etrent17/irs-articles huggingface dataset:
IR-2005-32, March 17, 2005
WASHINGTON —The Internal Revenue Service announced today that electronic filing continues to show a strong increase, with e-filed tax returns running more than 6 percent ahead of last year. The biggest increase is being seen in home computer use, which is up more than 14 percent.
People e-filed 42.7 million returns through March 11 — up 2.5 million over last year’s numbers.
“E-filing continues to show strong growth,” said IRS Commissioner Mark W. Everson. “We are committed to using technology to make tax filing easier, including filing electronically and using services available on IRS.gov.”
Out of 61 million returns filed as of March 11, almost 70 percent of them were e-filed — up from 65 percent the previous year. While this percentage will decline as April 15 approaches, the IRS expects for the first time to have more than half of all individual tax returns filed electronically.
Out of tax returns e-filed so far, the biggest increase is among those who prepare their own returns on a home computer — 10.6 million returns, up more than 14 percent over results from the same period last year.
The jump in computer use coincides with another strong year from the Free File program. The IRS and a consortium of tax software manufacturers offer free services through Free File, which is available at IRS.gov. More than 3.33 million returns came in through Free File through March 9, which is a 44 percent increase from 2.32 million returns for the same period last year.
Record numbers of individuals are choosing to have their refunds directly deposited into their bank accounts. So far this year, 69 percent of all deposits are through direct deposit — up from 65 percent over the same period last year.
Taxpayers who e-file and choose direct deposit get their refunds in half the time of those who file a paper return. Even paper filers, however, can get the benefit of direct deposit by choosing that option on their tax forms; they will get their refunds a week sooner than waiting for a paper check.
 

2005 FILING SEASON STATISTICS


Cumulative through the week ending 3/12/04 and 3/11/05


 


2004


2005


% Change


Individual Income Tax Returns


Total Receipts


62,038,000


61,326,000


-1.1


Total Processed


56,793,000


57,019,000


0.4


E-filing Receipts:


TOTAL


40,229,000


42,731,000


6.2


TeleFile (phone)


2,852,000


2,431,000


-14.8


Computer


37,377,000


40,300,000


  7.8


Tax Professionals


28,136,000


29,708,000


5.6


Self-prepared


9,241,000


10,592,000


14.6


Tax Year 2004 Refunds Certified:


Number


51,945,000


51,743,000


-0.4


Amount


$111.728 billion


$118.678 billion


6.2


Average


$2,151


$2,294


6.6


Direct Deposit Refunds


Number


33,688,000


35,549,000


  5.5


Amount


$83.862 billion


$93.611 billion


11.6


Average


$2,489


$2,633


  5.8

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IR-2005-31, March 17, 2005
WASHINGTON — Qualified housing interest, which generally is deductible for alternative minimum tax purposes, includes interest paid on a mortgage that has been refinanced more than once, the Internal Revenue Service confirmed today.
In Revenue Ruling 2005-11, the IRS stated that interest paid on a loan that is refinanced more than once will retain its status as qualified housing interest, to the extent that the amount of the loan is not increased.
This ruling may affect the amount some taxpayers report as a home mortgage interest adjustment on Form 6251, Alternative Minimum Tax-Individuals. The instructions for Form 6251 include a worksheet to help taxpayers determine the correct home mortgage interest adjustment.
As clarified by Revenue Ruling 2005-11, a taxpayer should include in the worksheet calculation as interest paid on a mortgage whose proceeds were used to refinance an eligible mortgage, qualified housing interest on a mortgage that previously was refinanced. Revised instructions to Form 6251 to reflect this clarification will be posted shortly on the IRS Web site, IRS.gov
Revenue Ruling 2005-11 and Form 6251 are available on the IRS Web site. The revenue ruling will also appear in Internal Revenue Bulletin 2005-14, dated April 4, 2005.
Links:

Revenue Ruling 2005-11 (16KPDF)


Form 6251, Alternative Minimum Tax--Individuals — (83KPDF)

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IR-2005-29, March 15, 2005
WASHINGTON — The Internal Revenue Service today issued guidance intended to help truck dealers determine whether a truck body is subject to federal excise tax.
Section 4051 of the Internal Revenue Code imposes a tax on the first sale of certain truck chassis and bodies. The excise tax does not apply to truck bodies and chassis suitable for use with vehicles that have a gross vehicle weight of 33,000 pounds or less or truck trailer and semi-trailer bodies and chassis suitable for use with vehicles that have a gross vehicle weight of 26,000 pounds or less.
In some cases, retailers do not know the gross vehicle weight of the vehicle on which the body will be mounted, making it difficult to determine whether the body meets the “suitable for use” standard.
The guidance issued today, Revenue Procedure 2005-19, establishes four classifications of truck body types that meet the “suitable for use” standard. Truck body types that meet these classifications are therefore excluded from the retail excise tax:
Platform truck bodies 21 feet or less in length.
	 
Dry freight and refrigerated truck van bodies 24 feet or less in length.
	 
