Breadcrumb Region

Internal Revenue Bulletin: 2004-44

November 1, 2004


Highlights of This Issue

These synopses are intended only as aids to the reader in identifying the subject matter covered. They may not be relied upon as authoritative interpretations.

INCOME TAX

Rev. Rul. 2004-99 Rev. Rul. 2004-99

2004 base period T-bill rate. The “base period T-bill rate” for the period ending September 30, 2004, is published as required by section 995(f) of the Code.

Rev. Rul. 2004-100 Rev. Rul. 2004-100

Low-income housing credit; satisfactory bond; “bond factor” amounts for the period January through December 2004. This ruling announces the monthly bond factor amounts to be used by taxpayers who dispose of qualified low-income buildings or interests therein during the period January through December 2004.

Rev. Rul. 2004-101 Rev. Rul. 2004-101

LIFO; price indexes; department stores. The August 2004 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, August 31, 2004.

Notice 2004-70 Notice 2004-70

This document provides guidance regarding the treatment as qualified dividend income, for purposes of section 1(h)(11) of the Code, of distributions, inclusions, and other amounts from foreign corporations subject to certain anti-deferral regimes.

EXEMPT ORGANIZATIONS

Announcement 2004-88 Announcement 2004-88

A list is provided of organizations now classified as private foundations.

ADMINISTRATIVE

Rev. Proc. 2004-62 Rev. Proc. 2004-62

Substitute tax forms and schedules. Requirements are set forth for privately designed and printed federal tax forms and conditions under which the Service will accept computer-prepared, and computer-generated tax forms and schedules. Rev. Proc. 2003-73 superseded.

Preface

The IRS Mission

Provide America’s taxpayers top quality service by helping them understand and meet their tax responsibilities and by applying the tax law with integrity and fairness to all.

Introduction

The Internal Revenue Bulletin is the authoritative instrument of the Commissioner of Internal Revenue for announcing official rulings and procedures of the Internal Revenue Service and for publishing Treasury Decisions, Executive Orders, Tax Conventions, legislation, court decisions, and other items of general interest. It is published weekly and may be obtained from the Superintendent of Documents on a subscription basis. Bulletin contents are compiled semiannually into Cumulative Bulletins, which are sold on a single-copy basis.

It is the policy of the Service to publish in the Bulletin all substantive rulings necessary to promote a uniform application of the tax laws, including all rulings that supersede, revoke, modify, or amend any of those previously published in the Bulletin. All published rulings apply retroactively unless otherwise indicated. Procedures relating solely to matters of internal management are not published; however, statements of internal practices and procedures that affect the rights and duties of taxpayers are published.

Revenue rulings represent the conclusions of the Service on the application of the law to the pivotal facts stated in the revenue ruling. In those based on positions taken in rulings to taxpayers or technical advice to Service field offices, identifying details and information of a confidential nature are deleted to prevent unwarranted invasions of privacy and to comply with statutory requirements.

Rulings and procedures reported in the Bulletin do not have the force and effect of Treasury Department Regulations, but they may be used as precedents. Unpublished rulings will not be relied on, used, or cited as precedents by Service personnel in the disposition of other cases. In applying published rulings and procedures, the effect of subsequent legislation, regulations, court decisions, rulings, and procedures must be considered, and Service personnel and others concerned are cautioned against reaching the same conclusions in other cases unless the facts and circumstances are substantially the same.

The Bulletin is divided into four parts as follows:

Part I.—1986 Code. This part includes rulings and decisions based on provisions of the Internal Revenue Code of 1986.

Part II.—Treaties and Tax Legislation. This part is divided into two subparts as follows: Subpart A, Tax Conventions and Other Related Items, and Subpart B, Legislation and Related Committee Reports.

Part III.—Administrative, Procedural, and Miscellaneous. To the extent practicable, pertinent cross references to these subjects are contained in the other Parts and Subparts. Also included in this part are Bank Secrecy Act Administrative Rulings. Bank Secrecy Act Administrative Rulings are issued by the Department of the Treasury’s Office of the Assistant Secretary (Enforcement).

Part IV.—Items of General Interest. This part includes notices of proposed rulemakings, disbarment and suspension lists, and announcements.

The last Bulletin for each month includes a cumulative index for the matters published during the preceding months. These monthly indexes are cumulated on a semiannual basis, and are published in the last Bulletin of each semiannual period.

Part I. Rulings and Decisions Under the Internal Revenue Code of 1986

Rev. Rul. 2004-100

Low-income housing credit; satisfactory bond; “bond factor” amounts for the period January through December 2004. This ruling announces the monthly bond factor amounts to be used by taxpayers who dispose of qualified low-income buildings or interests therein during the period January through December 2004.

In Rev. Rul. 90-60, 1990-2 C.B. 3,the Internal Revenue Service provided guidance to taxpayers concerning the general methodology used by the Treasury Department in computing the bond factor amounts used in calculating the amount of bond considered satisfactory by the Secretary under § 42(j)(6) of the Internal Revenue Code. It further announced that the Secretary would publish in the Internal Revenue Bulletin a table of bond factor amounts for dispositions occurring during each calendar month.

Rev. Proc. 99-11, 1999-1 C.B. 275, established a collateral program as an alternative to providing a surety bond for taxpayers to avoid or defer recapture of the low-income housing tax credits under § 42(j)(6). Under this program, taxpayers may establish a Treasury Direct Account and pledge certain United States Treasury securities to the Internal Revenue Service as security.

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 December 2004.

