IRS Digital Dispatch

Nov. 5, 2004

In this Issue:

1. Tax Talk Today Nov. 9 Program Discusses Payroll Prep for the Year End

2. E-services Helps Tax Professionals Communicate With IRS

3. Recent Changes May Affect 2004 Taxes

4. IRS Revises Application Form for Charitable Organizations

5. IRS Seeks Applications for TE/GE Advisory Committee

6. Recent Technical Guidance

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1. Tax Talk Today Nov. 9 Program Discusses Payroll Prep for the Year End

Tuesday�s program from 2 � 3pm ET picks up where the July program ended
and will focus on the most common issues encountered in getting ready to
issue Forms W-2 and 1099. Representatives from the major payroll
associations and the Social Security Administration will join the panel to
discuss ways to make the year-end process go as smoothly as possible,
focusing on electronic filing of W-2s and 1099s. The IRS is working on a
new Form 941 and the program will give you the latest information on it.
This program has a
CPE Program Level: Overview 1 CPE Credit.

To view the program, go to http://www.taxtalktoday.com

2. E-services Helps Tax Professionals Communicate With IRS

In the November ERO Spotlight, 2004 Pioneer Award Winner Jim Leimbach of
Panama City, Fla., discusses his experience as a pilot tester for
e-services, a suite of web-based products that allows tax professionals to
transmit information directly to the IRS, instantly access client
information online, and interact directly with IRS representatives to
resolve taxpayer issues. Leimbach explains how e-services helps him better
serve his clients and makes his business more self-reliant. (ERO stands
for Electronic Return Originator, a tax professional who can e-file for
clients.) To learn more about Jim and other EROs, and to access online
resources on e-file, e-pay and e-services, see:
http://www.erospotlight.com.

3. Recent Changes May Affect 2004 Taxes 
  
Some recent tax law changes are effective for the 2004 Tax Year. On Oct.
4, 2004, the President signed the Working Families Tax Relief Act of 2004
and on Oct. 22, 2004, the President signed the American Jobs Creation Act
of 2004. Both new laws contain numerous extenders and tax law changes.
Some highlights are available at:
http://www.irs.gov/newsroom/article/0,,id=130215,00.html


4. IRS Revises Application Form for Charitable Organizations

A new Form from the IRS streamlines application process for charitable
organizations and will help IRS spot potentially abusive charities. The
revised Form 1023, Application for Exemption Under Section 501(c)(3) of
the Internal Revenue Code, is available online. Printed copies of the form
and instructions will be available at the end of November by calling the
IRS toll-free at (800) 829-3676. The additional information required
upfront will mean fewer contacts between the IRS and the organizations.
See: http://www.irs.gov/newsroom/article/0,,id=130666,00.html


5. IRS Seeks Applications for TE/GE Advisory Committee

The IRS is seeking new members for the TE/GE Advisory Committee, which
provides avenue for public input into critical tax administration areas.
Applications should be sent to Steven Pyrek; TE/GE Communications and
Liaison Director; Internal Revenue Service; 1111 Constitution Ave. NW �
SE:T:CL Penn Bldg; Washington, D.C. 20224, or by fax 202-283-9956 (not a
toll-free number). See:
http://www.irs.gov/newsroom/article/0,,id=130665,00.html

6. Recent Technical Guidance:


Notice 2004-74 describes tax relief for Alabama areas struck by Hurricane
Ivan. http://www.irs.gov/pub/irs-drop/n-04-74.pdf
 
Notice 2004-75 describes tax relief for Ohio areas struck by Hurricanes
Frances and Ivan. See: http://www.irs.gov/pub/irs-drop/n-04-75.pdf
 
Notice 2004-76 describes tax relief for Florida areas struck by Hurricanes
Charley, Frances, Ivan and Jeanne; this amplifies and supersedes Notice
2004-66, which applied only to areas struck by Hurricanes Charley and
Frances. See: http://www.irs.gov/pub/irs-drop/n-04-76.pdf

Notice 2004-77 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 November 2004. See:
http://www.irs.gov/pub/irs-drop/n-04-77.pdf

Revenue Ruling 2004-107 provides the 2005 inflation-adjusted amounts under
IRC 1274A for qualified debt instruments and cash method debt instruments.
See: http://www.irs.gov/pub/irs-drop/rr-04-107.pdf

Revenue Ruling 2004-108 provides the 2005 inflation-adjusted amount that a
taxpayer may lend to a qualified continuing care facility under IRC
7872(g) without incurring imputed interest. See:
http://www.irs.gov/pub/irs-drop/rr-04-108.pdf



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