Dump truck bodies with load capacities of eight cubic yards or less.
	 
Refuse packer truck bodies with load capacities of 20 cubic yards or less.
These classifications are effective for sales on or after April 4, 2005.
The guidance issued today is a result of the Industry Issues Resolution (IIR) Program. Under IIR, taxpayers, associations and other groups representing businesses submit frequently disputed or burdensome tax issues for review.
The goal of an IIR, when possible, is to resolve these differences by providing more effective guidance.
Related Item: Revenue Procedure 2005-19 ( 133 KBPDF)
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IR-2005-27, Mar. 14, 2005
WASHINGTON — The Internal Revenue Service today issued guidance describing and rebutting frivolous arguments taxpayers should avoid when filing their tax returns.
“Every filing season, thousands of taxpayers hear groundless theories suggesting that they don’t have to pay taxes or file returns,” said IRS Commissioner Mark W. Everson. “We want people to know the truth about these frivolous arguments: they don’t work.”
IRS Notice 2005-30 describes 23 frivolous arguments that taxpayers should avoid when filing their returns. Five revenue rulings issued in conjunction with the notice address specific frivolous claims often made to the IRS.
These include arguments that the income tax is unconstitutional, that taxes may be withheld as a protest against government programs and arguments that taxpayers may obtain a refund of all Social Security taxes paid by waiving their right to Social Security benefits.
The revenue rulings emphasize the adverse consequences to taxpayers who fail to file or fail to pay taxes based on an erroneous belief in any of these frivolous arguments.
In addition, the IRS has updated “The Truth About Frivolous Tax Arguments,” a 56-page document addressing false arguments about the legality of not paying taxes or filing returns.
The updated document includes citations from 13 cases decided by the courts in 2004 and responds to additional arguments, making a total of 39 frivolous contentions that are addressed.
This past year, the courts have not only rebuked these arguments numerous times, but also have imposed thousands of dollars in fines on taxpayers or their attorneys for pursuing frivolous cases.
“The courts have consistently rejected these arguments and imposed substantial penalties on those taking these unsupportable positions,” said IRS Chief Counsel Donald L. Korb. “Those potentially tempted by these schemes need to realize that they carry a heavy price for both the taxpayers and the promoters.”
The IRS continues to investigate promoters of frivolous arguments and to refer cases to the Department of Justice for criminal prosecution.
In addition to tax and interest, 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 an additional penalty of up to $25,000.
There are links to the 56-page document from “The Newsroom” section’s “What’s Hot” page, the “Tax Pro News” and the “Topics for Individuals” pages of the IRS Website at IRS.gov.
Links:

"The Truth About Frivolous Arguments" ( PDF 177K)


IR-2005-19, "IRS Announces the 2005 Dirty Dozen"


Notice 2005-30 ( 112 KBPDF)


Revenue Ruling 2005-17 ( 54 KBPDF)


Revenue Ruling 2005-18 ( 69 KBPDF)


Revenue Ruling 2005-19 ( 77 KBPDF)


Revenue Ruling 2005-20 ( 55 KBPDF)


Revenue Ruling 2005-21 ( 51 KBPDF)

