| Revenue Rulings |
Bulletin |
Date of IRB |
 |
| Rev. Rul. 2004-113(PDF, 52K) |
IRB #2004-52(HTML) |
Dec. 27, 2004 |
| LIFO; price indexes; department stores. The October 2004 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, October 31, 2004. |
| Rev. Rul. 2004-112(PDF, 68K) |
IRB #2004-51(HTML) |
Dec. 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. Rul. 2004-111(PDF, 61K) |
IRB #2004-51(HTML) |
Dec. 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. 2004-110(PDF, 80K) |
IRB #2004-50(HTML) |
Dec. 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 Ruls. 55-520 and 58-301 modified and superseded.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. |
| Rev. Rul. 2004-109(PDF, 68K) |
IRB #2004-50(HTML) |
Dec. 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. 2004-108(PDF, 69K) |
IRB #2004-47(HTML) |
Nov. 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, 63K) |
IRB #2004-47(HTML) |
Nov. 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. 2004-106(PDF, 69K) |
IRB #2004-49(HTML) |
Dec. 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. |
| Rev. Rul. 2004-105(PDF, 47K) |
IRB #2004-48(HTML) |
Nov. 29, 2004 |
| LIFO; price indexes; department stores. The September 2004 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, September 30, 2004. |
| Rev. Rul. 2004-104(PDF, 50K) |
IRB #2004-46(HTML) |
Nov. 15, 2004 |
| 2005 covered compensation tables; permitted disparity. The covered compensation tables under section 401 of the Code for the year 2005 are provided for use in determining contributions to defined benefit plans and permitted disparity. |
| Rev. Rul. 2004-103(PDF, 55K) |
IRB #2004-45(HTML) |
Nov. 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. |
| Rev. Rul. 2004-102(PDF, 51K) |
IRB #2004-45(HTML) |
Nov. 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. |
| Rev. Rul. 2004-101(PDF, 50K) |
IRB #2004-44(HTML) |
Nov. 1, 2004 |
| LIFO; price indexes; department stores. The August 2004 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, August 31, 2004. |
| Rev. Rul. 2004-100(PDF, 50K) |
IRB #2004-44(HTML) |
Nov. 1, 2004 |
| Low-income housing credit; satisfactory bond; "bond factor" amounts for the period January through December 2004. This ruling announces the monthly bond factor amounts to be used by taxpayers who dispose of qualified low-income buildings or interests therein during the period January through December 2004. |
| Rev. Rul. 2004-99(PDF, 45K) |
IRB #2004-44(HTML) |
Nov. 1, 2004 |
| 2004 base period T-bill rate. The "base period T-bill rate" for the period ending September 30, 2004, is published as required by section 995(f) of the Code. |
| Rev. Rul. 2004-98(PDF, 92K) |
IRB #2004-42(HTML) |
Oct. 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. Rul. 2004-97(PDF, 66K) |
IRB #2004-39(HTML) |
Sept. 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. Rul. 2004-96(PDF, 53K) |
IRB #2004-41(HTML) |
Oct. 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. |
| Rev. Rul. 2004-95(PDF, 77K) |
IRB #2004-38(HTML) |
Sept. 20, 2004 |
| Dealers in securities futures contracts. This ruling holds that Category 1 and Category 2 OneChicago LLC Market Makers that satisfy the Market Maker requirements described in the ruling and satisfy the section 1256 Dealer Qualification quotation requirements described in the ruling perform functions similar to the functions performed by options dealers (as defined in section 1256(g)(8)(A) of the Code) and that these OneChicago LLC Market Makers are therefore dealers in securities futures contracts within the meaning of section 1256(g)(9)(B). |
| Rev. Rul. 2004-94(PDF, 70K) |
IRB #2004-38(HTML) |
Sept. 20, 2004 |
| Dealers in securities futures contracts. This ruling holds that Tier 1, Tier 2, and Tier 3 NQLX LLC Market Makers that satisfy the market maker requirements described in the ruling perform functions similar to the functions performed by options dealers (as defined in section 1256(g)(8)(A) of the Code) and that these NQLX LLC Market Makers are therefore dealers in securities futures contracts within the meaning of section 1256(g)(9)(B). |
| Rev. Rul. 2004-93(PDF, 54K) |
IRB #2004-37(HTML) |
Sept. 13, 2004 |
| LIFO; price indexes; department stores. The July 2004 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, July 31, 2004. |
| Rev. Rul. 2004-92(PDF, 63K) |
IRB #2004-37(HTML) |
