etrent17/irs-articles huggingface dataset:
IR-2005-135, Nov. 21, 2005
Washington — The Internal Revenue Service announced the acting appointment of Clarissa C. Potter to the position of Senior Counsel to the Chief Counsel (Legislation) effective November 13, 2005. 
"Clarissa Potter is a true asset to the Office of Chief Counsel,” said Donald L. Korb, IRS Chief Counsel. “Ms. Potter’s extensive experience with the different branches of government involved in the tax law and her deep knowledge of tax policy and administration make her an excellent candidate to act in this position."
The Senior Counsel to the Chief Counsel (Legislation) serves as program manager and senior advisor to the Chief Counsel on a broad array of activities designed to fulfill Counsel’s responsibilities to develop, review, and assist in shaping proposed legislation, and to provide legal support to the IRS in fulfilling its legislative responsibilities.
Since July 2005, Potter has served as Special Counsel to the Chief Counsel, advising the Chief Counsel, the Deputy Chief Counsels and IRS executives on tax administration and policy issues, including legislation, tax shelter and tax shelter promoter initiatives, media relations, and coordinating with the Treasury Department and Congress. 
Before joining the Office of Chief Counsel, Potter was an associate professor at Georgetown University Law Center, teaching tax law and policy.  While there she served as director of the Georgetown University Law Center Tax Policy Workshop, and was Director of Projects at the American Tax Policy Institute. 
She came to Georgetown from the Office of Tax Policy at the U.S. Department of Treasury, where she held a series of increasingly responsible positions, including Acting Tax Legislative Counsel.  She also previously served as Legislation Counsel for the Joint Committee on Taxation of the United States Congress. Her work has involved highly complex tax matters, directly impacting a large portion of the tax-paying public nationally.
Potter received a J.D. from Yale Law School in 1989 where she was the Managing Editor of the Yale Law and Policy Review, and a B.A. degree from Miami University of Ohio in 1983.
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WASHINGTON — A new and improved IRS.gov debuted this week with a fresh look, enhanced search capabilities and easy access to tools that help taxpayers and tax professionals.
The Internal Revenue Service Web site is one of the most heavily used sites on the Internet during the tax filing season. In fiscal year 2005, there were more than 176 million visits to IRS.gov and 1.2 billion page views. Since IRS.gov first launched in 1996, several updates have occurred to help taxpayers access information more efficiently and quickly.
"These changes should make it even easier to navigate our site and get taxpayers the information they need to file and pay their taxes," said IRS Commissioner Mark W. Everson.
The most noticeable change is a revamped homepage with a fresh color scheme and a new IRS.gov banner logo. There also is a new row of navigation buttons — Individuals, Businesses, Nonprofits and Charities, Tax Professionals and other areas of interest — to take taxpayers directly to key pages.
An improved search function will allow for searches by Keyword or search term. The “Search” feature is more intuitive than formerly. It also provides easy access to the advanced search options and search tips.
Other homepage highlights:

Most Requested Forms and Publications. This section highlights the top five most requested forms and publications across the IRS.gov Web site, based on documents that the public is requesting. This feature will help many users find their desired form with just one click.
	 


Online Tools. This section features several of the most frequently used online tools available on IRS.gov. From filing electronically to determining refund status, check this area for the tools that make taxpayers’ lives easier. 
	 


Featured Content. The middle of the home page is reserved for information that is currently important to many users. This is where news headlines will appear.
	 


Information About. This section provides six links to general information accessed by many users. Some of these links were moved from the red header of the current site. 
	 


I need to… The “I need to…” drop-down menu gives users quick access to frequently accessed information within a particular content area. For example, one taxpayer may need the option “Start a Business” while another person may need information on “File an Extension.”  
	 


Image. The section holds the main image for the homepage.
	 


Promotional Advertisements. This section allows the IRS to bring new programs, information and features on the web site to users’ attention. Viewers can expect to see one or two advertisements in this space.

