etrent17/irs-articles huggingface dataset:
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-2003-44, April 4, 2003
WASHINGTON — Today the Internal Revenue Service made permanent “Fast Track Settlement” (FTS), a process for large corporations to settle tax disputes before the audit on their return is complete. The IRS Large and Mid-Size Business Division and the Office of Appeals offer a joint process that uses Appeals personnel as mediators in LMSB cases. Based on the Appeals officer’s analysis of the issues, Appeals may also recommend a settlement. Under certain circumstances, other IRS divisions and taxpayers may also participate in the FTS program.
“This effort is part of our strategy to resolve taxpayer disputes sooner,” said Larry Langdon, Commissioner, Large and Mid-Size Business Division. “Bringing in Appeals to mediate these disputes allows taxpayers the opportunity to expedite resolution of disputed issues during the audit, rather than months or even years later.”
Full implementation of the program follows a successful pilot, during which the taxpayer and the IRS reached agreement on 91 percent of the issues. The average time to resolve a dispute was about one-tenth the usual time for a settlement. 
“Fast Track Settlement is another example of bringing Appeals’ expertise to bear earlier in the tax administration process,” said David B. Robison, Chief, Appeals. “The program has the potential to settle disputes much sooner, and yet does not compromise the taxpayer’s right to a traditional appeal.”
Fast Track Settlement is optional for the taxpayer. FTS does not eliminate or replace existing dispute resolution options, including the taxpayer’s opportunity to request a conference with a manager or a hearing before Appeals. In the FTS process, Appeals’ role is to provide a neutral party, someone who will help the taxpayer and LMSB understand the nature of the dispute and reach a mutually satisfactory resolution. The Appeals officer may also recommend a settlement. 
The taxpayer may withdraw from the FTS process at any time. The LMSB team manager or the Appeals officer may stop the Fast Track process as well, if either determines that they are not progressing toward resolution of the issues. If there are any issues at the end of the FTS process, the taxpayer retains all applicable appeal rights. 
Official guidance for enrolling in FTS will be available in a forthcoming revenue procedure. 
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IR-2003-69, May 28, 2003
WASHINGTON — The Internal Revenue Service today posted to IRS.gov new tables for employers to use in figuring how much federal income tax to withhold from workers’ wages.
The tables posted today contain the percentage method formulas used by payroll programmers. By week’s end, the wage bracket method tables should be on the site. The IRS expects to mail printed copies of Publication 15-T, containing all the tables, to employers nationwide by the third week of June.
The tables reflect changes made by the Jobs and Growth Tax Relief Reconciliation Act, which President Bush signed today. Employers are requested to use the new tables as soon as they can work them into their payroll systems. Barring unusual circumstances, they should implement them not later than July 1, 2003.
The tables incorporate tax rate changes for most taxpayers and the higher standard deduction for married couples.
The new law extended the 10 percent rate to cover the first $7,000 of taxable income for single persons, $14,000 for married couples. It also lowered the tax rates above 15 percent to 25, 28, 33 and 35 percent. This is a drop of two percentage points for each rate except the top one, which went down 3.6 points.
The new law also raised the standard deduction for married couples to $9,500 and extended their 15 percent tax rate to $56,800 of taxable income. Each figure is double the number for single taxpayers. The changes reduce the “marriage penalty” – the difference between the tax couples pay and the amount they would have paid as two single persons.
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(Revised June 30 to change mailing dates for notices to check recipients)
Related Fact Sheet: FS-2003-13
IR-2003-68, May 28, 2003
WASHINGTON — Beginning the last week of July, eligible taxpayers who claimed the Child Tax Credit on their 2002 tax returns will automatically receive an advance payment of the 2003 increase in this credit, the Treasury Department and Internal Revenue Service announced today.
Taxpayers will not have to take any action to get this advance payment of up to $400 per qualifying child. The Treasury Department and IRS will perform all the calculations and automatically mail a notice and a check to each eligible taxpayer.
"The only thing the taxpayer needs to do is cash the check," said Mark W. Everson, IRS Commissioner. "If you qualify, we will send you a notice. There's no need to call, no need to apply, no need to fill out another form. The IRS will do all the work. A few days after the notice, you will get the check."
The checks – an advance payment of the 2003 increase in the Child Tax Credit – will be based on the child tax credit claimed on the taxpayer’s 2002 tax return. The Jobs and Growth Tax Relief Reconciliation Act of 2003 increased the maximum child tax credit for 2003 to $1,000 per child, up from $600 for tax year 2002. 
The law further instructed the Treasury Department to provide the difference – up to $400 per child – as an advance payment to each eligible taxpayer this summer.
The Treasury Department will issue about 25 million of these checks this year, beginning with three principal mailings on July 25, Aug. 1 and Aug. 8. Taxpayers who filed returns after April 15 – for example, those with automatic extensions – will receive their advance payments after the IRS processes their returns. They should not make any change to their 2002 returns or remittances based on an expectation of an advance payment check.
The IRS will send notices to taxpayers on July 22, July 29 and Aug. 5, informing them of their advance payment amount. The IRS urges taxpayers to hold on to these notices for their 2003 tax returns. They will need to take the advance payment into account when determining the amount of their child tax credit on the 2003 tax return.
Taxpayers who are not eligible for the advance payment may still qualify for the increased child tax credit of up to $1,000 when they file the 2003 tax return next year. For instance, a taxpayer who did not have a child in 2002, but had one in 2003, would not receive an advance payment but may qualify for the full $1,000 credit on the 2003 tax return.
More information is available in answers to frequently asked questions.
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IR-2003-66, May 15, 2003
WASHINGTON — In two rulings issued today, the Internal Revenue Service clarified the tax treatment of certain medical expenses. The guidance affects the ability of taxpayers to claim these expenses when itemizing deductions.
Taxpayers who itemize may claim medical expenses only to the extent they exceed 7.5 percent of adjusted gross income. Even though more than one-third of taxpayers itemize deductions, fewer than six percent claim medical expenses.
The rulings cover five subjects:

Nonprescription drugs recommended by a doctor.
	 


Nonprescription equipment, supplies, or diagnostic devices.
	 


Breast reconstruction surgery.
	 


Vision correction surgery.
	 


Teeth whitening procedures.

The law limits the deduction for medicine or drugs to insulin and those drugs that require a prescription. Even when recommended by a doctor, medicines available over-the-counter are not deductible. However, this limitation does not apply to other nonprescription items, such as bandages, crutches, thermometers, or blood sugar test kits.
If otherwise qualifying as related to medical care, such items are deductible.
The law does not allow a deduction for cosmetic surgery or similar procedures, unless needed to correct a deformity related to an injury, disease, or congenital abnormality, to meaningfully promote the proper function of the body, or to prevent or treat illness or disease.
Thus, breast reconstruction after a mastectomy or vision correction by laser surgery would be deductible expenses. However, merely improving appearance is not enough for a procedure to qualify as deductible. Hence, treatment of tooth discoloration, which doesn't promote the proper function of the body and doesn't correct a deformity, is not a deductible medical expense.
Revenue Rulings 2003-57PDF, dealing with surgical procedures, and 2003-58PDF, dealing with nonprescription items, will be published in Internal Revenue Bulletin 2003-22, dated June 2, 2003.
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IR-2003-65, May 9, 2003
WASHINGTON — The Internal Revenue Service Office of Counsel announced today the selection of Harry J. ("Hal") Hicks, III for the position of associate chief counsel (International). Hicks will join the office on June 9, and will serve as acting associate chief counsel (International) during the approval process.
As associate chief counsel (International), Hicks will direct the approximately 100 attorneys who provide tax advisory and litigation services on international tax matters to the Internal Revenue Service, Department of Treasury and other government agencies and the public. He will also manage the Advance Pricing Agreement program that enables corporate taxpayers to resolve transfer-pricing issues through upfront negotiations with the IRS.
Hicks comes to the office from Mayer, Brown, Rowe & Maw where he was an international tax partner. Prior to joining Mayer Brown, he was the deputy national director of International Tax Services at Ernst & Young. Hicks is a graduate of the College of William & Mary.
He received his law degree from the University of Virginia School of Law and his L.L.M. in Taxation from New York University School of Law. He is adjunct professor for international tax at Georgetown University Law Center and is a frequent speaker.
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IR-2003-64, May 8, 2003
WASHINGTON — Using the Industry Issue Resolution (IIR) Program, the Internal Revenue Service today issued new guidance on the treatment of gasoline station pump canopies.
The IRS issued Revenue Ruling 2003-54PDF, which provides that the gasoline pump canopies described in this revenue ruling are not inherently permanent structures and are classified as tangible personal property includible in asset class 57.0 of Revenue Procedure 87-56 for depreciation purposes. Depending upon the depreciation system used, the cost of the canopies can be recovered over either five or nine years. 
The supporting concrete footings used to anchor the gasoline pump canopies are inherently permanent structures classified as land improvements includible in asset class 57.1 of Revenue Procedure 87-56 for depreciation purposes. Depending upon the depreciation system used, the cost of the concrete footing to which the canopies are attached can be recovered over either 15 or 20 years.
This clarifies the question of the appropriate depreciation treatment for tax purposes of gasoline station pump canopies and the concrete footings. Prior to this revenue ruling, there had been some confusion as to the appropriate recovery period used in computing the depreciation deduction for such canopies. 
According to industry estimates, about 90 percent of gasoline stations use this type of pump canopy. 
The revenue ruling provides guidelines for taxpayers to employ in the event there is a change in the treatment of the cost of gasoline pump canopies or the cost of the supporting concrete footings. Any change in method of accounting would require adherence to the provisions of §§ 446 and 481 and the applicable regulations.
The IIR Program, launched in 2001 by the IRS, tackles tax issues submitted by taxpayers, associations and other groups representing businesses. The objective is to resolve frequently disputed or burdensome tax issues more efficiently.
Revenue Ruling 2003-54 will be in Internal Revenue Bulletin 2003-23, dated June 9, 2003. Information on the IIR Program is found in Revenue Procedure 2003-36PDF.
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IR-2003-61, May 5, 2003
WASHINGTON — The Internal Revenue Service Office of Chief Counsel announced today the selection of Robert M. Brown for the position of Associate Chief Counsel (Income Tax & Accounting). Brown will join the office on May 12, 2003, and will serve as Acting Associate Chief Counsel (Income Tax & Accounting) until his approval process is complete.
As Associate Chief Counsel (Income Tax and Accounting), Brown will direct more than 100 attorneys and tax law specialists who provide legal advisory services with respect to tax accounting and other income tax matters to the IRS, the Department of the Treasury, and to other government agencies and the public.
Brown has more than 30 years of experience practicing in the tax field. He formerly was a partner in the Washington National Tax Practice of KPMG LLP. Brown also is a Certified Public Accountant. He has previous government service with the Treasury Department’s Office of Tax Policy, where he was accountant-advisor and Acting Associate Tax Legislative Counsel and a lead Treasury participant in the development of the Economic Recovery Tax Act of 1981.
Brown is a graduate of Syracuse University. He received his law degree from Cornell University and his LL.M. in Taxation from New York University. He is a frequent speaker and author on tax issues.
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IR-2003-60, May 2, 2003
I want to thank the members of the Senate and the Senate Finance Committee, particularly Senators Grassley and Baucus. And I, of course, want to thank President Bush for his nomination and support as well as Treasury Secretary Snow.
I am honored to assume the important and sensitive post of IRS commissioner. The Internal Revenue Service faces challenges on several fronts. The agency must continue to improve its services to taxpayers. It also must strengthen its enforcement of tax laws and work with tax practitioners to ensure all taxpayers pay their fair share. And it must modernize its antiquated business processes and technologies.
I am looking forward to working with the men and women of the IRS. I have every confidence that, together, we can meet the high standards of service and enforcement which the agency owes American taxpayers.
 
