etrent17/irs-articles huggingface dataset:
IR-2003-148, Dec. 29, 2003
WASHINGTON — As part of a broader effort to strengthen professional standards, IRS Commissioner Mark W. Everson announced today the selection of Cono Namorato as the Director of the Office of Professional Responsibility.
Combined with other changes unveiled today involving Circular 230 and abusive tax shelters, Namorato’s selection represents an important part of the agency’s continuing efforts to ensure high professional standards and build faith in the tax system.
“I am delighted that a professional of Cono’s status is taking on this assignment,” Everson said. “He shares my concern about the erosion of professional standards among some attorneys and accountants. This appointment should signal an expectation that tax practitioners live up to their professional obligations.”
The Office of Professional Responsibility investigates allegations of misconduct or negligence against tax practitioners and enforces the standards of practice for those who represent taxpayers before the IRS, as detailed in Circular 230. The office also licenses “enrolled agents,” who are tax professionals meeting certain testing or experience requirements.
Everson has taken several steps recently to enhance the effectiveness of this office. Over the last year, staff of the office has been doubled and its Director sits on the IRS Enforcement Committee, a panel of senior agency executives who meet regularly to develop strategies on the top compliance problems facing the IRS. The Commissioner also recently charged OPR with conducting a broader review of the IRS’ overall relationship with the practitioner community.
Namorato has been a member of the Washington law firm of Caplin & Drysdale since 1978, representing and advising clients on criminal and civil tax matters. He began his career as an IRS Special Agent in Brooklyn from 1963 to 1968, then spent 10 years in the Justice Department’s Tax Division, rising to the position of Deputy Assistant Attorney General in 1977.
While Chair of an American Bar Association subcommittee on Criminal Tax Policy, Namorato co-authored and supervised completion of two reports on the IRS Criminal Investigation Division: The Future of the Criminal Investigation Division (1998) and Redirecting Criminal Tax Enforcement To Improve Voluntary Compliance (1991).

