Source: https://www.irs.gov/irb/2005-29_IRB
Timestamp: 2020-01-21 13:14:38
Document Index: 351271411

Matched Legal Cases: ['§ 42', '§ 168', '§ 47', '§ 301', '§ 168', '§ 1400', '§ 1400', '§ 168', '§ 1', '§ 1400', '§ 168', '§ 168', '§ 1400', '§ 1400', '§ 168', '§ 168', '§ 336', '§ 1', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 211', '§ 168', '§ 1', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 1400', '§ 1400', '§ 168', '§ 1400', '§ 301', '§ 301', '§ 301', '§ 301', '§ 446', '§ 168', '§ 168', '§ 168', '§ 168', '§ 6501', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 167', '§ 168', '§ 1400', '§ 1400', '§ 168', '§ 13261', '§ 167', '§ 168', '§ 168', '§ 203', '§ 1', '§ 47', '§ 1400', '§ 1400', '§ 1400', '§1']

Internal Revenue Bulletin: 2005-29 | Internal Revenue Service
Internal Revenue Bulletin: 2005-29
Rev. Rul. 2005-44
Rev. Rul. 2005-43
Rev. Proc. 2005-41
Announcement 2005-49
Obsolete revenue procedures and revenue rulings. This ruling obsoletes Rev. Proc. 64-54, and several subsequent rulings because they only apply to tax years prior to January 1, 1965, and are therefore no longer determinative with respect to future transactions. Rev. Procs. 64-54, 66-33, 69-13, 71-1, and 72-22 and Rev. Ruls. 65-109 and 68-549 obsoleted.
This procedure obsoletes Rev. Procs. that describe the representations that a nonresident alien student, teacher, or researcher at a university must make to claim an exemption from withholding tax on personal services income under the provisions of specific U.S. income tax treaties. Rev. Procs. 87-8, 87-9, and 93-22 obsoleted.
This procedure contains revisions to Publication 1239, Specifications for Filing Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips, Electronically or Magnetically (revised 6-2005). Rev. Proc. 2000-49 superseded.
This procedure explains how a taxpayer may elect not to treat qualified New York Liberty Zone leasehold improvement property as 5-year property for purposes of section 168. This procedure also excludes a certain change in computing depreciation from the automatic change in method of accounting procedure. Rev. Proc. 2002-9 modified and amplified.
This document contains a correction to T.D. 9206, 2005-25 I.R.B. 1283, which provides guidance for the filing of information returns by donees relating to qualified intellectual property contributions.
This revenue ruling provides in Table 1 the bond factor amounts for calculating the amount of bond considered satisfactory under § 42(j)(6) or the amount of United States Treasury securities to pledge in a Treasury Direct Account under Rev. Proc. 99-11 for dispositions of qualified low-income buildings or interests therein during the period January through September 2005.
Monthly Bond Factor Amounts for Dispositions Expressed
As a Percentage of Total Credits
Month of Disposition 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Jan ’05 14.99 27.92 39.03 48.55 56.77 56.71 56.86 57.15 57.52 58.00 58.83
Feb ’05 14.99 27.92 39.03 48.55 56.77 56.59 56.74 57.04 57.41 57.89 58.72
Mar ’05 14.99 27.92 39.03 48.55 56.77 56.47 56.63 56.93 57.30 57.79 58.61
Apr ’05 15.85 29.52 41.27 51.33 60.03 60.18 60.95 61.89 62.92 64.10 65.66
May ’05 15.85 29.52 41.27 51.33 60.03 60.05 60.83 61.77 62.80 63.98 65.54
Jun ’05 15.85 29.52 41.27 51.33 60.03 59.93 60.71 61.65 62.69 63.87 65.42
Jul ’05 15.85 29.52 41.27 51.33 60.03 59.81 60.59 61.54 62.57 63.76 65.32
Aug ’05 15.85 29.52 41.27 51.33 60.03 59.70 60.48 61.42 62.46 63.65 65.21
Sep ’05 15.85 29.52 41.27 51.33 60.03 59.58 60.36 61.31 62.36 63.55 65.11
Month of Disposition 2002 2003 2004 2005
Jan ’05 59.92 61.22 62.49 62.68
Feb ’05 59.80 61.09 62.33 62.68
Mar ’05 59.69 60.97 62.19 62.68
Apr ’05 67.52 69.62 71.64 72.55
May ’05 67.40 69.48 71.49 72.55
Jun ’05 67.28 69.36 71.35 72.55
Jul ’05 67.17 69.24 71.23 72.55
Aug ’05 67.06 69.12 71.12 72.55
Sep ’05 66.96 69.02 71.02 72.55
For a list of bond factor amounts applicable to dispositions occurring during other calendar years, see: Rev. Rul. 98-3, 1998-1 C.B. 248; Rev. Rul. 2001-2, 2001-1 C.B. 255; Rev. Rul. 2001-53, 2001-2 C.B. 488; Rev. Rul. 2002-72, 2002-2 C.B. 759; Rev. Rul. 2003-117, 2003-2 C.B. 1051; and Rev. Rul. 2004-100, 2004-44 I.R.B. 718.
The Internal Revenue Service is continuing its program of reviewing rulings (including revenue rulings and revenue procedures) published in the Internal Revenue Bulletin to identify and publish lists of those rulings that, although not specifically revoked or superseded, are no longer considered determinative.
Rev. Proc. 64-54, 1964-2 C.B. 1008, as extended by Rev. Proc. 66-33, 1966-2 C.B. 1231, pertains to certain unilateral relief in respect of the foreign tax paid on income allocated to a U.S. taxpayer pursuant to section 482.
This revenue ruling publishes a list including Rev. Proc. 64-54 and subsequent rulings relating to Rev. Proc. 64-54 that have been identified under the Internal Revenue Service’s review program as not determinative with respect to future transactions because these rulings apply to taxable years beginning before January 1, 1965.
Accordingly, the rulings listed below are hereby declared obsolete.
Ruling No. C.B. Citation
Rev. Proc. 64-54 1964-2 C.B. 1008
Rev. Rul. 65-109 1965-1 C.B. 222
Rev. Proc. 66-33 1966-2 C.B. 1231
Rev. Rul. 68-549 1968-2 C.B. 202
Rev. Proc. 69-13 1969-1 C.B. 402
Rev. Proc. 71-1 1971-1 C.B. 658
Rev. Proc. 72-22 1972-1 C.B. 747
The Service will continue to review other rulings to ascertain those that are inapplicable to future transactions. Therefore, failure to include any particular ruling in the above list should not be construed as an indication that the ruling necessarily is determinative with respect to future transactions.
The principal author of this revenue ruling is Thomas A. Vidano of the Office of Associate Chief Counsel (International). For further information regarding this revenue ruling, contact Mr. Vidano at (202) 435-5265 (not a toll-free call).
NOTE: Use this revenue procedure to prepare Forms 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips, for submission to Internal Revenue Service (IRS) using either of the following:
- Tape Cartridges
Please read this publication carefully. Persons required to file may be subject to penalties if they do not follow the instructions in this revenue procedure.
.02 The Internal Revenue Service Enterprise Computing Center — Martinsburg (IRS/ECC-MTB) has the responsibility of processing Forms 8027 submitted electronically/magnetically. The purpose of this revenue procedure is to provide the specifications for filing Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips, Electronically or Magnetically. This revenue procedure is updated when legislative changes occur or reporting procedures are modified. Major changes have been emphasized by italics.
.03 This revenue procedure supersedes the following: Rev. Proc. 2000-49 published as Publication 1239 (Rev. 11-2000), Specifications for Filing Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips, Magnetically or Electronically. This revenue procedure is effective for Forms 8027 due the last day of February 2006 and any returns filed thereafter.
Numerous editorial changes have been made to the revenue procedure. Please read the publication carefully and in its entirety before attempting to prepare your electronic/magnetic file for submission. Major changes have been emphasized by using italics. The changes are as follows:
.01 The Martinsburg Computing Center’s name was changed to the Enterprise Computing Center - Martinsburg (ECC-MTB).
.02 IRS/ECC-MTB no longer accepts 8mm, 4mm, Quarter-Inch Cartridges (QIC ) for the processing of information returns. Filing with 31/2-inch diskettes will be discontinued for Tax Year 2006. While IRS/ECC-MTB will accept 31/2-inch diskette filing for Tax Year 2005, specifications were deleted from this revision since this publication is revised infrequently. Filers should consult previous revisions for diskette specifications if you are planning to submit 31/2-inch diskettes this year.
