etrent17/irs-articles huggingface dataset:
IR-2003-8, Jan. 22, 2003
WASHINGTON –The Internal Revenue Service today issued guidance that provides an inventory valuation method for rebuildable motor vehicle cores. In the remanufacturing industry, worn or used parts (cores) are rebuilt when received from customers and other sources.
The guidance was released as part of the Industry Issue Resolution (IIR) program. The IIR program, launched by the IRS in 2001, tackles issues submitted by taxpayers, associations and other groups representing businesses. The objective is to work cooperatively to resolve frequently disputed or burdensome tax issues.
The IRS issued guidance on the proper valuation of core inventory in Revenue Procedure 2003-20PDF. This safe harbor procedure permits taxpayers using the Lower of Cost or Market (LCM) inventory valuation method to value their inventory of cores by reference to prices in an established core supplier market.
The revenue procedure applies to the entire remanufacturing distribution chain including remanufacturers, distributors, wholesalers and retailers. Industry estimates suggest that as many as 50,000 taxpayers could be affected by this guidance.
Valuation of inventory can be a key issue not only for the manufacturing industry, but for the retail industry as well. The value of a business’s inventory, which can be calculated using several different methods, affects a company’s income. This income, in turn, is used to calculate a business’s tax liability.
The revenue procedure is effective for tax years ending on or after Dec. 31, 2002 and may be elected using the automatic change in method of accounting provisions found in Revenue Procedure 2002-09PDF. The safe harbor method is available only to taxpayers that have elected to use the LCM inventory method. It is not available to taxpayers that have elected the Last-In, First-Out (LIFO) inventory method unless such taxpayers concurrently change from LIFO to a permitted LCM inventory method.
Revenue Procedure 2003-20 will be in the Internal Revenue Bulletin 2003-6, dated Feb. 10, 2003. Information on the Industry Issue Resolution (IIR) program may be found in Notice 2002-20PDF and in Internal Revenue Bulletin 2002-17.
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IR-2003-7, Jan. 21, 2003
WASHINGTON — Landowners, producers and tobacco quota owners who receive money from the National Tobacco Settlement Trust must report those payments as income each year, the Internal Revenue Service said today.
These payments are considered gross income for federal tax purposes and are taxable as ordinary income. Many tobacco farmers and others associated with tobacco production receive settlement payments from the trust, which was established to provide aid to tobacco growers and tobacco quota owners. The payments compensate for lost revenue because of decreased demand for tobacco and ease potential economic consequences in states where tobacco is grown.
Tobacco companies are required to make the payments as part of the National Tobacco Grower Settlement. Farmers in 14 states will receive the payments over a 12-year period that began in 1999. The 14 states are Alabama, Florida, Georgia, Indiana, Kentucky, Maryland, Missouri, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Virginia and West Virginia.
“These payments are taxable as part of gross income and some of those who receive them may not be aware of that,” Acting IRS Commissioner Bob Wenzel said. “Since these payments can range from hundreds to thousands of dollars, the possible penalties and interest charges for not reporting the income could be substantial. We want to help those who receive these payments avoid making an error on their tax returns.”
Taxpayers should receive a Form 1099-MISC in January that shows the payment amount to report on their 2002 return. The payment is reported as income on different tax forms, however, depending on specific taxpayer situations. For example, a taxpayer who raises and sells a tobacco crop would report the payment as gross income on Schedule F, “Profit or Loss From Farming,” and would be subject to applicable self-employment tax. Landowners or tobacco quota owners, who historically have leased their tobacco-related property and did not help to produce the crop, would report the settlement payments as farm rental income on Form 4835PDF, Farm Rental Income and Expenses.
IRS Publication 225PDF, Farmer’s Tax Guide, has more information on these forms and how farm income should be reported. Taxpayers can also contact the IRS toll-free at 1-800-829-1040 for more information.
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IR-2003-3, Jan. 8, 2003