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IR-2005-26, March 10, 2005
WASHINGTON — The National Taxpayer Advocate, Nina E. Olson, announced that the Internal Revenue Service has awarded approximately $7.5 million in matching grants to Low Income Taxpayer Clinics (LITCs) for the 2005 grant cycle (Jan. 1, 2005, through Dec. 31, 2005).
LITCs are qualifying organizations that represent low income taxpayers involved in tax disputes with the IRS or that provide education on tax rights and responsibilities to taxpayers for whom English is a second language or who have limited English proficiency.
The LITC grant program, now in its seventh year, encourages the creation and growth of Low Income Taxpayer Clinics across the nation. These clinics provide an important resource to taxpayers who may not be able to afford a tax professional.
Under the program, the IRS awards matching grants of up to $100,000 a year to organizations operating independent tax clinics. For the 2005 grant cycle, the IRS awarded LITC grants to 145 organizations representing 48 states plus the District of Columbia and Puerto Rico.
With the enactment of the Consolidated Appropriations Act of 2005, which provides for the appropriation of $8 million to the IRS for the use in awarding LITC grants, the IRS is planning a supplemental grant announcement.
The additional $.5 million in grant funds will be directed to states that do not presently have a tax clinic and to communities where there is limited clinic accessibility.
The following link goes to the list of organizations awarded a matching grant for the 2005 grant cycle:
Links: 2005 Low Income Tax Clinic Grants (36KPDF)
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IR-2005-25, March 10, 2005
WASHINGTON — The Internal Revenue Service and the Treasury Department today issued guidance providing limited transition relief for certain 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 new provision 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 partnerships.
After receiving comments from taxpayers suggesting that certain partnerships may have difficulty applying this provision for 2004, the IRS and the Treasury Department determined that difficulties may exist for 2004 returns with respect to certain property owned by partnerships or other pass-thru entities.
Notice 2005-29 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). The notice also requests comments on several issues.
"We want to encourage taxpayers to continue to come forward with their comments regarding issues for which guidance under the American Jobs Creation Act should be provided," said Donald L. Korb, IRS Chief Counsel. "After listening to taxpayers' concerns regarding the application of Section 470 to pass-thru entities, we concluded that the limited transition relief provided in the notice is consistent with sound tax administration."
Notice 2005-29 will be published in IRB 2005-13.
Link: Notice 2005-29PDF
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IR-2005-24, March 10, 2005
WASHINGTON — The Internal Revenue Service announced today that electronic filing continues to show a strong increase, with e-filed tax returns running almost 6 percent ahead of last year. The biggest increase is being seen in home computer use, which is up 14 percent.
“People are filing electronically in record numbers,” said IRS Commissioner Mark W. Everson. “We are committed to using technology to make tax filing easier, including filing electronically and using services available on IRS.gov.”
People e-filed 39.2 million returns through March 4 – up 2.1 million over last year’s numbers.
Out of 55 million returns filed as of March 4, 72 percent of them were e-filed – up from 67 percent the previous year. While this percentage will decline as April 15 approaches, the IRS expects for the first time to have more than half of all individual tax returns filed electronically.
Out of tax returns e-filed so far, the biggest increase is among those who prepare their own returns on a home computer – 9.8 million returns, up more than 14 percent over results from the same period last year.
The jump in computer use coincides with another strong year from the Free File program. The IRS and a consortium of tax software manufacturers offer free services through Free File, which is available at IRS.gov. More than 3 million returns came in through Free File through March 2, which is a 43 percent increase from 2.15 million returns for the same period last year.
Record numbers of individuals are choosing to have their refunds directly deposited into their bank accounts. So far this year 72, percent of all deposits are through direct deposit – up from 68 percent over the same period last year.
Taxpayers who e-file and choose direct deposit get their refunds in half the time of those who file a paper return. Even paper filers, however, can get the benefit of direct deposit by choosing that option on their tax forms; they will get their refunds a week sooner than waiting for a paper check.

2005 FILING SEASON STATISTICS
			Cumulative through the week ending 3/05/04 and 3/04/05


 


2004


2005


% Change


Individual Income Tax Returns


 


 


 


Total Receipts


55,492,000


54,566,000


-1.7


Total Processed


49,852,000


50,153,000


  0.6


E-filing Receipts:


 


 


 


TOTAL


37,124,000


39,214,000


  5.6


  TeleFile (phone)


2,713,000


2,303,000 


-15.1


  Computer


34,411,000


36,911,000


  7.3


  Tax Professionals


25,880,000


27,155,000


  4.9


  Self-prepared


8,531,000


9,756,000


14.4


Tax Year 2004 Refunds Certified:


 


 


 


Number


45,953,000


44,931,000


-2.2


Amount of principal  


$100.257 billion


$106.517 billion


  6.2


Average refund


$2,182


  $2,371


  8.7


Direct Deposit Refunds:


 


 


 


Number         


31,158,000


32,419,000


  4.0


Amount


$78.020 billion


$86.849 billion


11.3


Average


$2,504


$2,679


  7.0

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IR-2005-23, March 7, 2005
WASHINGTON — The Internal Revenue Service is encouraging business taxpayers, associations and other interested parties to submit tax issues for the Industry Issue Resolution (IIR) Program.
The submission of business tax issues where the tax treatment is uncertain, frequently disputed, or burdensome must be received by March 31, 2005.  
The objective of the IIR program is to resolve business tax issues common to significant numbers of taxpayers through new and improved guidance. 
In past years, issues have been submitted by associations and others representing both small and large business taxpayers, resulting in tax guidance that has affected thousands of taxpayers. 
Recent results of the IIR program include:

Adding a new Schedule D (Form 941), making it easier for taxpayers to provide IRS information about employment tax discrepancies created by an acquisition, statutory merger or consolidation (Revenue Procedure 2004-53).
	 


Providing guidance that eliminates the controversy on when insurance companies making incentive payments to health care providers will be permitted to deduct those payments. (Revenue Procedure 2004-41)

For each issue selected, an IIR team of IRS and Treasury personnel gather relevant facts from taxpayers or other interested parties affected by the issue.  The goal is to recommend guidance to resolve the issue. 
This benefits both taxpayers and the IRS by saving time and expense that would otherwise be expended on resolving the issue through examinations.
The IRS reviews submissions semi-annually, after March 31 and August 31 of each year.
All requests received by March 31, 2005, will be considered for IIR project selections that are expected to be included in the 2005-2006 Treasury and IRS Guidance Priority List.
The IIR project submission procedures and selection criteria are in Revenue Procedure 2003-36 which is available on the IIR program web page on IRS.gov.
Links:


Industry Issue Resolution Program


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WASHINGTON — The Internal Revenue Service today announced there will be a change in the interest rates for the calendar quarter beginning April 1, 2005. The interest rates are as follows:  
Six (6) percent for overpayments [five (5) percent in the case of a corporation].
	 