Table 1 Rev. Rul. 2004-100 Monthly Bond Factor Amounts for Dispositions Expressed As a Percentage of Total Credits
Calendar Year Building Placed in Service or, if Section 42(f)(1) Election Was Made, the Succeeding Calendar Year
Month of Disposition 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Jan ’04 14.71 27.31 38.15 47.40 55.27 54.52 54.00 53.57 53.27 53.01 52.84
Feb ’04 14.71 27.31 38.15 47.40 55.27 54.40 53.89 53.45 53.16 52.91 52.74
Mar ’04 14.71 27.31 38.15 47.40 55.27 54.28 53.77 53.34 53.05 52.81 52.65
Apr ’04 15.55 28.88 40.34 50.12 58.45 57.84 57.87 57.99 58.25 58.56 58.98
May ’04 15.55 28.88 40.34 50.12 58.45 57.71 57.75 57.87 58.13 58.45 58.87
Jun ’04 15.55 28.88 40.34 50.12 58.45 57.59 57.63 57.75 58.02 58.34 58.77
Jul ’04 14.75 27.38 38.24 47.52 55.41 53.96 53.46 53.05 52.78 52.56 52.43
Aug ’04 14.75 27.38 38.24 47.52 55.41 53.85 53.36 52.95 52.68 52.47 52.35
Sep ’04 14.75 27.38 38.24 47.52 55.41 53.75 53.26 52.86 52.59 52.38 52.27
Oct ’04 15.52 28.81 40.24 50.00 58.30 56.99 57.04 57.18 57.46 57.82 58.28
Nov ’04 15.52 28.81 40.24 50.00 58.30 56.88 56.93 57.08 57.37 57.72 58.19
Dec ’04 15.52 28.81 40.24 50.00 58.30 56.77 56.83 56.97 57.27 57.64 58.11
Table 1 (cont’d) Rev. Rul. 2004-100 Monthly Bond Factor Amounts for Dispositions Expressed As a Percentage of Total Credits
Calendar Year Building Placed in Service or, if Section 42(f)(1) Election Was Made, the Succeeding Calendar Year
Month of Disposition 2001 2002 2003 2004
Jan ’04 52.99 53.40 54.02 54.15
Feb ’04 52.90 53.30 53.92 54.15
Mar ’04 52.81 53.22 53.83 54.15
Apr ’04 59.74 60.79 62.04 62.68
May ’04 59.64 60.69 61.93 62.68
Jun ’04 59.55 60.59 61.84 62.68
Jul ’04 52.61 53.03 53.64 54.15
Aug ’04 52.54 52.97 53.59 54.15
Sep ’04 52.47 52.91 53.54 54.15
Oct ’04 59.08 60.16 61.46 62.68
Nov ’04 59.01 60.10 61.40 62.68
Dec ’04 58.94 60.04 61.36 62.68

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; and Rev. Rul. 2003-117, 2003-46 I.R.B. 1051.

DRAFTING INFORMATION

The principal author of this revenue ruling is David McDonnell of the Office of Associate Chief Counsel (Passthroughs and Special Industries). For further information regarding this revenue ruling, contact Mr. McDonnell at (202) 622-3040 (not a toll-free call).

Rev. Rul. 2004-101

LIFO; price indexes; department stores. The August 2004 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, August 31, 2004.

The following Department Store Inventory Price Indexes for August 2004 were issued by the Bureau of Labor Statistics. The indexes are accepted by the Internal Revenue Service, under § 1.472-1(k) of the Income Tax Regulations and Rev. Proc. 86-46, 1986-2 C.B. 739, for appropriate application to inventories of department stores employing the retail inventory and last-in, first-out inventory methods for tax years ended on, or with reference to, August 31, 2004.

The Department Store Inventory Price Indexes are prepared on a national basis and include (a) 23 major groups of departments, (b) three special combinations of the major groups — soft goods, durable goods, and miscellaneous goods, and (c) a store total, which covers all departments, including some not listed separately, except for the following: candy, food, liquor, tobacco, and contract departments.

BUREAU OF LABOR STATISTICS, DEPARTMENT STORE INVENTORY PRICE INDEXES BY DEPARTMENT GROUPS (January 1941 = 100, unless otherwise noted)
Groups Aug. 2003 Aug. 2004 Percent Change from Aug. 2003 to Aug. 20041
1. Piece Goods 488.9 513.2 5.0
2. Domestics and Draperies 568.7 525.7 -7.6
3. Women’s and Children’s Shoes 631.4 623.7 -1.2
4. Men’s Shoes 838.8 838.6 0.0
5. Infants’ Wear 589.1 561.1 -4.8
6. Women’s Underwear 510.7 502.4 -1.6
7. Women’s Hosiery 347.8 337.5 -3.0
8. Women’s and Girls’ Accessories 551.0 557.2 1.1
9. Women’s Outerwear and Girls’ Wear 350.2 341.4 -2.5
10. Men’s Clothing 528.7 524.4 -0.8
11. Men’s Furnishings 565.6 564.3 -0.2
12. Boys’ Clothing and Furnishings 423.3 414.5 -2.1
13. Jewelry 880.6 902.5 2.5
14. Notions 787.1 794.8 1.0
15. Toilet Articles and Drugs 979.8 992.7 1.3
16. Furniture and Bedding 619.8 607.8 -1.9
17. Floor Coverings 588.7 581.5 -1.2
18. Housewares 720.4 709.6 -1.5
19. Major Appliances 209.7 196.9 -6.1
20. Radio and Television 45.0 41.2 -8.4
21. Recreation and Education2 82.3 80.1 -2.7
22. Home Improvements2 124.2 129.2 4.0
23. Automotive Accessories2 111.7 112.8 1.0
Groups 1-15: Soft Goods 553.5 546.4 -1.3
Groups 16-20: Durable Goods 392.1 379.2 -3.3
Groups 21-23: Misc. Goods2 93.8 93.1 -0.7
Store Total3 495.2 487.1 -1.6
1Absence of a minus sign before the percentage change in this column signifies a price increase.
2Indexes on a January 1986 = 100 base.
3The store total index covers all departments, including some not listed separately, except for the following: candy, food, liquor, tobacco and contract departments.