A Brooklyn native, Namorato earned a bachelor’s degree in accounting summa cum laude from Iona College in New Rochelle, NY, and a law degree from Brooklyn Law School.
Related Item: IR-2003-147, Treasury Issues Rules to Increase Transparency and Halt Abusive Tax Avoidance Transactions
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IR-2003-146, Dec. 23, 2003
WASHINGTON — The Internal Revenue Service today reminded tax-exempt organizations that their public advocacy activity must adhere to tax rules as well as campaign-finance laws.
On the eve of an election year, the IRS has issued Revenue Ruling 2004-6 concerning certain public advocacy activities conducted by social welfare organizations, unions and trade associations.
Under the Internal Revenue Code, social welfare organizations, unions and trade associations generally are permitted to engage in advocacy or lobbying related to their exempt purposes. However, they may engage in only limited political campaign activity. The guidance clarifies the tax implications of advocacy that meets the definition of political campaign activity.
The guidance provides examples and sets forth factors to be taken into account in determining whether expenditures for issue advertising are taxable. The situations and factors contained in the ruling are not exhaustive.
The guidance also serves as a reminder that the Bipartisan Reform Act of 2002 (McCain-Feingold) does not replace the tax rules on public advocacy by tax-exempt organizations. Tax exempt organizations, such as those described in sections 501(c) (4), (c)(5), and (c)(6) of the Internal Revenue Code, must adhere to both McCain-Feingold and the Internal Revenue Code.
The IRS remains committed to ensuring that assets of tax-exempt organizations are used for exempt purposes and requests comments on situations or factors that the public believes should be covered in future guidance.
Revenue Ruling 2004-6 will be published in Internal Revenue Bulletin 2004-4, Jan. 26, 2004. Comments may be sent to: Judy Kindell, T:EO:RA:G, 1111 Constitution Ave., NW, Washington, DC 20224.
Related Item: Revenue Ruling 2004-6
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Note: For all agreements secured on or after May 2 ,2007, Revenue Procedure 2007-32PDF supersedes Rev. Proc. 2003-35. 
IR-2003-145, Dec. 23, 2003
WASHINGTON — The Internal Revenue Service is expanding a new tip compliance agreement nationwide to the gaming industry. The agency encourages gaming industry employers to participate in the voluntary agreement and urges employees whose income includes tips to learn the benefits of participation.
For employers, the agreement substantially reduces the recordkeeping and reporting burden. For employees, the improved income reporting procedures could potentially make them eligible for higher Social Security or other pension, Medicare, unemployment and workman’s compensation benefits. This could also help qualify them when applying for loans or other financial arrangements.
The voluntary compliance process allows a gaming industry employer, employees and the IRS to work together to objectively determine tip rates for tipped employees in specified occupational categories.
There are several steps to the process:
The employer and the IRS sign a Gaming Industry Tip Compliance Agreement, which incorporates tip rates specific to that employer’s establishment and prescribes a minimum level of participation by the employer’s employees.
The employer recruits his employees to voluntarily participate.
Participating employees must then report their tip income to their employer at or above the established tip rates, unless their tip logs can substantiate a lesser amount.
The employer withholds income tax from the employees and reports income on the employees’ Form W-2 based on the rates or the substantiated lesser amount.
As long as tips are reported at or above the established tip rate, the compliance agreement generally prevents the IRS from auditing the employee’s tip income. In addition, as long as the employer meets certain commitments, the IRS will not assert a liability against the employer with respect to the tip income of participating employees while the agreement is in effect. The agreement may be renewed every three years.
Representatives of the gaming industry, including employees, provided significant input into the development of the agreement.
All employers operating a gaming establishment may participate in the Gaming Tip Compliance Agreement. Either the IRS or an employer may initiate participation.
Revenue Procedure 2003-35, Gaming Industry Tip Compliance Agreement Program, has further details on the compliance agreement.
Related Item: Revenue Procedure 2003-35 (103KPDF)
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IR-2003-144, Dec. 23, 2003
WASHINGTON — Internal Revenue Service Commissioner Mark W. Everson announced today the appointment of Eileen T. Powell as the agency’s Chief Financial Officer.
“Eileen brings a wealth of experience to the position that is critical for the success of the office and by extension, the agency,” said Everson. “Her experience implementing core accounting and logistics systems at the Veterans Administration and her leadership as the IRS Deputy CFO makes her particularly well qualified to serve as the agency’s CFO.”
Prior to her appointment as CFO, Powell demonstrated her leadership ability while serving as the Acting CFO beginning June 30. As the CFO, Powell continues to have responsibility for the custodial accounting of $2 trillion in taxpayer receipts and the agency’s $10 billion annual operating budget. In addition, as CFO she serves as the principal advisor to the IRS Commissioner and his deputies on financial management, financial systems, strategic planning, performance measurement, budget formulation, budget execution and internal controls.
Powell’s appointment as the CFO reflects her accomplishments while IRS Deputy Chief Financial Officer from September 2001 until June 2003.
She joined the IRS in July 2001 as Director of Administrative Accounting. In this role, she led the development and management of the agency’s financial policies, procedures, and systems, as well as the accounting and reporting for the IRS operating budget.
Before coming to the IRS, Powell was the project director responsible for implementing the Department of Veterans Affairs' new nationwide core accounting and logistics system. She joined the Department of Veterans Affairs in 1998 as the Associate Deputy Assistant Secretary for Financial Operations and was responsible for VA's franchise fund, purchase card program, automated travel management system and departmental accounting services.
Powell has 32 years of technical and managerial experience in the fields of accounting, budgeting, auditing, disbursing and planning. She graduated magna cum laude from Virginia Polytechnic Institute with a Bachelor of Science degree in accounting.
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IR-2003-143, Dec. 23, 2003
WASHINGTON — The Internal Revenue Service today announced the selection of eight new members for the Information Reporting Program Advisory Committee (IRPAC). The appointees will join 10 returning members who are in the second year of a three-year term.
The committee will hold its first meeting on Feb. 3-4, 2004. The following people have been appointed to serve on the committee:

Martha Bell of Lakeland, Fla., owner of Tax Advantage of Lakeland, LLC;


Norman L. Bouchard of Parker, Colo, vice president for the Society of Certified Senior Advisors;


David A. Corthell of Orlando, Fla., vice president and manager IRS compliance for Sun Trust Bank;


Debra L. Heikkinen of Waterford, Conn., senior tax manager at Deloitte and Touche, LLP;


Patricia A. McCauley of Baltimore, Md., vice president and associate general counsel at T. Rowe Price Associates, Inc.;


Steven A. Neiss of Edison, N.J., vice president of Tax Prudential Insurance Company of America;


Rachel J. Paliotti of Cranston, R.I., corporate manager at Blue Cross Blue Shield;


Patricia A. Rhodes of Jacksonville, Fla., president of Pat Rhodes Accounting Firm.

