IRS Digital Dispatch

Aug. 23, 2004

In this Issue:

1. New Schedule Helps Resolve Employment Tax Discrepancies

2. IRS Grants Tax Relief for Tropical Storms� Victims

3. IRS Chief Counsel Appoints Zelnik as Senior Counsel, Position Focuses
   on Abusive Transactions

4. IRS Initiative Will Scrutinize EO Compensation Practices

5. Advance Guidance

*   *   *   *   *

1. New Schedule Helps Resolve Employment Tax Discrepancies

New schedule makes it easier for taxpayers to provide IRS with information
about employment tax discrepancies. See:
http://www.irs.gov/newsroom/article/0,,id=128499,00.html

2. IRS Grants Tax Relief for Tropical Storms� Victims

Taxpayers in 25 Florida counties affected. See:
http://www.irs.gov/newsroom/article/0,,id=128465,00.html

3. IRS Chief Counsel Appoints Zelnik as Senior Counsel, Position Focuses
on Abusive Transactions

He will be the primary adviser on abusive tax transactions to the Chief
Counsel. See: http://www.irs.gov/newsroom/article/0,,id=128426,00.html

4. IRS Initiative Will Scrutinize EO Compensation Practices

Enforcement effort to halt abuses by tax-exempt organizations that pay
excessive compensation and benefits to officers and insiders. See:
http://www.irs.gov/newsroom/article/0,,id=128328,00.html

5. Advance Guidance

Notice 2004-59, provides guidance in a question-and-answer format on the
restrictions placed on plan amendments following an employer�s election of
the alternative deficit reduction contribution under IRC 412(l)(12) and
ERISA 302(d)(12), as added by Section 102 of the Pension Funding Equity
Act of 2004. There is also a related Treasury Dept. News Release. The
Notice will be in Internal Revenue Bulletin 2004-36, dated Sept. 7, 2004.

Treasury news release and Notice 2004-59 --
http://www.treas.gov/press/releases/js1863.htm

*  *  *

Rev. Rul. 2004-69, has been issued and provides the Applicable Federal
Rates (AFRs) for September 2004. This Rev. Rul. will be in Internal
Revenue Bulletin 2004-36, dated Sept. 7, 2004:
http://www.irs.gov/pub/irs-drop/rr-04-69.pdf

*  *  *

Rev. Proc. 2004-53 -- This revenue 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 will appear in IRB-2004-34, Aug. 23, 2004.

A PDF version of the revenue procedure and a related news release is
available now on IRS.gov:

 � RP-2004-53 -- http://www.irs.gov/pub/irs-drop/rp-04-53.pdf
 � News release --
http://www.irs.gov/newsroom/article/0,,id=128499,00.html

*  *  *

Final and Temporary regulations (TD 9153), providing clarification of
definitions of a corporation and a domestic entity in circumstances where
the business entity is considered to be created or organized in more than
one jurisdiction.

Proposed and temporary regulations (REG-124872-04) and a related Treasury
Dept. news release: http://www.treas.gov/press/releases/js1854.htm

***************************************************************************

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