Six (6) percent for underpayments.
	 
Eight (8) percent for large corporate underpayments.
	 
Three and one-half (3.5) 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 2005.
Rev. Rul. 2005-15, announcing the new rates of interest, is attached and will appear in Internal Revenue Bulletin No. 2005-11, dated March 14, 2005.
Link: Revenue Ruling 2005-15PDF
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IR-2005-21, March 2, 2005
WASHINGTON — At the mid-point of tax filing season, the Internal Revenue Service announced today that taxpayers have used e-file at a record rate.
Out of 47 million tax returns filed through Feb. 25, 74 percent of them were e-filed — up from 69 percent the previous year. While this percentage traditionally declines as April 15 approaches, the IRS expects for the first time to have more than half of all individual tax returns filed electronically.
In all, more than 35 million returns have been e-filed this year. The biggest jump comes from self-prepared tax returns filed with a computer, which has increased nearly 14 percent to 8.7 million returns.
The jump in computer use coincides with another strong year from the Free File program. The IRS and a consortium of tax software manufacturers offer free services through Free File, which is available at IRS.gov. More than 2.77 million returns came in through Free File through Feb. 23, which is a 42.6 percent increase from last year’s 1.94 million returns.
“E-filing is making a strong start,” said IRS Commissioner Mark W. Everson. “Taxpayers and tax professionals are becoming increasingly comfortable with e-filing. It’s fast, easy and you get refunds in half the time.”
The growth in e-file comes as record tax refunds are being sent to taxpayers. The average refund so far is $2,436 — a record amount and more than $200 more than last year.
The IRS also is seeing record numbers of people using direct deposit for their refunds. More than 29 million have selected direct deposit, up 4 percent from last year. So far this year, three out of four taxpayers receiving refunds have used direct deposit.
Taxpayers who e-file and choose direct deposit get their refunds in half the time of those who file a paper return. Even paper filers, however, can get the benefit of direct deposit by choosing that option on their tax forms; they will get their refunds a week sooner than waiting for a paper check.
2005 Filing Season Statistics
Cumulative through the week ending 2/27/04 and 2/25/05

 


2004


2005


% Change


Individual Income Tax Returns

 
 
 

     Total Receipts


48,391,000


47,164,000


-2.5


     Total Processed


42,259,000


42,421,000


0.4


E-filing Receipts:

 
 
 

     Total


33,511,000


35,097,000


4.7


     TeleFile (phone)


2,547,000


2,143,000


-15.9


     Computer


30,964,000


32,954,000


6.4


     Tax Professionals


23,273,000


24,208,000


4.0


     Self-prepared


7,691,000


8,746,000


13.7


Tax Year 2004 Refunds Certified:


 


 


 


     Number


38,933,000


38,307,000


-1.6


     Amount of principal


$86.836 billion


$93.314 billion


7.5


     Average refund


$2,230


$2,436


9.2


Direct Deposit Refunds:


 


 


 


     Number


27,955,000


29,078,000


4.0


     Amount


$70.658 billion


$78.904 billion


11.7


     Average


$2,528


$2,713


7.4

Link:

Free File

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IR-2005-20, March 1, 2005
WASHINGTON — The Competent Authorities of Austria and the United States have reached a mutual agreement on the taxation of certain scholarships under Article 20 (Students and Trainees) and Article 21 (Other Income) of the U.S.-Austria income tax treaty.
The agreement constitutes a Mutual Agreement in accordance with the Income Tax Treaty Between Austria and the United States.
The Treaty entered into force on Feb. 1, 1998.
Links:

U.S.-Austria Competent Authority Agreement (10KPDF)

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IR-2005-52, April 26, 2005
WASHINGTON — Corporate taxpayers required to file the new Schedule M-3 with their Form 1120 can find and request answers to their questions about the new schedule using a Web-based list of frequently asked questions set up by the Internal Revenue Service in partnership with stakeholder groups.
Schedule M-3, “Net Income (Loss) Reconciliation for Corporations with Total Assets of $10 Million or More” is filed by affected corporations to reconcile financial accounting income to taxable income. IRS estimates that approximately 50,000 large and mid-size corporations are now required to use the schedule.
“Schedule M-3 is a very significant change for taxpayers and the IRS,” said Deborah M. Nolan, Commissioner of the IRS Large and Midsize Business Division. “It will provide important tax accounting information at time of filing that previously required extensive time to develop during a tax examination. We sought corporate taxpayer input in the scope and design of the Schedule M-3 and we’re continuing that collaboration to ensure understanding of the requirements of the new form.”
The Corporations section of the IRS.gov features a Schedule M-3 page that includes published material about the schedule, including the Schedule M-3 instructions and the frequently asked questions, which are updated weekly to add answers to additional questions submitted by taxpayers. The frequently asked questions appear on the Web site arranged and keyed to the line items and sections of the Schedule M-3 Instructions.
Stakeholder groups working with the IRS to provide the Schedule M-3 FAQ service include:

American Bar Association (ABA),


Association for Computers and Taxation (ACT),


American Institute of Certified Public Accountants (AICPA),


American Taxation Association (ATA),


Manufacturers Alliance (MAPI) and


Tax Executives Institute (TEI).