Sept. 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. 2004-91(PDF, 55K) |
IRB #2004-35(HTML) |
Aug. 30, 2004 |
| LIFO; price indexes; department stores. The June 2004 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, June 30, 2004. |
| Rev. Rul. 2004-90(PDF, 57K) |
IRB #2004-34(HTML) |
Aug. 23, 2004 |
| Obsolete revenue rulings. This ruling obsoletes prior rulings that are no longer considered determinative. Rev. Ruls. 58-120, 70-58, 79-64, and 80-366 obsoleted. Rev. Procs. 89-37 and 96-18 obsoleted. |
| Rev. Rul. 2004-89(PDF, 60K) |
IRB #2004-34(HTML) |
Aug. 23, 2004 |
| Low-income housing credit; satisfactory bond; "bond factor" amounts for the period July through September 2004. This ruling announces the monthly bond factor amounts to be used by taxpayers who dispose of qualified low-income buildings or interests therein during the period July through September 2004. |
| Rev. Rul. 2004-88(PDF, 72K) |
IRB #2004-32(HTML) |
Aug. 9, 2004 |
| TEFRA partnership; disregarded entity; pass-thru partner; tax matter partner. This ruling addresses whether a disregarded entity partner will disqualify a partnership from being a "small partnership" excluded from the TEFRA partnership provisions. The ruling also addresses whether a disregarded entity may be designated as the tax matters partner of a partnership. |
| Rev. Rul. 2004-87(PDF, 110K) |
IRB #2004-32(HTML) |
Aug. 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. Rul. 2004-86(PDF, 214K) |
IRB #2004-33(HTML) |
Aug. 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. |
| Rev. Rul. 2004-85(PDF, 105K) |
IRB #2004-33(HTML) |
Aug. 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. 2004-84(PDF, 75K) |
IRB #2004-32(HTML) |
Aug. 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. |
| Rev. Rul. 2004-83(PDF, 55K) |
IRB #2004-32(HTML) |
Aug. 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. 2004-82(PDF, 120K) |
IRB #2004-35(HTML) |
Aug. 30, 2004 |
| Low-income housing credit. This ruling answers 12 questions about the low-income housing credit provisions under section 42 of the Code. |
| Rev. Rul. 2004-81(PDF, 73K) |
IRB #2004-32(HTML) |
Aug. 9, 2004 |
| LIFO; price indexes; department stores. The May 2004 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, May 31, 2004. |
| Rev. Rul. 2004-80(PDF, 69K) |
IRB #2004-32(HTML) |
Aug. 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. Rul. 2004-79(PDF, 115K) |
IRB #2004-31(HTML) |
Aug. 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. Rul. 2004-78(PDF, 90K) |
IRB #2004-31(HTML) |
Aug. 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. 2004-77(PDF, 92K) |
IRB #2004-31(HTML) |
Aug. 2, 2004 |
| Disregarded entities. This ruling concludes that, if an eligible entity has two owners under local law, but one of the owners is, for federal tax purposes, disregarded as an entity separate from the other owner of the eligible entity, then the eligible entity cannot be classified as a partnership and is either disregarded as an entity separate from its owner or an association taxable as a corporation. |
| Rev. Rul. 2004-76(PDF, 100K) |
IRB #2004-31(HTML) |
Aug. 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. 2004-75(PDF, 109K) |
IRB #2004-31(HTML) |
Aug. 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. 2004-74(PDF, 118K) |
IRB #2004-30(HTML) |
July 26, 2004 |
| Offsets under section 6402; Texas law. This ruling provides guidance regarding the amount of an overpayment from a joint tax return that the IRS may offset against a spouse’s separate tax liability for taxpayers domiciled in Texas. Texas is a community property state and, under the state law, each spouse has an undivided 50–percent interest in all community property. Rev. Ruls. 80–7 and 85–70 amplified and clarified. |
| Rev. Rul. 2004-73(PDF, 151K) |
IRB #2004-30(HTML) |
July 26, 2004 |
| Offsets under section 6402; Nevada, New Mexico, and Washington law. This ruling provides guidance regarding the amount of an overpayment from a joint tax return that the IRS may offset against a spouse’s separate tax liability for tax payers domiciled in Nevada, New Mexico, and Washington. Nevada, New Mexico, and Washington are community property states and, under the respective state laws, each spouse has an undivided 50–percent interest in all community property. Rev. Ruls. 80–7 and 85–70 amplified and clarified. |
| Rev. Rul. 2004-72(PDF, 121K) |