There also are major changes on each landing page. For example, on the “Individuals” landing page, taxpayers will notice a second level of navigation, beneath the main navigation buttons. This provides easy access to a number of subtopics: employees, farmers, international taxpayers, military, parents, self-employed, seniors and retirees and students.
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IR-2005-132, Nov. 7, 2005
WASHINGTON — The Internal Revenue Service has certified the model year 2006 Ford Escape Hybrid and the 2006 Mercury Mariner Hybrid vehicles as being eligible for the clean-burning fuel deduction. This certification means that taxpayers who purchase one of these hybrid vehicles new during calendar year 2005 may claim a tax deduction of up to $2,000 on Form 1040.
Under the current law, the clean-burning fuel deduction is limited to up to $2,000 for certified vehicles first put into service in 2005. Federal law allows individuals to claim a deduction for the incremental cost of buying a motor vehicle that is propelled by a clean-burning fuel. By combining an electric motor with a gasoline-powered engine, these hybrid vehicles obtain greater fuel efficiency and produce fewer emissions than similar vehicles powered solely by conventional gasoline-powered engines.
This one-time deduction must be taken in the year the vehicle is originally used. The taxpayer must be the original owner.  Individuals do not have to itemize deductions on their tax return to claim this deduction. This benefit can be taken as an adjustment to income on the Form 1040.
The amount of the deduction for the Ford Escape Hybrid and the Mercury Mariner Hybrid was set after the manufacturer, Ford Motor Company, documented for the IRS the incremental cost related to the vehicles’ electric motor and related equipment.
The deduction for the purchase of a hybrid vehicle expires on December 31, 2005 under Section 1348 of the Energy Act of 2005.  The deduction has been replaced by a tax credit found in Section 1341 Alternative Motor Vehicle Credit, also of the Energy Act of 2005.
A complete list of vehicle models that have been certified for the clean-burning fuel deduction can be seen on this Web site.
Related Item:
List of Vehicles Certified for the Deduction
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IR-2005-131, Nov. 4, 2005
WASHINGTON — Taxpayers will be able to request an automatic, six-month tax-filing extension for most common individual and business returns under regulations released today by the Treasury Department and the Internal Revenue Service.
The new regulations provide streamlined and simplified procedures that are expected to save taxpayers between $73 million and $94 million, annually, by eliminating or consolidating several existing IRS forms. As a result, Beginning Jan. 1, 2006, most individuals and businesses will be able to request a full six-month tax-filing extension, without a reason or even a signature.
The new procedures will replace the existing two-step process under which noncorporate taxpayers could only get a six-month extension by first obtaining an extension, usually automatic, for part of that period and then requesting a discretionary extension for the remainder. A tax-filing extension does not extend the tax-payment deadline.
"Some taxpayers need a full six months for extensions as the law provides. This change simplifies the process so they can make the request just once, not twice,” said IRS Commissioner Mark W. Everson.
Beginning with 2005 returns due in 2006, individuals will be able to use a single IRS form (Form 4868) to get an automatic six-month extension of time to file. This will replace the existing two-step process under which an automatic extension was only allowed for four months, generally until Aug. 15. If more time was needed, a taxpayer had to explain why, using a second extension request form (Form 2688). About 6% of individual taxpayers request the initial four-month extension, and about a third of those go on to request a second extension, usually for two months until October 15. Form 2688 will be eliminated.
Extension procedures will also be streamlined for business taxpayers, thus eliminating three existing forms. Under existing procedures, only corporations can request an automatic six-month tax-filing extension. The new regulations will also make this option available to most noncorporate business taxpayers, including partnerships and trusts.
Accordingly, starting Jan. 1, all eligible business taxpayers will use Form 7004 to request an automatic six-month extension of time to file. In the past, eligible noncorporate business taxpayers had to request an initial three-month extension and, if more time was needed, then request another three months.
Treasury Decision 9229 is available on this Web site and will be published in the Federal Register on Nov. 7, 2005.
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IR-2005-149, Dec. 22, 2005
WASHINGTON — Internal Revenue Service officials today reminded taxpayers that they must obtain a charity’s written acknowledgment of their vehicle donation before they claim a deduction for the donation. For deductions of more than $500, the taxpayer is required to attach the acknowledgment to the taxpayer’s return for the year of the donation.
Effective for vehicles donated to charity on or after January 1, 2005, the American Jobs Creation Act of 2004 provides that, generally, a taxpayer’s deduction is limited to the gross proceeds from the sale of the vehicle by the charity. The charity must provide a written acknowledgment within 30 days after the vehicle is sold that notifies the taxpayer of the amount of the gross sales proceeds.   
The IRS is aware that questions have arisen as to whether the charity must sell the vehicle in 2005 in order for the donor who donated a vehicle in 2005 to receive a deduction for 2005. The charity does not need to sell the vehicle in 2005. A taxpayer can take a charitable contribution deduction only for the year the vehicle is transferred to the charity, even if the vehicle is not sold by the charity until a later year. (Only taxpayers who itemize their deductions can take a charitable contribution deduction.)
However, a taxpayer cannot take a charitable contribution deduction of $500 or more for a vehicle donation unless the taxpayer has received a written acknowledgment of the donation from the charity and attached the acknowledgment to the return. 
If the taxpayer receives the written acknowledgment after filing the tax return for the year of the donation, the taxpayer may, after receiving the acknowledgment, file an amended return for that year and claim the deduction on the amended return. The taxpayer must attach the acknowledgment to the amended return.
Links:

IR-2005-145: IRS Warns of Questionable Deductions for Donated Vehicles


IR-2004-142: IRS Officials Urge Care for Those Making a Car Donation; New Law Changes Rules at End of the Year