DRAFTING INFORMATION

The principal author of this revenue ruling is Michael Burkom of the Office of Associate Chief Counsel (Income Tax and Accounting). For further information regarding this revenue ruling, contact Mr. Burkom at (202) 622-7924 (not a toll-free call).

Rev. Rul. 2004-99

2004 base period T-bill rate. The “base period T-bill rate” for the period ending September 30, 2004, is published as required by section 995(f) of the Code.

Section 995(f)(1) of the Internal Revenue Code provides that a shareholder of a DISC shall pay interest each taxable year in an amount equal to the product of the shareholder’s DISC-related deferred tax liability for the year and the “base period T-bill rate.” Under section 995(f)(4), the base period T-bill rate is the annual rate of interest determined by the Secretary to be equivalent to the average of the 1-year constant maturity Treasury yields, as published by the Board of Governors of the Federal Reserve System, for the 1-year period ending on September 30 of the calendar year ending with (or of the most recent calendar year ending before) the close of the taxable year of the shareholder. The base period T-bill rate for the period ending September 30, 2004 is 1.60 percent.

Pursuant to section 6222 of the Code, interest must be compounded daily. The table below provides factors for compounding the base period T-bill rate daily for any number of days in the shareholder’s taxable year (including a 52-53 week accounting period) for the 2004 base period T-bill rate. To compute the amount of the interest charge for the shareholder’s taxable year, multiply the amount of the shareholder’s DISC-related deferred tax liability (as defined in section 995(f)(2)) for that year by the base period T-bill rate factor corresponding to the number of days in the shareholder’s taxable year for which the interest charge is being computed. Generally, one would use the factor for 365 days. One would use a different factor only if the shareholder’s taxable year for which the interest charge being determined is a short taxable year, if the shareholder uses the 52-53 week taxable year, or if the shareholder’s taxable year is a leap year.

For the base period T-bill rates for the periods ending in prior years, see Rev. Rul. 2003-111, 2003-45 I.R.B. 1009, Rev. Rul. 2002-68, 2002-2 C.B. 808, Rev. Rul. 2001-56, 2001-2 C.B. 500, and Rev. Rul. 2000-52, 2000-2 C.B. 516.

DRAFTING INFORMATION

The principal author of this revenue ruling is David Bergkuist of the Office of the Associate Chief Counsel (International). For further information about this revenue ruling, contact Mr. Bergkuist at (202) 622-3850 (not a toll-free call).

2004 ANNUAL RATE, COMPOUNDED DAILY
DAYS 1.60 PERCENT FACTOR
1 .000043716
2 .000087434
3 .000131153
4 .000174875
5 .000218598
6 .000262324
7 .000306051
8 .000349780
9 .000393511
10 .000437244
11 .000480979
12 .000524716
13 .000568455
14 .000612196
15 .000655938
16 .000699683
17 .000743429
18 .000787178
19 .000830928
20 .000874680
21 .000918434
22 .000962190
23 .001005948
24 .001049708
25 .001093470
26 .001137233
27 .001180999
28 .001224766
29 .001268536
30 .001312307
31 .001356080
32 .001399855
33 .001443632
34 .001487411
35 .001531192
36 .001574975
37 .001618760
38 .001662546
39 .001706335
40 .001750125
41 .001793918
42 .001837712
43 .001881508
44 .001925306
45 .001969106
46 .002012908
47 .002056712
48 .002100518
49 .002144325
50 .002188135
51 .002231947
52 .002275760
53 .002319575
54 .002363393
55 .002407212
56 .002451033
57 .002494856
58 .002538681
59 .002582508
60 .002626336
61 .002670167
62 .002714000
63 .002757834
64 .002801670
65 .002845509
66 .002889349
67 .002933191
68 .002977035
69 .003020881
70 .003064729
71 .003108579
72 .003152431
73 .003196284
74 .003240140
75 .003283997
76 .003327857
77 .003371718
78 .003415581
79 .003459447
80 .003503314
81 .003547183
82 .003591054
83 .003634926
84 .003678801
85 .003722678
86 .003766556
87 .003810437
88 .003854319
89 .003898204
90 .003942090
91 .003985978
92 .004029868
93 .004073760
94 .004117654
95 .004161550
96 .004205448
97 .004249347
98 .004293249
99 .004337153
100 .004381058
101 .004424965
102 .004468875
103 .004512786
104 .004556699
105 .004600614
106 .004644531
107 .004688450
108 .004732371
109 .004776293
110 .004820218
111 .004864145
112 .004908073
113 .004952004
114 .004995936
115 .005039870
116 .005083806
117 .005127744
118 .005171684
119 .005215626
120 .005259570
121 .005303516
122 .005347464
123 .005391413
124 .005435365
125 .005479318
126 .005523274
127 .005567231
128 .005611190
129 .005655151
130 .005699114
131 .005743079
132 .005787046
133 .005831015
134 .005874986
135 .005918959
136 .005962933
137 .006006910
138 .006050888
139 .006094869
140 .006138851
141 .006182835
142 .006226821
143 .006270809
144 .006314799
145 .006358791
146 .006402785
147 .006446781
148 .006490778
149 .006534778
150 .006578779
151 .006622783
152 .006666788
153 .006710796
154 .006754805
155 .006798816
156 .006842829
157 .006886844
158 .006930861
159 .006974880
160 .007018900
161 .007062923
162 .007106948
163 .007150974
164 .007195003
165 .007239033
166 .007283065
167 .007327100
168 .007371136
169 .007415174
170 .007459214
171 .007503256
172 .007547300
173 .007591345
174 .007635393
175 .007679443
176 .007723494
177 .007767548
178 .007811603
179 .007855661
180 .007899720
181 .007943781
182 .007987844
183 .008031909
184 .008075976
185 .008120045
186 .008164116
187 .008208189
188 .008252263
189 .008296340
190 .008340418
191 .008384499
192 .008428581
193 .008472666
194 .008516752
195 .008560840
196 .008604930
197 .008649022
198 .008693116
199 .008737212
200 .008781310
201 .008825409
202 .008869511
203 .008913615
204 .008957720
205 .009001828
206 .009045937
207 .009090048
208 .009134162
209 .009178277
210 .009222394
211 .009266513
212 .009310634
213 .009354757
214 .009398881
215 .009443008
216 .009487137
217 .009531267
218 .009575400
219 .009619534
220 .009663671
221 .009707809
222 .009751949
223 .009796091
224 .009840236
225 .009884382
226 .009928529
227 .009972679
228 .010016831
229 .010060985
230 .010105141
231 .010149298
232 .010193458
233 .010237619
234 .010281783
235 .010325948
236 .010370115
237 .010414284
238 .010458455
239 .010502629
240 .010546803
241 .010590980
242 .010635159
243 .010679340
244 .010723523
245 .010767707
246 .010811894
247 .010856082
248 .010900273
249 .010944465
250 .010988660
251 .011032856
252 .011077054
253 .011121254
254 .011165456
255 .011209660
256 .011253866
257 .011298074
258 .011342283
259 .011386495
260 .011430709
261 .011474924
262 .011519142
263 .011563361
264 .011607583
265 .011651806
266 .011696031
267 .011740258
268 .011784487
269 .011828718
270 .011872951
271 .011917186
272 .011961423
273 .012005662
274 .012049902
275 .012094145
276 .012138390
277 .012182636
278 .012226884
279 .012271135
280 .012315387
281 .012359641
282 .012403897
283 .012448156
284 .012492416
285 .012536678
286 .012580941
287 .012625207
288 .012669475
289 .012713745
290 .012758016
291 .012802290
292 .012846565
293 .012890843
294 .012935122
295 .012979404
296 .013023687
297 .013067972
298 .013112259
299 .013156548
300 .013200839
301 .013245132
302 .013289427
303 .013333724
304 .013378023
305 .013422323
306 .013466626
307 .013510930
308 .013555237
309 .013599545
310 .013643856
311 .013688168
312 .013732482
313 .013776798
314 .013821117
315 .013865437
316 .013909759
317 .013954082
318 .013998408
319 .014042736
320 .014087066
321 .014131398
322 .014175731
323 .014220067
324 .014264404
325 .014308744
326 .014353085
327 .014397428
328 .014441774
329 .014486121
330 .014530470
331 .014574821
332 .014619174
333 .014663529
334 .014707886
335 .014752245
336 .014796605
337 .014840968
338 .014885333
339 .014929699
340 .014974068
341 .015018438
342 .015062811
343 .015107185
344 .015151561
345 .015195939
346 .015240320
347 .015284702
348 .015329086
349 .015373472
350 .015417860
351 .015462249
352 .015506641
353 .015551035
354 .015595431
355 .015639828
356 .015684228
357 .015728629
358 .015773033
359 .015817438
360 .015861845
361 .015906255
362 .015950666
363 .015995079
364 .016039494
365 .016083911
366 .016128330
367 .016172751
368 .016217174
369 .016261599
370 .016306025
371 .016350454

