etrent17/irs-articles huggingface dataset:
IR-2005-101, Sept. 12, 2005
WASHINGTON — Today the Treasury Department and the IRS announced guidance regarding the temporary operation of ships in the domestic trade as a result of Hurricane Katrina.
Hurricane Katrina damaged many of the Gulf Coast oil refineries and has significantly disrupted the pipeline transportation of oil and refined products from the Gulf Coast States. The Secretary of Homeland Security has waived the Merchant Marine Act of 1920 and related laws for the transportation of petroleum and refined petroleum in response to Hurricane Katrina, including the transportation of petroleum from the Strategic Petroleum Reserve undertaken in response to the circumstances arising from Hurricane Katrina. By the notice issued today, Treasury and the IRS are providing complementary guidance related to the tax treatment of ship operators transporting petroleum and refined petroleum products pursuant to the waiver and the treatment of the crew members of ships operating pursuant to the waiver. 
Links:

Notice-2005-65PDF — Announcement of Rules Relating to the Temporary Operation of Ships Involved in the Domestic Trade as a Reslut of Hurricane Katrina (PDF 14K, 5 pages)


More Information on Hurricane Katrina-related Issues

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IR-2005-99, Sept. 9, 2005
WASHINGTON — The Internal Revenue Service and Treasury Department announced today an increase to the optional standard mileage rates for the final four months of 2005.
The rate will increase to 48.5 cents a mile for all business miles driven between Sept. 1 and Dec. 31, 2005. This is an increase of 8 cents from the 40.5 cent rate in effect for the first eight months of 2005, as set forth in Rev. Proc. 2004-64.
“This is about fairness for taxpayers,” said IRS Commissioner Mark W. Everson. “People are entitled to deduct the real cost of operating a vehicle. We’ve responded to the recent gas price increases by making this special adjustment so taxpayers get the tax benefit they deserve.”
In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2005. The IRS normally updates the mileage rates once a year in the fall for the next calendar year.
“With many predicting a decline in gas prices over coming months, we will hold off on setting the 2006 rate until closer to January,” Everson said. Next year’s rate could be lower than 48.5 cents.
While gasoline is a major factor in the mileage figure, other items enter into the calculation of mileage rates, such as the price of new vehicles and insurance.
The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of the extra burden of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage.
The new four-month rate for computing deductible medical or moving expenses will be 22 cents a mile, up from 15 cents for the first eight months of 2005. The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile.
The annual Revenue Procedure includes limitations on who is not eligible to use the standard mileage rate.
Links:

Announcement 2005-71PDF — Announcing an increase to the optional standard mileage rates for the final four months of 2005. (PDF 9KB, 2 pages)

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IR-2005-98, Sept. 8, 2005
WASHINGTON — The Internal Revenue Service today announced that it will provide issuers of tax exempt bonds affected by Hurricane Katrina with additional time to file certain information returns and arbitrage rebate returns.
Affected issuers who have an original filing or payment deadline between Aug. 29, 2005, and Dec. 31, 2005, have until Jan. 3, 2006, to file the return and make any payment due with the return. Tax-exempt bond issuers entitled to the extension should add the following designation in red ink at the top of their return: “Hurricane Katrina Relief.  See Announcement 2005-69.”
In addition to providing additional time for filing and payment, the IRS will also grant relief to affected issuers under other appropriate circumstances. The details of the extension are outlined in Announcement 2005-69. 
“We are monitoring the situation carefully and are standing ready to promptly provide any additional assistance needed by issuers impacted by this natural disaster,” said Mark Scott, Director of Tax Exempt Bonds for the IRS Tax Exempt and Government Entities Division.
Links:

Announcement 2005-69PDF — Disaster relief for issuers of tax-exempt bonds affected by Hurricane Katrina. (PDF 11K, 3 pages)


More Information About Hurricane Katrina

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IR-2005-97, Sept. 8, 2005
WASHINGTON — Department of the Treasury and Internal Revenue Service officials announced today special relief intended to support leave-based donation programs to aid victims who have suffered from the extraordinary destruction caused by Hurricane Katrina.
Under these programs, employees donate their vacation, sick or personal leave in exchange for employer cash payments made to qualified tax-exempt organizations providing relief for the victims of Hurricane Katrina.
Under Notice 2005-68, employees can forgo leave in exchange for employer cash payments made before Jan. 1, 2007, to qualified tax-exempt organizations providing relief for Hurricane Katrina victims. Employees do not have to include the donated leave in their income. Employers will be permitted to deduct the amount of the cash payment.
Links:

Notice 2005-68PDF — Treatment of Certain Amounts Paid to Section 170(c) Organizations under Certain Employer Leave-Based Donation Programs. (PDF 10K, 2 pages)


