IRS Digital Dispatch

Nov. 19, 2004

In this Issue:

1. Enforcement Revenue Reaches Record in 2004

2. Treasury and IRS Issue Indexed Amounts for Health Savings Accounts

3. IRS Sets Standard Mileage Rated for 2005

4. $73 Million in Refund Checks Go Undelivered 

5. Treasury and IRS Issue Guidance on New Requirements for Disclosing 
Reportable Transactions

6. Recent Technical Guidance

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1. Enforcement Revenue Reaches Record in 2004

Commissioner briefed the news media about enforcement progress, need to 
increase 2005 funding.
For complete remarks and supporting tables see: 
http://www.irs.gov/newsroom/article/0,,id=131282,00.html

2. Treasury and IRS Issue Indexed Amounts for Health Savings Accounts

The Treasury Department and IRS today issued new guidance on the maximum 
contribution levels for Health Savings Accounts (HSAs) and out-of-pocket 
spending limits for High Deductible Health Plans (HDHPs) that must be used in 
conjunction with HSAs. These amounts have been indexed for cost-of-living 
adjustments for 2005 and are included in Revenue Procedure 2004-71. For more 
about Health Savings Accounts and the other items included in this guidance, 
such as the Tax Year 2005 tax rate schedules, standard deductions, and other 
indexed items see: http://www.irs.gov/pub/irs-drop/rp-04-71.pdf


3. IRS Sets Standard Mileage Rated for 2005 

The Internal Revenue Service today released the optional standard mileage rates 
to use for 2005 in computing the deductible costs of operating an automobile 
for business, charitable, medical or moving expense purposes.
For businesses, the rate increases a record 3 cents. See: 
http://www.irs.gov/newsroom/article/0,,id=131232,00.html

4. $73 Million in Refund Checks Go Undelivered 
  
The Internal Revenue Service is looking for 87,485 taxpayers whose income tax 
refund checks could not be delivered. Checks totaling more than $73 million can 
be reissued as soon as taxpayers correct or update their addresses with the 
IRS. See: http://www.irs.gov/newsroom/article/0,,id=131152,00.html

5. Treasury and IRS Issue Guidance on New Requirements for Disclosing 
Reportable Transactions

The Treasury Department and the Internal Revenue Service today issued interim 
guidance reflecting changes to the requirements for disclosure of reportable 
transactions by taxpayers and material advisors made by the newly enacted 
American Jobs Creation Act of 2004. See: 
http://www.irs.gov/newsroom/article/0,,id=131368,00.html


6. Recent Technical Guidance

Notice 2004-79 provides guidance regarding the effect of the Working Families 
Tax Relief Act of 2004 on the definition of dependent that applies to Sec. 106 
of the Internal Revenue Code. See: http://www.irs.gov/pub/irs-drop/n-04-79.pdf

Revenue Procedures 2004-69 and 2004-70, set forth various factors to be used by 
property and casualty insurance companies in discounting unpaid losses and in 
discounting estimated salvage recoverables. See: 
http://www.irs.gov/pub/irs-drop/rp-04-69.pdf and 
http://www.irs.gov/pub/irs-drop/rp-04-70.pdf




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