.03 Part B, Electronic Filing Specifications, was completely revised. Please read carefully. We now offer an internet connection at http://fire.irs.gov .
.04 The organization of information in Publication 1239 was changed for emphasis and clarity. Part D, Miscellaneous Information, was deleted since this information is found in Part A, Sec. 3. Part B is now Electronic Filing Specifications, Part C is Magnetic Media Specifications.
.05 The title of Publication 1239 was changed to Specifications for Filing Form 8027, Employer’s Annual Information Returns of Tip Income and Allocated Tips, Electronically or Magnetically.
.01 All Forms 8027 filed magnetically are processed at IRS/ECC-MTB and are to be sent to the following address:
IRS-Enterprise Computing Center - Martinsburg
.02 Requests for paper forms and publications should be requested by calling the “Forms Only Number” listed in your local telephone directory or by calling the IRS toll-free number 1-800-TAX-FORM (1-800-829-3676).
.03 Questions pertaining to magnetic media filing of Forms W-2 must be directed to the Social Security Administration (SSA). Filers can call 1-800-SSA-6270 to obtain the phone number of the SSA Employer Services Liaison Officers for their area.
.04 A taxpayer or authorized representative may request a copy of a tax return or a Form W-2 filed with a return by submitting Form 4506, Request for Copy of Tax Form, to IRS. This form may be obtained by calling 1-800-TAX-FORM (1-800-829-3676).
.05 The Information Reporting Program Customer Service Section (IRP/CSS), located at IRS/ECC-MTB, answers electronic/magnetic media, paper filing, and tax law questions from the payer community relating to the correct preparation and filing of business information returns (Forms 1096, 1098, 1099, 5498, 8027, W-2G, and W-4). IRP/CSS also answers questions relating to the electronic/magnetic media filing of Forms 1042-S and to the tax law criteria and paper filing instructions for Forms W-2 and W-3. Inquiries dealing with backup withholding and reasonable cause requirements due to missing and incorrect taxpayer identification numbers are also addressed by IRP/CSS. Assistance is available year-round to payers, transmitters, and employers nationwide, Monday through Friday, 8:30 a.m. to 4:30 p.m. Eastern Time, by calling toll-free 1-866-455-7438 or via email at mccirp@irs.gov. Do not include SSNs or EINs in emails since this is not a secure line. The Telecommunications Device for the Deaf (TDD) toll number is 304-267-3367. Call as soon as questions arise to avoid the busy filing seasons at the end of January and February. Recipients of information returns (payees) should continue to contact 1-800-829-1040 with any questions on how to report the information returns data on their tax returns.
.06 The telephone numbers for magnetic media inquiries or electronic submissions are:
email at mccirp@irs.gov
304-267-3367 — TDD
304-264-5602 — Fax Machine
.01 Section 6011(e)(2)(A) of the Internal Revenue Code requires that any person, including corporations, partnerships, individuals, estates, and trusts, required to file 250 or more information returns must file such returns on magnetic media.
.03 Filing electronically through the FIRE system with IRS/ECC-MTB fulfills the magnetic media filing requirement.
.04 The above requirements do not apply if you establish undue hardship (see Part A, Sec. 5).
.01 If an employer is required to file on magnetic media but fails to do so (or fails to file electronically, in lieu of magnetic media filing) and does not have an approved waiver on record, the employer will be subject to a penalty of $50 per return in excess of 250.
.02 If employers are required to file original or corrected returns on magnetic media, but such filing would create a hardship, they may request a waiver from these filing requirements by submitting Form 8508, Request for Waiver From Filing Information Returns Magnetically, to IRS/ECC-MTB.
.03 Even though an employer may submit as many as 250 corrections on paper, IRS encourages electronically or magnetically submitted corrections. Once the 250 threshold has been met, filers are required to submit any additional returns electronically or magnetically. However, if a waiver for an original filing is approved, any corrections for the same type of returns will be covered under this waiver.
.07 The waiver, if approved, will provide exemption from magnetic media filing for the current tax year only. Employers may not apply for a waiver for more than one tax year at a time; application must be made each year a waiver is necessary.
.10 File Form 8508 for Forms W-2 with IRS/ECC-MTB, not SSA.
.11 Waivers are evaluated on a case-by-case basis and are approved or denied based on criteria set forth under section 6011(e) of the Internal Revenue Code. The transmitter must allow a minimum of 30 days for IRS/ECC-MTB to respond to a waiver request.
.12 If a waiver request is approved, the transmitter should keep the approval letter on file.
.13 An approved waiver from filing Forms 8027 on magnetic media does not provide exemption from all filing. The employer must timely file Form 8027 on acceptable paper forms with the Cincinnati Service Center. The transmitter should also send a copy of the approved waiver to the Cincinnati Service Center where the paper returns are filed.
.01 For the purposes of this revenue procedure, the EMPLOYER is the organization supplying the information and the TRANSMITTER is the organization preparing the electronic/magnetic file and/or sending the file to IRS/ECC-MTB. The employer and the transmitter may be the same entity. Employers or their transmitters are required to complete Form 4419, Application for Filing Information Returns Electronically/Magnetically.
.02 Form 4419 can be submitted at any time during the year; however, it should be submitted to IRS/ECC-MTB at least 30 days before the due date of the return(s). IRS will act on an application and notify the applicant, in writing, of authorization to file. A five-character alpha/numeric Transmitter Control Code (TCC) will be assigned and included in an acknowledgment letter within 15 to 45 days of receipt of the application. Electronic/magnetic returns may not be filed with IRS until the application has been approved and a TCC assigned. Include your TCC in any correspondence with IRS/ECC-MTB.
.03 If you file information returns other than Form 8027 on magnetic media, you must obtain a separate TCC for those types of returns. The TCC assigned for Forms 8027 is to be used for the processing of these forms only.
.04 After you have received approval to file electronically/magnetically, you do not need to reapply each year; however, notify IRS in writing if:
You change your name or the name of your organization, so that your files may be updated to reflect the proper name;
You discontinue filing on magnetic media for two years (your TCC may have been reassigned).
.05 Filers who plan to submit for multiple employers, IRS encourages transmitters to submit one application and to use one TCC for all employers.
.06 Only employers or transmitters using equipment compatible with IRS equipment will have their application approved.
.07 If your electronic/magnetic media files have been prepared for you in the past by a transmitter, and you now have computer equipment compatible with that of IRS and wish to prepare your own files, you must request your own five-character alpha/numeric TCC by filing an application, Form 4419, as described in Sec. 6.02.
.01 IRS/ECC-MTB encourages new filers to submit test files for review in advance of the filing season. Employers or transmitters must be approved to file electronically/magnetically before a test file is submitted (See Part A, Sec. 6 for application procedures.)
.02 All test files must be submitted between October 1 and December 15 of the year before the returns are due. If you are filing electronically , you may submit a test file through February 15 of the year the returns are due.
.01 Form 4804, Transmittal of Information Returns Reported Magnetically, must accompany all magnetic media shipments.
.02 The employer MUST sign Form 4804; however, an agent (transmitter, service bureau, paying agent, or disbursing agent) may sign Form 4804 for the employer. To do this, the agent must have the authority to sign for the employer under an agency agreement (either oral, written, or implied) that is valid under the state law and must add to his or her signature the caption “For: (name of employer)”.
NOTE: Failure to sign the Form 4804 may delay processing or could result in your file being returned to you unprocessed.
.03 Although a duly authorized agent may sign the Form 4804, the employer is responsible for the accuracy of the Form 4804 and the returns filed. The employer will be liable for penalties for failure to comply with filing requirements.
.04 Be sure to include Form 4804 or computer-generated substitutes with your magnetic media shipment. DO NOT MAIL YOUR MAGNETIC MEDIA AND THE TRANSMITTAL DOCUMENTS SEPARATELY.
.05 Indicate on Form 4804 in block 8 the total number of establishments being reported in this shipment. This figure should match the total number of records in your magnetic file.
.06 DO NOT SUBMIT THE SAME INFORMATION ON PAPER FORMS THAT YOU SUBMIT ELECTRONICALLY/MAGNETICALLY, SINCE THIS WOULD RESULT IN DUPLICATE FILING. This does not mean that corrected documents are not to be filed. If a return has been prepared and submitted improperly, you must file a corrected return as soon as possible. Refer to Part A, Sec. 14 for requirements and instructions for filing corrected returns.
.07 If an allocation of tips is based on a good faith agreement, a copy of this agreement must accompany the submission.