Part III. Administrative, Procedural, and Miscellaneous

Notice 2004-70

Treatment as Qualified Dividend Income for Purposes of Section 1(h)(11) of the Internal Revenue Code of Distributions, Inclusions, and Other Amounts From Foreign Corporations Subject to Certain Anti-Deferral Regimes

SECTION 1. PURPOSE

This notice provides guidance regarding the extent to which distributions, inclusions and other amounts received by, or included in the income of, individual shareholders as ordinary income from foreign corporations subject to certain anti-deferral regimes may be treated as qualified dividend income for purposes of section 1(h)(11) of the Internal Revenue Code (Code). This guidance is necessary to reflect the provisions of the Jobs and Growth Tax Relief Reconciliation Act of 2003 (P.L. 108-27, 117 Stat. 752) (2003 Act) that provided for reduced rates of tax on certain dividends for taxable years beginning after December 31, 2002. The Treasury Department and the Internal Revenue Service intend to issue regulations under section 1(h)(11) of the Code that incorporate the guidance set forth in this notice.

SECTION 2. OVERVIEW

The 2003 Act provides that qualified dividend income received by an individual shareholder is subject to tax at reduced rates. This notice provides guidance regarding the extent to which distributions, inclusions, and other amounts received by, or included in the income of, individual shareholders as ordinary income from foreign corporations subject to certain anti-deferral regimes may be treated as qualified dividend income for purposes of section 1(h)(11) of the Code. Section 3 of this notice describes the statutory rules for determining whether income is qualified dividend income and describes in general the anti-deferral regimes applicable to controlled foreign corporations (as defined in sections 957(a) and (b) and 953(c)(1)(B)) (CFCs), foreign personal holding companies (as defined in section 552(a)) (FPHCs), foreign investment companies (as defined in section 1246(b)) (FICs), and passive foreign investment companies (as defined in section 1297(a)) (PFICs). These rules are relevant principally because section 1(h)(11)(C)(iii) provides that dividends from a foreign corporation which for the taxable year of the corporation in which the dividend is paid, or the preceding taxable year, is an FPHC, a FIC, or a PFIC, are not qualified dividend income. Section 4 of this notice provides guidance with respect to distributions, inclusions, and other amounts from a CFC that is not also an FPHC, a FIC, or a PFIC. Section 5 of this notice provides guidance with respect to FPHCs, including FPHCs that are also CFCs. Section 6 of this notice provides guidance with respect to FICs, including FICs that are also CFCs. Section 7 of this notice provides guidance with respect to PFICs, including PFICs that are also CFCs.