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IR-2005-148, Dec. 22, 2005
WASHINGTON — Lois G. Lerner has been selected as the director of the Exempt Organizations Division of the Internal Revenue Service. In this position, she will be responsible for administering and enforcing the tax laws that apply to more than 1.8 million organizations recognized by the IRS as exempt from tax. 
“Protecting the integrity of tax-exempt organizations is an important part of our enforcement program,” said IRS Commissioner Mark W. Everson. “Lois’s background, including her work for the Federal Election Commission, qualifies her for this new assignment.”
Before this appointment, Lerner had been the director of the Exempt Organizations Rulings & Agreements Division, where she was responsible for the EO determinations letter program, public guidance and technical assistance for IRS agents conducting examinations of tax-exempt organizations. Lerner came to the IRS in 2001 from the Federal Election Commission, where she was Associate General Counsel for Enforcement and Acting General Counsel. She replaces Martha Sullivan, who will retire from the IRS at the end of December.
“Lois is an integral part of the EO team and has successfully increased the IRS presence in the exempt community,” said Steven T. Miller, Commissioner of the IRS Tax Exempt and Government Entities Division, of which EO is a part. “Her integrity, skills and judgment are exceptional and will allow us to continue to provide improved service and enhanced enforcement of the tax laws.”
The tax-exempt sector of the economy had total assets of approximately $3.7 trillion in 2002, the latest year for which data are available, with revenues of $1.2 trillion.
Lerner will report to her new position in early January 2006. Joseph Urban, EO Senior Technical Advisor in Rulings & Agreements, will serve as acting director of EO Rulings & Agreements.
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IR-2005-145, Dec. 20, 2005
WASHINGTON — Internal Revenue Service officials announced today that the IRS will not recognize certain deductions that taxpayers may be claiming relating to donated vehicles sold at auction.
IRS officials took this step after becoming aware of questionable practices that have surfaced recently. Some charities have sold donated vehicles at auction and claimed that the sales are to needy individuals at prices significantly below fair market value. By doing so, these charities have claimed that the sales trigger an exception to the general rule that the deduction allowed to the donor is limited to the proceeds from the charity’s sale.
The IRS’ position is that vehicles sold at auction are not sold at prices significantly below fair market value. Therefore, the IRS will not treat vehicles sold at auction as qualifying for the exception for sales to needy individuals at prices below fair market value. 
If a charity sells a donated vehicle at auction, the IRS will not accept as substantiation an acknowledgment from the charity stating that the vehicle is to be transferred to a needy individual for significantly below fair market value (Box 5b on IRS Form 1098-C). In such cases, the donor may claim a deduction of more than $500 only to the extent that the gross proceeds from the sale exceed that amount and the donor substantiates the contribution with an acknowledgment from the charity that indicates the gross proceeds from the sale (Box 4c on IRS Form 1098-C).
The rules for determining the amount that a donor may deduct for a charitable contribution of a qualified vehicle, including an automobile, with a claimed value of more than $500 changed at the beginning of 2005 as a result of the  American Jobs Creation Act of 2004. In general, that Act limits a donor’s deduction to the amount of the gross proceeds from the charity’s sale of the vehicle.
Under an exception to this general rule, a donor may be eligible to claim a fair market value deduction if the vehicle is sold at a price significantly below fair market value to a needy individual, in direct furtherance of a charitable purpose of the recipient organization of relieving the poor and distressed or the underprivileged who are in need of a means of transportation.  In this case, the charity provides to the donor an acknowledgment indicating that the donor may claim a fair market value deduction for the vehicle. 
Because this exception does not apply to sales at auction, a charity may be subject to penalties under sections 6701 and 6720 of the Internal Revenue Code if the charity sells a donated vehicle at auction and provides to the donor an acknowledgment that indicates anything other than the deduction may not exceed the gross proceeds from the sale. 
Links:

IR-2005-149: IRS Reminds Taxpayers About Requirement of Written Acknowledgement for Donated Cars


IR-2004-142: IRS Officials Urge Care for Those Making a Car Donation; New Law Changes Rules at End of the Year

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IR-2005-144, Dec. 19, 2005
WASHINGTON — The Internal Revenue Service today announced increases in selected user fees for 2006. The new fee structure will more accurately reflect the costs of processing various applications, ruling requests and opinion letters.
The Office of Management and Budget has directed federal agencies to charge user fees reflecting the full cost of goods or services “that convey special benefits to recipients beyond those accruing to the general public.”
The fee increases announced today affect a limited population of taxpayers and tax-exempt entities with technical questions or procedural issues.
User fees will be effective Feb. 1, 2006, except as noted. Among the changes:

The fee for IRS Chief Counsel private letter rulings will increase from $7,000 to $10,000. Under the new fee schedule, taxpayers earning less than $250,000 can request a private letter ruling for a reduced fee of $625 while a fee of $2,500 will apply to requests from taxpayers earning from $250,000 to $1 million.
	 


The fee for requests for changes in accounting methods for businesses will increase from the previous $1,500 to $2,500.
	 


For corporate taxpayers, the cost of a pre-filing agreement will increase from the previous three-tiered structure, which was capped at $10,000, to a new flat fee of $50,000. Also, Advance Pricing Agreements, which previously cost from $5,000 to $25,000, will now cost from $22,500 to $50,000.
	 