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IR-2003-57, May 1, 2003
WASHINGTON — The National Taxpayer Advocate, Nina Olson, announced today that the 2004 Low Income Taxpayer Clinic (LITC) grant application process is now open. Organizations providing low cost or no cost representation to people involved in tax disputes can apply for grants worth up to $100,000 for 2004 grant cycle.
Grants are also available for programs that inform taxpayers for whom English is a second language of their tax rights and responsibilities.
The National Taxpayer Advocate sees the funding of 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 matching grant program 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.
The Low Income Taxpayer Clinic grant program is entering into its sixth year and continues to expand. Under the program, the IRS awards matching grants of up to $100,000 a year to organizations to develop, expand or continue low income taxpayer clinics.
In 2003, the IRS awarded $7 million to 136 organizations representing 48 states and the District of Columbia.
The application period for the 2004 LITC grant program is from May 1 to July 1, 2003.
Applications for Low Income Taxpayer Clinic grants must be received no later than July 1, 2003 at:

Internal Revenue Service, Taxpayer Advocate Service
Mail Stop 211-D, LITC Program Office
401 West Peachtree St. NW
Atlanta, GA 30308

Download the application package, Publication 3319PDF, 2004 Grant Application: Package and Guidelines, or order it from the IRS Forms Distribution Center by calling 1-800-829-3676. Applicants can also apply online.
Each application will be considered, and the LITC Program Office will mail a notification letter to each applicant. The grants will be awarded by Nov. 1, 2003, for the grant period beginning in January 2004.
Qualifying tax clinics may be run by either law, business or accounting schools whose students represent taxpayers in tax disputes with the IRS or Tax Court or by tax-exempt organizations.
These organizations can represent taxpayers in tax-related matters, refer taxpayers to pro-bono qualified representatives and provide non-English-speaking taxpayers information about their tax rights and responsibilities.
Questions about the LITC Program or grant application process should be addressed to the LITC Program Office at 404-338-7185 or by e-mail at LITCProgramOffice@irs.gov.
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IR-2003-83, June 30, 2003
WASHINGTON — The Internal Revenue Service reminds taxpayers who have filing extensions that they can e-file their tax returns until October 15.
More than 8.5 million taxpayers are estimated to have tax returns due on August 15 because they requested an automatic extension to file.  The IRS estimates that almost  3 million taxpayers will request an additional extension giving them until October 15, 2003.  All of these taxpayers can take advantage of IRS e-file.
“IRS e-file is the quick, smart, fast way to get taxes done,” said IRS Commissioner Mark Everson.  “Taxpayers receiving refunds can receive them more quickly through IRS e-file especially when they choose the direct deposit option.”  
Taxpayers with a balance due can also pay their taxes electronically by scheduling a safe and convenient electronic funds withdrawal from their bank account or pay with a credit card.  Taxpayers can also sign up through Electronic Federal Tax Payment System (EFTPS) to make their payment electronically.
Taxpayers have several ways to e-file.  They can use tax preparation software on their own computers.  Or they can have a tax professional that offers e-filing prepare and transmit their return.  Some taxpayers can still participate in the Free File program and e-file their tax returns for free. 
Free File, the tax preparation and electronic filing service, remains available for people who received filing extensions. Free File, which debuted Jan. 16, is 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 are able to prepare and e-file their federal tax returns for free.
Free File must be accessed through the IRS Web Site. By April 15, 2002, more than 2.73 million filed their tax for free through the Free File Program.
Related Item:

Free File

 
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IR-2003-82, June 30, 2003
WASHINGTON — The Internal Revenue Service today announced the appointment of Beanna J. Whitlock as director of National Public Liaison, a division of the agency that serves as a vital link to tax professionals and practitioners, business associations, taxpayer assistance groups and federal agencies.
Whitlock, who will assume her post on June 30, has been a tax professional for 35 years and an enrolled agent since 1979. She maintains a tax and financial services business in San Antonio.
“Beanna’s experience representing taxpayers, her participation in numerous professional organizations and her commitment to professional education brings critical expertise to the National Public Liaison office,“ said David R. Williams, chief of the IRS Communications & Liaison division, of which National Public Liaison is part. “Beanna will play an important leadership role in a critical office for the IRS.”
As director of National Public Liaison, Whitlock will oversee the Internal Revenue Service Advisory Council (IRSAC), the Information Reporting Program Advisory Committee (IRPAC) and the annual IRS tax forums. She will play a leading role representing the IRS before practitioners, federal agencies and other stakeholders.
From her position outside the agency, Whitlock has already functioned as a key link between the practitioner community and the IRS. She recently began a two-year term in IRPAC’s Small Business and Self-Employed subgroup. In recent years, she has also been a member of the IRS Commissioner’s Advisory Group, representing small business, and has served on the IRS District Director Liaison Committees in the former South Texas and Dallas districts.
Whitlock has contributed to the IRS non-filer program, instructed IRS trainers involved in the National Research Program examinations and been a top practitioner resource for the IRS, whether writing for IRS publications or teaching Executive Development courses.
Whitlock also maintains ties with numerous professional organizations, including the National Association of Enrolled Agents, the National Society of Accountants, the National Association of Tax Professionals, the Texas Society of Enrolled Agents and the Tax Advocates Council.
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IR-2003-81, June 30, 2003
WASHINGTON — The Internal Revenue Service today reminded approximately 750,000 small and mid-size businesses using “off-the-shelf” retirement plan documents that they must update their plans by Sept. 30, 2003. Businesses must formally adopt updates to maintain the tax benefits associated with retirement plans.
The deadline is a result of rules that apply to so-called Master & Prototype (M&P) plans and Volume Submitter plans. These off-the-shelf retirement plans are IRS-approved templates intended to standardize and simplify the complex employee plan area. Employers who provide such plans for their employees are typically small to mid-size businesses, including self-employed persons, such as some doctors and lawyers.
M&P plans are “off-the-shelf” documents that employers obtain from sponsors such as banks, brokers, insurance companies, lawyers or consultants. Volume Submitter plans are more customized documents usually obtained from lawyers or consultants. Although the sponsors have updated the plan documents, employers still need to formally adopt the updated plans by September 30.
Both businesses and their employees enjoy tax benefits from retirement plans that are in compliance with the law. Failure to act by the deadline could cost a retirement plan its tax-favored status.
“We are concerned that employers may inadvertently miss the deadline,” said Carol Gold, Director of Employee Plans at the IRS. “We urge employers to consult the sponsor of their M&P or Volume Submitter plan document and their pension plan advisor or attorney now. The September deadline will be here before you know it.”
Many employers will only need to make sure they adopt their plan amendments by September 30. But others also have to file the amendments with the IRS by September 30 to keep their plans tax qualified. For example, an employer who adopts a pre-approved M&P plan, but makes changes beyond those allowed by the adoption agreement, must file an application with the IRS for a determination letter by September 30 to keep the plan’s tax benefits. 
Employers or plan sponsors who need more information should call toll-free the customer account services at 1-877-829-5500.
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IR-2003-79, June 18, 2003
WASHINGTON — The Internal Revenue Service today issued a consumer alert, warning taxpayers about a new scam targeting potential recipients of the Advance Child Tax Credit.
The IRS has seen isolated instances of this new scheme. A taxpayer receives a telephone call from a person who promises to speed up the payment of the Advance Child Tax Credit checks. The catch is the taxpayer must agree to a $39.99 charge to a credit card.
The IRS reminds taxpayers that no person or organization can “speed up” the payment of tax benefits. In reality, taxpayers do not have to take any action to get the new benefit, which features an advance payment for up to $400 per qualifying child. The Treasury Department and IRS will perform all the calculations and automatically mail a notice and a check to each eligible taxpayer, beginning the week of July 25.
“The only thing the taxpayer needs to do is cash the check,” said Mark W. Everson, IRS Commissioner. “If you qualify, we will send you a notice. There’s no need to call, no need to apply, no need to fill out another form. The IRS will do all the work. A few days after the notice, you will get the check.”
Under the new scam, the IRS is seeing the continuation of a trend that emerged earlier this year when the families of those serving in the Armed Forces were targeted. In both of these schemes, scam artists use current events to prey on unsuspecting victims. The scams also feature callers seeking credit card information to get taxpayers to pay for special benefits.
If the taxpayer agrees to the charge and provides a credit card number or other sensitive personal information, she could find a much larger charge to her account. By the time the taxpayer realizes something is wrong, the scam operator is long gone, possibly victimizing another taxpayer.
If you encounter this latest tax scam or suspect tax fraud or abuse in some other situation, report it to your nearest Internal Revenue Service office. When in doubt, seek help from the IRS or a tax professional.