.08 If, under Rev. Proc. 86-21, 1986-1 C.B. 560, the District Director granted the establishment a percentage of gross receipts of less than 8%, a copy of the determination letter must be sent with the submission. Employers with more than one establishment can receive approval from one district in each Internal Revenue Service region where the establishments are located (See sec. 31.6053-3(h)(4) of the Employment Tax Regulations).
.09 Before submitting your magnetic file, include the following:
A signed Form 4804, Transmittal of Information Returns Reported Magnetically.
Your tape cartridge should be labeled with an external identifying label. Notice 210 describes the information which should be included on this self-prepared label.
On the outside of the shipping container, affix the label, IRB Special Projects. This label is included in this publication.
Note: See Part B for electronic submission requirements.
.10 IRS/ECC-MTB will not pay or accept “Collect on Delivery” or “Charged to IRS” shipments of reportable tax information that an individual or organization is legally required to submit.
.01 Electronic/magnetic reporting to IRS for Form 8027 must be on a calendar year basis. The due date of either paper or magnetically reported Forms 8027 is the last day of February. However, Forms 8027 filed electronically are due March 31.
.02 If the due date falls on a Saturday, Sunday, or legal holiday, filing Form 8027 on the next day that is not a Saturday, Sunday, or legal holiday will be considered timely.
Hawaii HI New Jersey NJ (U.S.) Virgin Islands VI
.02 Form 8809, Request for Extension of Time To File Information Returns, should be submitted to IRS/ECC-MTB. This form may be used to request an extension of time to file information returns submitted on paper, electronically or magnetically.
.03 Requesting an extension of time for multiple employers may be done by submitting Form 8809 and attaching a list of the employer names and their Taxpayer Identification Numbers (TINs) (EIN or SSN). The listing must be attached to ensure the extension is recorded for all employers. Form 8809 may be computer-generated or photocopied. Be sure that all the pertinent information is included.
.04 Requests for extensions of time for multiple employers will be responded to with one approval letter, accompanied by a list of employers covered under that approval.
.05 As soon as it is apparent that an extension of time to file is needed, Form 8809 may be submitted. When granted, the extension will be for 30 days. It will take a minimum of 30 days for IRS/ECC-MTB to respond to an extension request. Under certain circumstances, a request for an extension of time could be denied. When a denial letter is received, any additional or necessary information may be resubmitted within 20 days. When requesting an extension of time, do not hold your files waiting for a response.
.06 While very difficult to obtain, if an additional extension of time is needed, a second Form 8809 must be submitted before the end of the initial extension period. Line 7 on the form should be checked to indicate that an additional extension is being requested. A second 30-day extension will be approved only in cases of extreme hardship or catastrophic events.
.07 Form 8809 must be postmarked no later than the due date of the return for which an extension is requested. If requesting an extension of time to file several types of forms, use one Form 8809, but the Form 8809 must be postmarked no later than the earliest due date. For example, if requesting an extension of time to file both Forms 8027 and 5498, submit Form 8809 postmarked on or before the last day of February.
.08 If an extension request is approved, the approval letter should be kept on file. The approval letter or copy of the approval letter for extension of time should not be sent to IRS/ECC-MTB with the electronic/magnetic file. When submitting Form 8027 on paper only to the Cincinnati Service Center, attach a copy of the approval letter. If an approval letter has not been received, send a copy of the timely filed Form 8809.
.09 Request an extension for only one tax year.
.10 The extension request must be signed by the employer or a person who is duly authorized to sign a return, statement or other document for the employer.
.11 Failure to properly complete and sign the Form 8809 may cause delays in processing the request or result in a denial. Carefully read and follow the instructions on the back of the Form 8809.
.12 Form 8809 may be obtained by calling 1-800-TAX-FORM (1-800-829-3676).
Note: An extension of time is not an extension to issue form W-2 to the employee.
.13 Request an extension of time to furnish the statements to recipients of Forms W-2 by submitting a letter to IRS/ECC containing the following information:
.01 All data received at the IRS/ECC-MTB for processing will be given the same protection as individual returns (Form 1040). IRS/ECC-MTB will process your electronic/magnetic files to ensure the records were formatted and coded according to this revenue procedure.
.02 If the magnetic media is formatted incorrectly, you will receive a letter of explanation along with a Media Tracking Slip (Form 9267). When a replacement file is requested, it is because IRS/ECC-MTB encountered errors (not limited to format) and was unable to process the file. Open all packages immediately.
.03 Magnetic files must be corrected and returned with the Media Tracking Slip (Form 9267) to IRS/ECC-MTB within 45 days from the date of the letter from IRS/ECC-MTB requesting the replacement file. A penalty for failure to file correct information returns by the due date will be assessed if the file is not corrected and replaced within the 45 days or if the incorrect file is returned by IRS/ECC-MTB for replacement more than two times. A penalty for intentional disregard of filing requirements will be assessed if a replacement file is not received.
.04 Files will not be returned to you after successful processing. Therefore, if you want proof that IRS/ECC-MTB received your shipment, you may use a carrier that provides proof of delivery.
.05 To distinguish between a correction and a replacement, the following definitions are provided:
A replacement is an information return file sent by the employer/transmitter at the request of IRS/ECC-MTB because of errors encountered while processing the filer’s original file or correction file.
Note 1: Filers should never send anything to IRS/ECC marked “Replacement” unless IRS/ECC-MTB requested a replacement in writing or via the FIRE System.
Note 2: Beginning in calendar year 2007 for Tax Year 2006, IRS/ECC-MTB will no longer accept 31/2-inch diskettes for the filing of Form 8027.
.01 If returns must be corrected, approved electronic/magnetic filers must provide such corrections electronically/magnetically if you have 250 or more. If your information is filed electronically/magnetically, corrected returns are identified by using the “Corrected 8027 Indicator” in field position 370 of the employer record. Form 4804 must accompany the tape cartridge shipment, and the box for correction should be marked in Block 1 of the form. (See Part A, Sec. 12.05 for the definition of corrections.)
.02 If corrections are not submitted electronically/magnetically, employers must submit them on official Forms 8027. Substitute forms that have been previously approved by IRS, or computer-generated forms that are exact facsimiles of the official form (except for minor page size or print style deviations), may be submitted without obtaining IRS approval before using the form.
.03 Employers/establishments may send corrected paper Forms 8027 to IRS at the address shown in Part A, Sec. 15.01. Corrected paper returns are identified by marking the “AMENDED” check box on Form 8027.
.01 If you are filing more than one paper Form 8027, you must attach a completed Form 8027-T, Transmittal of Employer’s Annual Information Return of Tip Income and Allocated Tips, to the Forms 8027 and send to:
IRS/ECC-MTB processes Forms 8027 submitted electronically/magnetically only. Do not send paper Forms 8027 to IRS/ECC-MTB.
.02 If part of a submission is filed electronically/magnetically and the rest of the submission is filed on paper Forms 8027, send the paper forms to the Cincinnati Service Center. For example, you filed your Forms 8027 electronically/magnetically with IRS/ECC-MTB, and later you found that some of the forms you filed need correcting. Because of the low volume of corrections, you submit the corrections on paper Forms 8027. You must send these corrected Forms 8027 along with Form 8027-T to the Cincinnati Service Center.
File For the purpose of this revenue procedure, a file consists of all electronic/magnetic records submitted by an Employer or Transmitter.
Transmitter Person or organization preparing electronic/magnetic file(s). May be Employer or agent of Employer.
Transmitter Control Code (TCC) A five-character alpha/numeric code assigned by IRS to the transmitter prior to actual filing electronically/magnetically. This number is inserted in the record and must be present. An application (Form 4419) must be filed with IRS to receive this number.
.01 Electronic filing of Forms 8027 information returns, originals and replacements, is offered as an alternative to magnetic media (tape cartridge) or paper filing. Filing electronically will fulfill the magnetic media requirements for those payers who are required to file magnetically. Payers who are under the filing threshold requirement are encouraged to file electronically. If the original file was sent magnetically, but IRS/ECC-MTB has requested a replacement file, the replacement may be transmitted electronically. Also, if the original file was submitted via magnetic media, any corrections may be transmitted electronically.
.03 The electronic filing of information returns is not affiliated with any other IRS electronic filing programs. Filers must obtain separate approval to participate in each of them. Only inquiries concerning electronic filing of information returns should be directed to IRS/ECC-MTB.
.04 Files submitted to IRS/ECC-MTB electronically must be in standard ASCII code. Do not send magnetic media or paper forms with the same information as electronically submitted files. This would create duplicate reporting resulting in penalty notices.
.05 The record format is the same for both electronically or magnetically filed records. See Part C, Magnetic Media Specifications.