WASHINGTON – The Internal Revenue Service announced today the creation of a new Office of Professional Responsibility as part of its ongoing modernization effort and the appointment of Brien Downing as director.
The Office of Professional Responsibility will be charged with enhancing the oversight of tax professionals. It replaces the office of the Director of Practice.
“The creation of the Office of Professional Responsibility and the appointment of a senior executive to lead the office are examples of our continuing commitment to ensuring the integrity of the American tax system and recognition of tax professionals as an integral part of effective tax administration,” said Acting Commissioner Bob Wenzel.
As Director of the Office of Professional Responsibility, Downing will lead an organization responsible for licensing “enrolled agents,” who are tax professionals who have met the requirements to represent clients before the IRS. His office will investigate allegations of misconduct and negligence against agents, attorneys, accountants and other professionals representing taxpayers before the IRS.
The new office will have more than twice the staff that was available under the previous organization. With the additional resources, the Office of Professional Responsibility will thoroughly concentrate on enforcing the standards of practice for those who represent taxpayers before the IRS as detailed in Circular 230.
“My office will coordinate its efforts with the associations of tax professionals in dealing with representatives who fail to meet the standards of professional conduct,” Downing said. “Tax professional organizations are close working partners with the IRS and they understand the problems that result when members abuse the tax system. The creation of this office is a direct result of the concerns of the professional organizations.” 
Downing is a career IRS employee with 30 years in tax administration. For the past 10 years, he has served in a wide variety of executive positions. Most recently, Downing was the Director of Accounts Management in the IRS Small Business/Self-Employed Division.
Patrick McDonough, formerly the Director of Practice, will continue as the Executive Director of the Joint Board for the Enrollment of Actuaries, where he will be able to direct all his efforts toward enrolling actuaries and monitoring their conduct and continuing professional education. Enrolled Actuaries are individuals who specialize in the sections of the law governing the funding of employee pension plans. The Joint Board is an independent federal body, created by the Employee Retirement Income Security Act of 1974 (ERISA) and charged with responsibility for enrolling individuals to perform actuarial services for plans.
Publication 947PDF, Practice Before the IRS and Power of Attorney, describes, in detail, who can represent taxpayers before the IRS and what rules apply to professionals representing taxpayers.
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IR-2003-17, Feb. 13, 2003
WASHINGTON – The Internal Revenue Service said today that this year’s early filers are following a familiar pattern – more electronic transactions and fewer paper ones. More than 16 million returns – nearly 80 percent of those received as of Feb. 7 – arrived electronically.
“E-filing continues to grow because taxpayers see its benefits of more accurate returns and faster refunds,” said IRS Acting Commissioner Bob Wenzel. “And more people have access to this through the Free File program on our Web site.”
The IRS expects to receive 54 million e-filed returns in 2003, up from 47 million last year. E-filers get their refunds twice as quickly as those using paper returns – in as little as 10 days when they choose Direct Deposit.
About 2.9 million taxpayers have e-filed from their personal computers, a 35 percent increase over the same period last year. The Free File Alliance’s nearly 639,000 returns equal almost 90 percent of this increase.
The File Alliance is a partnership involving the IRS and various private companies that offer free e-filing to taxpayers meeting certain criteria. Each company sets its own eligibility requirements, based on such factors as income, age, residence, or military status, but collectively the Alliance must make free e-filing available to at least 60 percent of individual filers.
The early refund statistics show that:
The IRS has certified $38.4 billion in refunds, up from nearly $37 billion at this time last year.
The average refund is up $51, to $2,323 – a 2.3 percent increase. 
Four out of five taxpayers receiving refunds had them deposited directly to their bank accounts. Direct deposit – the fastest, safest and most convenient way to get a refund – is available to all filers.
 
