IRS Digital Dispatch

July 2, 2004

In this Issue:

1. July Tax Talk Today Focuses on Forms W-4, W-2, I-9 and 941

2. IRS to Disallow Improper Deductions for Conservation Easement Donations

3. IRS Issues New Publications on Car Donations

4. Recent Technical Guidance

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1. July Tax Talk Today Focuses on Forms W-4, W-2, I-9 and 941

The live webcast is scheduled for Tuesday, July 13, 2004 from 2 p.m. to 3
p.m. ET. During the program the IRS, the Social Security Administration, American 
Payroll Association, and the National Association of Tax Reporting and Payroll 
Management, will discuss the tools available to help employers get the correct 
information from their employees and provide it to the right agency.

Topics will include SSN verification tools, the Questionable W-4 program,
and the recently announced EFTPS FTD Penalty Refund program, avoiding "No
Match" letters from Social Security, tax deposit penalties, and W-2
penalties. The redesigned Form 941, with plain English instructions and
easy to understand format, will be unveiled. See:
http://www.taxtalktoday.org/

2. IRS to Disallow Improper Deductions for Conservation Easement Donations

Treasury Department and the Internal Revenue Service have issued a notice
to advise taxpayers that the IRS intends to disallow improper charitable
contribution deductions for transfers of easements on real property to
charitable organizations and for transfers of easements in connection with
purchases of real property from charitable organizations. See:
http://www.irs.gov/newsroom/article/0,,id=124485,00.html

3. IRS Issues New Publications on Car Donations

The IRS has issued two new publications dealing with car donations as part
of an effort to help taxpayers avoid potential pitfalls when they donate
automobiles to charities.

The first publication, Publication 4302, �A Charity�s Guide to Car
Donations,� addresses issues that charities need to know to properly
operate car donation programs. The second publication, Publication 4303,
�A Donor�s Guide to Car Donations,� is focused on individuals who make
such donations. See: http://www.irs.gov/newsroom/article/0,,id=124421,00.html

4. Recent Technical Guidance

Revenue Procedure 2004-39 provides guidance to states and local
governments that issue bonds to which section 142(d) of the Internal
Revenue Code applies.  It 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) during the qualified
project period. See: http://www.irs.gov/pub/irs-drop/rp-04-39.pdf

Revenue Procedure 2004-40 explains how to request an advance pricing
agreement ("APA"), how such a request will be processed, and the effect
and administration of APAs. See:
http://www.irs.gov/pub/irs-drop/rp-04-40.pdf


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