For employee plans, fees for opinion letters on prototype IRAs, SEPs, SIMPLE IRAs and Roth IRAs, which were previously $125 to $2,570, will now range from $200 to $4,500. Fees for exempt organizations rulings, which previously cost $155 to $2,570, will now range from $275 to $8,700.

Some other user fees in the exempt organizations and employee plans area will increase July 1. For example, user fees for exempt organization applications and requests for group exemption letters, which currently range from $150 to $500, will increase to $300 to $900.
Advance listings of the Feb. 1 and July 1 fee increases for these areas are attached. More information on increases in user fees will be published in Revenue Procedures 2006-1 and 2006-8, which will appear in Internal Revenue Bulletin 2006-1 on Jan. 3, 2006.
The increase in the fees for Advance Pricing Agreements is described in a separate revenue procedure, Revenue Procedure 2006-9, which is being released today and will appear in Internal Revenue Bulletin 2006-2 on Jan. 9, 2006.
Additional updates on user fees will be announced later.
Links:

TEGE user feesPDF


Other IRS user feesPDF


Revenue Procedure 2006-9PDF

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IR-2005-143, Dec. 16, 2005
WASHINGTON — The Internal Revenue Service and the Treasury Department today extended for a year limited transition relief for certain property held by partnerships and other pass-thru entities that are subject to Section 470 of the Internal Revenue Code, which was added by the American Jobs Creation Act of 2004.
This provision of the 2004 law generally addresses leases of property in sale-in, lease-out transactions involving tax-exempt entities by suspending the deduction for "tax-exempt use losses" on "tax-exempt use property." This new provision also applies to certain property held by partnerships with tax-exempt owners and therefore described in Section 168(h)(6).
Notice 2005-29, released in March 2005, announces that the IRS will not apply Section 470 to partnerships or other pass-thru entities for taxable years beginning before Jan. 1, 2005, for property that is treated as tax-exempt use property solely as a result of the application of Section 168(h)(6).
Notice 2006-2, released today, extends this transition relief to taxable years beginning before Jan. 1, 2006.
Links:  Notice 2006-02 ( 58 KBPDF)
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IR-2005-142, Dec. 16, 2005
Washington — The Internal Revenue Service today issued guidance to clarify that income from commodity-index derivative contracts does not help a fund qualify for the tax benefits usually enjoyed by mutual funds. The IRS also stated that it will apply the newly announced position prospectively, to give funds enough time to adapt to the position and to communicate that response to their shareholders.
Some funds have entered into these derivatives to provide their shareholders with a total-return exposure to changes in the value of commodity indices.  Many investment managers consider commodity exposure an important component of investors’ overall portfolio, in part as a hedge against inflation.  Investments that create this exposure include exchange-traded commodity futures contracts and interests in commodity-trading partnerships.  Historically, however, mutual funds did not offer this exposure directly, because, under the tax law applicable to these funds, direct investments in commodities do not generate qualifying income for a mutual fund.
The IRS has received a number of inquiries from mutual fund sponsors concerning whether commodity-derivative investments, particularly derivative contracts on a commodity index, give rise to qualifying income under 1986 tax legislation liberalizing the qualifying income requirement.  In recent months, even in the absence of guidance from the IRS, some funds filed prospectuses with the Securities & Exchange Commission, indicating that the funds may enter into these investments.
Revenue Ruling 2006–1 provides guidance in this area.  Consistent with the purposes stated by the sponsors of the 1986 tax legislation and with changes to the statutory language made during Congressional consideration of it, the ruling holds that income and gains from indirect investments in commodities via certain derivative contracts are not qualifying income for mutual funds.
The IRS will not apply the holding of the revenue ruling adversely to income that a mutual fund recognizes on or before June 30, 2006.  As a result of this delayed effective date, funds that may have entered into commodity-based derivative contracts will have a reasonable time to adjust their investments to ensure continued compliance with the tax rules for mutual funds.
Rev. Rul. 2006-1PDF will appear in Internal Revenue Bulletin 2006-2, dated January 9, 2006.
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IR-2005-141, Dec. 13, 2005