Some of the advantages of filing electronically are:
Security - Secure Socket Layer (SSL) 128-bit encryption.
Results available within 20 business days regarding the acceptability of the data transmitted. It is the filer’s responsibility to log into the system and check results.
Better customer service due to on-line availability of transmitter’s files for research purposes.
.01 Filers must obtain a Transmitter Control Code (TCC) prior to submitting files electronically. Filers who currently have a TCC for magnetic media filing may use their assigned TCC for electronic filing. Refer to Part A, Sec. 6, for information on how to obtain a TCC.
.02 Once a TCC is obtained, electronic filers assign their own user ID, password and PIN (Personal Identification Number) and do not need prior or special approval. See Part B, Sec. 6, for more information on the PIN.
.04 For all passwords, it is the user’s responsibility to remember the password and not allow the password to be compromised. Passwords are user assigned at first logon and must be 8 alpha/numeric characters containing at least 1 uppercase, 1 lowercase, and 1 numeric. However, filers who forget their password or PIN, can call toll-free 1-866-455-7438 for assistance. The FIRE System may require users to change their passwords on a yearly basis.
.01 Filers are not required to submit a test file; however, the submission of a test file is encouraged for all new electronic filers to test hardware and software. If filers wish to submit an electronic test file for Tax Year 2005 (returns to be filed in 2006), it must be submitted to IRS/ECC-MTB no earlier than October 1, 2005, and no later than February 15, 2006.
.03 Filers must verify the status of the transmitted test data by going to http://fire.irs.gov and verifying the status of their file by clicking on CHECK FILE STATUS. This information will be available within 20 business days after the transmission is received by IRS/ECC-MTB.
.04 Form 4804 is not required for test files submitted electronically. See Part B, Sec. 6.
.02 The FIRE System will be down from December 23, 2005 through January 3, 2006. This allows IRS/ECC-MTB to update its system to reflect current year changes.
.04 Transmitters may create files using self assigned files name(s). Files submitted electronically will be assigned a new unique file name by the FIRE System. The filename assigned by the FIRE System will consist of submission type (ORIG [original], TEST [test], CORR [correction], and REPL [replacement]), the filer’s TCC and a four-digit number sequence. The sequence number will be incremented for every file sent. For example, if it is your first original file for the calendar year and your TCC is 44444, the IRS assigned filename would be ORIG.44444.0001. Record the filename. This information will be needed by ECC-MTB to identify the file, if assistance is required.
.05 If a file was submitted timely and is bad, the filer will have up to 60 days from the day the file was sent to transmit an acceptable file. If an acceptable file is not received within 60 days, then the payer could be subject to late filing penalties. This only applies to files originally submitted electronically.
A replacement is an information return file sent by the filer because the CHECK FILE STATUS option on the FIRE System indicated the original file was bad. After the necessary changes have been made, the file must be transmitted through the FIRE System. (See Note.)
.01 The FIRE System is designed exclusively for the filing of Forms 8027, 1098, 1099, 5498, W-2G, 1042-S, and Questionable W-4.
.02 A transmitter must have a TCC (see Part A, Sec. 6) before a file can be transmitted. A TCC assigned for magnetic media filing should also be used for electronic filing.
.03 The results of the electronic transmission will be available in the CHECK FILE STATUS area of the FIRE System within 20 business days. It is the filer’s responsibility to verify the acceptability of files submitted by selecting the CHECK FILE STATUS option.
.02 When running Norton Internet Security or similar software, you may need to disable this feature if your file transfer does not complete properly.
.03 Before connecting, have your TCC and EIN available.
.04 Your browser must support SSL 128-bit encryption.
.05 Your browser must be set to receive “cookies”. Cookies are used to preserve your User ID status.
Fill out the registration form and click “Submit” .
Read the bulletin(s) and/or click “Start the FIRE application”.
Enter your EIN:
The system will then display the company name, address, city, state, ZIP Code, phone number, contact and email address. This information will be used to contact or send correspondence (if necessary) regarding this transmission. Update as appropriate and/or Click “Accept”.
NEW FIRE Replacement (file was originally transmitted on this system)
Click the file to be replaced.
Enter the alpha character from Form 9267, Media Tracking Slip, that was sent with the request for replacement file. Click “Submit” .
The results of your file transfer are posted to the FIRE System within 20 business days. It is your responsibility to verify file acceptability and, if the file contains errors, you can get an online listing of the errors. Date received and number of payee records are also displayed.
2. Incorrect file is not replaced timely.
3. Transmitter compresses several files into one.
4. Transmitter sends an original file that is good, and then sends a correction file for the entire file even though there are only a few changes.
5. File is formatted as EBCDIC.
6. Transmitter has one TCC number, but is filing for multiple companies, which EIN should be used when logging into the system to send the file?
When sending the file electronically, you will need to enter the EIN of the company assigned to the TCC. When you upload the file, it will contain the EINs for the other companies that you are filing for. This is the information that will be passed forward.
7. Transmitter sent the wrong file, what should be done?
.01 Transmitters should be consistent in the use of recording codes and density on files. If the media does not meet these specifications, IRS/ECC-MTB will request a replacement file. Filers are encouraged to submit a test prior to submitting the actual file. Contact IRS/ECC-MTB toll-free 1-866-455-7438, extension 5 for further information.
.01 In most instances, IRS/ECC-MTB can process tape cartridges that meet the following specifications:
Must be IBM 3480, 3490, 3490E, 3590, or 3590E.
Must meet American National Standard Institute (ANSI) standards, and have the following characteristics:
Tape cartridges must be 1/2-inch tape contained in plastic cartridges that are approximately 4-inches by 5-inches by 1-inch in dimension.
Magnetic tape must be chromium dioxide particle based 1/2-inch tape.
Cartridges must be 18-track, 36-track, 128-track or 256-track parallel (See Note.)
Cartridges will contain 37,871 CPI, 75,742 CPI, or 3590 CPI (characters per inch).
Mode will be full function.
The data may be compressed using EDRC (Memorex) or IDRC (IBM) compression.
Either EBCDIC (Extended Binary Coded Decimal Interchange Code) or ASCII (American Standard Coded Information Interchange) may be used.
.02 The tape cartridge records defined in this Revenue Procedure may be blocked subject to the following:
A block must not exceed 32,736 tape positions.
If the use of blocked records would result in a short block, all remaining positions of the block must be filled with 9s; however, the last block of the file may be filled with 9s or truncated. Do not pad a block with blanks.
All records, except the header and trailer labels, may be blocked or unblocked. A record may not contain any control fields or block descriptor fields, which describe the length of the block or the logical records within the block. The number of logical records within a block (the blocking factor) must be constant in every block with the exception of the last block, which may be shorter (see item (b) above). The block length must be evenly divisible by 372.
Records may not span blocks.
.03 Tape cartridges may be labeled or unlabeled.
.04 For the purposes of this Revenue Procedure, the following must be used:
Tape Mark:
Signifies the physical end of the recording on tape.
For even parity, use BCD configuration 001111 (8421).
May follow the header label and precede and/or follow the trailer label.
Note: Filers should indicate on the external media label whether the cartridge is 18-track, 36-track, 128-track or 256-track.
7-46 Establishment Name 40 Required. Enter the name of the establishment. Left-justify and fill unused positions with blanks. Allowable characters are alphas, numeric, blanks, hyphens, ampersands, and slashes.
47-86 Establishment Street Address 40 Required. Enter the mailing address of the establishment. Street address should include number, street, apartment or suite number (use P O Box only if mail is not delivered to street address). Left-justify and blank fill.
Note: The only allowable characters are alphas, numeric characters, blanks, ampersands, hyphens and slashes. Punctuation such as periods and commas are not allowed and will cause your file to be returned. For example, the address 210 N. Queen St., Suite #300 must be entered as 210 N Queen St Suite 300.
87-111 Establishment City 25 Required. Enter the city, town, or post office. Left-justify and blank fill.
Note: The only allowable characters are alphas, numeric characters, blanks, ampersands, hyphens and slashes. Punctuation such as periods and commas are not allowed and will cause your file to be returned. For example, the city St. Louis must be entered as St Louis.
112-113 Establishment State 2 Required. Enter the state code from the state abbreviations table in Part A, Sec. 10.
123-131 Employer Identification Number 9 Required. Enter the nine-digit number assigned to the employer by IRS. Do not enter hyphens, alphas, all 9’s or all zeros.
132-171 Employer Name 40 Required. Enter the name of the employer as it appears on your tax forms (e.g., Form 941). Any extraneous information must be deleted. Left-justify and blank fill. Allowable characters are alphas, numeric, blanks, hyphens, ampersands, and slashes.