Taxpayers use special e-mail addresses to submit questions to the stakeholder groups, which perfect the questions, eliminate duplications and forward them to the IRS. In
addition to perfecting questions for quicker response by IRS, submitting questions through stakeholder groups gives anonymity to taxpayers who want it.
Links:

Schedule M-3 for Large and Mid-Size Corporations 

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IR-2005-51, April 25, 2005
WASHINGTON — In recognition of National Small Business Week, the Internal Revenue Service announces an abundance of free resources available to assist the nation’s 45 million small business and self-employed taxpayers with their tax responsibilities. And, they are all just a mouse-click away.
The small business section of IRS.gov provides a one-stop resource for information on starting and operating a business. On this site taxpayers can:
Learn about employment tax requirements.
Make tax payments.
Find out how to set up and distribute retirement plans.
View a streaming video of a small business tax workshop.
Order free products like a tax calendar or small business resource guide.
“Running a business is a big responsibility and the IRS wants to help ease the process for this dynamic group of taxpayers,” said Kevin M. Brown, commissioner of the IRS Small Business/Self-Employed Division. ”In an effort to save businesses money and reduce their paperwork burden, over the last year, the IRS has implemented a number of initiatives to simplify tax forms.”
For more information about the resources and services the IRS has for small business and self-employed taxpayers visit IRS.gov.
Links:
Small Business and Self-Employed One-Stop Resource
Subscribe to Small Business and Self-Employed Division’s free e-mail service for small business owners.
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October 26, 2012IR-2005-49, April 22, 2005
WASHINGTON — Today Treasury and the IRS announced the release of Notice 2005-36 and revised Form 8854, Initial and Annual Expatriation Information Statement. The notice and the revised form and its instructions address the significant changes made by the American Jobs Creation Act of 2004 (AJCA) to the tax and information reporting rules affecting individuals who lose their U.S. citizenship or long-term resident status after June 3, 2004.
In addition to imposing new information reporting requirements on former citizens and long-term residents, AJCA provides that former citizens and long-term residents will continue to be taxed as U.S. citizens or residents until they (1) notify the Department of State of loss of citizenship or the Department of Homeland Security of termination of permanent resident status and (2) file an initial expatriation information statement with the IRS. 
Form 8854, Initial and Annual Expatriation Information Statement, has been revised to permit individuals to meet the new notification and information reporting requirements imposed by AJCA. In particular, Form 8854 has been expanded so that it functions as both the initial and the annual expatriation information statements required by AJCA.  Revised Form 8854 and its instructions also address how individuals should certify (in accordance with the new law) that they have met their federal tax obligations for the five preceding taxable years and what constitutes notification to the Department of State or the Department of Homeland Security.  
Notice 2005-36 provides special rules for individuals who file the revised Form 8854 by June 15, 2005. Treasury and the IRS recognize that until the revised Form 8854 was released, individuals who lost U.S. citizenship or terminated long-term resident status after June 3, 2004 did not know how to meet the new notification and information reporting requirements imposed by AJCA. Accordingly, Notice 2005-36 provides that if an individual who loses U.S. citizenship or terminates long-term resident status after June 3, 2004 files the revised Form 8854 by June 15, 2005, the individual will be treated as having met his or her reporting obligations on the date on which the taxpayer provided the requisite notice to the Department of State or the Department of Homeland Security. 
Form 8854 and its instructions are available at the agency Web site, IRS.gov, but will no longer be obtainable from U.S. embassies or consulates abroad. Individuals in the United States may contact the IRS toll-free at 1-800-829-1040 for more information (1-800-829-4059 for TTY/TDD). If overseas, individuals may contact the IRS at (215) 516-2000 (English-speaking only and not a toll-free number).Links:

Notice 2005-36 (57KPDF)


Form 8854, Initial and Annual Expatriation Information Statement (98KPDF)