 
 
 
 
 
 
2003 FILING SEASON STATISTICS
Cumulative through the week ending 2/8/02 and 2/7/03
 

 


      2002


      2003 


Change 


Individual Income Tax Returns


 


 


 


 Total Receipts


20,947,000


20,738,000 


  -1.0 %


 Total Processed


17,110,000 


18,052,000 


    5.5 %


 


 


 


 


 E-filing Receipts:


 


 


 


 TOTAL


15,498,000 


16,445,000 


    6.1 %


    TeleFile (phone)


  1,900,000 


  1,756,000


  -7.6 %


    Computer


13,598,000 


14,689,000


    8.0 %


        Tax Professionals


11,470,000 


11,825,000 


    3.1 %


        Self-prepared


  2,128,000 


  2,864,000 


  34.6 %


 


 


 


 


Refunds Certified: 


 Number


  16,274,000


  16,529,000 


    1.6 %


 Amount of Principal


$36.972 billion 


 $38.401 billion


    3.9 %


 Average Refund


     $2,272


     $2,323 


    2.3 %


 


 


 


 


 Direct Deposit Refunds:


 


 


 


 Number


  12,714,000


  13,486,000 


    1.6 %


 Amount


$32.405 billion 


 $34.497 billion


    3.9 %


 Average


     $2,549 


     $2,558 


    0.4 %
IR-2003-16, Feb. 12, 2003
WASHINGTON – Internal Revenue Service officials announced today the creation of a new senior executive position within the Office of Chief Counsel to focus on potentially abusive tax avoidance transactions. Washington attorney Nicholas J. DeNovio has been selected to fill this post.
DeNovio will work with IRS personnel on early identification and interdiction of abusive tax avoidance transactions through various sources, including review of disclosure statements, tax shelter registrations, and information from taxpayer and promoter examinations.
“The establishment of this new, senior executive position, reporting directly to me, reaffirms our continuing commitment to address the problem of abusive tax avoidance transactions,” said IRS Chief Counsel B. John Williams, Jr. “We are committed to more swiftly identifying and interdicting abusive transactions.“
The new Senior Counsel will supervise a staff of attorneys and lead task force initiatives to expedite the published guidance process to address questionable transactions. In addition to leading efforts within Counsel, this group will work closely with the IRS’s operating divisions and the Department of Treasury to craft timely administrative responses to abusive transactions.
Prior to joining the IRS, DeNovio was a Partner in PricewaterhouseCoopers Washington National Tax Services, specializing in cross-border planning/mergers and acquisitions. Before joining PwC in late 1999, DeNovio practiced law for 12 years and was an International Tax Partner in the law firm of Baker & McKenzie. He was admitted to practice in New York in 1987 and Florida in 1992.
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IR-2003-15, Feb. 12, 2003
WASHINGTON — The Internal Revenue Service has again updated its Web site document addressing false arguments about the legality of not paying taxes or filing returns. The revisions add citations from several cases decided by the courts during 2002 and respond to one additional argument, making a total of 21 frivolous contentions that are addressed.
“During the filing season, taxpayers will sometimes hear absurd suggestions that they don’t have to pay taxes or file returns,” said IRS Acting Commissioner Bob Wenzel. “We want people to know the truth about these schemes — they don’t work.” 
This past year, the courts have not only rebuked such arguments dozens of times, but also imposed thousands of dollars in fines on taxpayers or their attorneys for pursuing frivolous cases.
IRS Chief Counsel B. John Williams said, "The courts have repeatedly and consistently rejected these arguments and are imposing substantial penalties on taxpayers and promoters for taking frivolous positions. These schemes carry a heavy price, for both the promoters and the participants."
The IRS Chief Counsel’s Office prepared The Truth About Frivolous Tax ArgumentsPDF in 2001 and revised it last April. The document not only lays out the assertions, it also provides a summary of the law and relevant legal decisions involving these false claims. 
There are also links to the document from “The Newsroom” section’s “What’s Hot” page, the “Tax Pro News” and the “Topics for Individuals” pages of this site.
The IRS continues to investigate promoters of frivolous arguments and to refer cases to the Department of Justice for criminal prosecution. Taxpayers who file frivolous income tax returns face a $500 penalty, and may be subject to civil penalties of 20 or 75 percent of the underpaid tax. Those who pursue frivolous tax cases in the courts may face a penalty of up to $25,000, in addition to the taxes, interest and civil penalties that they may owe.
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IR-2003-14, Feb. 10, 2003
WASHINGTON – With the peak period for tax refunds approaching this month, the Internal Revenue Service encouraged people to try a new Internet-based service that provides a quick, easy and safe way to check the status of their refund. The service is called “Where’s My Refund?” and it’s available on the IRS Web site.
This is the first tax-filing season that the 99 million taxpayers who get refunds can use a Web-based service to check on their refunds. Through Feb. 5, more than a million taxpayers have already used the service, an average of 50,000 a day. Those numbers will grow because mid-February marks the peak period for issuing refunds.
“There’s no better way to check on your refund than visiting IRS.gov,” Acting IRS Commissioner Bob Wenzel said. “Using IRS.gov gets you the information you need whenever you want it.”
Taxpayers using the IRS.gov feature also help free up IRS toll-free help numbers to deal with other tax questions. Checking on refunds ranks as the most frequent question the IRS gets through its phone system.
“With ‘Where’s My Refund?’ taxpayers get the information they need quickly, efficiently and safely,” Wenzel said. “It’s a landmark development for tax administration as we continue to modernize our systems to give America’s taxpayers the type of services they deserve.”
Simple online instructions guide taxpayers through a process that checks the status of their refund after they provide identifying information shown on their tax return. Once the information is processed, results can include one of several responses, including:
That a return was received and is in processing;
The mailing date or direct deposit date of the taxpayer’s refund; or
Whether a refund has been returned to the IRS because it could not be delivered.
The results also include links to customized information that is based on the taxpayer’s specific situation. The links guide taxpayers through the next steps needed to resolve any issues that may be affecting their refund.
The “Where’s My Refund?” service meets stringent IRS security and privacy certifications. Taxpayers enter identifying information that includes their Social Security Number, filing status and the exact amount of their refund, using both dollars and cents.
The information must be entered exactly as it appears on the tax return filed with the IRS, especially the expected refund amount. The exact information verifies that the person is authorized to access that account and avoids an unsuccessful response.
“Where’s My Refund?” is accessible to visually impaired taxpayers with the Job Access with Speech (JAWS) screen reader used with a Braille display and is compatible with different JAWS modes.
Taxpayers without Web access can get refund information by calling the automated refund service at 1-800-829-4477 or by using the new IRS refund hotline at 1-800-829-1954.
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IR-2003-38, March 21, 2003
WASHINGTON — The Internal Revenue Service has issued the new 2002 IRS Data Book, which includes a variety of numbers related to tax administration. These range from numbers of tax returns filed to examination and collection numbers. Among the highlights:

For Fiscal Year 2002, gross collections totaled $2 trillion from 227 million returns filed. The total amount of refunds issued was $284 billion, of which $210 billion were for individual income tax returns.