WASHINGTON — The Internal Revenue Service today released draft Schedules M-3 and instructions for corporations that file Forms 1120PC, 1120L and 1120S.  When finalized, these Schedules M-3 will be used by property and casualty insurance corporations, life insurance corporations, and S corporations that have total assets of $10 million or more, starting with tax years ending on or after December 31, 2006. 
Schedule M-3 increases transparency of compliance risk in income tax return filings by requiring affected companies to provide a more detailed reconciliation between financial accounting net income and taxable income than in the past. 
“The increased disclosure provided by Schedule M-3 enables IRS to more readily distinguish returns with potentially higher compliance risk from those with lower compliance risk.  The ability to select or de-select returns for examination more quickly and with more visibility to potential compliance risk will lead to reduced examination cycle time and increased currency.  Ultimately that translates to reduced taxpayer burden and improved tax compliance,” said Deborah M. Nolan, IRS Large and Mid-Size Business Division Commissioner.
In coming months IRS and Treasury plan to meet with affected stakeholder groups to discuss the new Schedules M-3 and instructions.  It is expected that the schedules will be finalized this coming summer.
The new draft Schedules M-3 and instructions can be found on IRS.gov.  The drafts are located on the “corporations” page, which can be accessed from Web site section that provides information for businesses. The Web site also offers interested taxpayers a subscription to the Schedule M-3 email news service so they can automatically receive future information about Schedule M-3.
During the first year taxpayers are required to file Schedule M-3, certain portions will be optional as was the case with Schedule M-3 for C-corporation Form 1120 filers.
The draft instructions for the Schedules M-3 released today were modeled after the 2005 Form 1120 M-3 instructions released for comment on June 23, 2005.  Final changes to the 2005 Form 1120 M-3 instructions are expected later in December 2005 and will be incorporated into the new Schedules M-3 released today following the comment period.
IRS is seeking comments regarding the new draft Schedules M-3 for Forms 1120PC, 1120L and 1120S.  Comments should be submitted by February 10, 2006 to:
Judy McNamara
Internal Revenue Service
860 E. Algonquin Road
Schaumburg, IL 60173
Email address:  SchM3@irs.gov  (preferred) 
Telephone number:  312-566-2001, Ext. 9380 
Schedule M-3 for Form 1120 corporate tax filers was introduced last year, and IRS expects to release a Form 1065 Schedule M-3 in the near future.
Links:  Information on Schedules M-3, including draft forms and instructions.
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IR-2005-140, Dec. 8, 2005
WASHINGTON — The Internal Revenue Service today announced there will be no change in the interest rates for the calendar quarter beginning January 1, 2006. 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 October 2005.
Related Item: Revenue Ruling 2005-78PDF
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IR-2005-139, Dec. 7, 2005
WASHINGTON — The Internal Revenue Service today issued proposed guidance on the disclosure or use of tax return information by tax return preparers. A key principle underlying the proposed guidance is that tax return preparers may not disclose or use tax return information for purposes other than tax return preparation without the knowing, informed and voluntary consent of the taxpayer.
The pre-existing regulations under Internal Revenue Code section 7216 were drafted in the early 1970s, prior to the advent of many of the business practices and technology uses that define the electronic preparation and transmission of tax returns by preparers.
The proposed regulations broaden the definitions of tax return preparer and tax return information, revise the manner and form of obtaining taxpayer consent to use or disclose tax return information and add a requirement to obtain taxpayer consent before preparers send tax return information offshore.
“Safeguarding of tax return information is critical,” said IRS Commissioner Mark W. Everson.  “It’s vital we update the preparation rules for the 21st century. Americans ought to know when their tax returns are being outsourced and prepared abroad. In particular, I want to thank Massachusetts Rep. Ed Markey and others for drawing our attention to this important issue.”
The new regulations also take into account the presence and wide-spread use of computers in tax preparation. If a tax return preparer hires contractors who will need access to tax return information to repair computers or data files, the tax return preparer must notify those contractors that they will also be subject to restrictions on their use or disclosure of tax return information.
The proposed regulations are open to public comment for 90 days after their date of publication. A public hearing on the proposed regulations has been scheduled for April 4, 2006 at 10 a.m.
Links:

Notice 2005-93PDF


Proposed RegulationsPDF


Statement of Rep. Markey

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WASHINGTON — The Internal Revenue Service today issued the 2006 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning Jan. 1, 2006, the standard mileage rates for the use of a car (including vans, pickups or panel trucks) will be:

44.5 cents per mile for business miles driven;


18 cents per mile driven for medical or moving purposes; and


14 cents per mile driven in service of charitable organizations, other than activities related to Hurricane Katrina relief.

The new rate for business miles compares to a rate of 40.5 cents per mile for the first eight months of 2005. In September, the IRS made a special one-time adjustment for the last four months of 2005, raising the rate for business miles to 48.5 cents per mile in response to a sharp increase in gas prices, which topped $3 a gallon.
“The IRS took the extraordinary step of temporarily increasing the standard mileage rates in the aftermath of Hurricane Katrina,” IRS Commissioner Mark W. Everson said. “We promised to continue closely monitoring the situation. The 2006 mileage rates reflect that gas prices have dropped.”
The standard mileage rates for business, medical and moving purposes are based on an annual study of the fixed and variable costs of operating an automobile. Runzheimer International, an independent contractor, conducted the study for the IRS.
The mileage rate for charitable miles is set by statute.
For the first eight months of 2005, the standard rate for miles driven for medical or moving purposes was 15 cents per mile, and, except for special Hurricane Katrina rates, the standard rate for miles driven in service of a charitable organization was 14 cents per mile.
For the last four months of 2005, the agency raised the standard rate for miles driven for medical or moving purposes to 22 cents per mile. The standard rate for charitable miles remained at 14 cents per mile––except for charitable miles relating to Hurricane Katrina.
Special Rates for Katrina-Related Charitable Miles
Congress this year also approved special rates in connection with miles driven in service of charities providing Hurricane Katrina relief.
For the period Aug. 25 to Aug. 31, 2005, the rate for miles driven for charities providing Hurricane Katrina relief is 29 cents, for deduction purposes, and 40.5 cents, for reimbursement purposes. For the months of September through December 2005, the special Katrina-related rates are 34 cents for deductions and 48.5 cents for reimbursements.
For 2006, these Katrina-related charitable rates will be 32 cents per mile for deduction purposes and 44.5 cents per mile for reimbursement purposes.
Revenue Procedure 2005-78 contains additional information and limitations on the use of the standard mileage rates.
Link: Revenue Procedure 2005-78PDF
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IR-2004-16, Jan. 29, 2004
WASHINGTON — The Internal Revenue Service has certified the Honda Insight, Model Years 2003 and 2004, and the Honda Civic Hybrid, Model Year 2004, as being eligible for the clean-fuel vehicle deduction.
The certification means taxpayers who purchase any of these new hybrid vehicles may claim a tax deduction of up to $2,000 for tax year 2003 or up to $1,500 for tax year 2004.
Federal tax law allows individuals to claim a deduction for the incremental cost of buying a motor vehicle that is propelled by a clean-burning fuel. By combining an electric motor with a gasoline-powered engine, these hybrid vehicles obtain greater fuel efficiency and produce fewer emissions than similar vehicles powered solely by conventional gasoline-powered engines.
Under current law, the clean-fuel vehicle deduction will be reduced incrementally until it expires beginning in 2007. Purchasers of IRS-certified cars will be able to claim a deduction of $2,000 if the vehicle was placed in service on or before Dec. 31, 2003. The $2,000 maximum deduction will be reduced by 25 percent for vehicles placed into service in 2004, by 50 percent in 2005 and by 75 percent in 2006. No deduction will be allowed for vehicles placed in service after Dec. 31, 2006.
Under the law, the one-time deduction must be taken in the year the vehicle was originally used. The taxpayer must be the original owner. Individuals take this benefit as an adjustment to income on their Form 1040. They do not have to itemize deductions on their tax returns to claim it. To claim the deduction, write “clean fuel” on Line 33 of the 2003 Form 1040. Also, see the Instructions for Form 1040.
The amount of the deduction for the Insight or Civic Hybrid was set after the manufacturer, American Honda Motor Co. Inc., documented for the IRS the incremental cost related to the vehicle’s electric motor and related equipment.
The IRS also previously certified the Honda Insight for model years 2000, 2001 and 2002 and the Honda Civic Hybrid for model year 2003.
Related Item:   Clean-Fuel Vehicle Deduction for Certain Models
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Update Nov. 3, 2014 — Please note that 1040 Central has been replaced by the Filing page.   
IR-2004-15, Jan. 29, 2004
WASHINGTON — The Internal Revenue Service today reminded taxpayers claiming the Child Tax Credit that they cannot claim the full $1,000 per child if they received an advance payment check last year. When figuring the credit, they must subtract the amount they got in advance. Failure to do so will reduce and could delay the tax refund claimed.
Taxpayers can get the amount of their advance Child Tax Credit payment by visiting IRS.gov. Information is available by clicking on “1040 Central” or “Your 2003 Advance Child Tax Credit.”
Taxpayers must put the amount of their advance payment check on line 2 of their Child Tax Credit Worksheet. Taxpayers use this worksheet, found in the instructions for Forms 1040 and 1040A or in IRS Publication 972, to figure the amount of credit they can claim on their 2003 tax returns.
Taxpayers can find their advance payment amount on IRS Notice 1319, which they should have received just before the payment checks. Those who do not have this notice can get the amount through IRS.gov or by calling the toll-free IRS help line, 1-800-829-1040.
Last year’s payments were an advance on the credit’s increase for 2003, when the maximum per-child amount rose from $600 to $1,000. Taxpayers will subtract the advance payment they already received from their $1,000-per-child total, then figure the remaining amount of credit, if any, to claim on the tax return.
Taxpayers claiming the Child Tax Credit who did not receive an advance payment will get their entire benefit from the credit on their returns. Taxpayers whose advance payment was larger than the amount of their credit will not have to repay the difference and will not claim any Child Tax Credit on their 2003 returns.
If the advance payment was reduced because of past-due taxes or certain non-tax debts, the taxpayer must use the full advance amount – before offset – in the worksheet. This is because the person received the benefit of the advance payment amount that was used to pay the past-due amount.
Related Items:


FAQs: Accounting for the Advance Child Tax Credit Payments



1040 Central


Publication 972 (128KPDF) (online version) — Child Tax Credit

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IR-2003-10, Jan. 27, 2003
WASHINGTON — As taxpayers begin to prepare their tax returns, the Internal Revenue Service reminds them that they may be sending their returns to a different service center than last year. However, those who received a tax instruction booklet from the IRS in the mail and use the labels included with the booklet can be assured that their tax returns will go to the correct address.
However, taxpayers who did not receive an instruction booklet in the mail, are mailing a paper tax return and live in one of the following 16 states should be aware of the change. Taxpayers in Arizona, Idaho, Indiana, Kentucky, Louisiana, Maine, Mississippi, Nebraska, New Hampshire, New Jersey, North Dakota, Ohio, Oklahoma, South Dakota, Vermont and Washington will file their tax returns with different Internal Revenue Service Centers during 2003 than they did during 2002.
During 2003:
For taxpayers in Mississippi, the address is Internal Revenue Service Center, Atlanta, GA 39901,
For taxpayers in Maine, New Hampshire and Vermont, the address is Internal Revenue Service Center, Andover, MA 05501,
For taxpayers in Indiana, Nebraska, North Dakota and South Dakota, the address is Internal Revenue Service Center, Kansas City, MO 64999,
For taxpayers in New Jersey, the address is Internal Revenue Service Center, Philadelphia, PA 19255,
For taxpayers in Kentucky, Louisiana and Oklahoma, the address is Internal Revenue Service Center, Austin, TX 73301,
For taxpayers in Arizona, Idaho and Washington, the address is Internal Revenue Service Center, Fresno, CA 93888, and
For taxpayers in Ohio, the address is Internal Revenue Service Center, Memphis, TN 37501.
Taxpayers enclosing a check should add “-0102” to the zip code listed above if sending a Form 1040, “-0115” for Form 1040A, or “-0114” for Form 1040EZ. Those not enclosing a check should add “-0002” if sending a Form 1040, “-0015” for Form 1040A, or “-0014” for Form 1040EZ.
The IRS continues to redistribute workload among the eight centers that process individual tax returns. Redistributing work among the centers is an example of the commitment of the IRS to provide better service to taxpayers.
Taxpayers who e-file will not be affected by these changes. 
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IR-2004-10, Jan. 15, 2004

WASHINGTON — On January 12, the Internal Revenue Service launched a new program for new business taxpayers designed to boost electronic payment of taxes. This development offers some taxpayers new, quicker access to an electronic payment system.
This initiative will be available using the Electronic Federal Tax Payment System (EFTPS), a service offered free by two bureaus of the U.S. Department of the Treasury, IRS and the Financial Management Service (FMS). In fiscal year 2003, Treasury collected more than $1.5 trillion in electronic tax payments through EFTPS, and the launch of this new initiative will help increase growth in those numbers in tax year 2004. EFTPS enables taxpayers and tax professionals to make federal tax payments electronically online, by phone, or with batch provider software for professionals.
EFTPS Express Enrollment for New Businesses will affect all businesses receiving a new Employer Identification Number (EIN). Business taxpayers with a federal tax obligation will be automatically pre-enrolled in EFTPS to make all their Federal Tax Deposits.
In addition to receiving their EIN, taxpayers will also receive a separate mailing containing an EFTPS Personal Identification Number (PIN) and instructions for activating their enrollment. New business taxpayers will activate their enrollment by calling an 800-number, entering their banking information and completing an authorization for EFTPS to transfer funds from their account to Treasury’s account for tax payments per their instructions.
"There are approximately 250,000 new EINs issued every year. With EFTPS Express Enrollment, we are making it even easier for business taxpayers to make their business payments electronically," said IRS Commissioner Mark W. Everson.
“Paying taxes using EFTPS means 19 times greater accuracy,” said Dick Gregg, FMS Commissioner. “Greater accuracy means fewer penalties. I encourage individuals and businesses to enroll today.”
Taxpayers can enroll in EFTPS by visiting EFTPS-OnLine, or by calling EFTPS Customer Service at 1-800-555-4477 or 1-800-945-8400 to receive an enrollment form by mail.