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IR-2005-48, April 19, 2005
WASHINGTON — The Internal Revenue Service is seeking applications to fill seven vacancies on the Electronic Tax Administration Advisory Committee.
ETAAC, a 14-member panel, provides an organized public forum for discussion of electronic tax administration issues in support of a major IRS goal: paperless filing of tax and information returns. ETAAC members are appointed by the Secretary of Treasury and serve a three-year term.
“The ETAAC panel plays a critical role in electronic tax administration. It helps develop and implement IRS strategy. It suggests improvements. It offers its opinion on current or proposed policies, programs and procedures,” said Bert DuMars, IRS Electronic Tax Administration director. “By applying for membership in ETAAC, you could serve on this important committee.”
The ETAAC will research, analyze, consider and make recommendations on a wide range of electronic tax administration issues and will provide input into the development of the strategic plan for electronic tax administration. Each June, the ETAAC submits an annual report to Congress reporting on the progress of the IRS’ electronic tax initiatives.
Applications can be made by letter or by completing an application form, available on the IRS Web site. A notice published in the Federal Register on Feb. 28, 2005, contains more details about ETAAC and the application process.
Applications should be sent to Kim Logan, MITS-ETA, Strategic Services Division, Internal Revenue Service, OS:CIO:I:ET:S:RM, 5000 Ellin Road (C4-226), Lanham, MD 20706. Applications can also be faxed to 202-283-4829 (not a toll-free number) or e-mailed to etaac@irs.gov.
The deadline for submitting applications is April 29, 2005.
Links:

Open Season for Membership Electronic Tax Administration Advisory Committee (ETAAC)

E-mail applications
Federal Register, Feb. 28, 2005 (3-13-14 Link no longer active)
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IR-2005-46, April 13, 2005
WASHINGTON — With April 15 just days away, the Internal Revenue Service announced today that the e-file, direct deposit and e-payment programs remain at record paces so far this year.
Through April 8, taxpayers e-filed 55.8 million tax returns up almost 8 percent from the same period last year. Overall, 63 percent of all returns were e-filed – up from 58 percent for the same period last year. While this percentage will decline as the final rush of April 15 tax returns are processed, the IRS expects for the first time to have more than half of all individual tax returns filed electronically.
“Even if it’s the last minute, taxpayers can use e-file and Free File to beat the April 15 deadline,” said IRS Commissioner Mark W. Everson. “E-file reduces the chances of making a last-minute mistake, and it gets refunds back in half the time of a paper return.”
As of April 6, 2005, the IRS accepted 4.16 million tax returns through the Free File program - a 44.2 percent increase from the same period last year (2.89 million). The IRS and a consortium of tax software manufacturers offer free services through Free File, which is available at IRS.gov. Free file is in its third year.
Record numbers of individuals are choosing to have their refunds directly deposited into their bank accounts. So far this year, more than 44 million refunds were paid through direct deposit up 5.9 percent for the same time last year.
Taxpayers who e-file and choose direct deposit get their refunds in half the time of those who file a paper return. Even paper filers, however, can get the benefit of direct deposit by choosing that option on their tax forms; they will get their refunds a week sooner than waiting for a paper check.

2005 FILING SEASON STATISTICS


Cumulative through the week ending 4/9/04 and 4/8/05

 

2004


2005


% Change


Individual Income Tax Returns:


Total Receipts


89,425,000


88,049,000


-1.5


Total Processed


82,572,000     


82,734,000     


0.2


E-filing Receipts:


TOTAL


51,769,000


55,782,000     


7.8


TeleFile (phone)


3,316,000


2,859,000


-13.8


Computer


48,453,000


52,923,000


9.2


Tax Professionals


36,633,000


39,372,000


7.5


Self-prepared


11,820,000


13,551,000


14.6


Total Refunds:


Number


73,171,000


72,278,000


-1.2


Amount


$152.957 billion


$158.222 billion


3.4


Average


$2,090


$2,189


4.7


Direct Deposit Refunds:


Number


41,807,000


44,275,000


5.9


Amount


$102.680 billion                 


$113.790 billion


10.8


Average


$2,456


$2,570


4.6

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IR-2005-45, April 13, 2005

WASHINGTON — Employers will no longer be required to send copies of potentially questionable W-4 withholding forms to the Internal Revenue Service, the IRS announced today.
At the same time, the IRS will step up its withholding compliance program by making more effective use of information reported on W-2 wage statements to ensure that employees have enough federal income tax withheld from their paychecks.
“We can eliminate this reporting requirement without hurting our enforcement efforts,” said IRS Commissioner Mark W. Everson. “Wherever we can, we try to reduce burden.”
Temporary and proposed regulations, issued today by the Treasury Department, eliminate the requirement that employers send copies of potentially questionable Forms W-4, Employee’s Withholding Allowance Certificate, to the IRS. The new regulations take effect on April 14, 2005.
In the past, employers had to send to the IRS any Form W-4 claiming more than 10 allowances or claiming complete exemption from withholding if $200 or more in weekly wages was expected.
Forms W-4 are still subject to review by the IRS. However, employers will no longer have to submit them to the tax agency, unless directed to do so in a written notice to the employer or pursuant to specified criteria set forth in future published guidance, the IRS said.
This change follows a comprehensive review of the withholding compliance program conducted recently by the IRS, which found that withholding noncompliance remains a problem with some employees.
Subsequently, the IRS has developed a process to use information already reported on Forms W-2 to more effectively identify workers with withholding compliance problems. In some cases where a serious under-withholding problem is found to exist for a particular employee, the IRS will notify the employer to withhold income tax from that employee at a more appropriate rate. The new process will also enable the IRS to more effectively address situations in which employees fail to file a federal income tax return.