172-211 Employer Street Address 40 Required. Enter mailing address of employer. Street address should include number, street, apartment or suite number (use P O Box only if mail is not delivered to street address). Left-justify and blank fill.
212-236 Employer City 25 Required. Enter the city, town, or post office. Left-justify and blank fill.
237-238 Employer State 2 Required. Enter the state code from the state abbreviations table in Part A, Sec. 10.
239-247 Employer ZIP Code 9 Required. Enter the complete nine-digit ZIP Code of the employer. If using a five-digit ZIP Code, left-justify the five-digit ZIP Code and fill the remaining four positions with blanks.
272-283 Service Charge Less Than 10 Percent 12 Required. Enter the total amount of service charges less than 10 percent added to customer’s bills and were distributed to your employees for the calendar year. In general, service charges added to the bill are not tips since the customer does not have a choice. These service charges are treated as wages and are included on Form W-2. For a more detailed explanation, Rev. Rul. 69-28, 1969-1 C.B. 270. Amount must be entered in U.S. dollars and cents. The right-most two positions represent cents. Right-justify and zero fill. If no entry, zero fill. Numeric characters only. Do not enter decimal points, dollars signs, or commas.
320-331 Gross Receipts 12 Required. Enter the total gross receipts from the provision of food and/or beverages for this establishment for the calendar year. Do not include receipts for carry-out sales or sales with an added service charge of 10 percent or more. Do not include in gross receipts charged tips (field positions 248-259) shown on charge receipts unless you have reduced the cash sales amount because you have paid cash to tipped employees for tips they earned that were charged. Do not include state or local taxes in gross receipts. If you do not charge separately for food or beverages along with other services (such as a package deal for food and lodging), make a good faith estimate of the gross receipts attributable to the food or beverages. This estimate must reflect the cost of providing the food or beverages plus a reasonable profit factor. Include the retail value of complimentary food or beverages served to customers if tipping for them is customary and they are provided in connection with an activity engaged in for profit whose receipts would not be included as gross receipts from the provision of food or (e.g., complimentary drinks served to customers at a gambling casino). Amount must be entered in U.S. dollars and cents. The right-most two positions represent cents. Right-justify and zero fill. If no entry, zero fill. Numeric characters only. Do not enter decimal points, dollars signs, or commas.
344-347 Tip Percentage Rate 4 Required. Enter 8 percent (0800) unless a lower rate has been granted by the District Director. The determination letter must accompany the electronic/magnetic submission. Numeric characters only. Do not enter decimal points, dollars signs, or commas.
360 Allocation Method 1 Required. Enter the allocation method used if Allocated Tips (field positions 348-359) are greater than zero as follows: 0) if allocated tips are equal to zero. 1) for allocation based on hours worked. 2) for allocation based on gross receipts. 3) or allocation based on a good faith agreement. The good faith agreement must accompany the electronic/magnetic submission.
Note: Under Section 1571 of the Tax Reform Act of 1986, the method of allocation of tips based on the number of hours worked as described in Section 31.6053-3(f)(1)(iv) may be utilized only by an employer that employs less than the equivalent of 25 full-time employees at the establishment during the payroll period. Section 31.6053-3(j)(19) provides that an employer is considered to employ less than the equivalent of 25 full-time employees at an establishment during a payroll period if the average number of employee hours worked per business day during the payroll period is less than 200 hours.
361-364 Number of Directly Tipped Employees 4 Required. Enter the total number (must be greater than zero) of directly tipped employees employed by the establishment for the calendar year. Right-justify and zero fill. NUMERICS ONLY.
371-372 Blank 2 Enter blanks.
Establishment Type EstablishmentSerial Numbers Establishment Name EstablishmentStreet Address
Establishment City EstablishmentState Establishment ZIP Code Employer Identification Number
Employer Name EmployerStreet Address Employer City Employer State
Employer ZIP Code ChargedTips Charged Receipts Service Charge Less Than 10 Percent
Indirect TipsReported Direct TipsReported Total TipsReported GrossReceipts
Tip PercentageRate Times Gross Receipts Tip PercentageRate Allocated Tips Allocation Method
Number of Directly Tipped Employees Transmitter Control Code (TCC) Corrected 8027 Indicator Blank
361-364 365-369 370 371-372
This revenue procedure provides procedures by which a taxpayer may elect not to treat qualified New York Liberty Zone (Liberty Zone) leasehold improvement property as 5-year property for purposes of § 168 of the Internal Revenue Code.
This revenue procedure also modifies section 2.01 of the APPENDIX of Rev. Proc. 2002-9, 2002-1 C.B. 327 (as modified by Rev. Proc. 2004-11, 2004-1 C.B. 311, modified and clarified by Announcement 2002-17, 2002-1 C.B. 561, modified and amplified by Rev. Proc. 2002-19, 2002-1 C.B. 696, and amplified, clarified, and modified by Rev. Proc. 2002-54, 2002-2 C.B. 432), to conform with the election not to treat qualified Liberty Zone leasehold improvement property as 5-year property. Also, because personal property is not eligible for the rehabilitation credit under § 47, section 2.01 of the Appendix of Rev. Proc. 2002-9 is modified to exclude a change in depreciation involving property for which the rehabilitation credit was claimed and that a taxpayer is reclassifying generally to personal property.
.01 Section 1400L(c), as added by § 301(a) of the Job Creation and Worker Assistance Act of 2002 (the “JCWAA”), Pub. L. No. 107-147, 116 Stat. 21 (March 9, 2002), provides that, for purposes of § 168, 5-year property includes any qualified Liberty Zone leasehold improvement property. For purposes of § 1400L, § 1400L(c)(2) provides that qualified Liberty Zone leasehold improvement property means qualified leasehold improvement property (as defined in § 168(k)(3) and § 1.168(k)-1T(c) of the temporary Income Tax Regulations) if (A) the building is located in the New York Liberty Zone (as defined in § 1400L(h)), (B) the improvement is placed in service after September 10, 2001, and before January 1, 2007, and (C) no written binding contract for the improvement was in effect before September 11, 2001. Section 1400L(c)(3) provides that the applicable depreciation method under § 168 is the straight-line method of depreciation for qualified Liberty Zone leasehold improvement property. Section 1400L(c)(4) provides that for purposes of the alternative depreciation system of § 168(g), the class life for qualified Liberty Zone leasehold improvement property is 9 years.
.02 Section 403(c)(3) of the Working Families Tax Relief Act of 2004 (the “WFTRA”), Pub. L. No. 108-311, 118 Stat. 1166 (October 4, 2004), amended § 1400L(c) by adding § 1400L(c)(5), which allows a taxpayer to elect not to treat qualified Liberty Zone leasehold improvement property placed in service by the taxpayer during the taxable year as 5-year property for purposes of § 168. The rules to make this election are similar to the rules of § 168(k)(2)(D)(iii) (as redesignated by § 336(a)(1) of the American Jobs Creation Act of 2004 (the “AJCA”), Pub. L. No. 108-357, 118 Stat. 1480 (October 22, 2004)) and § 1.168(k)-1T(e) with respect to the election not to deduct the additional first year depreciation. This amendment is effective as if included in the provisions of the JCWAA.
.03 Section 211 of the AJCA amended § 168(e)(3) by providing that 15-year property includes any qualified leasehold improvement property placed in service after October 22, 2004, and before January 1, 2006. As a result, qualified leasehold improvement property is depreciated over a 15-year recovery period for purposes of the general depreciation system of § 168(a). Section 211 of the AJCA also amended § 168(b) to require the straight-line method of depreciation for any qualified leasehold improvement property and amended § 168(g) to require a 39-year recovery period for any qualified leasehold improvement property for purposes of the alternative depreciation system of § 168(g). For purposes of § 168(e), the term “qualified leasehold improvement property” is defined in § 168(e)(6) (as added by § 211 of the AJCA) as having the same meaning given that term in § 168(k)(3) and § 1.168(k)-1T(c) except that if the improvement was made by the person who was the lessor of the improvement when the improvement was placed in service, the improvement generally will be qualified leasehold improvement property only so long as the improvement is held by that person.