EFTPS was introduced in 1996 and since that time more than 4.4 million taxpayers have enrolled in the system to make their federal tax payments electronically. In fiscal year 2003, EFTPS processed more than 68.5 million transactions totaling more than $1.5 trillion. Taxpayers can make payments 24 hours a day, 7 days a week from home or office; schedule payments up to 120 days in advance (for businesses) or 365 days in advance (for individuals); review the last 16 months of tax payment history online or by calling Customer Service. In addition, taxpayers receive an immediate acknowledgement number for every EFTPS transaction for easy record keeping and as proof of the transaction. EFTPS is ideal for all business taxpayers and for individual taxpayers that make Form 1040 ES quarterly estimated payments.
Related Items:
Electronic Payment Options
Electronic Federal Tax Payment System
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IR-2004-7, Jan. 13, 2004
WASHINGTON — The Internal Revenue Service announced today the appointment of Donna C. Hansberry to the position of Assistant to the Commissioner (Attorney–Advisor for Tax).
“Donna’s record of successful litigation for the IRS highly recommends her for this position,” said IRS Commissioner Mark W. Everson. “Donna brings a wealth of experience to the job, and I am looking forward to her guidance on many upcoming decisions.”
As Assistant to the Commissioner, Hansberry will serve as a senior legal advisor on the Commissioner’s immediate staff, providing advice on tax regulations, guidance and litigation.
From Sept. 1987 until her recent appointment, Hansberry was a trial attorney for the IRS Office of Chief Counsel in Chicago, IL, practicing before the Tax Court and Bankruptcy Court. She has received degrees from Boston College (BA), Washington University School of Law (JD),and the Kellogg Graduate School of Management at Northwestern University (MBA).
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IR-2004-6, Jan. 13, 2004
WASHINGTON — The Internal Revenue Service announced today the selection of Richard Speier Jr., as Deputy Chief, Criminal Investigation. Speier will report directly to Nancy Jardini, who was appointed last week to be Chief of Criminal Investigation (CI).
“Rick and I are committed to CI’s mission of investigating potential criminal violations and building faith in the tax system,” Jardini said. “We will continue vigorously investigating tax law violations while, at the same time, contributing to our nation’s fight against corporate fraud, terrorism and drug trafficking.”
As Deputy Chief, Speier will serve in a leadership role assisting in the direction of the division.  In that role, Speier will direct the day-to-day nationwide criminal investigation operations, managing the policies and programs for the prosecution of criminal tax, money laundering and narcotics-related financial crime cases.
Speier, a career IRS criminal investigator said, "IRS special agents are renowned for their unique financial investigative skills. I look forward to my role with Nancy, in providing the leadership to continue our tradition of professionalism in tax administration and law enforcement and service to the American taxpayer."
Previously, Speier was the Director, Field Operations, for CI’s Pacific Area. In that capacity, Speier was responsible for planning, directing and evaluating criminal investigation programs and activities in the Pacific Area, which includes the states of California, Oregon, Washington, Idaho, Alaska and Hawaii.
Speier began his IRS career in 1977 as a special agent in Los Angeles.  He has held numerous leadership positions, including Group Manager and Branch Chief in Los Angeles; Executive Assistant in San Francisco; Chief in San Jose; Chief in Los Angeles, and Director of Investigations, Western Region.  In April 1999, Speier served as acting Deputy Assistant Commissioner (CI) until February 2000 when he was selected to serve as the Chief, CI Design, Phase III, Implementation Team.  In April 2000, Speier was selected as the Director, Field Operations, under the new CI organization.
Speier is a graduate of California Polytechnic University in Pomona, California.  He is a native of Indianapolis.
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IR-2004-4, Jan. 9, 2004
WASHINGTON — The Internal Revenue Service announced today the selection of Nancy J. Jardini as Chief of Criminal Investigation (CI), the agency’s law enforcement division.
Jardini, the first woman in CI's 85-year history to lead the organization, will direct a nationwide staff of about 4,500 employees, including more than 2,900 special agents. CI special agents investigate and assist in the prosecution of criminal tax, money laundering and narcotics-related financial crime cases.
“Nancy is a tough, no-nonsense former prosecutor with the right blend of skills to lead this important organization,” said IRS Commissioner Mark W. Everson. “I am confident that she will both respect the storied tradition of our Criminal Investigation division and help provide a reinvigorated focus on criminal tax enforcement.”
Jardini replaces David B. Palmer, who served as Chief from November 2002 until his retirement earlier this month.
Her selection fills one of the final remaining positions on the leadership team for Everson, who became Commissioner in May. Jardini will work closely with the Commissioners of the IRS Operating Divisions:
• Dale Hart leads the Small Business / Self-Employed Division.
• Deborah M. Nolan runs the Large and Mid-Size Business Division.
• Henry O. Lamar Jr. heads the Wage and Investment Division.
• Evelyn Petschek oversees the Tax-Exempt and Government Entities Division.
“I am committed to CI’s mission of investigating potential criminal violations and building faith in the tax system,” Jardini said. “We will continue vigorously investigating tax law violations while, at the same time, contributing to our nation’s fight against corporate fraud, terrorism and drug trafficking.”
 
Since January 2003, Jardini had served as the Deputy Chief, CI -- the first woman to serve in that leadership role. Prior to joining CI, she was the IRS Associate Chief Counsel/Division Counsel for Criminal Tax. She directed a nationwide staff of attorneys in 35 locations. Those criminal tax specialists worked closely with the special agents and managers of CI during their investigations relating to criminal violations of the Internal Revenue laws and other statutes for which the IRS has enforcement responsibility.
Jardini, who has been a criminal law practitioner for more than fifteen years, came to the IRS in July 2000 from the Criminal Division of the Justice Department. In addition to her experience as both a federal prosecutor and as a defense attorney, she has written and lectured extensively on a variety of topics related to criminal law and procedure.
Jardini earned a bachelor's degree from Chatham College in 1985 and a juris doctor degree from Villanova University in 1988. She is a native of Pittsburgh, Penn.Related item:  IRS Criminal Investigation
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