The withholding calculator found on IRS.gov is available to help employees determine the proper amount of federal income tax withholding. Another useful resource, Publication 919, How Do I Adjust My Tax Withholding? is available on the IRS Web site or can be obtained by calling 1-800-TAX-FORM (829-3676).
The Treasury Department and the IRS welcome comments on these new regulations. Treasury Decision 9196 will appear in Internal Revenue Bulletin 2005-19, dated May 9, 2005.
Related Items:
Review temporary and proposed regulations, submit comments
IRS Withholding Calculator
Publication 919, How Do I Adjust My Tax Withholding? 
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IR-2005-44, April 13, 2005
WASHINGTON — The Competent Authorities of the United Kingdom and the United States have reached a mutual agreement on the qualification of certain U.K. pension arrangements for treaty benefits under paragraph 3(b) of Article 10 (Dividends) of the Convention Between the United States of America and the United Kingdom of Great Britain and Northern Ireland for the Avoidance of Double Taxation with Respect to Taxes on Income signed at London on July 24, 2001 (“Treaty”).
The agreement constitutes a Mutual Agreement in accordance with paragraph 3 of Treaty Article 26 (Mutual Agreement Procedure).
The text of the agreement is available on the Newsroom link on IRS.gov
Links:   Text of the Agreement ( 59KPDF)
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IR-2005-42, April 7, 2005
WASHINGTON — The Internal Revenue Service announced today that e-file, direct deposit and e-payment programs are running at record paces so far this year.
Through April 1st, 52 million tax returns were filed electronically, a 7 percent increase from last year. Overall, 65 percent of all returns were e-filed — up from 60 percent for the same period last year. While this percentage will decline as April 15 approaches, the IRS expects for the first time to have more than half of all individual tax returns filed electronically.
Almost 4 million returns have been filed through the Free File program so far this year. With 3.93 million returns free filed so far — up 44 percent from the 2.7 million returns filed through the program at this time last year — the free program is serving a significant percent of e-filers. The IRS and a consortium of tax software manufacturers offer free services through Free File, which is available at IRS.gov. Free file is in its third year.
“As we get deeper into the tax filing season, the percent difference between how many people are using e-file and used it last year keeps going up,” said IRS Commissioner Mark W. Everson. “This shapes up as a really strong year. Taxpayers who haven’t filed yet should check into e-file and Free File.”
Record numbers of individuals are choosing to have their refunds directly deposited into their bank accounts. So far this year 42 million refunds were paid through direct deposit up 5.7 percent for the same time last year.
Taxpayers who e-file and choose direct deposit get their refunds in half the time of those who file a paper return. Even paper filers, however, can get the benefit of direct deposit by choosing that option on their tax forms; they will get their refunds a week sooner than waiting for a paper check.

2005 Filing Season Statistics


Cumulative through the week ending 4/2/04 and 4/1/05


 


2004


2005


% Change


Individual Income Tax Returns:


Total Receipts


81,021,000


80,014,000


-1.2


Total Processed


75,838,000     


75,743,000     


-0.1


E-filing Receipts:


TOTAL


48,554,000


52,098,000     


7.3


TeleFile (phone)


3,185,000


2,740,000


-14.0


Computer


45,369,000


49,358,000


8.8


Tax Professionals


34,275,000


36,663,000 


7.0


Self-prepared


11,094,000


12,695,000


14.4


Total Refunds:


Number


67,889,000


67,063,000


-1.2


Amount


$142.540 billion


$148.203 billion


4.0


Average


$2,100


$2,210


5.3


Direct Deposit Refunds:


Number


39,847,000


42,116,000


5.7


Amount


$98.128 billion       


$108.155 billion


10.2


Average


$2,463


$2,568


4.3

Links:
Free File

e-file — Filing your taxes was never easier!

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IR-2005-41, April 1, 2005
WASHINGTON — The Internal Revenue Service is inviting civic-minded individuals to help improve the nation’s tax agency by applying to be members of the Taxpayer Advocacy Panel. The panel provides a forum for citizens from each state to make suggestions regarding IRS decision making.
Taxpayer Advocacy Panel (TAP) members:

Provide opportunities for citizen input and make recommendations to the IRS and Treasury on customer-service issues.


Identify and prioritize taxpayer issues.


Report annually to Treasury, the IRS and the National Taxpayer Advocate.


Participate in meetings where taxpayers are invited to raise issues about their experiences with the IRS.


Refer taxpayers who contact the panels to the IRS offices best able to address their issues.

