2/23/2004 |
| Treatment of environmental remediation expenses under section 263A. This ruling holds that amounts incurred to clean up land that a taxpayer contaminated with hazardous waste by the operation of a manufacturing plant must be included in inventory costs under section 263A of the Code. Rev. Ruls. 94–38 and 98–25 clarified. Rev. Proc. 2002–9 modified and amplified. |
| Rev. Rul. 2004-15(PDF) |
IRB #2004-08(HTML) |
2/23/2004 |
| Short sale; broker; transfer. This ruling provides guidance on whether the delivery of shares made to a broker in transferring a short sale position from one broker to another broker will (1) cause a short sale to be deemed consummated under regulations section 1.1233–1(a), and (2) cause a short-against-the box transaction to cease to be covered by the transition rule of section 1259 of the Code. |
| Rev. Rul. 2004-14(PDF) |
IRB #2004-08(HTML) |
2/23/2004 |
| Insurance companies; interest rate tables. Prevailing state assumed interest rates are provided for the determination of reserves under section 807 of the Code for contracts issued in 2003 and 2004. Rev. Rul. 92–19 supplemented in part. |
| Rev. Rul. 2004-17(PDF) |
IRB #2004-08(HTML) |
2/23/2004 |
| Treatment of environmental remediation expenses under section 1341. This ruling holds that amounts paid or incurred in the current taxable year to remediate environmental contamination that occurred in prior taxable years do not qualify for treatment under section 1341 of the Code. |
| Notice 2004-5(PDF) |
IRB #2004-07(HTML) |
2/17/2004 |
| Pursuant to the authority granted under section 772(a)(11) of the Code, the Secretary has determined that it is appropriate for a partner of an electing large partnership to take into account separately the partner’s distributive share of the partnership’s dividends received that are qualified dividend income as defined in section 1(h)(11)(B). This requirement is effective for dividends received by a partnership after December 31, 2002. |
| Rev. Proc. 2004-15(PDF) |
IRB #2004-07(HTML) |
2/17/2004 |
| Minimum funding standards; waivers. This procedure sets forth guidelines for requesting waivers of the minimum funding standards with respect to defined benefit and defined contribution plans subject to section 412 of the Code. Rev. Procs. 2004–4, 2004–5, 2004–6 modified. Rev. Proc. 94–41 superseded. |
| Rev. Rul. 2004-10(PDF) |
IRB #2004-07(HTML) |
2/17/2004 |
| Significant detriment; defined contribution plan; allocation of expenses. This ruling describes the application of the significant detriment rule in regulations section 1.411(a)–11(c)(2)(i) in relationship to the Department of Labor’s Field Assistance Bulletin 2003–3 pertaining to the allocation of expenses in a defined contribution plan. |
| Rev. Rul. 2004-11(PDF) |
IRB #2004-07(HTML) |
2/17/2004 |
| Coverage; special rules; request for comments. This ruling describes the application of the special coverage rule for acquisitions and dispositions in section 410(b)(6)(C) of the Code in a situation involving a defined benefit plan and a profit sharing plan that includes a qualified cash or deferred arrangement under section 401(k)(2). In addition, the ruling holds that a significant change in a plan or in the coverage of a plan during the transition period under section 410(b)(6)(C)(ii) curtails the period effective as of the date of the change and does not make the plan retroactively ineligible to apply section 410(b)(6)(C). Finally, the ruling also asks for comments as to other situations that may arise under section 410(b)(6)(C). |
| Rev. Rul. 2004-12(PDF) |
IRB #2004-07(HTML) |
2/17/2004 |
| Plan qualification; rollovers. This ruling describes a situation where an eligible retirement plan separately accounts for amounts attributable to rollover contributions to the plan. As a result, distributions of those amounts are not subject to the restrictions on permissible timing that apply, under the applicable requirements of the Code, to distributions of other amounts from the plan. |
| Rev. Rul. 2004-13(PDF) |
IRB #2004-07(HTML) |
2/17/2004 |
| Top-heavy status; special rules. This ruling describes four situations where a non-governmental profit-sharing plan contains a cash or deferred arrangement described in section 401(k) of the Code that provides for safe harbor matching contributions. In the first situation, the ruling holds that the requirements of section 416(g)(4)(H) are met for that year. In the other situations, the ruling holds that the contributions do not meet the requirements of section 416(g)(4)(H). |
| Rev. Rul. 2004-3(PDF) |
IRB #2004-07(HTML) |
2/17/2004 |
| Service partnerships. This ruling provides guidance concerning the application of the U.S.-Germany income tax treaty to a nonresident partner in a service partnership that conducts activities in the United States. It makes clear that a nonresident partner is subject to U.S. income tax on his share of income from the partnership to the extent that such income is attributable to the partnership’s activities in the United States, without regard to whether the partner performs services in the United States. This ruling also applies to other U.S. income tax treaties that have the same or similar provisions as those in the U.S.-Germany treaty. |
| Notice 2004-11(PDF) |
IRB #2004-06(HTML) |
2/9/2004 |
| This notice announces a pilot program that permits large and mid-size business taxpayers to enter into research credit recordkeeping agreements. |
| Rev. Rul. 2004-4(PDF) |
IRB #2004-06(HTML) |
2/9/2004 |