.04 If qualified Liberty Zone leasehold improvement property is not qualified leasehold improvement property (as defined in § 168(e)(6)), a taxpayer may elect not to treat qualified Liberty Zone leasehold improvement property placed in service by the taxpayer during the taxable year as 5-year property under § 168 and instead depreciate this property under § 168 as nonresidential real property over a 39-year recovery period for purposes of the general depreciation system of § 168(a) or over a 40-year recovery period for purposes of the alternative depreciation system of § 168(g). If qualified Liberty Zone leasehold improvement property is qualified leasehold improvement property (as defined in § 168(e)(6)), a taxpayer may elect not to treat qualified Liberty Zone leasehold improvement property placed in service by the taxpayer during the taxable year as 5-year property under § 168 and instead depreciate this property under § 168 over a 15-year recovery period for purposes of the general depreciation system of § 168(a) or over a 39-year recovery period for purposes of the alternative depreciation system of § 168(g). In all cases, the qualified Liberty Zone leasehold improvement property is depreciated under § 168 by using the straight-line method of depreciation and is not eligible for the additional first year depreciation deduction provided by § 168(k) or § 1400L(b).
SECTION 3. ELECTION NOT TO TREAT QUALIFIED LIBERTY ZONE LEASEHOLD IMPROVEMENT PROPERTY AS 5-YEAR PROPERTY
.01 In General. Pursuant to § 1400L(c)(5), a taxpayer may elect not to treat qualified Liberty Zone leasehold improvement property placed in service by the taxpayer during the taxable year as 5-year property under § 168. If the taxpayer makes this election, it applies to all qualified Liberty Zone leasehold improvement property placed in service by the taxpayer during the same taxable year.
.02 Time and Manner of Making the Election.
(1) In general. Except as provided in section 4 of this revenue procedure, an election not to treat as 5-year property the qualified Liberty Zone leasehold improvement property placed in service by a taxpayer during the taxable year must be made by the due date (including extensions) of the federal tax return for the taxable year in which the qualified Liberty Zone leasehold improvement property is placed in service by the taxpayer. The election must be made in the manner prescribed on Form 4562, Depreciation and Amortization, and its instructions. For example, the instructions for the 2004 Form 4562 require the taxpayer to attach to the federal tax return a statement indicating that the taxpayer is making the election under § 1400L(c)(5). The election is made separately by each person owning qualified Liberty Zone leasehold improvement property (for example, the common parent makes the election for each member of a consolidated group that wants to make the election; by the partnership; or by the S corporation). If a taxpayer files a 2003 or 2004 federal tax return after June 29, 2005, the taxpayer must follow the procedures in this section 3.02 (including the manner prescribed by the instructions for the 2004 Form 4562) for making the election not to treat as 5-year property the qualified Liberty Zone leasehold improvement property placed in service by the taxpayer after September 10, 2001, during the 2003 or 2004 taxable year.
(2) Limited relief for late election.
(a) Automatic 6-month extension. An automatic extension of 6 months from the due date of the federal tax return (excluding extensions) for the placed-in-service year of the qualified Liberty Zone leasehold improvement property is granted to make the election not to treat as 5-year property the qualified Liberty Zone leasehold improvement property placed in service by a taxpayer during the taxable year, provided the taxpayer filed the taxpayer’s federal tax return for the placed-in-service year and the taxpayer satisfies the requirements in § 301.9100-2(c) and § 301.9100-2(d) of the Procedure and Administration Regulations. See § 301.9100-2(b).
(b) Other extensions. A taxpayer that fails to make the election not to treat as 5-year property the qualified Liberty Zone leasehold improvement property placed in service by the taxpayer during the taxable year as provided in section 3.02(1), 3.02(2)(a), or 4 of this revenue procedure but wants to do so must file a request for an extension of time to make the election under the rules in § 301.9100-3.
.03 Revocation. An election not to treat as 5-year property the qualified Liberty Zone leasehold improvement property placed in service during the taxable year is revocable only with the prior written consent of the Commissioner of Internal Revenue. To seek the Commissioner’s consent, the taxpayer must submit a request for a letter ruling in accordance with the provisions of Rev. Proc. 2005-1, 2005-1 I.R.B. 1 (or any successor).
.04 Failure to make election not to treat as 5-year property qualified Liberty Zone leasehold improvement property. Except as provided in section 4 of this revenue procedure, the election not to treat qualified Liberty Zone leasehold improvement property as 5-year property cannot be made in any other manner (for example, through a request under § 446(e) to change the taxpayer’s method of accounting). Thus, if a taxpayer fails to make the election not to treat as 5-year property qualified Liberty Zone leasehold improvement property within the time and in the manner prescribed in section 3.02 or 4 of this revenue procedure, the amount of depreciation allowable for that property under § 168 must be determined for the placed-in-service year and for all subsequent taxable years by using the straight-line method of depreciation and, as applicable, a 5-year recovery period for purposes of the general depreciation system of § 168(a) or a 9-year recovery period for purposes of the alternative depreciation system of § 168(g).
SECTION 4. ELECTION PROCEDURES FOR RETURNS FILED ON OR BEFORE JUNE 29, 2005
.01 In general. If a taxpayer filed its 2000, 2001, 2002, 2003, or 2004 federal tax return on or before June 29, 2005, and used a 5-year recovery period or a 9-year recovery period, as applicable, to depreciate qualified Liberty Zone leasehold improvement property placed in service by the taxpayer after September 10, 2001, during the 2000, 2001, 2002, 2003, or 2004 taxable year, but wants to depreciate this property using a 39-year recovery period or 40-year recovery period, as applicable (or using a 15-year recovery period or 39-year recovery period, as applicable, if the qualified Liberty Zone leasehold improvement property is qualified leasehold improvement property under § 168(e)(6)), the taxpayer may elect not to use the 5-year recovery period or 9-year recovery period, as applicable, for the qualified Liberty Zone leasehold improvement property either by:
(1) filing an amended federal tax return(s) (or a qualified amended return(s) under Rev. Proc. 94-69, 1994-2 C.B. 804, if applicable) on or before June 29, 2007, for the placed-in-service year and all subsequent affected taxable year(s), provided that the placed-in-service year and all subsequent affected taxable year(s) are open under the period of limitations for assessment under § 6501(a). The amended return(s) (or qualified amended return(s)) should include the statement “Filed Pursuant to Rev. Proc. 2005-43” at the top of the amended return(s) (or qualified amended return(s)); or
(2) filing a Form 3115, Application for Change in Accounting Method, with the taxpayer’s federal tax return for the taxable year that includes June 29, 2005, or with the taxpayer’s federal tax return for the first taxable year succeeding the taxable year that included June 29, 2005. This Form 3115 must be filed in accordance with the automatic change in method of accounting provisions in Rev. Proc. 2002-9 or any successor, with the following modifications:
(a) The scope limitations in section 4.02 of Rev. Proc. 2002-9 do not apply; and
(b) For purposes of section 6.02(4)(a) of Rev. Proc. 2002-9, the taxpayer should include on line 1a of the Form 3115 (revised December 2003) the designated automatic accounting method change number for the change in method of accounting for depreciation made under this section 4. This number for this method change is “93.”
.02 Deemed election. A taxpayer also will be treated as making the election not to use the 5-year recovery period or 9-year recovery period, as applicable, to depreciate qualified Liberty Zone leasehold improvement property placed in service by the taxpayer after September 10, 2001, during the 2000, 2001, 2002, 2003, or 2004 taxable year, if the taxpayer on the return filed for that taxable year, depreciated all qualified Liberty Zone leasehold improvement property placed-in-service by the taxpayer after September 10, 2001, during the 2000, 2001, 2002, 2003, or 2004 taxable year, as applicable, under § 168 by using the straight-line method of depreciation and, as applicable, a 39-year recovery period for purposes of the general depreciation system of § 168(a) or a 40-year recovery period for purposes of the alternative depreciation system of § 168(g) (or, as applicable, a 15-year recovery period for purposes of § 168(a) or a 39-year recovery period for purposes of § 168(g) if the qualified Liberty Zone leasehold improvement property is qualified leasehold improvement property under § 168(e)(6)).
.01 Rev. Proc. 2002-9 is modified and amplified to include the accounting method change provided in section 4.01 of this revenue procedure in section 2 of the APPENDIX.