More Information About Hurricane Katrina

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The information in this release has been updated. Please see News Release IR-2005-112, issued Sept. 28.
IR-2005-96, Sept. 8, 2005
WASHINGTON — Victims of Hurricane Katrina will have until Jan. 3, 2006 to file any returns, pay any taxes or make any deposits due, the Internal Revenue Service announced today.
This extends and expands relief granted previously by the IRS and is available in all the counties and parishes listed in IRS news release IR-2005-91. It applies to any return, tax payment or tax deposit with an original or extended due date that fell on or after Aug. 29, 2005. For Florida residents, the effective date begins Aug. 24, 2005.
The IRS will abate interest and any late filing, late payment or failure to deposit penalties that would otherwise apply. This relief includes the Sept. 15 due date for estimated taxes and for calendar-year corporate returns with automatic extensions; the Oct. 17 deadline for individuals who received a second extension for filing their individual income tax returns; and the Oct. 31 deadline for filing quarterly federal employment and excise tax returns.
To the maximum extent possible, the IRS will automatically grant this relief to any individual or business located in the disaster area. Any disaster area taxpayer who receives a penalty notice from the IRS should call the toll-free number on the notice to receive penalty abatement. In addition, the IRS will work with any taxpayer who resides elsewhere but whose books, records or tax professional are located in the relief area.
In the aftermath of this natural disaster, the IRS assures individuals, businesses and tax professionals that it is working aggressively to monitor the situation and resolve other potential tax administration issues as they are identified.
More information regarding disaster relief, including IR-2005-91, is available on the IRS Web site, IRS.gov. People with questions can also call the IRS toll-free disaster hotline at 1-866-562-5227.
Links:

Tax Relief Granted by IRS



Frequently Asked Questions for Disaster Victims



More Information on Hurricane Katrinia



Press Conference Remarks: IRS Commissioner Mark W. Everson (September 8, 2005)
IR-2005-95 , Sept. 7, 2005
WASHINGTON — The Internal Revenue Service, to alleviate local fuel shortages caused by Hurricane Katrina, will permit vehicles registered for highway use to remove aviation-grade kerosene (aviation fuel) from certain airports without violating the favorable excise tax treatment to which those airport fueling terminals are currently entitled.
The airports to which this relief applies are Louis Armstrong New Orleans International Airport (T-72-LA-2356), Memphis International Airport (T-62-TN-2212), Dallas Love Field Airport (T-75-TX 2663), Dallas Fort Worth International Airport (T-75-TX-2673), and George Bush Intercontinental Airport, Houston (T-76-TX-2818).
This relief applies beginning September 2, 2005, and will remain in effect through November 1, 2005.
An airport fueling terminal is generally not considered secure for excise tax purposes if highway vehicles can remove fuel from the airport, but an exception is provided in the case of exigent circumstances. The IRS has determined that the aftermath of Hurricane Katrina is an exigent circumstance that meets this condition.
Links:
IRS Disaster Relief Page

More Information on Hurricane Katrina

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IR-2005-94, Sept. 7, 2005
WASHINGTON – The Internal Revenue Service announced today that it will partner with the American Institute of Certified Public Accountants (AICPA) to provide assistance to taxpayers at local disaster recovery centers established by the Federal Emergency Management Agency (FEMA). To that end, the IRS and AICPA have signed an agreement.
The CPA volunteers will soon join IRS employees to staff disaster recovery centers servicing some of the areas affected by Hurricane Katrina.
“With so many American lives disrupted by Hurricane Katrina and its aftermath, the ability to expand service by using CPA volunteers should help reduce some of the tax issues victims will face,” said IRS Commissioner Mark W. Everson. “These volunteers will provide the technical expertise and skills necessary to explain the laws regarding disaster-related tax relief.”
When the President designates an area to receive federal disaster assistance, FEMA opens local disaster recovery centers where individuals and businesses may register for disaster aid. IRS assigns employees to staff these local centers to provide tax assistance to taxpayers. Occasionally, IRS must augment its capacity to staff these centers.
Under the terms of the partnership agreement, the IRS and the AICPA will test the use of volunteer CPAs at FEMA’s disaster recovery centers to facilitate service to those seeking aid. The IRS will request support from the profession to supplement staff on an as-needed basis.
 
Both IRS and the AICPA will work with CPA volunteers at FEMA disaster recovery centers in Presidentially-declared disasters to reach more taxpayers and inform them of the services offered.
“CPAs are working in the public interest to help Americans with their financial recovery from major disasters such as Hurricane Katrina,” said Barry Melancon, AICPA President and CEO. “Many CPAs have already established themselves as essential members of the communities in which they live. With this program, they can meet a critical need for Americans who have turned to FEMA shelters for help and comfort. There are so many decisions to be made once disaster strikes and the CPA community has come together to help make that process as smooth as possible.”
The American Institute of Certified Public Accountants is the national, professional organization for certified public accountants. Its mission is to provide members with the resources, information and leadership that enable them to provide quality services to benefit the public as well as employers and clients.
“The IRS would like to thank the AICPA for its willingness to partner and provide assistance to those Americans in their greatest time of need. We will continually look to find new ways and opportunities to strengthen our partnership with the AICPA to serve the American public,” Everson said.
Information regarding disaster tax relief may be found on the IRS’s Web site at IRS.gov.
Links:

IRS Disaster Relief Page


More information on Katrina-related issues
IR-2005-93, Sept. 6, 2005
WASHINGTON — The Internal Revenue Service will provide an expedited review and approval process for new organizations seeking tax-exempt status in order to provide relief for victims of Hurricane Katrina. However, the agency encourages people to use existing organizations currently working on immediate aid efforts.
New organizations should apply for tax-exempt status by filing IRS Form 1023PDF and write at the top of the form “Disaster Relief, Hurricane Katrina.” The IRS will give such applications expedited attention to ensure they meet legal requirements.
“We want to make sure we do all we can to help new charitable organizations get up and running so they can begin providing the assistance the victims of this terrible disaster so desperately need,” said IRS Commissioner Mark W. Everson. “Just as we did after September 11, 2001, we will put these applications at the head of the queue and turn them around promptly.”
Use of existing charitable organizations is encouraged because such organizations, including churches, are frequently able to administer relief programs more efficiently than newly formed organizations, because they already have fund-raising and distribution infrastructures in place.
The web site of the Federal Emergency Management Agency (FEMA) and the U.S. Government’s main Web portal at FirstGov.gov offer lists of organizations that provide support to victims of Hurricane Katrina.
However, the IRS anticipates new charities will form to address the numerous and more specific needs of the disaster victims. The IRS will continually update its on-line search feature that allows taxpayers to determine if a charity has IRS-approved tax-exempt status.
In addition to Form 1023 for applying for recognition for tax exemption, the IRS also offers Publication 3833PDF, Disaster Relief: Providing Assistance Through Charitable Organizations, which provides guidance on the application process.
Links:

Form 1023 InstructionsPDF


IRS Charities and Nonprofits information


More Information on Katrina-Related Issues
IR-2005-92, Sept. 2, 2005
WASHINGTON — The Treasury Department and the Internal Revenue Service today announced that they will waive low-income housing tax credit rules that prohibit owners of low-income housing from providing housing to victims of Hurricane Katrina who do not qualify as low-income. The action will expand the availability of housing for disaster victims and their families.
Because of the widespread devastation to housing caused by Hurricane Katrina, the Treasury Department and the IRS will temporarily suspend income limitation requirements and non-transient requirements for qualified low-income housing projects located anywhere in the United States.
"The widespread damage caused by the hurricane left many thousands of Americans homeless," stated Treasury Secretary John W. Snow. "We hope that providing this disaster relief will allow states to temporarily house many of the needy whose homes were destroyed."
Links:


Notice 2005-69PDF — Relief from Certain Low-Income Housing Credit Requirements Due to Hurricane Katrina. (PDF 17K, 7 pages)



IRS Disaster Relief Page


More Information on Hurricane Katrina Relief

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IR-2005-90, Sept. 2, 2005
WASHINGTON — The Internal Revenue Service, the Department of Labor's Employee Benefits Security Administration and the Pension Benefit Guaranty Corporation officials announced today their agencies are providing relief in connection with certain employee benefit plans because of damage in the Gulf Coast area caused by Hurricane Katrina.
Notice 2005-60 provides relief for certain employee benefit plans in the affected parishes and counties declared disaster areas because of Hurricane Katrina. These plans will have until Oct. 31, 2005, to make minimum funding contributions, or apply for waivers, if the deadline for such actions was from Aug. 29, 2005 through Oct. 30, 2005.
The relief provided by Notice 2005-60 is in addition to the relief already provided by the IRS to victims of Hurricane Katrina.
Links:
Notice 2005-60PDF (PDF 15KB, 3 pages)
IRS Disaster Relief Page
More Information on Katrina-Related Issues
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IR-2005-89, Sept. 2, 2005
WASHINGTON — The Internal Revenue Service, in response to shortages of clear diesel fuel caused by Hurricane Katrina, will not impose a tax penalty when dyed diesel fuel is sold for use or used on the highway.
This relief applies beginning August 25, 2005, in Florida, August 30, 2005, in Alabama, Louisiana, and Mississippi, and August 31, 2005, in the rest of the United States, and will remain in effect through September 15, 2005.
This penalty relief is available to any person that sells or uses dyed fuel for highway use. In the case of the operator of the vehicle in which the dyed fuel is used, the relief is available only if the operator or the person selling the fuel pays the tax of 24.4 cents per gallon. The IRS will not impose penalties for failure to make semimonthly deposits of this tax. IRS Publication 510PDF, Excise Taxes for 2005, has information on the proper method for reporting and paying the tax.
Ordinarily, dyed diesel fuel is not taxed, because it is sold for uses exempt from excise tax, such as to farmers for farming purposes and to local governments for buses.
Finally, the Internal Revenue Service will not impose the recently enacted tax penalty on a failure to meet the requirements of EPA highway diesel fuel sulfur content regulations if EPA has waived those requirements.
Links:

IRS Disaster Relief Page


More Information on Katrina-Related Issues
IR-2005-88, Sept. 1, 2005
WASHINGTON — The Internal Revenue Service announced today the establishment of a special toll-free telephone number for use by taxpayers affected by Hurricane Katrina.
People affected by Katrina who need help with tax matters can call 1-866-562-5227.
Beginning today, taxpayers can call the special number Monday through Friday from 7:00 am to 10:00 pm local time.
Callers to this dedicated telephone line can find out about available tax relief, get free copies of their tax return transcripts and receive Disaster Tax Loss Kits. Callers may also be referred to the Federal Emergency Management Agency’s assistance lines for additional help.
Affected taxpayers who need copies of tax returns to apply for aid or other purposes can have the normal user fee waived by writing “Hurricane Katrina” in red across the top margin of their Form 4506, Request for Copy of Tax Return.
More information about tax relief for victims, making charitable contributions and links to other government web pages is available at IRS.gov.
The IRS is continuing to monitor the aftermath of Hurricane Katrina and will provide additional relief and guidance in the days ahead.
 
Links:

Hurricane Katrina: Information on Charitable Giving, Tax-Relief Issues
IR-2005-87, September 1, 2005
WASHINGTON – The Internal Revenue Service today announced the selection of Joseph H. Grant as the Director of Employee Plans Rulings and Agreements in the Tax Exempt and Government Entities Division. 
Grant will be responsible for leading and managing Employee Plans’ voluntary compliance programs, determination letter program and development of guidance and rulings.
“These up-front compliance programs play a key role in our efforts to balance service and enforcement,” said Steven T. Miller, Tax Exempt and Government Entities Division Commissioner.  “Our strong determinations program gets new plans off on the right foot so they don’t fall into noncompliance with the law.  Our rulings program gives plan administrators the guidance and information they need to keep plans in compliance with the ever-changing laws that govern retirement plans.  And our innovative voluntary corrections program helps plans make necessary corrections so they can remain tax-exempt.  Joseph is taking over a solid, multi-faceted program in Rulings and Agreements that complements and balances our enforcement efforts.”
Grant comes to the IRS from the Pension Benefit Guaranty Corporation (PBGC), where he was deputy executive director and chief operating officer.  There he exercised direct control over the day-to-day operations relating to monitoring more than 31,000 pension plans covering 44 million participants.  The PBGC ensures that plan participants receive guaranteed pension benefits.
 
“Joseph’s experience at the PBGC will be invaluable in his new position with Employee Plans,” Miller said.  “One of our key areas of concern is pension under-funding.  We work closely with the PBGC in this area, and look forward to the contributions Joseph will bring.”
In addition to his experience at PBGC, Grant also was on the staff of the Oversight and Social Security subcommittees of the Committee on Ways and Means of the U.S. House of Representatives.
IR-2005-86, Sept. 1, 2005
 
WASHINGTON — Citizens seeking to make donations to help Hurricane Katrina victims should seek out qualified charities, the Internal Revenue Service said today.
People who have a specific charity in mind can make sure that it is a qualified charity by searching an IRS-approved list available on the IRS Web site. IRS.gov has an on-line search feature that allows people to find qualified charities. Some organizations, such as churches and governments, may be qualified even though they are not listed.
The IRS does not endorse any charity. However, the Federal Emergency Management Agency has urged citizens to make cash donations to volunteer agencies with whom it is working. The government’s official Web portal, FirstGov.gov, also contains disaster-relief information.
In addition, the IRS has prepared Publication 3833, Disaster Relief: Providing Assistance Through Charitable OrganizationsPDF, that may be helpful for people who want to make contributions or who want to form a new charity.
“We encourage citizens to make sure their contributions are put to the best use possible to help Hurricane Katrina victims,” said IRS Commissioner Mark W. Everson. “The IRS will do everything possible to assist both taxpayers and charities in this difficult time.”
The IRS also issued these following reminders to citizens and charities:
• IRS Disaster Relief main page
• Publication 78, lists charities with tax-exempt status, and a searchable on-line version is available through IRS.gov
• Publication 526PDF, Charitable Contributions, provides information on making contributions to charities
• Taxpayers may claim a deduction for contributions to charitable organizations only if they itemize deductions on Schedule A of their Form 1040. They should retain proof of the contribution and, if the amount is $250 or more, must obtain an acknowledgement from the charity for the amount to be deductible.
IR-2005-85, Sept. 1, 2005
WASHINGTON — The Internal Revenue Service today announced there will be a one-percentage-point increase in interest rates for the calendar quarter beginning Oct. 1, 2005. The interest rates are as follows:
• Seven (7) percent for overpayments [six (6) percent in the case of a corporation];
• Seven (7) percent for underpayments;
• Nine (9) percent for large corporate underpayments; and
• Four and one-half (4.5) percent for the portion of a corporate overpayment exceeding $10,000.
Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis.  For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points. Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points. The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points.  The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.
The interest rates announced today are computed from the federal short-term rate based on daily compounding determined during July 2005.
Rev. Rul. 2005-62 announces the new rates of interest and will appear in Internal Revenue Bulletin No. 2005-38, dated Sept. 19, 2005.
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WASHINGTON — Personal exemptions and standard deductions will rise, tax brackets will widen and individuals will be able to make larger tax-free gifts in 2006, thanks to inflation adjustments announced today by the Internal Revenue Service.
By law, a variety of tax provisions must be revised each year to keep pace with inflation. As a result, more than three dozen tax benefits, affecting virtually every taxpayer, are being modified for 2006. Key changes affecting 2006 returns, filed by most taxpayers in early 2007, include the following:

The value of each personal and dependency exemption, available to most taxpayers, will be $3,300, up $100 from 2005.
	 


The new standard deduction will be $10,300 for married couples filing a joint return, $5,150 for singles and $7,550 for heads of household. Nearly two out of three taxpayers take the standard deduction, rather than itemizing deductions, such as mortgage interest, charitable contributions and state and local taxes.
	 


Tax-bracket thresholds will increase for each filing status. For a married couple filing a joint return, for example, the taxable-income threshold separating the 15% bracket from the 25% bracket will be $61,300, up from $59,400 in 2005.
	 


The annual gift tax exemption will be $12,000, up from $11,000 in 2005.
	Revenue Procedure 2005-70, containing a complete rundown of inflation adjustments, is posted on the IRS Web site and will appear in Internal Revenue Bulletin 2005-47, dated Nov. 21, 2005.

Related Link:
Revenue Procedure 2005-70PDF on 2006 inflation adjusted items (Adobe)
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WASHINGTON — The Internal Revenue Service, in response to shortages of clear diesel fuel caused by Hurricane Wilma, will not impose an excise tax penalty when dyed diesel fuel is sold for use or used on the highway in Florida.
This relief applies to dyed diesel fuel sold or used in Florida after October 25, 2005 (the expiration date of previously announced relief) and will remain in effect through November 10, 2005. 
This penalty relief is available to any person that sells or uses dyed diesel fuel for highway use.  In the case of the operator of the vehicle in which the dyed fuel is used, the relief is available only if the operator or the person selling the fuel pays the tax of 24.4 cents per gallon.  IRS Publication 510, Excise Taxes for 2005, has information on the proper method for reporting and paying the tax.
The IRS will not extend penalty relief beyond November 10, 2005, for diesel fuel that is dyed to IRS standards and removed from the terminal after that date.  The following rules will apply in Florida after November 10, 2005: 


Diesel fuel intended for a nonexempt highway use should not be dyed when it is removed from a terminal.  
	 


Any dyed diesel fuel held by retailers or users on November 10, 2005, can be used on the highway after that date.  In the case of fuel that has been dyed at a terminal to meet IRS standards, this relief is available to the operator of the vehicle in which the fuel is used only if the operator or the person selling the fuel pays the tax of 24.4 cents per gallon. 
	 


To the extent permitted by EPA rules, dyed high sulfur diesel fuel received by retailers, including fuel received after November 10, 2005, may be sold for nonexempt highway use if the dye is added only at the refinery to meet EPA standards, and not at the terminal to meet IRS standards.  The IRS will continue to waive penalties for nonexempt highway use of high sulfur diesel fuel that is dyed only at the refinery to meet EPA standards.  Retailers may rely on the representations of their suppliers that fuel received after November 10, 2005, has not been dyed at the terminal. 
	 


Position holders are reminded that they are required to pay tax on any diesel fuel (including high sulfur fuel) that has not been dyed to IRS standards.  Terminal operators should not dye, or add additional dye to any fuel on which tax is paid.
IR-2005-126, Oct. 25, 2005

WASHINGTON — The Internal Revenue Service and the Free File Alliance today announced agreement to renew their partnership, extending free tax services and electronic filing to an eligible 93 million taxpayers and providing important new consumer protections. This year, the Free File program served more than 5 million taxpayers with free tax software and IRS e-file.

The pact – an innovative public-private arrangement – will mean enhanced services to taxpayers, improved disclosure regarding refund anticipation loans and greater assurances of privacy protection. Free File made its debut during the 2003 filing season as a way to provide free services to moderate and low-income taxpayers.
 
"We think this is a constructive step forward. It allows Free File to continue to grow, but it  also contains important new consumer protections," said Mark W. Everson, IRS  Commissioner.

Free File is an easy, fast and secure way for citizens to file taxes and will also allow Americans to get refunds in half the time.
 