IRB #2004-30(HTML) |
July 26, 2004 |
| Offsets under section 6402; California, Idaho, and Louisiana law. This ruling provides guidance regarding the amount of an overpayment from a joint tax return that the IRS may offset against a spouse’s separate tax liability for taxpayers domiciled in California, Idaho, or Louisiana. California, Idaho, and Louisiana are community property states and, under the respective state laws, each spouse has an undivided 50–percent interest in all community property. Rev. Ruls. 80–7 and 85–70 amplified and clarified. |
| Rev. Rul. 2004-71(PDF, 154K) |
IRB #2004-30(HTML) |
July 26, 2004 |
| Offsets under section 6402; Arizona and Wisconsin law. This ruling provides guidance regarding the amount of an over payment from a joint tax return that the IRS may offset against a spouse’s separate tax liability for taxpayers domiciled in Arizona or Wisconsin. Arizona and Wisconsin are community property states and, under the respective state laws, each spouse has an undivided 50–percent interest in all community property. Rev. Ruls. 80–7 and 85–70 amplified and clarified. |
| Rev. Rul. 2004-70(PDF, 46K) |
IRB #2004-37(HTML) |
Sept. 13, 2004 |
| Fringe benefits aircraft valuation formula. The Standard Industry Fare Level (SIFL) cents-per-mile rates and terminal charges in effect for the second half of 2004 are set forth for purposes of determining the value of noncommercial flights on employer-provided aircraft under section 1.61-21(g) of the regulations. |
| Rev. Rul. 2004-69(PDF, 49K) |
IRB #2004-36(HTML) |
Sept. 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. |
| Rev. Rul. 2004-68(PDF, 105K) |
IRB #2004-31(HTML) |
Aug. 2, 2004 |
| Disclosure of returns and return information. Rev. Rul. 54–379 concludes that heirs at law, next of kin, or beneficiaries who are distributees of a person who dies intestate under state law have a “material interest” to receive the decedent’s return information. The statute does not clearly address the application of the “material interest” standard in the context of a taxpayer who dies intestate. Rev. Rul. 54–379 superseded. |
| Rev. Rul. 2004-67(PDF, 64K) |
IRB #2004-28(HTML) |
July 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. Rul. 2004-66(PDF, 44K) |
IRB #2004-27(HTML) |
July 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. Rul. 2004-65(PDF, 48K) |
IRB #2004-27(HTML) |
July 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. |
| Rev. Rul. 2004-64(PDF, 62K) |
IRB #2004-27(HTML) |
July 6, 2004 |
| Tax reimbursement clause. This ruling addresses issues presented with respect to a trust whose grantor is treated as its owner. It addresses the gift tax consequences when the grantor pays the income tax attributable to the inclusion of the trust’s income in the grantor’s taxable income. It also addresses the estate tax consequences if, pursuant to the governing instrument or applicable local law, the grantor may or must be reimbursed by the trust for that income tax. |
| Rev. Rul. 2004-63(PDF, 44K) |
IRB #2004-27(HTML) |
July 6, 2004 |
| Special use value; farms; interest rates. The 2004 interest rates to be used in computing the special use value of farm real property for which an election is made under section 2032A of the Code are listed for estates of decedents. |
| Rev. Rul. 2004-62(PDF, 50K) |
IRB #2004-25(HTML) |
June 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. |
| Rev. Rul. 2004-61(PDF, 45K) |
IRB #2004-25(HTML) |
June 21, 2004 |
| LIFO; price indexes; department stores. The April 2004 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, April 30, 2004. |
| Rev. Rul. 2004-60(PDF, 137K) |
IRB #2004-24(HTML) |
June 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. Rul. 2004-59(PDF, 81K) |
IRB #2004-24(HTML) |
June 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. 2004-58(PDF, 129K) |
IRB #2004-24(HTML) |
June 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. 2004-57(PDF, 105K) |
IRB #2004-24(HTML) |
June 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. 2004-56(PDF, 197K) |
IRB #2004-24(HTML) |
June 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. |
| Rev. Rul. 2004-55(PDF, 51K) |
IRB #2004-26(HTML) |
June 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. 2004-54(PDF, 43K) |
IRB #2004-23(HTML) |
June 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. Rul. 2004-53(PDF, 52K) |