.02 Section 2.01 of the APPENDIX of Rev. Proc. 2002-9, as modified by Rev. Proc. 2004-11, 2004-1 C.B. 311, is modified as follows:
(1) Section 2.01(1)(d)(xii) of the APPENDIX is modified to read as follows:
“(xii) any change in method of accounting involving both a change from treating the cost or other basis of the property as nondepreciable or nonamortizable property to treating the cost or other basis of the property as depreciable or amortizable property and the adoption of a method of accounting for depreciation requiring an election under § 167, § 168, § 1400I, § 1400L, former § 168, or § 13261(g)(2) or (3) of the 1993 Act (for example, a change in the treatment of the space consumed in landfills placed in service in 1990 from nondepreciable to depreciable property (assuming section 2.01(1)(d)(xiii) of the APPENDIX does not apply) and the making of an election under 168(f)(1) to depreciate this property under the unit-of-production method of depreciation under § 167);”
(2) Section 2.01(1)(d)(xiv) and (xv) of the APPENDIX are modified, and section 2.01(1)(d)(xvi) of the APPENDIX is added, to read as follows:
“(xiv) a change from determining depreciation under § 168 to determining depreciation under former § 168 for any property subject to the transition rules in § 203(b) or 204(a) of the Tax Reform Act of 1986, 1986-3 (Vol. 1) C.B. 1, 60-80;
(xv) any change in the placed-in-service date of a depreciable or amortizable property. This change is corrected by adjustments in the applicable taxable year provided under § 1.446-1T(e)(2)(ii)(d)(3)(v); or
(xvi) any property for which the rehabilitation credit under § 47 was claimed and that a taxpayer is reclassifying to 3-year property, 5-year property, 7-year property, 10-year property (other than real property with a class life of more than 12.5 years), 15-year property (other than real property with a class life of more than 12.5 years), 20-year property (other than real property with a class life of more than 12.5 years), or water utility property (other than real property with a class life of more than 12.5 years).”
(3) Section 2.01(5)(i) of the APPENDIX is modified as follows:
“(i) Qualified New York Liberty Zone leasehold improvement property. The depreciation allowable for any taxable year for qualified New York Liberty Zone leasehold improvement property (as defined in § 1400L(c)(2)) is determined by using the depreciation method and recovery period prescribed in § 1400L(c) unless the taxpayer made a timely valid election under § 1400L(c)(5) not to use that recovery period.”
This revenue procedure is effective for qualified Liberty Zone leasehold improvement property placed in service after September 10, 2001. With respect to the new section 2.01(1)(d)(xvi) of the APPENDIX of Rev. Proc. 2002-9, this revenue procedure is effective for a Form 3115 filed for taxable years ending after July 31, 2005.
The principal author of this revenue procedure is Douglas Kim of the Office of Associate Chief Counsel (Passthroughs and Special Industries). For further information regarding this revenue procedure, contact Mr. Kim at (202) 622-3110 (not a toll-free call).
This revenue procedure obsoletes Rev. Proc. 93-22, 1993-1 C.B. 535, Rev. Proc. 87-8, 1987-1 C.B. 366, and Rev. Proc. 87-9, 1987-1 C.B. 368, which describe the representations that a nonresident alien student, teacher, or researcher at a university or other educational institution must make to claim an exemption from withholding tax on personal services income under the provisions of specific U.S. income tax treaties. Many of those treaties have been updated or replaced and, as a consequence, these revenue procedures are no longer correct. The current procedures for claiming tax treaty exemptions for students, teachers, and researchers, and the appropriate representations, may be found in Publication 519, U.S. Tax Guide for Aliens.
.01 In general. Code sections 1441 and 3402 require the payor of compensation for personal services to withhold federal taxes on that income. Withholding is not required if the income is exempt under a U.S. income tax treaty.
.02 Many U.S. income tax treaties provide that a nonresident alien student, teacher, or researcher at a university or other educational institution in the United States who receives income for personal services is exempt from income tax if certain requirements are met. These requirements typically limit the number of years in which the nonresident alien can claim the exemption, and provide a maximum dollar amount for the exemption in a taxable year.
.03 To claim the exemption, a nonresident alien individual must submit Form 8233, Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual, to his withholding agent certifying that the income is exempt from tax under a U.S. treaty provision. Form 8233 must also set forth the conditions necessary for the exemption and representations that they have been met. A separate Form 8233 must be filed for each taxable year.
.04 Upon receipt of Form 8233, the withholding agent will not be liable for a failure to withhold unless it knows or has reason to know that the nonresident alien is not eligible for the treaty exemption. In general, a withholding agent may rely on a Form 8233 that is completed in accordance with the procedures set forth in Publication 519. Such reliance is not reasonable, however, if the agent actually knows that the nonresident alien is not eligible for the treaty exemption, or actually knows or has reason to know that a nonresident alien’s statement on Form 8233 is false for any part of the period for which an exemption is claimed. For example, if a nonresident alien claims an exemption for compensation paid by the withholding agent for a period of time in excess of that provided by the applicable treaty, reliance on this revenue procedure would be unreasonable.
.05 Rev. Proc. 93-22, 1993-1 C.B. 535, Rev. Proc. 87-8, 1987-1 C.B. 366, and Rev. Proc. 87-9, 1987-1 C.B. 368, provided representations that a nonresident alien student, teacher, or researcher would include on Form 8233 to claim an exemption from withholding tax on personal services income under the provisions of specific U.S. income tax treaties. The representations included in the revenue procedures are not in all cases current.
.06 Information on current procedures for claiming a tax treaty exemption from withholding tax on personal services income under the provisions of specific U.S. income tax treaties may be found in Publication 519, U.S. Tax Guide for Aliens.
Rev. Proc. 93-22, 1993-1 C.B. 535, Rev. Proc. 87-8, 1987-1 C.B. 366, and Rev. Proc. 87-9, 1987-1 C.B. 368, are obsoleted.
The principal author of this revenue procedure is Nina Chowdhry of the Office of Associate Chief Counsel (International). For further information regarding this revenue procedure, contact Nina Chowdhry at (202) 622-3880 (not a toll-free call).
Newkirk, Stephon Winterville, NC CPA Indefinite from February 8, 2005
Goldman, Mark L. East Meadow, NY Attorney Indefinite from February 18, 2005
Johnston, H. James Knoxville, TN CPA Indefinite from March 16, 2005
Gapp, Edward J. Greenwich, CT CPA Indefinite from March 28, 2005
Rowland, Mark C. Westlake, OH CPA Indefinite from April 11, 2005
French Jr., Paul C. Bangor, MI CPA Indefinite from April 25, 2005
Mynsberge, Richard C. Mishawaka, IN CPA Indefinite from May 1, 2005
Specht Jr., Henry F. N. Myrtle Beach, SC CPA Indefinite from May 1, 2005
Sostarich, Mark E. S. Milwaukee, WI Attorney Indefinite from May 1, 2005
Gasa, William M. Winfield, IL Enrolled Agent Indefinite from June 1, 2005
Leisure, Sally R. Portland, OR Attorney Indefinite from June 9, 2005
Tuerk Jr., Carl E. Annapolis, MD Attorney Indefinite from July 1, 2005
Hawkins, Nicholas G. Harrods Creek, KY Attorney Indefinite from February 11, 2005
Richey, Michael L. Girardeau, MO Attorney Indefinite from February 11, 2005
Brown, Calvin D. Dallas, TX CPA Indefinite from February 16, 2005
