IRS Digital Dispatch

Sept. 3, 2004

In this Issue:

1.  IRS Waives Excise Tax Penalty Because of Fuel Shortage in Florida

2.  Interest Rates Increase for the Fourth Quarter of 2004

3.  Recent Technical Guidance

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1.  IRS Waives Excise Tax Penalty Because of Fuel Shortage in Florida

The Internal Revenue Service announced today that it would not assert the
excise tax penalty on dyed diesel fuel that wholesale dealers deliver or
sell in Florida from Sept. 2 through Sept. 7 for highway use because of
shortages of clear diesel fuel caused by Hurricanes Charley and Frances.
The penalty is either $1,000 or $10 per gallon, whichever is greater. To
be eligible for the relief from this penalty, the wholesale dealer must
report and pay the tax on the dyed diesel fuel that is delivered or sold
for highway use. The tax return and the payment will be due on Oct. 31,
2004. See: http://www.irs.gov/pub/irs-drop/a-04-70.pdf

2.  Interest Rates Increase for the Fourth Quarter of 2004 
  
The Internal Revenue Service has announced there will be a one percentage
point increase in the interest rates for the calendar quarter beginning
October 1, 2004.  See: http://www.irs.gov/pub/irs-drop/rr-04-92.pdf

3.  Recent Technical Guidance

Notice 2004-60 contains the corporate bond weighted average interest rate
update for purposes of � 412(b)(5)(B)(ii)(II) and the interest rate on
30-year Treasury securities under � 417(e)(3)(A)(ii)(II) for plan years
beginning in September 2004. See:
http://www.irs.gov/pub/irs-drop/n-04-60.pdf
 
 
Revenue Procedure 2004-57 allows additional time for taxpayers to comply
with the requirements of section 6.02 of Rev. Proc. 2004-23, 2004-16
I.R.B. 785.  Section 6.02 of Rev. Proc. 2004-23 requires certain taxpayers
that seek to change to a method of accounting provided in �� 1.263(a)-4,
1.263(a)-5, and 1.167(a)-3(b) of the Income Tax Regulations to submit a
written statement containing information necessary to obtain automatic
consent for the change. http://www.irs.gov/pub/irs-drop/rp-04-57.pdf


Revenue Ruling 2004-97 amplifies Revenue Ruling 2004-75 to provide that it
will not apply to payments made before Jan. 1, 2005, under contracts
issued on or before July 12, 2004 (the date that the earlier ruling was
released). See: http://www.irs.gov/pub/irs-drop/rr-04-97.pdf


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