IRS Digital Dispatch

Date: October 29, 2004. 

In this Issue:

1. IRS.gov Cited as Most Reliable Government Web Site
2. Check Carefully Before Applying for Offers in Compromise
3. IRS Revises Offer in Compromise Application Form; Now Available for Use
4. IRS Tightens Position on Abusive Tax Shelter Settlement Terms
5. IRS Announces Pension Plan Limitations for 2005
6. Recent Technical Guidance


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1. IRS.gov Cited as Most Reliable Government Web Site

IRS.gov is one of the first winners of a new awards program designed to recognize 
excellence in Web site performance. Keynote Systems has announced that IRS.gov is one 
of the first winners of the Keynote Performance Awards, a new awards program designed 
to recognize excellence in Web site performance. Keynote honored the fastest and most 
reliable Web sites in three categories: e-commerce, e-government and online travel and 
hospitality. See: http://www.irs.gov/newsroom/article/0,,id=130492,00.html


2. Check Carefully Before Applying for Offers in Compromise

Don't fall for promoters' promises - taxpayers must meet requirements for an offer in 
compromise. Taxpayers may refer promoters who are using the program inappropriately to 
the IRS’s Office of Professional Responsibility for civil sanctions by sending their 
complaint to: Office of Professional Responsibility (SE:OPR), Internal Revenue 
Service, 1111 Constitution Avenue N.W., Washington, DC 20224. See: 
http://www.irs.gov/newsroom/article/0,,id=130493,00.html


3. IRS Revises Offer in Compromise Application Form; Now Available for Use

IRS has revised Form 656, which taxpayers use to apply to make a payment less than the 
full amount of their tax liability. The Form has been revised to make it easier to 
understand and use. See: http://www.irs.gov/newsroom/article/0,,id=130491,00.html

 
4. IRS Tightens Position on Abusive Tax Shelter Settlement Terms

The IRS has tightened its settlement guidelines under which it will accept offers to 
settle cases with taxpayers that participated in certain abusive transactions. See: 
http://www.irs.gov/newsroom/article/0,,id=130347,00.html


5. IRS Announces Pension Plan Limitations for 2005

Most pension plan limitations will change for 2005. See: 
http://www.irs.gov/newsroom/article/0,,id=130346,00.html


6. Recent Technical Guidance

Announcement 2004-87, regarding the suspension of tax exemption of the Islamic African 
Relief Agency – USA, of Columbia, Missouri, an organization designated as supporting 
or engaging in terrorist activity or supporting terrorism. See: 
http://www.irs.gov/pub/irs-drop/a-04-87.pdf

Announcement 2004-82 discusses the reporting by trustees and custodians of the number 
of Archer MSAs established during the first six months of 2004. See: 
http://www.irs.gov/pub/irs-drop/a-04-82.pdf

Notice 2004-71, providing guidance under IRC 1(h)(11) for the 2004 information 
reporting of a distribution with respect to a security issued by a foreign 
corporation.  It also provides guidance regarding whether a security is readily 
tradable on an established U.S. securities market.  
See: http://www.irs.gov/pub/irs-drop/n-04-71.pdf


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