Bell, James M. Bandera, TX CPA Indefinite from February 23, 2005
Fedynshyn, Michael P. Broomfield, CO Attorney Indefinite from February 23, 2005
Harris, Ross Pikeville, KY Attorney Indefinite from February 23, 2005
Tehin Jr., Nikolai San Francisco, CA Attorney Indefinite from March 7, 2005
Ballance, Frank W. Warrenton, NC Attorney Indefinite from March 7, 2005
Jacob, Arthur F. Sykesville, MD Attorney Indefinite from March 8, 2005
Hefley, Lee D. Burleson, TX CPA Indefinite from March 8, 2005
Beswick, Robert H. Encino, CA Attorney Indefinite from March 8, 2005
Scarpello, Joseph R. Tustin, CA CPA Indefinite from March 8, 2005
Machado, Lazaro J. Santa Ana, CA Attorney Indefinite from March 8, 2005
McKnew, Donna K. Ashland, KY Attorney Indefinite from March 8, 2005
Yarno Jr., William Lafayette, LA Attorney Indefinite from March 8, 2005
Walker, Frank O. Bay City, TX CPA Indefinite from March 8, 2005
Kafkas, Demetrios G. Tewksbury, MA Attorney Indefinite from March 8, 2005
Scott, Bertram A. Brooklyn, NY Attorney Indefinite from March 8, 2005
Templeton, Robert L. Ashland, KY Attorney Indefinite from March 8, 2005
Christopher, Nathan H. Salisbury, MD Attorney Indefinite from March 8, 2005
Willingham, Nathaniel J. Jacksonville, NC Attorney Indefinite from March 8, 2005
Anderson, Brett I. Des Moines, IA Attorney Indefinite from March 8, 2005
Broderick, Thomas F. Somerville, MA Attorney Indefinite from March 14, 2005
Peoples, Brendan K. Ft. Worth, TX CPA Indefinite from March 15, 2005
Tidmore, J. Todd Addison, TX CPA Indefinite from March 15, 2005
Cox, Patricia A. Victoria, TX CPA Indefinite from March 15, 2005
Rogers, Fred Mansfield, LA CPA Indefinite from March 15, 2005
Bridgeforth, Wyvonnia Oak Park, IL Attorney Indefinite from March 15, 2005
Bruce, Donna M. Athens, AL CPA Indefinite from March 18, 2005
Teske, David S. Seattle, WA Attorney Indefinite from March 18, 2005
Cobb Jr., Wayne H. Kaufman, TX Attorney Indefinite from March 18, 2005
Swindell IV, Lewis H. Avondale, AZ Attorney Indefinite fromMarch 18, 2005
Murr, Mark D. Houston, TX Attorney Indefinite from March 18, 2005
Nip, Raymond A.C. Honolulu, HI CPA Indefinite from March 18, 2005
Asbury, Lloyd T. Jacksonville, FL Attorney Indefinite from March 18, 2005
Lowell, Melinda E. New York, NY Attorney Indefinite from March 18, 2005
Rub, Lawrence P. Glenwood, MD CPA Indefinite from March, 18, 2005
Fagan, Charles G. Severna Park, MD CPA Indefinite from March 21, 2005
Lewis, Larry L. Woodbridge, VA Attorney Indefinite from March 28, 2005
Mpi, Afoma M. Peoria, IL Attorney Indefinite from March 30, 2005
Gross, Hyath B. Schenectady, NY Attorney Indefinite from April 1, 2005
Zick, Terry T. Wrightville Beach, NC Attorney Indefinite from April 1, 2005
Atlas, Joan M. Philadelphia, PA Attorney Indefinite from April 4, 2005
Rider, Lawrence C. Boulder, CO Attorney Indefinite from April 5, 2005
Eller, Scott D. Frisco, TX CPA Indefinite from April 6, 2005
Brenton, Robert O. Overland Park, KS CPA Indefinite from April 6, 2005
Folks, Lloyd C. Kinston, NC CPA Indefinite from April 6, 2005
Suckling, John R. San Marcos, CA CPA Indefinite from April 6, 2005
Pulito, James P. Phoenix, AZ CPA Indefinite from April 6, 2005
Garcia, Felix D. Auroa, CO Attorney Indefinite from April 6, 2005
Wentzel, Gerald L. Bloomingdale, IL CPA Indefinite from April 14, 2005
Williams, David W. Simpsonville, KY Attorney Indefinite from April 19, 2005
Sykes III, Bernard G. Riviera Beach, FL Attorney Indefinite from April 19, 2005
Hambrick Jr., J. C. Branson, MO Attorney Indefinite from April 19, 2005
Adams, David M. Charleston, SC Attorney Indefinite from April 19, 2005
Richardson, Jon M. Danville, IL Attorney Indefinite from April 19, 2005
Rose, Shaun H. Baltimore, MD Attorney Indefinite from April 19, 2005
Tanner, Fred L. Bowling Green, KY Attorney Indefinite from April 19, 2005
Perry, David W. Reading, MA Attorney Indefinite from April 19, 2005
Fleming, Bruce D. Council Bluffs, IA Attorney Indefinite from April 19, 2005
Healy, Paul J. Pembroke, MA Attorney Indefinite from April 19, 2005
Kaczynski, Ronald C. Andover, MA Attorney Indefinite from April 19, 2005
Whalley, Lester F. Yorba Linda, CA Attorney Indefinite from April 27, 2005
Tanner, Max Las Vegas, NV Attorney Indefinite from May 3, 2005
Blackwell, Johnny L. Fayetteville, NC CPA Indefinite from May 3, 2005
Szer, Steven Fort Mill, SC CPA Indefinite from May 3, 2005
Chinn, David P. Louisville, KY Attorney Indefinite from May 9, 2005
Bille, Anthony J. Hopkinton, MA Attorney Indefinite from May 16, 2005
Dotson, Lewis S. Mattoon, IL Attorney Indefinite from May 16, 2005
Palmer, Philip B. Chubbuck, ID Attorney Indefinite from May 16, 2005
Wolterbeek, Mark E. Rindge, NH Attorney Indefinite from May 31, 2005
James III., Charles M. Cheverly, MD Attorney Indefinite from May 31, 2005
Jorgensen, Allen C. Redlands, CA Attorney Indefinite from June 2, 2005
Brisbon, Brenda C. Baltimore, MD Attorney Indefinite from June 7, 2005
Gilroy, John M. Waterloo, NE Attorney Indefinite from June 7, 2005
Relphorde, Colin B. Homewood, IL Attorney Indefinite from June 7, 2005
Pomeroy, John S. Dedham, MA Attorney Indefinite from June 7, 2005
Gonick, Richard S. Ipswich, MA Attorney Indefinite from June 7, 2005
Curran, Martin J. Manchester, NH Attorney Indefinite from June 7, 2005
Koenigsdorf, Keith B. Overland Park, KS Attorney Indefinite from June 7, 2005
Jambor, Daniel F. St. Paul, MN Attorney Indefinite from June 7, 2005
LaFont Jr., Henry J. Lockport, LA Attorney Indefinite from June 7, 2005
Janosik, Dennis M. Parma, OH CPA Indefinite from June 9, 2005
Carter, Evalyn R. Calera, OK CPA Indefinite from June 9, 2005
Chasnoff, Joel Gaithersburg, MD Attorney Indefinite from June 9, 2005
O’Keefe, Michael E. Oak Park, CA Attorney Indefinite from June 9, 2005
Wilkes, Richard C. Bowbells, ND Attorney Indefinite from June 9, 2005
Rogers, Reginald J. Bowie, MD Attorney Indefinite from June 9, 2005
Hindley, Charles T. Colton, CA Attorney Indefinite from June 9, 2005
Morgan, Wendy B. Scotts Valley, CA Attorney Indefinite from June 9, 2005
Cahill, Gary Shelton, CT Attorney January 27, 2005 to January 26, 2008
Banks, Jean R. Van Nuys, CA Enrolled Agent March 8, 2005 to December 7, 2006
Borden Kathleen Bluffton, SC Attorney May 11, 2005
Williamson, Debra Long Beach, CA CPA June 3, 2005
This document contains a correction to temporary regulations (T.D. 9206, 2005-25 I.R.B. 1283) that was published in the Federal Register on Monday, May 23, 2005 (70 FR 29450) providing guidance for the filing of information returns by donees relating to qualified intellectual property contributions.
The final regulation (T.D. 9206) that is the subject of this correction is under section 6050 of the Internal Revenue Code.
As published, T.D. 9206, contains an error that may prove to be misleading and is in need of clarification.
§1.6050L-2T [Corrected]
Section 1.6050L-2T(c)(3) is amended by removing the language “the 90th day following May 23, 2005.” and adding the language “August 22, 2005.” in its place.
Bulletins 2005-27 through 2005-29
2005-48 2005-29 I.R.B. 2005-29
2005-49 2005-29 I.R.B. 2005-29
2005-41 2005-29 I.R.B. 2005-29
2005-43 2005-29 I.R.B. 2005-29
2005-44 2005-29 I.R.B. 2005-29
64-54 Obsoleted by Rev. Rul. 2005-43 2005-29 I.R.B. 2005-29
66-33 Obsoleted by Rev. Rul. 2005-43 2005-29 I.R.B. 2005-29
69-13 Obsoleted by Rev. Rul. 2005-43 2005-29 I.R.B. 2005-29
71-1 Obsoleted by Rev. Rul. 2005-43 2005-29 I.R.B. 2005-29
72-22 Obsoleted by Rev. Rul. 2005-43 2005-29 I.R.B. 2005-29
87-8 Obsoleted by Rev. Proc. 2005-44 2005-29 I.R.B. 2005-29
87-9 Obsoleted by Rev. Proc. 2005-44 2005-29 I.R.B. 2005-29
93-22 Obsoleted by Rev. Proc. 2005-44 2005-29 I.R.B. 2005-29
2000-49 Superseded by Rev. Proc. 2005-41 2005-29 I.R.B. 2005-29
2002-9 Modified and amplified by Rev. Proc–. 2005-43 2005-29 I.R.B. 2005-29
65-109 Obsoleted by Rev. Rul. 2005-43 2005-29 I.R.B. 2005-29
68-549 Obsoleted by Rev. Rul. 2005-43 2005-29 I.R.B. 2005-29
9206 Corrected by Ann. 2005-49 2005-29 I.R.B. 2005-29