The Data Book details the increasing success of IRS e-file. Of the 131 million individual income tax returns filed, 47 million were e-filed during 2002, up from 40 million reported in the 2001 Data Book.

The complete 2002 IRS Data Book is available in Adobe Acrobat PDF format. Also, each of the 32 tables and related footnotes appears separately in Excel version 4 format. Previous reports and data are available following the Fiscal Year 2002 data.
The Data Book is published annually with statistical tables and organizational information on a fiscal-year basis. 
Tables in the Data Book are grouped according to the following categories:  returns filed, tax collections, and refunds; examination coverage; delinquency and enforcement activity; appeals; criminal investigation; employee plan and tax-exempt organization information; taxpayer assistance; information reporting; penalties; Chief Counsel activities; and administrative costs and personnel summaries.
Published copies of the Fiscal Year 2002 IRS Data Book, Publication 55B, will be available by mid-April 2003 from the  U.S. Government Printing Office . To obtain a copy, write to the Superintendent of Documents, P.O. Box 371954, Pittsburgh, PA 15250-7954, or call (202) 512-1-800 (voicemail) or (202) 512-2250 (fax).
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IR-2003-37, March 21, 2003
WASHINGTON  — The Competent Authorities of the United States and the Kingdom of the Netherlands have entered into a mutual agreement to clarify the entitlement of exempt pension funds to benefits under the Convention between the United States of America and the Kingdom of the Netherlands for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income, signed on December 18, 1992, and amended by Protocol signed on October 13, 1993.
 It has come to the attention of the Competent Authorities that pension funds of one Contracting State, that are otherwise entitled to benefits under Article 35 (Exempt Pension Trusts) of the Convention, may invest in the other Contracting State through an entity that is organized and treated as fiscally transparent in the other Contracting State, but treated as taxable by the first Contracting State. In order to ensure the application of Article 35, and pursuant to the authority of Article 29 (Mutual Agreement Procedure) of the Convention, the Competent Authorities agree that interest and dividends paid to and through such an entity for the benefit of a pension fund entitled to the benefits of Article 35 of the Convention shall be considered to be derived by a resident of the first Contracting State to the extent of the share the pension fund has in the interest and dividends described in Article 35 and paid to the entity. Further, this agreement is effective only for interest and dividends that would have been exempt from tax had they been derived directly by the pension fund. This agreement has effect only for payments of interest and dividends made on or after January 1, 2001.
For further information in the United States, contact David Kosterlitz at (202) 874-1748. For further information in the Netherlands, contact Arnaud de Graaf at (31) 70-342-8171.
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IR-2003-34, March 13, 2003
WASHINGTON — The National Taxpayer Advocate announced today the development of a new Internet-based program for submitting, to her office of Systemic Advocacy, systemic problems and suggestions to improve tax administration. The program provides another way for taxpayers to make suggestions or bring issues to the attention of IRS management.
“This new Systemic Advocacy program provides the Taxpayer Advocate Service with an innovative approach to evaluate, analyze and pursue ideas from multiple internal and external sources,” said National Taxpayer Advocate Nina E. Olson. “Our distinctive role in the area of advocacy for taxpayers affords us the opportunity to resolve issues from a global viewpoint and use new methods to find solutions to repetitive, systemic problems.”
Created in May 2002, the Taxpayer Advocate Service Office of Systemic Advocacy has been providing oversight and direction for identifying, analyzing systemic, procedural and operational problems. This includes determining approaches to make improvements by eliminating these problems with IRS. Additionally, the office assists in the preparation of the National Taxpayer Advocate’s Annual Report to Congress. This report outlines the 20 most serious problems taxpayers encounter, the 10 most litigated issues and recommends potential legislative remedies. This office assesses methods that will help create solutions to repetitive long-standing issues within the IRS.
Suggestions and issues can be communicated to the Taxpayer Advocate Service Office of Systemic Advocacy by e-mail (systemic.advocacy@irs.gov), or by fax at (202) 622-3125.
As in the current system, with the new Web-based procedure, no taxpayer information is to be included in issues submitted. Issues should focus on systemic problems, not individual taxpayer cases.
The new Web-based system will enable the IRS to do a better job tracking systemic issues and monitoring all issues to more quickly find solutions.
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Note: this content has been edited from the original version to remove links or other information no longer available. The material was accurate at the time it was issued.
 