As part of the agreement, the IRS provides to taxpayers a listing of the Alliance members via the Free File web page, which is hosted on IRS.gov. The Free File Alliance members are a consortium of tax software manufacturers that set their own criteria for taxpayer eligibility for free use of their software. The agreement calls for services to be provided to 70 percent of the nation’s taxpayers. Taxpayers access Free File through IRS.gov. Alliance members and their services will be available beginning in January 2006 on the IRS Web site.

The new agreement includes the following:

• Alliance members who offer refund anticipation loans (RALs) will provide the highest standards of consumer protection upholding greater disclosure and consent  requirements related to ancillary financial products  i.e.,  fees and interest rates, information on other options for refunds, and full disclosure of RALs as loans rather than refunds;

• Alliance members will provide additional tax forms such as Form 4868 that allows for extensions to file;

• Alliance members’ Web sites will display whether state online tax preparation and filing services are available and the associated fees, if any.

• This program will extend the benefits of on-line federal tax preparation and electronic filing to the taxpayers least able to afford e-filing their returns on their own.
IR-2005-125, Oct. 25, 2005
WASHINGTON — The Internal Revenue Service is seeking 84,290 taxpayers whose income tax refund checks could not be delivered in 2005. Checks totaling approximately $73 million can be reissued as soon as taxpayers correct or update their addresses with the IRS.
In some cases, a taxpayer has more than one check waiting. The average amount owed to each taxpayer is $871.
“Our goal is to get this money back in the hands of the people it belongs to," IRS Commissioner Mark W. Everson said. "Visiting IRS.gov makes it easy for taxpayers to see if they've missed a refund."
The "Where's My Refund?" feature on the IRS.gov Web site provides taxpayers with information about their refunds. It is available from the home page. To use it, taxpayers enter their Social Security number, filing status (such as single or married filing jointly) and the refund amount shown on their 2004 tax return. When the information is submitted, “Where’s My Refund?” will show the status of a refund and, in some cases, provide instructions to resolve potential account issues.
In the case of Gulf Coast residents affected by Hurricane Katrina, the IRS will expedite research into the status of undelivered payments and issue a refund check when the original is outstanding. The IRS advises hurricane victims who had been expecting a refund check but did not receive one to contact the IRS on the special toll-free Katrina disaster line at 1-866-562-5227.How to Update an Address with the IRS
Generally, refund checks can go astray for a variety of reasons. Often, a life change results in a change of address. When a taxpayer moves or changes address and fails to notify the IRS or the U.S. Postal Service, a check sent to the taxpayer’s last known address is returned to the IRS.
Taxpayers who have moved since filing their last tax return can ensure the IRS has their correct address by filing Form 8822, Change of Address, with the IRS. Download the form from IRS.gov or request it by calling 1-800-TAX-FORM (1-800-829-3676).
Those who do not have access to the Internet and think they may be missing a refund should first check their records or contact their tax preparer, then call the IRS toll-free assistance line at 1-800-829-1040 to update their address.
To put an end to undelivered refunds, taxpayers can join more than 52 million individuals this year who have taken advantage of Direct Deposit. Taxpayers who choose this service receive their refunds directly into a personal checking or savings account. Direct Deposit, which also guards against theft or lost refund checks, is available for filers of both paper and electronic returns.
Links:

Where's My Refund?



Change of Address: Form 8822 (59.6KBPDF)


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Update April 26, 2013 — Link to membership application has been removed as obsolete. 
WASHINGTON — The Internal Revenue Service is seeking applications for vacancies on the Advisory Committee on Tax Exempt and Government Entities (ACT). The committee provides a venue for public input into critical tax administration areas.
Vacancies exist in the following customer segments:
Employee Plans — two vacancies,
Exempt Organizations — two vacancies,
Federal, State and Local Governments — one vacancy,
Tax Exempt Bonds — one vacancy, and
Indian Tribal Governments – two vacancies.
The ACT is an organized public forum for the IRS and representatives who deal with employee plans, exempt organizations, tax-exempt bonds, and federal, state, local and Indian tribal governments. The ACT allows IRS to receive regular input on administrative policy and procedures of the Tax Exempt and Government Entities Division.
Members are appointed by the secretary of the Treasury and serve two-year terms, beginning in May 2006. Applications can be made by letter or by completing an application form, available on the IRS Web site. In either case, applications should reflect the proposed member's qualifications. A notice published in the Federal Register dated October 25, 2005, contains more details about the ACT and the application process.
Applications will be accepted through November 25, 2005.
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 to 202-283-9956 (not a toll-free number).
Related Items:

2005 ACT Membership Application (Adobe)


Federal Register AnnouncementPDF (Adobe)