You can call the IRS tax fraud hotline at 1-800-829-0433.
Related Items:


New Law's Tax Cuts — an overview of the Advance Child Tax Credit checks and other benefits.




Scams/Consumer Alerts — information about other scams; includes links to tax fraud alerts and frivolous tax arguments.


 
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IR-2003-77, June 13, 2003
WASHINGTON — The Internal Revenue Service now lets businesses obtain identification numbers directly from its Web site. After the taxpayer completes an application form online, the system issues an employer identification number (EIN) that may be used immediately.
This online process eliminates the need to send paperwork to the IRS as well as the delay in issuing a number that may result from an incomplete application form. Once a business has its EIN, it can file tax returns and may enroll in the Electronic Federal Tax Payment System to handle its payments most efficiently. 
Businesses do not need to pre-register before requesting an EIN. The number issued is the permanent EIN for the business, unless the IRS finds that it has already issued an EIN for that business or if the principal officer’s name and social security number do not match Social Security records. In such cases, the IRS will void the number issued through the Web site and notify the business.
An accountant or tax preparer may use the Web site to request EINs on behalf of clients. The taxpayer must sign a copy of the Form SS-4 and a statement authorizing the representative to receive the number online. The representative must keep both documents on file. The Web site describes the elements required for an authorization statement, which a preparer may print out for the client to sign.
The online application process is not available to some EIN requestors, including federal, state or local government agencies, Indian tribal governments, real estate mortgage investment conduits, and taxpayers with addresses outside the 50 States.
Businesses may still obtain EINs by telephone at 1-800-829-4933 from 7:30 a.m. to 5:30 p.m. (local time), or by mailing or faxing Form SS-4PDF, as provided in the form’s instructionsPDF.
 
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IR-2003-75, June 9, 2003
WASHINGTON — The Internal Revenue Service today announced there will be no change in the interest rates for the calendar quarter beginning July 1, 2003. The interest rates are as follows: 
5 percent for overpayments [4 percent in the case of a corporation];
5 percent for underpayments;
7 percent for large corporate underpayments; and
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 half of a percentage point.
The interest rates announced today are computed from the federal short-term rate based on daily compounding determined during April 2003.
Revenue Ruling 2003-63PDF, announcing the new rates of interest, will appear in Internal Revenue Bulletin No. 2003-25, dated June 23, 2003.
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IR-2003-73, June 3, 2003
WASHINGTON — The Internal Revenue Service today launched a pilot program to expedite the resolution of cases under examination in the IRS Tax Exempt Bond organization. The IRS believes the program, which uses the services of trained mediators to help resolve factual disputes between bond issuers and the IRS, will provide significant benefits both to issuers and the IRS.
 