IR-2003-32, March 12, 2003
WASHINGTON — The Internal Revenue Service announced today that the Pacific Association of Tax Administrators (PATA) has finalized a Transfer Pricing Documentation Package.
PATA is an inter-governmental tax organization whose members include Australia, Canada, Japan, and the United States.
PATA members have agreed on principles under which taxpayers can prepare one set of documentation that will meet the transfer pricing documentation provisions of each PATA member country. This eliminates the need to prepare separate documentation for each country.
The PATA Documentation Package is intended to reduce taxpayer burden and provide certainty that a penalty will not be imposed. Use of this PATA Documentation Package is completely voluntary and, if the principles are satisfied, will protect the taxpayer from transfer pricing documentation penalties that might otherwise apply in each of the four jurisdictions.
Before finalizing this multilateral approach to transfer pricing documentation, PATA members received many comments on the proposed package. PATA members considered the comments received and edited the package to reflect comments, where feasible, and to provide clarification, where required.
 
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IR-2003-31, March 12, 2003
WASHINGTON — The Internal Revenue Service today announced a new educational site for high school and other students on its IRS.gov Web site. Called “Understanding Taxes,” this Internet-based, interactive program about taxation replaces print materials previously provided to teachers each year by the IRS. The new program offers teachers more flexibility in a modern format.
The new Web site combines three IRS educational kits into a single resource center.  Readers can find lessons on the nation’s history of taxation, tax return preparation for high school classes and the economics of taxes. All lessons are correlated to both national and state educational standards and curriculum areas.
Understanding Taxes is divided into a student section and an educator section. Tutorials guide students of taxes through the basics of tax preparation and introduce them to the concept of filing their tax returns electronically. The student home page offers links to student lessons, word puzzles, tax trivia questions, story problems and examples of how and why taxes affect and influence our daily lives. Tax filing simulations deliver real-life applications for today’s students. 
The teacher home page includes detailed lesson plans along with numerous interactive student activities, student assessments and presentations.
Tax trivia and “VITA e3” (a Volunteer Income Tax Assistance program emphasizing electronic filing for schools) are found on both the student and the teacher Web pages. “TAX Interactive,” or “TAXi,” a program developed with the American Bar Association’s Section of Taxation, is also found on both the student and teacher Web pages.
The site can be used for traditional classroom, self-study or home-schooling use.  It can even be used by students without computer access as long as the teacher has computer access. 
The site conforms to the accessibility requirements of Section 508 of the Rehabilitation Act. In cases where student activities require the user to use drag-n-drop capabilities, the sight-impaired user has the same activity in an appropriate format.
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IR-2003-30, March 11, 2003
WASHINGTON – The Internal Revenue Service today announced that interest rates for the calendar quarter beginning April 1, 2003, will remain the same as the first quarter of the year. The interest rates are as follows:

five (5) percent for overpayments [four (4) percent in the case of a corporation];


five (5) percent for underpayments;