ACT Reports

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IR-2005-123, Oct. 21, 2005
WASHINGTON — The Internal Revenue Service will not extend penalty relief beyond Oct. 25, 2005, for diesel fuel that is dyed to IRS standards and removed from a terminal after that date.
As announced in IR-2005-118, dated Oct. 6, 2005, the following rules apply after Oct. 25:
• Diesel fuel intended for a nonexempt highway use should not be dyed when it is removed from a terminal. 
• Any dyed diesel fuel held by retailers or users on Oct. 25, 2005, can be used on the highway after that date.  In the case of fuel that has been dyed at a terminal to meet IRS standards, this relief is available to the operator of the vehicle in which the fuel is used only if the operator or the person selling the fuel pays the tax of 24.4 cents per gallon.
• To the extent permitted by EPA rules, dyed high sulfur diesel fuel received by retailers, including fuel received after Oct. 25, 2005, may be sold for nonexempt highway use if the dye is added only at the refinery to meet EPA standards, and not at the terminal to meet IRS standards.  The IRS will continue to waive penalties for nonexempt highway use of high sulfur diesel fuel that is dyed only at the refinery to meet EPA standards.  Retailers may rely on the representations of their suppliers that fuel received after Oct. 25, 2005, has not been dyed at the terminal.
• Position holders are reminded that they are required to pay tax on any diesel fuel (including high sulfur fuel) that has not been dyed to IRS standards.  Terminal operators should not dye, or add additional dye to any fuel on which tax is paid.
Links:

IR-2005-118, Oct. 6, 2005 — Treasury Department, IRS Extend Dyed Diesel Fuel Penalty Relief through Oct. 25, 2005


Katrina News Releases and Legal Guidance

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IR-2005-121, Oct. 17, 2005
WASHINGTON — The Internal Revenue Service today launched a new Web-based information tool that will help private foundations comply with federal tax rules and requirements that occur throughout the life cycle of their organization.
  
The Life Cycle of a Private Foundation provides a snapshot of five stages: starting the organization, applying for tax-exempt status, filing requirements, maintaining compliance and terminating the organization. The new tool is similar to the Life Cycle of a Public Charity that has proved popular since its introduction in 2004.
 “We expect this new life cycle of private foundations to be as well received and as valuable an information and assistance tool as our pilot site for public charities,” said Martha Sullivan, director, Exempt Organizations Division. The concept of the public charity site was created by the Advisory Committee on Tax Exempt and Government Entities.
The new site provides easy navigation through the life cycle of general topics. It explains an array of issues such as how to acquire an Employer Identification Number (EIN); how to avoid jeopardizing the foundation’s exemption; how political activities involvement may affect the foundation’s status and how disclosure requirements must be met.
Link:
Life Cycle of a Private Foundation
IR-2005-118, Oct. 6, 2005
WASHINGTON – The Department of the Treasury and the Internal Revenue Service, in response to the continued shortages of diesel fuel caused by Hurricanes Katrina and Rita, will extend the penalty relief period during which dyed diesel fuel can be sold for use or used on the highway. The penalty relief will apply throughout the United States.
In IR-2005-104, released Sept. 15, 2005, the IRS announced it would not impose the dyed fuel penalty when dyed diesel fuel is sold for use or used on the highway and that this relief would remain in effect through Oct. 5, 2005. Today’s announcement extends that penalty relief through Oct. 25, 2005. Any dyed diesel fuel held by retailers or users on Oct. 25, 2005, can be used on the highway after that date.
This relief is available to any person who sells or uses dyed diesel fuel for highway use. In the case of fuel that is dyed at the terminal to meet IRS standards, the relief is available to the operator of the vehicle in which the fuel is used only if the operator or the person selling the fuel pays the tax of 24.4 cents per gallon.
To the extent permitted by EPA rules, dyed high sulfur fuel received by retailers, including fuel received after Oct. 25, 2005, may be sold for highway use if the dye is added only at the refinery to meet EPA standards, but not if dye is added at the terminal to meet IRS standards. IRS will waive penalties for highway use of high sulfur fuel that is dyed only at the refinery to meet EPA standards. Retailers may rely on the representations of their suppliers that fuel received after Oct. 25, 2005, has not been dyed at the terminal.
Position holders are reminded that they are required to pay tax on any high sulfur diesel fuel that has not been dyed at the terminal to meet IRS standards. Terminal operators should not dye, or add additional dye to, any fuel on which tax is paid.
Ordinarily, dyed diesel fuel is not taxed, because it is sold for uses exempt from excise tax, such as to farmers for farming purposes and to local governments for buses.  
Links:
IR-2005-104, IRS Extends Diesel Fuel Penalty Relief Due to Hurricane KatrinaIR-2005-89, IRS Waives Diesel Fuel Penalty Due to Hurricane KatrinaMore Information on Hurricane Katrina-related Issues
IR-2005-117, Oct. 5, 2005
WASHINGTON — Although most taxpayers have long since filed their 2004 federal income tax returns, the Internal Revenue Service said today that approximately 2 million people still face the Oct. 17 filing deadline.
The IRS reminded taxpayers who received an additional extension in August that they should file their returns by Oct. 17 to avoid the late filing penalty, which is generally 5 percent per month of any unpaid tax.
However, there are many taxpayers in Presidentially declared disaster areas as a result of Hurricanes Katrina and Rita who have been granted additional time until Feb. 28, 2006, to file their tax returns. Taxpayers in these areas with questions can call the IRS disaster hot line at 866-562-5227. Also, Wyoming taxpayers in Campbell County, where a tornado occurred in August, have until Oct. 21 to file their returns.
Usually the extension deadline is Oct. 15, however, this year that date falls on a Saturday so extension filers have until Oct. 17 to file their returns. Last year, the IRS received more than 2.1 million returns in October.
Taxpayers may file returns electronically until Oct. 17; some may be able to file for free through the Free File program at IRS.gov. Taxpayers may use tax software on their own computers or e-file through an authorized provider. These options offer taxpayers security and accuracy in filing their returns, as well as faster refunds. So far this year, approximately 68 million taxpayers have filed electronically, representing more than half of all individual tax returns.
Related Links:


IRS e-file


Free File


Electronic Payment Options


Filing Past Due Tax Returns
IR-2005-114, Oct. 3, 2005

WASHINGTON — The Internal Revenue Service announced today that it has reached an agreement with Doctors Benefit Insurance Company, Ltd. (“DBIC”), assignee of xélan Insurance Company Limited.  The agreement resolves various issues relating to group supplemental insurance programs offered to members of xélan, The Economic Association of Health Professionals, through four separate trusts created by xélan, Inc.
    
Without admitting or denying wrongdoing or legal liability under the Internal Revenue Code, DBIC agreed to cease operations and return approximately $500 million to participants in the programs.  DBIC is being required to withhold taxes on the payments, which will be taxable to the participants when received.  Additionally, under the terms of the agreement, DBIC agreed to make a $2.34 million non-deductible payment to the Internal Revenue Service to resolve issues arising in connection with its issuance of the supplemental policies.

The agreement included a disclosure authorization that allowed the IRS to issue this release.  Section 6103 of the Internal Revenue Code strictly limits the IRS in disclosing taxpayer information.
IR-2005-137, Nov. 30, 2005
WASHINGTON — Treasury and the IRS issued Notice 2005-92 today, which provides guidance relating to the application of two provisions of the Katrina Emergency Tax Relief Act of 2005 (KETRA) for Hurricane Katrina victims and employer-sponsored retirement plans and IRAs.
Under one provision of KETRA, individuals who live in one of the four states affected by Hurricane Katrina and who suffered an economic loss as a result of that hurricane receive favorable tax treatment with respect to distributions from eligible retirement plans that are qualified Hurricane Katrina distributions, called "Katrina distributions."
A Katrina distribution is not subject to the 10% additional tax applicable to early distributions from a retirement plan (25% in the case of a Simple IRA), is generally includible in income over a 3-year period, and -- to the extent the distribution is eligible for tax-free rollover treatment and is contributed to an eligible retirement plan (recontributed) within a 3-year period -- will not be includible in income at all.
Another provision of KETRA increases the allowable plan loan amount from an employer-sponsored retirement plan and provides for a suspension of payments for plan loans outstanding on or after August 25, 2005 that are made to Katrina victims.
This notice provides guidance for plan sponsors, service providers, and participants, as well as IRA owners, who choose to use the valuable benefits provided under these two KETRA provisions.
Links:Notice 2005-92PDF
IR-2005-136, Nov. 30, 2005
WASHINGTON — The Internal Revenue Service today issued a consumer alert about an Internet scam in which consumers receive an e-mail informing them of a tax refund. The e-mail, which claims to be from the IRS, directs the consumer to a link that requests personal information, such as Social Security number and credit card information.
This scheme is an attempt to trick the e-mail recipients into disclosing their personal and financial data. The practice is called “phishing” for information.
The information fraudulently obtained is then used to steal the taxpayer’s identity and financial assets. Generally, identity thieves use someone’s personal data to steal his or her financial accounts, run up charges on the victim’s existing credit cards, apply for new loans, credit cards, services or benefits in the victim’s name and even file fraudulent tax returns.
The bogus e-mail, which claims to come from "tax-refunds@irs.gov" tells the recipient that he or she is eligible to receive a tax refund for a given amount. It then says that, to access a form for the tax refund, the recipient must use a link contained in the e-mail. The link then asks for the personal and financial information.
The IRS does not ask for personal identifying or financial information via unsolicited e-mail. Additionally, taxpayers do not have to complete a special form to obtain a refund.
If you receive an unsolicited e-mail purporting to be from the IRS, take the following steps:

Do not open any attachments to the e-mail, in case they contain malicious code that will infect your computer.
	 


Contact the IRS at 1-800-829-1040 to determine whether the IRS is trying to contact you about a tax refund.

The IRS has seen numerous attempts over the years to defraud the public and the federal government through a variety of schemes, including abusive tax avoidance transactions, identity theft, claims for slavery reparations, frivolous arguments and more. More information on these schemes may be found on the criminal enforcement page at IRS.gov.
Related Link:

Criminal Investigation


Scams/consumer alerts


Identity theft

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