IRB #2004-23(HTML) |
June 7, 2004 |
| Clarification of scope of section 6103(a). This ruling clarifies the fact that government employees who receive returns or return information pursuant to disclosures under section 6103(c), (k)(6), or (e) of the Code, other than section 6103(e)(1)(D)(iii) (relating to certain shareholders), are not subject to the disclosure restrictions of section 6103(a) with regard to the returns or return information received. |
| Rev. Rul. 2004-52(PDF, 71K) |
IRB #2004-22(HTML) |
June 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. |
| Rev. Rul. 2004-51(PDF, 91K) |
IRB #2004-22(HTML) |
June 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. 2004-50(PDF, 69K) |
IRB #2004-22(HTML) |
June 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. 2004-49(PDF, 79K) |
IRB #2004-21(HTML) |
May 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. |
| Rev. Rul. 2004-48(PDF, 65K) |
IRB #2004-21(HTML) |
May 24, 2004 |
| The March 2004 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, March 31, 2004. |
| Rev. Rul. 2004-47(PDF, 81K) |
IRB #2004-21(HTML) |
May 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. 2004-46(PDF, 61K) |
IRB #2004-20(HTML) |
May 17, 2004 |
| Royalties; information reporting. This ruling provides guidance concerning the reporting requirements of sections 6041 and 6050N of the Code for payments by publishers to literary agents on behalf of an author. T.D. 9121, page 903. |
| Rev. Rul. 2004-45(PDF, 93K) |
IRB #2004-22(HTML) |
June 1, 2004 |
| This ruling addresses the interaction between Health Savings Accounts (HSAs), health flexible spending arrangements (health FSAs), and health reimbursement arrangements (HRAs). |
| Rev. Rul. 2004-44(PDF, 49K) |
IRB #2004-19(HTML) |
May 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. |
| Rev. Rul. 2004-43(PDF, 78K) |
IRB #2004-18(HTML) |
May 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. Rul. 2004-42(PDF, 53K) |
IRB #2004-17(HTML) |
April 26, 2004 |
| LIFO; price indexes; department stores. The February 2004 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, February 29, 2004. |
| Rev. Rul. 2004-41(PDF, 56K) |
IRB #2004-18(HTML) |
May 3, 2004 |
| Limited Liability Company. This ruling discusses the issue of whether the IRS can collect employment taxes owed by a multi-member domestic Limited Liability Company (LLC) from the members. |
| Rev. Rul. 2004-40(PDF, 60K) |
IRB #2004-15(HTML) |
April 12, 2004 |
| Low-income housing credit; satisfactory bond; "bond factor" amounts for the period April through June 2004. This ruling announces the monthly bond factor amounts to be used by taxpayers who dispose of qualified low-income buildings or interests therein during the period April through June 2004. |
| Rev. Rul. 2004-39(PDF, 48K) |
IRB #2004-14(HTML) |
April 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. Rul. 2004-38(PDF, 51K) |
IRB #2004-15(HTML) |
April 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. |
| Rev. Rul. 2004-37(PDF, 65K) |
IRB #2004-11(HTML) |
March 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. 2004-36(PDF, 46K) |
IRB #2004-12(HTML) |
March 22, 2004 |
| Fringe benefits aircraft valuation formula. For purposes of section 1.61-21(g) of the regulations, the Standard Industry Fare Level (SIFL) cents-per-mile rates and terminal charge in effect for the first half of 2004 are set forth for determining the value of non-commercial flights on employer-provided aircraft. |
| Rev. Rul. 2004-35(PDF, 47K) |
IRB #2004-13(HTML) |
March 29, 2004 |
| LIFO; price indexes; department stores. The January 2004 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, January 31, 2004. |
| Rev. Rul. 2004-34(PDF, 56K) |
IRB #2004-12(HTML) |
March 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, 60K) |
IRB #2004-12(HTML) |
March 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, 58K) |
IRB #2004-12(HTML) |
March 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. |
| Rev. Rul. 2004-31(PDF, 76K) |
IRB #2004-12(HTML) |
March 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, 67K) |
IRB #2004-12(HTML) |
March 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. 2004-29(PDF, 58K) |
IRB #2004-12(HTML) |
March 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, 57K) |
IRB #2004-12(HTML) |
March 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. 2004-27(PDF, 68K) |