This notice provides that distributions of non-previously taxed earnings and profits from a CFC to an individual are qualified dividend income, and therefore are eligible for the reduced rates of tax applicable to certain capital gains under section 1(h)(1) of the Code, provided that the CFC is otherwise a qualified foreign corporation. This notice also provides that section 951(a)(1) inclusions from a CFC and deemed or actual distributions from an FPHC, a FIC or a PFIC are not qualified dividend income under section 1(h)(11)(B)(i)(II) and therefore are not eligible for the reduced rates of tax applicable to certain capital gains under section 1(h)(1). In addition, this notice provides that, for purposes of section 1(h)(11), the determination of whether a foreign corporation is a PFIC is made on a shareholder-by-shareholder basis. Accordingly, distributions of non-previously taxed earnings and profits received by an individual from a CFC that would be a PFIC with respect to that individual but for the application of section 1297(e) are qualified dividend income if the CFC is otherwise a qualified foreign corporation.

SECTION 3. BACKGROUND

.01 The 2003 Act

In general, section 1(h)(1) of the Code provides that an individual taxpayer’s net capital gain for any taxable year is subject to a maximum tax rate of 15 percent (or 5 percent in the case of certain taxpayers). Section 1(h)(11) provides that, for purposes of section 1(h), the term “net capital gain” means net capital gain increased by qualified dividend income.

“Qualified dividend income” is defined as dividends received during the taxable year from domestic corporations and qualified foreign corporations. Section 1(h)(11)(B)(i) of the Code. The term “qualified foreign corporation” does not include any foreign corporation that, for the taxable year of the corporation in which the dividend is paid, or the preceding taxable year, is an FPHC, a FIC, or a PFIC. Section 1(h)(11)(C)(iii). Subject to this limitation, the term “qualified foreign corporation” means any foreign corporation that is incorporated in a possession of the United States or that is eligible for the benefits of a comprehensive income tax treaty with the United States which the Secretary determines is satisfactory for purposes of this provision and which includes an exchange of information program.[1] Section 1(h)(11)(C)(i). In addition, a foreign corporation is treated as a qualified foreign corporation with respect to any dividend paid by such corporation if the stock with respect to which such dividend is paid is readily tradable on an established securities market in the United States.[2] Section 1(h)(11)(C)(ii).

.02 Anti-deferral Regimes under the Code

Income earned by a foreign corporation from its foreign operations generally is subject to U.S. tax when such income is distributed to a U.S. person that holds stock in such foreign corporation. Accordingly, a U.S. person that is a shareholder of a foreign corporation generally is not subject to U.S. tax on the income earned by the foreign corporation until that income is distributed to the shareholder as a dividend. However, a variety of anti-deferral regimes apply to subject the U.S. shareholder to U.S. tax on that income even if the income is not actually distributed to the shareholder.

A brief summary of the rules applicable to foreign corporations subject to each of the anti-deferral regimes addressed in this notice is provided below.

(1) CFCs. In general, a CFC is any foreign corporation with respect to which U.S. shareholders own more than 50 percent of the total combined voting power of all classes of stock of such corporation entitled to vote or the total value of such corporation. Under section 951(b) of the Code, a “United States shareholder” is a U.S. person (as defined in section 957(c)) that owns ten percent or more of the total combined voting power of all classes of stock entitled to vote.

United States shareholders of CFCs are required to include in gross income currently their pro rata share of certain income of the CFC (referred to as “subpart F income”), without regard to whether the income is distributed by the CFC to its shareholders in the year the income is earned. Section 951(a)(1)(A) of the Code. Subpart F income includes foreign base company income, including foreign personal holding company income (e.g., dividends, interest, annuities and other specified passive income), and certain insurance income. Sections 952, 953, and 954. United States shareholders of a CFC also are required to include currently in income their pro rata share of the CFC’s earnings to the extent invested by the CFC in U.S. property. Section 951(a)(1)(B). The amounts so included in income under section 951(a)(1) are limited to the shareholder’s pro rata share of the current earnings and profits of the CFC. Section 951(a)(2) and (c)(1)(A).

Income of a CFC that has been included in the gross income of its United States shareholders as an inclusion under section 951(a)(1) of the Code is not included in gross income again when it actually is distributed to the United States shareholders. Section 959(a)(1). Any income of a CFC that is not included in the gross income of its United States shareholders under section 951(a)(1) is not subject to U.S. tax as income of the United States shareholders until actually distributed as a dividend. A United States shareholder of a CFC that sells its stock in the CFC generally is required to report any recognized gain from the sale of the stock as a dividend to the extent of the untaxed undistributed earnings and profits of the CFC and certain subsidiaries that are attributable to the United States shareholder. Section 1248(a) and (c)(2).

(2) FPHCs. A foreign corporation is an FPHC if (1) at any time during the taxable year more than 50 percent of the stock of the corporation, determined by vote or value, is owned by five or fewer individuals who are U.S. citizens or residents; and (2) at least 60 percent of the corporation’s gross income for the taxable year is foreign personal holding company income (e.g., dividends, interest, annuities and other specified passive income). Once a foreign corporation qualifies as an FPHC, however, the gross income threshold for each subsequent year is only 50 percent, until the expiration of either one taxable year during which the stock ownership requirement is not satisfied or three consecutive taxable years in each of which the gross income requirement is not satisfied at the 50 percent threshold. Section 552(a) of the Code.

All individual shareholders of an FPHC who are U.S. persons must include in gross income their distributive shares of undistributed foreign personal holding company income (as defined in section 556(a) of the Code) without regard to whether the income is distributed by the FPHC to its shareholders in the taxable year the income is earned. The undistributed foreign personal holding company income of an FPHC is the taxable income of the FPHC with adjustments minus the amount of the dividends paid deduction determined under section 561. Section 556(a). The undistributed foreign personal holding company income of an FPHC is treated as a dividend under section 551(b). Amounts that are deemed distributed as a dividend are treated as recontributed by the U.S. individual shareholders to the FPHC as a contribution to capital.