The Tax Exempt Bond Mediation Dispute Resolution Pilot Program (TEB Mediation) will use the services of trained mediators from the IRS Office of Appeals to resolve cases. TEB Mediation takes place after the IRS analyzes the issues under examination and advises the bond issuer of its preliminary adverse finding, but before it sends out the proposed adverse determination letter. The mediation process is designed to be completed in 60 days or less.
TEB Mediation is generally available in bond cases under examination where a limited number of unagreed issues exist. It is optional and both parties must agree to use mediation. An Appeals officer with tax-exempt bond experience will serve as mediator, but bond issuers may also elect to use a non-IRS co-mediator at the issuer’s expense.
“We think this new program will be a useful resolution tool that will provide significant benefits to bond issuers and the IRS,” said Evelyn Petschek, Commissioner of IRS’s office of Tax Exempt and Government Entities. “It will use the services of an expert independent party to mediate issues and bring early resolution to cases that might otherwise be very time- and resource-consuming on both sides.”
Procedures for initiating a request for mediation and other details of the TEB Mediation pilot are in IRS Announcement 2003-36PDF, issued June 3, 2003. The program is available immediately. The Announcement also contains a model agreement as well as a solicitation for comment on the program.
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IR-2003-72, June 3, 2003
Related News Release: IR-2003-73
WASHINGTON — The Internal Revenue Service issued guidance today to make permanent two programs that allow taxpayers and the IRS to reach agreement on tax disputes more quickly.  The IRS also announced a pilot program to expedite the resolution of Tax Exempt Bond disputes.
In guidance issued today, the IRS:
Makes permanent the Fast Track Mediation programPDF. This program gives small businesses, self-employed taxpayers and the IRS the opportunity to mediate disputes through an IRS appeals officer, who acts as a neutral party. In this program, most tax disputes are resolved within 40 days compared to several months though the regular appeal process. Since June 2002, more than 200 cases have been mediated – with 100 percent resolution in more than half of those cases.
	 
Makes permanent the Fast Track Settlement programPDF. The program enables the IRS to resolve tax disputes with large and mid-size businesses at an earlier stage – often within a much shorter time than through the normal audit and appeal processes. The Fast Track Settlement pilot program became available for large and mid-size businesses on November 14, 2001, with the goal of reaching settlement with taxpayers within 120 days. By May 31, 2003, IRS and 104 large and mid-size business taxpayers had successfully settled through the pilot program, in an average time of 69 days, just over half of the expected time.
	 
Creates the pilot Fast Track Mediation program for Tax Exempt BondsPDF. This will allow the IRS and issuers of tax exempt bonds to expedite the resolution of cases more quickly than through the standard appeals process.
The IRS guidance issued today on these fast track programs will be published in Internal Revenue Bulletin 2003-25, dated June 23, 2003.
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IR-2003-71, June 3, 2003
WASHINGTON — The Internal Revenue Service announced today the selection of Paul D. DeNard as Industry Director of Financial Services, Large and Mid-Size Business Division. 
As industry director, DeNard will oversee the operations of the LMSB unit dealing with about 47,000 corporate taxpayers in the financial services industry. Headquartered in Manhattan, LMSB’s financial services industry unit serves taxpayers in commercial banking, savings and loans, securities, insurance, and other financial services industries.
“Paul’s experience as director of field operations in Manhattan gives him an excellent foundation in the complex and dynamic world of the financial services industry" said Deborah M. Nolan, Commissioner of Large and Mid-Size Business Division (LMSB).   
DeNard succeeds John Petrella Jr., who was named Director of Heavy Manufacturing and Transportation Industry.
The Large and Mid-Size Business Division is one of four customer-focused entities that replaced the previous geographic-based structure at the IRS. 
LMSB serves the needs of corporations, subchapter S corporations, and partnerships with assets greater than $10 million. Many of these firms operate internationally and face a range of complex issues involving the interpretation of tax law, accounting rules and other regulations.
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IR-2003-70, June 3, 2003
WASHINGTON — The Internal Revenue Service announced today the selection of John Petrella Jr. as Industry Director of Heavy Manufacturing and Transportation, Large and Mid-Size Business Division. 
As director, Petrella will oversee the operations of a unit that serves 52,840 taxpayers in the air and ground transportation, aerospace, motor vehicle, shipping and real estate industries. This Large and Mid-Size Business Division (LMSB) unit is headquartered in Iselin, New Jersey.
“John Petrella brings a wealth of experience to the heavy manufacturing and transportation industries,” said Deborah M. Nolan, Commissioner of Large and Mid-Size Business. “He has worked closely with numerous industries and has also served as a senior executive at headquarters where he was responsible for designing, developing and implementing alternative tools for dispute resolution between industry taxpayers and the IRS.”
Prior to today’s appointment, Petrella served as Industry Director of Financial Services in Manhattan, New York.
Petrella holds a Bachelor of Science in Accounting from the University of Rhode Island, a Master of Business Administration from Providence College and a Master of Taxation from Bryant College. He succeeds Thomas J. Smith who recently retired.
LMSB serves the needs of corporations, subchapter S corporations, and partnerships with assets greater than $10 million. Many of these firms operate internationally and face a range of complex issues involving the interpretation of tax law, accounting rules and other regulations.
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IR-2003-96, July 31, 2003
WASHINGTON — Most taxpayers already have filed their tax year 2002 federal income tax returns. But for more than 8.5 million taxpayers, the deadline is August 15 if they opted for the automatic extension of time to file by completing Form 4868 by April 15.
The Internal Revenue Service reminds taxpayers with extensions to file their returns by August 15 to avoid the late filing penalty, which is 5 percent per month of the unpaid tax. Help may be available, however, for people who cannot file by August 15.
Taxpayers with special circumstances, such as a hardship, that prevent them from preparing and filing their tax forms by August 15 may request an additional two-month extension by completing Form 2688 that will give them until October 15 to file their income tax returns. These taxpayers will be granted an extension of time to file even if they cannot send in payment of outstanding 2002 taxes with the extension request.
Taxpayers granted the additional time to file will not be penalized for late payment of tax if they pay the balance of their 2002 tax when they file the tax return by October 15 provided 90 percent of their total tax was paid by April 15.
To request the additional time to file, taxpayers must file Form 2688 with the IRS by August 15. Form 2688 is available on the IRS Web site, IRS.gov. The IRS will advise filers in writing whether or not their requests are granted. Form 2688 can be filed electronically or mailed to the IRS.
Taxpayers may continue to take advantage of the Free File program until October 15. Free File enables qualifying taxpayers to e-file for free. As of June 30, 2.78 million taxpayers have used Free File to e-file their tax returns.  E-file is available until October 15. To e-file, taxpayers can use tax preparation software on their own computers or file electronically through an authorized e-file provider. Both options offer taxpayers security and accuracy in filing their returns as well as faster refunds.
Once taxpayers have filed their tax returns, they can use the “Where’s My Refund” feature in the IRS Web site to check the status of their refund checks.
The IRS expects to receive more than 3 million Forms 2688 during 2003.
Related Items:

Where's My Refund? — if it's been at least four weeks since you filed, check on the status of your refund.

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IR-2003-93, July 24, 2003
WASHINGTON — IRS Commissioner Mark W. Everson has selected Mark E. Matthews, a veteran of federal law enforcement and tax administration, to be the agency’s new Deputy Commissioner for Services and Enforcement.

“Mark has an excellent background in law enforcement and tax administration complemented by recent experience in international and domestic finance,” Everson said. “This unique combination of skills makes him the ideal choice to hold this critical IRS leadership post.”
Matthews returns to the IRS after serving at Deutsche Bank as a managing director and Global Co-Head of Anti-Money Laundering. He joined the global investment bank after serving as the IRS Chief of Criminal Investigation.
Previously, Matthews held positions as Deputy Assistant Attorney General at the Justice Department, Deputy Chief of the Criminal Division of the U.S. Attorney’s Office for the Southern District of New York, as a special assistant to Director William Webster at the FBI and CIA and as a private attorney at Washington’s Crowell & Moring.
Matthews will supervise the agency’s four business units along with Criminal Investigation and the Office of Professional Responsibility. Everson noted that Matthews will lead the agency’s efforts to continue the drive for better taxpayer service. Matthews will also focus on prioritizing enforcement initiatives and reengineering processes to enhance compliance with the tax laws.
Matthews will direct the agency’s continuing efforts to crack down on abusive tax shelters, foreign and domestic tax evasion, tax scams, schemes and other tax abuses.
“Mark is a proven law enforcement and tax professional,” Everson said. “He will lead our compliance efforts across all taxpayer segments, but with particular attention to enforcing the law in the corporate arena and for high-income individuals who enter into abusive shelters to game the system.”
Nancy Killefer, Chair of the IRS Oversight Board applauded the selection, calling it “an excellent appointment.”

During his previous work at the IRS, Matthews led IRS Criminal Investigation during a critical period of change. He helped CI regain its primary focus on investigating tax code violations and launched major enforcement actions on a variety of fronts, including targeting foreign and domestic abusive trusts and other areas. During his tenure, CI started a computer crimes unit to counter development of electronic crime, assisted the Sept. 11 investigations into terrorist financing and reinforced CI’s reputation for excellence in investigating financial crimes.
Matthews is a graduate of the New York University School of Law. He also earned a master’s degree in public administration from Princeton University and a bachelor’s degree from Harvard College.
When Matthews begins work this fall, he will fill the role held by Bob Wenzel. Wenzel, the former Acting IRS Commissioner, has worked at the IRS since 1963 in a variety of roles and previously announced his retirement this fall.
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IR-2003-92, July 24, 2003
WASHINGTON — The Internal Revenue Service and the Treasury Department today announced new tax issues selected for resolution under the Industry Issue Resolution (IIR) Program. These issues have been identified by business taxpayers, industry associations, and other interested parties as being frequently disputed or burdensome.
The selections for the 2003 IIR Program are:

Application of Section 382 to U.S. branches of foreign banks (included on the Guidance Priority List as an item under the heading “Guidance under Section 382”.