IRB #2004-12(HTML) |
March 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. 2004-26(PDF, 63K) |
IRB #2004-11(HTML) |
March 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. |
| Rev. Rul. 2004-25(PDF, 53K) |
IRB #2004-11(HTML) |
March 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. |
| Rev. Rul. 2004-24(PDF, 74K) |
IRB #2004-10(HTML) |
March 8, 2004 |
| REITs; parking facilities. This ruling identifies circumstances in which a real estate investment trust’s (REIT’s) income from providing parking facilities at its rental real properties qualifies as rents from real property under section 856(d) of the Code. |
| Rev. Rul. 2004-23(PDF, 56K) |
IRB #2004-11(HTML) |
March 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. |
| Rev. Rul. 2004-22(PDF, 64K) |
IRB #2004-10(HTML) |
March 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, 54K) |
IRB #2004-10(HTML) |
March 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, 80K) |
IRB #2004-10(HTML) |
March 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. Rul. 2004-19(PDF, 62K) |
IRB #2004-8(HTML) |
Feb. 23, 2004 |
| LIFO; price indexes; department stores. The December 2003 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, December 31, 2003. |
| Rev. Rul. 2004-18(PDF, 80K) |
IRB #2004-8(HTML) |
Feb. 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. 2004-17(PDF, 81K) |
IRB #2004-8(HTML) |
Feb. 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. |
| Rev. Rul. 2004-16(PDF, 65K) |
IRB #2004-8(HTML) |
Feb. 23, 2004 |
| Low-income housing credit; satisfactory bond; “bond factor” amounts for the period January through March 2004. This ruling announces the monthly bond factor amounts to be used by taxpayers who dispose of qualified low-income buildings or interests therein during the period January through March 2004. |
| Rev. Rul. 2004-15(PDF, 74K) |
IRB #2004-8(HTML) |
Feb. 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, 91K) |
IRB #2004-8(HTML) |
Feb. 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. 2004-13(PDF, 72K) |
IRB #2004-7(HTML) |
Feb. 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. 2004-12(PDF, 82K) |
IRB #2004-7(HTML) |
Feb. 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. 2004-11(PDF, 123K) |
IRB #2004-7(HTML) |
Feb. 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. 2004-10(PDF, 70K) |
IRB #2004-7(HTML) |
Feb. 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. 2004-8(PDF, 48K) |
IRB #2004-10(HTML) |
March 8, 2004 |
| Cost-share payments. The Forest Land Enhancement Program (FLEP) is a small watershed program administered by the Secretary of Agriculture that is substantially similar to the type of programs described in section 126(a)(1) through (8) of the Code within the meaning of section 126(a)(9). All or a portion of cost-share payments received under the FLEP is eligible for exclusion from gross income to the extent permitted by section 126. Rental payments and incentive payments are not cost-share payments and are not excludable from gross income. |
| Rev. Rul. 2004-9(PDF, 192K) |
IRB #2004-6(HTML) |
Feb. 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. |
| Rev. Rul. 2004-7(PDF, 46K) |
IRB #2004-4(HTML) |
Jan. 26, 2004 |
| LIFO; price indexes; department stores. The November 2003 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, November 30, 2003. |
| Rev. Rul. 2004-6(PDF, 84K) |
IRB #2004-4(HTML) |
Jan. 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. |
| Rev. Rul. 2004-5(PDF, 58K) |
IRB #2004-3(HTML) |
Jan. 20, 2004 |
| Charitable deductions. This ruling concludes that a trust is not prohibited from taking a charitable deduction under section 642(c) of the Code for the trust’s distributive share of a charitable contribution made by a partnership from the partnership’s gross income even though the trust’s governing instrument does not authorize the trustee to make charitable contributions. |
| Rev. Rul. 2004-4(PDF, 225K) |
IRB #2004-6(HTML) |
Feb. 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.” |
| Rev. Rul. 2004-3(PDF, 69K) |
IRB #2004-7(HTML) |
Feb. 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. |
| Rev. Rul. 2004-2 (PDF, 61K) |
IRB #2004-2(HTML) |
Jan. 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. |
| Rev. Rul. 2004-1(PDF, 63K) |
IRB #2004-4(HTML) |
Jan. 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. |