(3) FICs. A foreign corporation is a FIC if (1) it is registered under the Investment Company Act of 1940, either as a management company or as a unit investment trust; or (2) it is engaged primarily in the business of investing, reinvesting, or trading in securities or commodities, or in any interest in securities or commodities, at a time when 50 percent or more of the total combined voting power of all classes of stock entitled to vote, or the value of all classes of stock, is held by U.S. persons. Section 1246(b) of the Code. Under the FIC rules, in general, gain on the sale or exchange (or a distribution that is treated as an exchange) of stock in a FIC is treated as ordinary income to the extent of the taxpayer’s ratable share of the post-1962 undistributed earnings and profits of the FIC. Section 1246(a). Any amount previously included in the gross income of the shareholder under section 951 is excluded from the shareholder’s ratable share of the post-1962 undistributed earnings and profits of the FIC (but only to the extent the inclusion of such amount did not result in the exclusion of any other amount from gross income under section 959). A FIC that elected before 1963 to distribute annually 90 percent of its taxable income (other than capital gains) is not subject to the general rules of section 1246(a) with respect to any year in which the election applies. Section 1247(a)(1); Section 1.1247-1(c)(1) of the Income Tax Regulations. Qualified shareholders (as defined in section 1247(c)) who invest in FICs that elected this treatment under section 1247 and for which the election is currently in effect are required to include in income currently their share of the net long term capital gains of the FIC whether or not actually distributed.

(4) PFICs. In general, a foreign corporation is a PFIC if (1) 75 percent or more of its gross income for the taxable year consists of passive income; or (2) the average percentage of assets held by the corporation during the taxable year that produce, or are held for the production of, passive income is 50 percent or more. Section 1297(a) of the Code. Subject to certain exceptions, passive income generally means income of a kind that would be foreign personal holding company income under section 954(c). Section 1297(b).

In general, gain recognized by a U.S. person on the disposition of stock of a PFIC, or the amount of any excess distribution (as defined under section 1291(b)), is treated as ordinary income earned pro rata over the shareholder’s holding period with respect to the PFIC stock. Amounts attributed to the current taxable year are included as ordinary income. Amounts attributed to prior years are subject to tax at the highest applicable tax rate in effect for each respective year of the holding period, and interest is imposed at the underpayment rate on the tax liability with respect to such amounts.

As an alternative to being taxed under the rules of section 1291(a) of the Code, a shareholder that is a U.S. person may make a qualified electing fund (QEF) election under section 1295 of the Code or a mark to market election under section 1296. In general, a U.S. shareholder that makes a QEF election must include in gross income its pro rata share of the QEF’s ordinary income and net capital gain for the taxable year. Section 1293(a). A U.S. shareholder of a PFIC that makes a mark to market election must include in gross income for its taxable year as ordinary income the excess of the fair market value of the PFIC stock over its adjusted basis. Section 1296(c)(1). The adjusted basis of the shareholder’s stock is increased by the amount included in the gross income of the shareholder with respect to the stock.

A foreign corporation may be treated as a PFIC with respect to some shareholders but not others. Under section 1298(b)(1), a foreign corporation generally is treated as a PFIC with respect to a shareholder even if the corporation does not meet the income or asset tests for the current year if the corporation met either the income test or the asset test during any portion of the shareholder’s holding period of the stock of the foreign corporation and the shareholder has not made a QEF election.[3] Under section 1297(e), a foreign corporation is not treated as a PFIC with respect to a shareholder even if the corporation meets the income test or the asset test if the corporation is a CFC, the shareholder is a United States shareholder, and certain other conditions are met.

SECTION 4. CONTROLLED FOREIGN CORPORATIONS

This section provides guidance with respect to distributions, inclusions, and other amounts received by individual shareholders from a CFC that is not also an FPHC, a FIC, or a PFIC (and that was not an FPHC, a FIC, or a PFIC in the preceding taxable year). The treatment of distributions, inclusions, and other amounts received by individual shareholders of a CFC that is also an FPHC, a FIC, or a PFIC is addressed in sections 5, 6, and 7 of this notice, respectively.

Individual United States shareholders of CFCs may have amounts included in income under section 951(a)(1) of the Code, distributions of amounts previously taxed under section 951(a)(1), or distributions of amounts that have not been previously taxed under section 951(a)(1). The tax treatment of these amounts in the context of section 1(h)(11) is discussed below.

.01 Distributions of Amounts Not Previously Taxed

Section 1(h)(11) of the Code does not exclude CFCs from the definition of “qualified foreign corporations.” Thus, actual dividends from a CFC’s non-previously taxed earnings and profits to an individual shareholder are qualified dividend income provided that the CFC is otherwise a qualified foreign corporation under section 1(h)(11)(C) and the other requirements of section 1(h)(11) are met. Similarly, amounts treated as dividends under section 1248(a) are qualified dividend income provided that the CFC is otherwise a qualified foreign corporation under section 1(h)(11)(C) and the other requirements of section 1(h)(11) are met.[4]See section 1248(a) (stating gain recognized on the sale or exchange of stock in certain foreign corporations shall be included in the gross income of a shareholder as a dividend). In addition, amounts treated as dividends under section 1.367(b)-2(e)(2) of the regulations (i.e., section 1248 amounts and all earnings and profits amounts) are qualified dividend income provided that the CFC is otherwise a qualified foreign corporation under section 1(h)(11)(C) and the other requirements of section 1(h)(11) are met.[5]

.02 Section 951(a)(1) Inclusions

Neither section 951(a)(1) nor the corresponding regulations characterize a section 951(a)(1) inclusion as a dividend. In contrast, deemed inclusions under the FPHC and PFIC regimes are characterized as dividends throughout the statutory provisions governing these regimes. See, e.g., section 551(b) (stating that undistributed foreign personal holding company income is included in a foreign personal holding company shareholder’s gross income as a dividend). Moreover, while section 1248 requires inclusions in gross income as a dividend, section 951 simply requires inclusions in gross income.[6] Accordingly, for purposes of section 1(h)(11), section 951(a)(1) inclusions are not dividends and therefore cannot constitute qualified dividend income.