The IRPAC was established in 1991 and focuses on information reporting issues. The committee’s purpose is to provide an organized public forum for discussion of relevant tax administration issues between IRS officials and representatives of the public.
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IR-2003-142, Dec. 23, 2003
(updated 1/9/04)
WASHINGTON — The Internal Revenue Service announced the selection of 10 new members for the Internal Revenue Service Advisory Council (IRSAC). These appointees will join 11 returning members who are in the second year of a three-year term.
The council will hold its first meeting on Feb. 3 and 4, 2004. The following people have been appointed to serve on the council:
Judith A. Akin, EA of Oklahoma City, Okla, owner of Judith A. Akin, EA, Tax and Financial Services;
John M. Contreras of Fresno, Calif., senior tax manager with Deloitte & Touche, LLP.
John A. Glennie of Calgary, Alberta, Canada, general manager, Tax and Insurance for Shell Canada Limited.
Mary Harris of Little Rock, Ark., co-owner, Sirrah, Inc, d.b.a Jackson Hewitt Tax Services.
Richard M. Lipton of Kenilworth, Ill., tax counsel for Baker and McKenzie.
Kenneth C. Nirenberg of Austin, Texas, senior software developer for Intuit, Inc.
William F. Reilly, EA of Palo Cedro, Calif., owner of William F. Reilly, EA.
Gary Rohrs of Independence, Mo., president of A. Clyde Rohrs and Associates, Inc.
David A. Uhler of Santa Barbara, Calif., partner with Bartlett, Pringle and Wolf, LLP.
Thomas P. Wharton of New York, N.Y., vice president, taxation (Senior Tax Official) Pearson, Inc.
The IRSAC was established in 1953 and focuses on broad policy matters. The council’s purpose is to provide an organized public forum for IRS officials and representatives of the public to discuss relevant tax administration issues.
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IR-2003-141, Dec. 22, 2003
WASHINGTON — Today the Internal Revenue Service and Treasury Department issued a notice to advise taxpayers that the IRS intends to disallow improper deductions for charitable contributions of patents and other intellectual property. Taxpayers claiming improper deductions may be subject to penalties. In addition, the notice advises promoters and appraisers that the IRS intends to review promotions of transactions involving these improper deductions and that promoters and appraisers also may be subject to penalties.
"As we approach the end of the year, it is important for taxpayers considering donations of patents or other intellectual property to focus on the limitations on these deductions," said IRS Commissioner Mark Everson. "We’re seeing an increasing number of donations that don’t pass the smell test. Donations that are overly inflated or made with strings attached are going to receive increased scrutiny.”
The IRS is aware that some taxpayers transferring patents or other intellectual property to charitable organizations are claiming charitable contribution deductions in excess of the amounts to which they are entitled. In particular, the IRS is aware of purported charitable contributions of intellectual property involving: 1) transfers of nondeductible partial interests in intellectual property; 2) the expectation or receipt of benefits in exchange for transfers; 3) inadequate substantiation of contributions; or 4) overvaluation of intellectual property transferred.
Related Item: Notice 2004-7, Charitable Contributions of Patents and Other Intellectual Property (69KPDF)
IR-2003-138, Dec. 12, 2003
WASHINGTON — The Internal Revenue Service today announced there will be no change in the interest rates for the calendar quarter beginning Jan. 1, 2004. The interest rates are as follows:

four (4) percent for overpayments [three (3) percent in the case of a corporation];


four (4) percent for underpayments;


six (6) percent for large corporate underpayments; and 


one and one-half (1.5) percent for the portion of a corporate overpayment exceeding $10,000.

Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points. Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points.
The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.
The interest rates announced today are computed from the federal short-term rate based on daily compounding determined during October 2003.
Related Item: Revenue Ruling 2003-126PDF
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IR-2003-137, Dec. 11, 2003
WASHINGTON — The Internal Revenue Service announced the selection of Robert H. Green to lead the agency’s efforts on international tax issues.
Green will serve as Director, International, and as the U.S. Competent Authority. In this position, Green will be responsible for a wide range of issues relating to international tax matters and global trading. These include ensuring consistent tax treatment of U.S. taxpayers concerning international issues, providing timely and effective implementation of tax treaty and tax information exchange. Green will report to the Commissioner, Large and Mid-Size Business Division.
“Bob brings a broad range of experience and expertise to this position and we are very pleased to have him as a member of our leadership team,” LMSB Commissioner Deborah M. Nolan said. “Bob has a particular expertise in international tax issues relating to the tax treatment of foreign income. He has been a recognized leader in discussions between the U.S. and our major treaty partners. Working closely with Chief Counsel and Treasury, Bob and Deputy Director International Elvin Hedgpeth will lead our efforts to deal with the expanding global economy.”
Green comes to the IRS from the Procter & Gamble Company, where he directed the company’s Taxes and Corporate Planning Office in Germany. Green previously served as Director of International Taxes for Procter & Gamble in the US. Prior to joining Procter & Gamble, Green served as Vice-President of Tax Policy for the National Foreign Trade Council, Inc (NFTC).
Green received his undergraduate degree from Westminster College in Fulton, Mo., in 1969, and earned a law degree and L.L.M in Taxation from Georgetown University Law Center.
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IR-2003-136, Dec. 8, 2003
WASHINGTON — Businesses and tax professionals are turning to an online application form on IRS.gov to get new employer identification numbers. The Internal Revenue Service has issued more than 498,081 of the numbers through its online application since it became available in April.
The online application form immediately issues a new employer identification number, or EIN, eliminating both paperwork and the usual four-to-10 day wait to receive an EIN through paper processes. The IRS assigns the nine-digit numbers to identify taxpayers. The number is required for a host of purposes and getting it quickly is important for someone starting a business. A business cannot establish a bank account, for instance, without a federal EIN.
“Making EINs available to IRS customers on an immediate and permanent basis is an important step in improving our partnership with the business community,“ Commissioner Mark W. Everson said. "We want to reduce burden for businesses and tax professionals wherever possible."
By the end of November 2003, the IRS was receiving 37.5 percent of all EIN applications through the Internet. The online application mimics the paper Form SS-4, Application for Employer Identification Number. EIN applications can also be submitted by phone, fax or by mail. Applications faxed or mailed are often incomplete, contain errors and frequently require additional contact with the applicant by an IRS employee. The online application requires that all information needed to process the application be submitted before the EIN is assigned to the taxpayer.
The easiest way to get to the online EIN application is to type “EIN” in the IRS Keyword search on the IRS.gov home page.
The online EIN application form joins several IRS Business Systems Modernization products already working to reduce taxpayer burden and improve IRS employee’s service to taxpayers. These new products and services include:


Where’s My Refund? — Provides taxpayers with their refund status over the Internet. Taxpayers used the service more than 17.6 million times in 2003.
	  


Where’s My Advance Child Tax Credit? — Gives taxpayers the status of their Advance Child Tax Credit checks over the Internet. So far, taxpayers have used the service nearly 15 million times.
	  


e-services — A suite of products that provide tax professionals and those who file select information returns, such as banks and other financial institutions, with new choices for working electronically with the IRS.
	  


Customer Communications — Modernized call systems cut by half taxpayers’ call-waiting time and the number of abandoned calls. It also introduced bilingual voice recognition capabilities, which helped double the number of Spanish calls.
	  


Customer Relationship Management — Provided nearly 4,000 revenue agents with direct laptop access to tax computation software.
	  


HR Connect — Allows 73,000 IRS users to perform many personnel actions online.


Related Items:
Online EIN Application
SS-4, Application for Employer Identification Number (28KPDF)
Instructions for Form SS-4 (71KPDF)
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IR-2003-135, Dec. 1, 2003
WASHINGTON — The IRS comprehensive tax guide for individuals has been updated for tax year 2003 and is now available at IRS.gov. IRS Publication 17, “Your Federal Income Tax,” has been published annually by the IRS for more than 60 years and has been available on the IRS Web site since 1996.
Publication 17 has been updated with important changes for 2003, including tax breaks for men and women serving in the military resulting from the Military Family Tax Relief Act of 2003, which was signed into law on Nov. 11. Among other changes, Publication 17 explains the new dividend tax rates and provides the new lower income tax rates.
As in prior years, the publication provides information on how to file an individual tax return, what to include as income, how to calculate capital gains and losses, how IRAs and other expenses can affect how much income to report, whether to take the standard deduction or itemize, and how to figure taxes and credits.
Related Item: Publication 17, Your Federal Income TaxPDF
 
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