| Employee stock ownership plans; S corporations; listed transactions. A finding of synthetic equity owned by a disqualified person in a nonallocation year of an ESOP, as those terms are defined in section 409(p) of the Code and regulations section 1.409(p)–1T, takes place in three distinct situations. In addition, the transactions described in this ruling, as well as substantially similar transactions, are designated as “listed transactions.” |
| Announcement 2004-8(PDF) |
IRB #2004-06(HTML) |
2/9/2004 |
| This announcement corrects the user fee in Appendix A of Rev. Proc. 2004–1 for a letter ruling request involving an extension of time to file Form 3115, Application for Change in Accounting Method. The correct user fee is $1,200, not $1,500. |
| Rev. Rul. 2004-9(PDF) |
IRB #2004-06(HTML) |
2/9/2004 |
| Federal rates; adjusted federal rates; adjusted federal long-term rate and the long-term exempt rate. For purposes of sections 382, 642, 1274, 1288, and other sections of the Code, tables set forth the rates for February 2004. |
| Notice 2004-10(PDF) |
IRB #2004-06(HTML) |
2/9/2004 |
| Electronic delivery of Form 1099 and Form 5498 payee statements. This notice permits the electronic delivery of Form 1099–R, Form 1099–MSA, Form 1099–Q, Form 5498, Form 5498–ESA, and Form 5498–MSA payee statements by their respective due dates. |
| Notice 2004-3(PDF) |
IRB #2004-05(HTML) |
2/2/2004 |
| Weighted average interest rate update. The weighted average interest rate for January 2004 and the resulting permissible range of interest rates used to calculate current liability and to determine the required contribution are set forth. |
| Rev. Rul. 2004-6(PDF) |
IRB #2004-04(HTML) |
1/26/2004 |
| Public advocacy; public policy issues. This ruling concerns certain public advocacy activities conducted by social welfare organizations, unions, and trade associations. The guidance clarifies the tax implications of advocacy that meets the definition of political campaign activity. |
| Notice 2004-8(PDF) |
IRB #2004-04(HTML) |
1/26/2004 |
| Roth IRAs; abuses; listed transactions. This notice describes certain transactions that are being entered into by individuals, their Roth IRAs, and their businesses. The Service and the Treasury have determined that these transactions are abusive, that they may result in the disallowance of one or more deductions or the application of an excise tax, and that the applicable transactions must be listed as tax-shelters. |
| Rev. Rul. 2004-1(PDF) |
IRB #2004-04(HTML) |
1/26/2004 |
| Mileage allowance; accountable plans. This ruling clarifies when a mileage allowance for local transportation expenses computed on a basis similar to that used in computing a courier’s compensation may be treated as paid under an accountable plan. |
| Announcement 2004-4(PDF) |
IRB #2004-04(HTML) |
1/26/2004 |
| The Service and the Treasury Department announce that they are requesting comments from the public on proposed new Form 8858, Information Return of U.S. Persons With Respect to Foreign Disregarded Entities. The form will be required to be filed by U.S. persons that own a foreign disregarded entity directly or, in certain circumstances, indirectly or constructively. The reporting of information on Form 8858 will be required under sections 6011, 6012, 6031, and 6038 of the Code and the related regulations, for annual accounting periods of tax owners of foreign disregarded entities beginning on or after January 1, 2004. |
| Notice 2004-6(PDF) |
IRB #2004-03(HTML) |
1/20/2004 |
| Capitalization, business expenses, tangible property. The Service and Treasury Department intend to propose regulations that clarify the application of sections 162 and 263 of the Code to expenditures paid or incurred to repair, improve, or rehabilitate tangible property. This notice requests comments on issues relating to such expenditures by March 1, 2004. |
| Rev. Proc. 2004-11(PDF) |
IRB #2004-03(HTML) |
1/20/2004 |
| This procedure provides an automatic consent procedure allowing a taxpayer to make a change in method of accounting for certain depreciable or amortizable property after its disposition, waives the two-year rule in Rev. Rul. 90–38 with respect to certain changes in depreciation or amortization, and modifies other revenue procedures to conform with regulations section 1.446–1T(e)(2)(ii)(d). Rev. Procs. 2000–38, 2000–50, and 2002–9 modified. |
| Notice 2004-7(PDF) |
IRB #2004-03(HTML) |
1/20/2004 |
| Charitable contributions; intellectual property. This notice advises taxpayers that, in appropriate cases, the Service intends to disallow improper charitable contribution deductions claimed by taxpayers in connection with the transfer of patents or other intellectual property to charitable organizations. In particular, the IRS has become aware of purported charitable contributions of intellectual property in which one or more of the following issues (which may affect the availability or amount of a deduction) are present: 1) transfer of a nondeductible partial interest in intellectual property; 2) the taxpayer’s expectation or receipt of a benefit in exchange for the transfer; 3) inadequate substantiation of the contribution; and 4) overvaluation of the intellectual property transferred. |
| Rev. Rul. 2004-2 (PDF) |
IRB #2004-02(HTML) |
1/12/2004 |
| Federal rates; adjusted federal rates; adjusted federal long-term rate and the long-term exempt rate. For purposes of sections 382, 642, 1274, 1288, and other sections of the Code, tables set forth the rates for January 2004. |
| Notice 2004-2 (PDF) |
IRB #2004-02(HTML) |
1/12/2004 |
| This notice provides basic information, in question and answer format, on Health Savings Accounts (HSAs). |
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