.03 Distributions of Previously Taxed Income

Distributions of previously taxed income excluded from gross income under section 959(a) of the Code are not qualified dividend income because they are not subject to U.S. tax and are not dividends. See section 959(a) and (d).

SECTION 5. FOREIGN PERSONAL HOLDING COMPANIES

.01 In General

Section 1(h)(11)(C)(iii) of the Code excludes FPHCs from the definition of qualified foreign corporation. Therefore, actual dividends received by U.S. individuals who are shareholders of an FPHC are not qualified dividend income. Similarly, undistributed foreign personal holding company income that is treated as distributed to individual U.S. shareholders as a dividend is not qualified dividend income. Further, a dividend from a foreign corporation that is not an FPHC but was an FPHC in the preceding taxable year is not qualified dividend income.

.02 FPHCs that are also CFCs

A foreign corporation may be both an FPHC and a CFC. Because a foreign corporation that is both an FPHC and a CFC continues to be an FPHC, any dividends (both actual dividends and amounts treated as a dividend) received by an individual shareholder from that corporation are not qualified dividend income.

SECTION 6. FOREIGN INVESTMENT COMPANIES

.01 In General

Section 1(h)(11)(C)(iii) of the Code excludes FICs from the definition of qualified foreign corporation. Therefore, actual dividends received by U.S. individuals who are shareholders of a FIC are not qualified dividend income. Likewise, a shareholder’s pro rata share of a FIC’s post-1962 accumulated earnings and profits following the sale of FIC stock is not qualified dividend income. Similarly, amounts distributed as ordinary income by a FIC that has a section 1247 election in effect also are not qualified dividend income. Further, a dividend from a foreign corporation that is not a FIC but was a FIC in the preceding taxable year is not qualified dividend income.

.02 FICs that are also CFCs

A foreign corporation may be both a FIC and a CFC. Because a foreign corporation that is both a FIC and a CFC continues to be a FIC, any dividends or other distributions taxable as ordinary income from that corporation are not qualified dividend income.

SECTION 7. PASSIVE FOREIGN INVESTMENT COMPANIES

.01 In General

Section 1(h)(11)(C)(iii) of the Code excludes PFICs from the definition of qualified foreign corporation. As a result, a dividend (including an excess distribution) from a foreign corporation that is a PFIC or that is not a PFIC in the current taxable year but was a PFIC in the preceding taxable year is not qualified dividend income.

Similarly, amounts included in a shareholder’s gross income under sections 1293(a) (in the case of a shareholder that has made a QEF election) or 1296 (in the case of a shareholder that has made a mark to market election) are not qualified dividend income.

.02 Determination of PFIC Status

As noted above in Section 3.02(4), some of the rules for determining whether a foreign corporation is a PFIC operate on a shareholder-by-shareholder basis. Therefore, a foreign corporation may be treated as a PFIC with respect to some shareholders but not others. Thus, for purposes of section 1(h)(11), the result of an analysis of whether a foreign corporation is a PFIC, and therefore whether dividends from that corporation are for that reason excluded from qualified dividend income, may be different for shareholders of the same foreign corporation.

A determination of whether a foreign corporation was a PFIC in the previous taxable year also should be made on a shareholder-by-shareholder basis if the shareholder of the foreign corporation was a shareholder in the previous taxable year. For example, a foreign corporation that was a PFIC under the income test or the asset test of section 1297(a) of the Code for one year of a shareholder’s holding period under certain circumstances may be a PFIC with respect to that shareholder even though it may not meet the income or asset tests in subsequent years and notwithstanding that the foreign corporation may not be a PFIC with respect to other shareholders. Section 1298(b)(1). To the extent a foreign corporation is a PFIC with respect to a shareholder, dividends received by that shareholder are not qualified dividend income.

.03 PFICs that are also CFCs

A foreign corporation may be both a PFIC and a CFC. Except where section 1297(e) of the Code applies to certain shareholders as described below, in cases where a foreign corporation is both a PFIC and a CFC an amount received by a shareholder from such a corporation is not qualified dividend income.

Where a foreign corporation is a CFC, section 1297(e)(1) of the Code provides that the foreign corporation generally is not treated as a PFIC with respect to a shareholder during the qualified portion of the shareholder’s holding period in the stock of the foreign corporation even if the corporation meets the income test or the asset test. The qualified portion generally is the portion of the shareholder’s holding period that is after December 31, 1997, and during which the shareholder is a United States shareholder and the foreign corporation is a CFC. This overlap elimination rule does not apply if the foreign corporation otherwise is treated as a PFIC under section 1298(b)(1) because there is a portion of the shareholder’s holding period prior to the application of this rule when the foreign corporation was a PFIC. H.R. Rep. No. 105-148, 105th Cong., 1st Sess., at 534 (1997).

In cases where a foreign corporation would qualify as a PFIC with respect to a shareholder but for the application of section 1297(e) of the Code, for purposes of section 1(h)(11), distributions, inclusions, or amounts received by, or included in the income of, that shareholder from that foreign corporation are subject to the same analysis as amounts from foreign corporations that are CFCs and are not PFICs. Thus, in accordance with the guidance provided for CFCs in Section 4 above, distributions of non-previously taxed earnings and profits received by an individual from a CFC that would be treated as a PFIC with respect to such individual but for the rule of section 1297(e) are qualified dividend income provided that the CFC is otherwise a qualified foreign corporation under section 1(h)(11)(C) and the other requirements of section 1(h)(11) are met.