Guidance on health care provider incentive payments.


Guidance on tax treatment of vendor allowances involving buildouts and image upgrades.


Guidance under Section IRC 4051(a) (2) and (3) regarding “suitable for use.”


Guidance on reporting procedures for successor organizations following
	Rev. Proc. 96-60.

“The Industry Issues Resolution program provides a common-sense approach to resolving tax issues identified by the business community,” said Large and Mid-Size Business Division Commissioner Deborah M. Nolan. “Businesses and their representatives meet with IRS legal and technical experts to present their issues. We then try to find a way to resolve these areas of controversy in a way that will be less burdensome to taxpayers and allow us to focus our enforcement resources more appropriately.”
IIR project selections are based on the criteria set forth in Revenue Procedure 2003-36. For each issue selected, a multi-functional team of IRS, Chief Counsel, and Treasury personnel will be assembled. The teams will gather and analyze the relevant facts from industry groups and taxpayers for each issue and recommend guidance. 
Requests for guidance on tax issues under the IIR program can be submitted at any time to IIR@irs.gov . Submissions received are reviewed semi-annually with selections next being made from issues submitted by August 31, 2003.
Related Items:

Revenue Procedure 2003-36 (86KPDF)


Information on Issues Selected for 2003 IIR Program (94KPDF)


Information on Issues Not Selected for 2003 IIR Program (142KPDF)  

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IR-2003-89, July 14, 2003
WASHINGTON — The Internal Revenue Service reminds employers and retirement plan professionals that they no longer have to file information about fringe benefit plans. The IRS suspended the requirement for an annual Form 5500 and Schedule F last year for such so-called “pure fringe benefit plans.”
The IRS has since eliminated Schedule F altogether and also modified Form 5500 so fringe benefit plans could not be reported.  However, based on past experience, the IRS is concerned that some employers may try to adapt prior year forms and schedules or add write-in information on a Form 5500 because they mistakenly think the filing requirement still exists. 
In fact, pure fringe benefit plans have no IRS filing requirement and therefore should file neither a Form 5500 nor a Schedule F.
After it announced the suspension of the fringe benefit plan filing requirement last year, the IRS received almost 70,000 unnecessary Form 5500/Schedule F returns.  This represented over 100,000 hours of unnecessary filing burden on the part of  employers and plan sponsors.
Most employee benefit plans must file 2002 Forms 5500 by July 31, 2003.  The IRS noted that the filing requirement for welfare benefit plans that are subject to Title I of ERISA and that are associated with fringe benefit plans must still file Form 5500.  See the instructions to Form 5500 for detailed filing requirement information.
To aid employers and plan sponsors with their filing requirements, the IRS recently posted  Form 5500 filing tips on its Web site.  These tips are based on frequently asked questions the agency receives concerning Form 5500 and related schedules, and on common reporting and filing errors the agency has analyzed from past years. 
Paying attention to the tips should help employers and plan administrators avoid errors that can slow the processing of returns and cause extra correspondence between employers and the IRS.  The filing tips can be found on the IRS Web site.
Related Items 

Form 5500 Filing Tips 

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IR-2003-88, July 9, 2003
WASHINGTON — Under the Industry Issue Resolution (IIR) Program, the Internal Revenue Service (IRS) today issued guidance on the treatment of fiber optic cable used in a cable television distribution system.
This guidance is in Revenue Procedure 2003-63, which provides a safe harbor method under which the IRS will treat a node and fiber optic cable used in a cable television distribution system providing one-way and two-way communication services as the unit of property for computing depreciation under Sections 167 and 168 of the Internal Revenue Code.
Cable television companies provide broadcast and video programming to subscribers. In recent years, many companies have upgraded their systems to provide new cable services such as digital television, Internet access through a cable modem, and telephony. Upgraded systems use fiber optic cable because optic fibers have immense capacity and are reliable, and transmissions over them are not susceptible to interference by outside signals. The fiber optic strands of glass (optic fibers) within fiber optic cables carry analog or digital signals in the form of light waves.
The revenue procedure provides a method change procedure to obtain automatic consent to use the safe harbor method.
The IIR Program, launched in 2001 by the IRS, tackles business tax issues submitted by taxpayers, associations and other groups representing taxpayers. The objective is to provide guidance to resolve frequently disputed or burdensome tax issues.
Revenue Procedure 2003-63 will be published in Internal Revenue Bulletin 2003-32, dated Aug. 11, 2003. For information on the IIR program see Revenue Procedure 2003-36, which was published in Internal Revenue Bulletin 2003-18.
Related Items:
Revenue Procedure 2003-63 ( 55KPDF )
Reveue Procedure 2003-36 ( 86KPDF )
 
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