seven (7) percent for large corporate underpayments; and


two and one-half (2.5) 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 January 2003.
Rev. Rul. 2003-30PDF, announcing the rates of interest, will appear in Internal Revenue Bulletin No. 2002-13, dated March 31, 2003.
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2007 update: This has been superseded. MSBs are now required to file FinCEN Form 109.
IR-2003-26, March 7, 2003
WASHINGTON — Businesses that issue or redeem money orders or traveler’s checks are now required to use a new form to report suspicious activities to the IRS. These money service businesses (MSBs) that must use the new form also include businesses that transmit money.
More than 200,000 businesses, including convenience stores, grocery stores, service stations, drug stores and liquor stores, must file this form when they conduct a money service transaction that is both suspicious and for $2,000 or more. The U.S. Postal Service also files this form.
Transactions that must be reported are those that an MSB knows or suspects:
involve funds derived from illegal activity or is intended or conducted in order to hide or disguise funds or assets derived from illegal activity;
are designed to evade the requirements of the Bank Secrecy Act, whether through structuring or other means; or,
serve no business or apparent lawful purpose, and the reporting business knows of no reasonable explanation for the transaction after examining all available facts.
The new form – TD F 90-22.56 – replaces the interim Bank Suspicious Activity Report (Form TD F 90-22.47) previously used by these MSBs. Beginning March 1, if an MSB uses the old form to report suspicious activities; the IRS will return it to the originator with a request to complete a new form.
MSBs must file the form within 30 days of learning of a suspicious transaction, and must keep a copy of the filed form and supporting documentation for five years from the date it is filed.
Download the forms or fill them out on-screen and print them.
Forms are also available by calling 1-800-TAX FORM (1-800-829-3676). For more information, MSBs may call the IRS at 1-800-800-2877 or visit these Web sites:
MSB.gov
Financial Crimes Enforcement Network
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IR-2003-25, March 6, 2003
WASHINGTON -- Tax professionals are able to file employment taxes for business clients for the first time as part of a new Employment Tax e-filing System offered by the Internal Revenue Service.
The IRS expects the e-file upgrades will continue to reduce the paperwork burden on small businesses. The enhanced e-file system is part of a continuing effort to reduce barriers for small businesses to electronic filing.
“This e-file option will replace outdated technology that was a burden to both businesses and the IRS,” said Acting IRS Commissioner Bob Wenzel. “It is the first in a series of products being modernized to expand e-file opportunities.”
The IRS worked with small business taxpayers, software developers and tax professionals to determine the users needs, and how to increase the volume of payroll returns filed electronically.  Based on partner feedback, the IRS developed the system to promote the development of integrated software products.  The result is e-file capability for the software product that a business or tax professional already uses to manage their payroll.
 Key benefits of the new system are:
More flexible filing – Forms 941 and 940 can be filed in a single transmission
More specific error conditions – New error conditions pinpoint the location of the error and provide complete information for each error identified
Faster acknowledgements – Transmissions are now processed upon receipt and acknowledgments are returned in near real-time
Integrated payment options – Eligible filers may submit a required payment along with their return, subject to limitations imposed by the Federal Tax Deposit Rules
The Employment Tax program is the first Extensible Markup Language (XML) product that the IRS has delivered.  The use of this standard gives the IRS the capability to easily expand the suite of tax returns that can be filed electronically.  It also translates into cost savings and processing benefits for both businesses and the IRS through the use of commercial standards and best practices for information exchange. 
E-filing of employment tax forms through the new Employment Tax e-file System is one of many new steps being taken by the IRS to remove the barriers to electronic transactions and reduce the burden on taxpayers.
Tax professionals prepare the vast majority of business tax returns, yet they could not electronically file the employment tax forms. Now tax professionals can assist businesses in filing employment tax forms.

Office of Management and Budget Statement   

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IR-2003-24, March 5, 2003
WASHINGTON – Taxpayers have made IRS.gov the Internet’s most visited resource for tax forms, refund information and free electronic filing, with more than 1.4 billion hits and more than 195 million forms and publications downloaded so far this filing season.
Two of the hottest features on IRS.gov are the Where’s My Refund? service and Free File, the public-private partnership that offers free e-filing and tax preparation for eligible taxpayers. Taxpayers used the “Where’s My Refund?” service more than 4.5 million times in February to search for the status of their refund and more than a million tax returns have been filed using Free File.
“IRS.gov is one of the best resources available for helping taxpayers during the tax filing season,” acting IRS Commissioner Bob Wenzel said. “It’s always open, it’s easy to use and it’s ready to help with your taxes when you are.”
IRS.gov is also the most available resource for finding tax forms and publications. By the end of February, taxpayers had downloaded 195 million files, which is 82 percent of the 236.6 million files downloaded all of last tax season from January to April 15. In addition to downloading, many of the most popular IRS forms can be filled out on-screen then printed.
Another top draw on the IRS Web site is the e-News Subscriptions  page, which provides a single resource for subscribing to eight different IRS e-mail subscription lists. E-news subscriptions are available for IRS news releases, tax tips and several customer-focused lists including small business and tax professionals.
The IRS Web site sits at No. 2 on the Lycos 50 list and sits at No. 8 on the Yahoo! Buzz Index. Both the Lycos 50 and Yahoo! Buzz Index lists are based on the number of people who search each site for specific words or subjects.
Among other highlights for the 2003 filing season through the end of February:
Self-prepared e-file returns are 6.2 million, a 30.6 percent increase from last year;
Average refunds are $2,136, a 2.2 percent increase from last year;
Direct deposit refunds total $62.8 billion, an 11.9 percent increase from last year.
Cumulative through the week ending 3/1/02 and 2/28/03
 

 


2002


2003


Change


Individual Income Tax Returns


 


 


 


     Total Receipts


46,847,000


47,087,000


    0.5 %


     Total Processed


38,498,000


40,003,000


    3.9 %


E-filing Receipts:


 


 


 


     TOTAL


28,208,000


30,669,000


    8.7 %


     TeleFile (phone)


  2,901,000


  2,736,000


 - 5.7 %


     Computer


25,307,000


27,933,000


  10.4 %


     Tax Professionals


20,534,000


21,700,000


    5.7 %


     Self-prepared


  4,773,000


  6,233,000


  30.6 %


Refunds Certified:


 


 


 


     Number


35,195,000


36,907,000


4.9 %


     Amount of Principal


$73.579 billion


$78.826 billion


7.1 %


     Average Refund


$2,091


$2,136


2.2 %


 Direct Deposit Refunds:


 


 


 


     Number


  22,988,000


  25,586,000


  11.3 %


     Amount


$56.133 billion


 $62.797 billion


  11.9 %


     Average


     $2,442


     $2,454


    0.5 %

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IR-2003-22, March 3, 2003
Washington — To improve service to Spanish-language taxpayers, the Internal Revenue Service announced today that it has joined with the nationwide Spanish-language Telemundo Network to host a special, one-hour tax program on March 8.
The program, called “Los Impuestos y Usted (Taxes and You)” will focus on practical tips for claiming tax credits, preparing the federal income tax return, free electronic filing and other helpful topics.  
What: Los Impuestos y UstedWhere: Telemundo NetworkDate: March 8, 2003When: 12:30-1:30 p.m. Central and Mountain time; 1:30-2:30 p.m. Eastern and Pacific time. Consult local programming guide for exact channel and time.
In addition to the special program, the IRS has other ways to assist Spanish-language taxpayers:
TeleTax is a toll-free automated service that provides helpful tax topics and refund information in English and Spanish. TeleTax is available 24 hours a day, 7 days a week, at 1-800-829-4477.
Free IRS publications in Spanish are available by calling toll free 1-800-TAX-FORM (1-800-829-3676) or through Forms and Publications.
The toll-free IRS Tax Help Line for Individuals at 1-800-829-1040, has Spanish-speaking tax assistors.
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IR-2003-56, April 24, 2003
WASHINGTON — The Internal Revenue Service reminded taxpayers today that Free File, the tax preparation and electronic filing service, remains available for people who received filing extensions. More than 2.7 million taxpayers used Free File during the regular filing season.
A projected 8.5 million taxpayers were expected to request the automatic four-month extension, which would extend their filing deadline until Aug. 15. Those taxpayers with hardship situations can request a second extension for an Oct. 15 deadline.
IRS e-file will be available through Oct. 15. Several Free File members also will continue providing free preparation and e-filing services to eligible taxpayers through Oct. 15. Late filers who failed to get an extension also should use Free File and e-file to help reduce the time penalties are applied.
“We urge taxpayers who have yet to file returns to give Free File a try,” said Bob Wenzel, acting IRS commissioner.  “We are extremely pleased that so many taxpayers have embraced the new initiative. The 2.7 million users easily surpassed our expectations.”
Free File debuted Jan. 16 as a public-private partnership between the IRS and the Free File Alliance, a consortium of tax preparation software companies. Each company sets its own criteria for taxpayer eligibility, generally based on income, age or state residency. Eligible taxpayers were able to prepare and e-file their federal tax returns for free.
Free File is accessible through this site. More than 8.3 million computer users visited the Free File content area through April 15, making it the most visited page on the heavily used IRS Web site.
The final statistical report on the 2003 filing season is expected to be issued next week.
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IR-2003-55, April 23, 2003
WASHINGTON – The Internal Revenue Service recently posted a new Tax-Exempt Governmental Bonds Compliance Guide, Publication 4079PDF, on the IRS Web site. The new on-line guide provides state and local governments with an overview of the requirements under federal tax law that generally apply to municipal financing arrangements commonly known as governmental bonds. The guide, which will be available in hard copy at a later date, is the first of three educational publications directed toward issuers of tax exempt bonds.
The Governmental Bonds Compliance Guide provides information about filing requirements, the basic rules related to governmental bond issuances as well as an overview of the law relating to the use of bond proceeds and bond-financed property. A brief introduction to the arbitrage and rebate concepts and refunding bonds is also included. In addition, the guide provides bond issuers with an overview of the various outreach and educational services provided by the office of Tax Exempt Bonds.
“Issuing these compliance guides is an integral part of our continuing efforts to provide special assistance to bond issuers and those who are contemplating bond financing as a means of addressing the fiscal needs of their communities,” said Clifford J. Gannett, Manager, Tax Exempt Bonds, Outreach, Planning and Review.
Future publications will address the rules applicable to qualified 501(c)(3) bonds and other qualified private activity bonds.
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IR-2003-54, April 21, 2003
WASHINGTON — For the thirteenth year in a row, the Internal Revenue Service is hosting the IRS Nationwide Tax Forums to help educate and serve the tax practitioner community. The three-day forums are offered in July, August and September.
Approximately 15,000 tax professionals attended last year’s forums. Based on their input, the IRS has revamped the forums to present more advanced seminar topics and a greater number of seminars on tax law than previously offered. 
These include advanced seminars on abusive schemes, tax shelters, basis determinations, alternative dispute resolution options, tax credits, retirement plans, compliance initiatives and other issues. There are also seminars on 2003 income tax law changes, electronic filing, Earned Income Tax Credit hot topics, becoming an enrolled agent, applying for tax-exempt status and more.   
The forums feature a variety of basic and advanced seminars designed to provide the tax professional community with the latest and most complete information on a variety of IRS programs, practices and policies. In addition to receiving updates directly from IRS executives, the forums provide practitioners with an opportunity to meet and exchange ideas with other practitioners and to meet with vendors to learn about the latest technology that will help with their businesses. Practitioners will also have an opportunity at each forum to bring their toughest unresolved case or question to IRS representatives for on-site resolution.
The IRS’s monthly Webcast program, Tax Talk Today, will present “Everything’s Electronic” via a live downlink to the Atlantic City tax forum, and forum attendees will be able to pose questions to the show’s panelists. Popular programs covering topics ranging from global withholding issues to K-1 matching will be rebroadcast at succeeding tax forums.     
The National Association of Enrolled Agents, the National Association of Tax Professionals, the National Society of Accountants and the National Society of Tax Professionals will all present seminars at the upcoming forums.
The dates and locations of this year’s six forums are:

July 8-10 in Atlantic City, New Jersey


July 22-24 in Orlando, Florida


August 5-7 in Atlanta, Georgia


August 19-21 in St. Louis, Missouri


September 2-4 in San Antonio, Texas


September 16-18 in Las Vegas, Nevada

Enrolled agents can earn up to 22 continuing professional education (CPE) credits at each forum. Other professional groups should consult their respective licensing group regarding qualifying credits.
The basic fee for this year’s tax forums is $80 for the first member of a business or organization, $70 for the second, and $60 for the third and all subsequent members or spouses.
To obtain additional information or to find out how to register, visit the Tax Forums page on this site or call Public Affairs International at 301-593-0200. Prospective attendees should register early to be sure of reserving hotel accomodations and space at special events.
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IR-2003-52, April 17, 2003
WASHINGTON – The Internal Revenue Service has published revised procedures for the Industry Issue Resolution (IIR) Program. Under the revised procedures, business taxpayers, industry associations and other interested parties can submit frequently disputed or burdensome business tax issues at any time for possible resolution under the program.
In past years, issues have been submitted by industry associations and others representing both small and large business taxpayers. These submissions have resulted in tax guidance that has affected thousands of taxpayers. Recent guidance issued under the IIR Program includes standard rates for meals provided by family day care providers and an inventory valuation method for re-buildable motor vehicle cores.
Requests received will be reviewed semi-annually, generally after March 31 and Aug. 31 of each year, for inclusion in the program. However, to allow time for initial IIR submissions, the March 31 review date has been changed to May 15, 2003, for this year. All requests received by May 15, 2003, will be considered for IIR project selections that are expected to be included in the 2003-2004 Treasury and IRS Guidance Priority List.
For each issue selected for the program, IIR team consisting of IRS and Treasury personnel will meet with taxpayers or other interested parties affected by the issue. The goal is to recommend guidance that resolves the tax issue. This benefits both taxpayers and IRS by saving time and expense that would otherwise be expended on resolving the issue through examinations.
See Revenue Procedure 2003-36PDF for information on the IIR Program and how to submit issues for consideration.
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IR-2003-45, April 4, 2003
WASHINGTON — The Internal Revenue Service and the Treasury Department are warning taxpayers against participating in certain offshore deferred compensation arrangements involving domestic and foreign employee leasing companies.
Taxpayers who are current or past participants in such arrangements are encouraged to apply to participate in the Offshore Voluntary Compliance Initiative (OVCI) that IRS announced on Jan. 14 of this year. Under OVCI, eligible taxpayers who step forward will not face civil fraud and information return penalties. However, taxpayers will still have to pay back taxes, interest and certain accuracy or delinquency penalties. That initiative expires on April 15, 2003.  
Under the typical leasing arrangement, an individual taxpayer supposedly resigns from the current employer or professional corporation and signs an employment contract with an offshore employee leasing company. The offshore company indirectly leases the individual's services back to the original employer using one or more intermediaries. The individual performs the same services before and after entering into the leasing arrangement. 
These arrangements result in the avoidance and evasion of individual and corporate income and employment taxes. The arguments used by promoters of these arrangements to justify these tax benefits are inconsistent with numerous longstanding tax principles. The IRS intends to challenge the supposed tax benefits claimed for these arrangements and to assess appropriate interest and penalties.
The IRS cautioned taxpayers against this arrangement in a recent outreach project directed to medical professionals. Although this document was aimed at medical professionals, it is equally applicable to other taxpayers.
Notice 2003-22PDF, describing the abusive employee leasing arrangement, is available on IRS.gov and will be published in Internal Revenue Bulletin 2003-18, dated May 5, 2003.
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