“We are committed to working with taxpayers to improve the customer-service focus of the IRS,” said Nina Olson, IRS National Taxpayer Advocate. “Working with taxpayers directly helps us identify issues that may not be on the IRS radar screen. We can also hear their concerns about issues the IRS is already addressing.”
To qualify as a TAP member, applicants must be U.S. citizens and be able to commit 300 to 500 hours during the year to the panel. In addition, they must be current with their tax obligations and pass a criminal background check.
The application is available at www.improveirs.org. You can apply online or download the form and mail it to:




Milwaukee TAP Office
Stop 1006MIL
310 West Wisconsin Avenue
Milwaukee, WI 53203-2221




If you do not have access to a computer, call 1-888-912-1227 for an application form.
Applications must be received by the TAP Office by April 29, 2005.
Links: Taxpayer Advocacy Panel online application
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IR-2005-62, May 26, 2005
WASHINGTON — The National Taxpayer Advocate, Nina E. Olson, today announced that the 2006 Low Income Taxpayer Clinic (LITC) grant application process is now open. The Low Income Taxpayer Clinic grant program is entering its eighth year and continues to expand. Under the program, IRS awards matching grants up to $100,000 a year to develop, expand or continue low income taxpayer clinics. To date in 2005, the LITC Program Office has awarded LITC grants to 145 organizations in 48 states, the District of Columbia and Puerto Rico.
Nonprofit organizations providing free or nominal fee representation to people involved in tax disputes can apply for grants up to $100,000 for the 2006 grant cycle (the 2006 grant cycle runs Jan. 1, 2006, through Dec. 31, 2006). Grants are also available for organizations that inform taxpayers for whom English is a second language of their tax rights and responsibilities. Grant funds may be awarded for start-up expenditures incurred by new clinics during the 2006 grant cycle.
The National Taxpayer Advocate sees funding the low income taxpayer clinics and the provision of free or nominal fee tax representation as a significant step toward a more equitable tax system. The IRS is committed to achieving the maximum access to representation for low income taxpayers possible under the terms of this grant program. The IRS matching grant program encourages the establishment and operation of low income taxpayer clinics across the nation. These clinics provide an important resource to taxpayers who may not be able to afford a tax professional.
The application period for the 2006 LITC grant program began May 23 and applications for grants must be electronically filed or received by 4 p.m. on July 25, 2005.
Copies of Publication 3319, 2006 Grant Application Package and Guidelines (Rev. 5-2005), are available on IRS.gov at /advocate. Application packages may also be ordered by calling 1-800-829-3676. Applicants can also file electronically at www.grants.gov. For applicants applying through the Federal Grants Web site, the “Funding Number” is TREAS-GRANTS-052006-001.
Questions about the LITC Program or grant application process can be addressed to the LITC Program Office at (404) 338-8306 (not a toll-free call) or by e-mail at LITCProgramOffice@irs.gov.
Links:
LITC application available at the IRS E-Grants Program
LITC Electronic Grant Application Information on Grants.gov
LITC Program Office e-mail
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IR-2005-61, May 24, 2005
WASHINGTON — The Internal Revenue Service’s Advisory Committee on Tax Exempt and Government Entities (ACT) will hold a public meeting June 8, 2005, from 9:00 a.m. to 1:00 p.m. at IRS headquarters, 1111 Constitution Ave., N.W., Washington, D.C.
The 17-member panel includes external stakeholders and representatives who deal with employee retirement plans, tax-exempt organizations, tax-exempt bonds and federal, state, local and Indian tribal governments. ACT members are appointed by the Secretary of the Treasury and generally serve two-year terms. They advise the IRS on operational policies and procedures.
During the meeting, four project teams will present recommendations to the Commissioner and senior leadership of the IRS’s Tax Exempt and Government Entities Division (TE/GE). The projects cover:
• A survey and review of existing information and guidance for Indian Tribal Governments;
•  The record retention burden for tax-exempt bonds;
•  Establishing the enrolled retirement plan agent under Circular 230; and
•  Improving compliance of newly formed charities.
The project reports and proceedings of the meeting will be made public under the Federal Advisory Committee Act.
Due to limited seating and security requirements, members of the public interested in attending the meeting should call Cynthia Phillips Grady to confirm their attendance. She can be reached at 202-283-9954 (not a toll-free number). Attendees are encouraged to arrive at least 30 minutes before the session begins.
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IR-2005-60, May 18, 2005
WASHINGTON — The Internal Revenue Service today announced improvements to “Tax Stats” on IRS.gov. Tax Stats includes a wealth of statistical information on individuals, businesses, charities, and IRS operations.
The new design features an expanded home page that allows users to directly access the most frequently requested statistical information. Popular publications and products are featured prominently. Many more detailed offerings are available from easily accessed “all topics” pages.
In addition to improving the structure of the site, the Statistics of Income Division (SOI) has added helpful information to each page so that users will better understand the sometimes complex products available on the site. Newly organized pages expand offerings to include more archival data, as well as new products. SOI is also introducing revised table formats — nearly all in Microsoft Excel format and offered with a free Excel Reader — and updated report formats, offered with a free Adobe Reader.
To minimize inconvenience, new pages are assigned existing Web addresses whenever possible; if not, users are automatically redirected to new menu pages.
Visit the revised Tax Stats pages on IRS.gov today and learn more about America’s tax system.
Links:

Tax Statistics

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