SECTION 8. EFFECTIVE DATE

Regulations to be issued relating to the guidance set forth in this notice will be effective for amounts included in income on or after October 8, 2004. Until such regulations are issued, taxpayers may rely on this notice.

SECTION 9. COMMENTS

Comments should be submitted in writing and should include a reference to Notice 2004-70.

Written comments may be submitted to CC:PA:LPD (Notice 2004-70), Room 5207, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, D.C. 20044. Alternatively, interested parties may submit comments electronically via the following e-mail address: Notice.Comments@irscounsel.treas.gov. Please include “Notice 2004-70” in the subject line of any electronic communications.

Submissions may be hand delivered Monday through Friday between the hours of 8 a.m. and 4 p.m. to: CC:PA:LPD (Notice 2004-70), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue, N.W., Washington, D.C. 20224.

VI. CONTACT INFORMATION

The principal author of this notice is Alexandra K. Helou of the Office of Associate Chief Counsel (International). However, other personnel from the Service and the Treasury participated in its development. For further information regarding this notice, contact Phyllis Marcus at (202) 622-3840 (not a toll-free call).



[1] See Notice 2003-69, 2003-42 I.R.B. 851 (providing the current list of U.S. tax treaties meeting these requirements).

[2] See Notice 2003-71, 2003-43 I.R.B. 922 (defining “readily tradable” on an established securities market in the United States with respect to dividends received on or after January 1, 2003); Notice 2003-79, 2003-50 I.R.B. 1206 (defining “readily tradable” for securities other than ordinary or common stock).

[3] Section 1298(b)(1) also may not apply to a shareholder that has obtained a new holding period under section 1.1296-1(f) of the regulations by reason of a mark-to-market election.

[4] Amounts treated as dividends under section 1248(a) in the case of gain with respect to stock of a foreign corporation that was a CFC during the 5-year period prior to the disposition also may be qualified dividend income provided that the foreign corporation is otherwise a qualified foreign corporation under section 1(h)(11)(C) and the other requirements of section 1(h)(11) are met. Future guidance may address the treatment of section 304 amounts and section 306(a)(2) amounts under section 1(h)(11).

[5] Amounts treated as dividends under section 1.367(b)-2(e)(2) of the regulations with respect to foreign corporations that are not CFCs also may be qualified dividend income provided that the foreign corporation is otherwise a qualified foreign corporation under section 1(h)(11)(C) and the other requirements of section 1(h)(11) are met. Section 1.367(b)-3(c)(3).

[6] It should be noted that, while section 951(a) was not modified by the 2003 Act, section 306(a)(1)(D) was modified to provide that, for purposes of section 1(h)(11), amounts treated as ordinary income under section 306 shall be treated as a dividend received from the corporation.

Rev. Proc. 2004-62

General Rules and Specifications for Substitute Forms and Schedules

Part 1 Introduction to Substitute Forms

Section 1.1 - Overview of Revenue Procedure 2004-62

1.1.1
Purpose

The purpose of this revenue procedure is to provide guidelines and general requirements for the development, printing, and approval of substitute tax forms. Approval will be based on these guidelines. After review and approval, submitted forms will be accepted as substitutes for official IRS forms.

1.1.2
Unique Forms

Certain unique specialized forms require the use of other additional publications to supplement this publication. See Part 4.

1.1.3
Scope

The IRS accepts quality substitute tax forms that are consistent with the official forms and do not have an adverse impact on our processing. The IRS Substitute Forms Unit administers the formal acceptance and processing of these forms nationwide. While this program deals primarily with paper documents, it also reviews for approval other processing and filing forms such as those used in electronic filing.

Only those substitute forms that comply fully with the requirements set forth are acceptable. Exhibit H lists the forms mentioned in this document, their titles, and where their references are made. This revenue procedure is updated as required to reflect pertinent tax year form changes and to meet processing and/or legislative requirements.

1.1.4
Forms Covered by This
Revenue Procedure

The following types of forms are covered by this revenue procedure:

  • IRS tax forms and their related schedules.

  • Worksheets as they appear in instruction packages.

  • Applications for permission to file returns electronically and forms used as required documentation for electronically filed returns.

  • Powers of Attorney.

  • Over-the-counter estimated tax payment vouchers.

  • Forms and schedules relating to partnerships, exempt organizations, and employee plans.

1.1.5
Forms Not Covered by
This Revenue Procedure

The following types of forms are not covered by this revenue procedure:

  • W-2 and W-3 (see Publication 1141 for information on these forms).

  • W-2c and W-3c (see Publication 1223 for information on these forms).

  • 1096, 1098 series, 1099 series, 5498 series, W-2G, and 1042-S (see Publication 1179 for information on these forms).

  • Federal Tax Deposit (FTD) coupons, which may not be reproduced.

  • Forms 1040-ES (OCR) and 1041-ES (OCR), which may not be reproduced.

  • Forms 5500, 5500-EZ, and associated schedules (see the Department of Labor website (www.dol.gov) for information on these forms).

  • Requests for information or documentation initiated by the IRS.

  • Forms used internally by the IRS.

  • State tax forms.

  • Forms developed outside the IRS.

  • General and Specific Instructions are not reviewed by the Substitute Forms Program Unit.

Section 1.2 - IRS Contacts

1.2.1
Where To Send
Substitute Forms

Send your substitute forms for approval to the following offices (Do not send forms with taxpayer data):

Form Office and Address
FINCEN Form 101, FINCEN Form 102, FINCEN Form 103, FINCEN Form 103-N, FINCEN Form 104, 8300, TD F 90-22.1, TD F 90-22.47, TD F 90-22.53, TD F 90-22.55, TD F 90-22.56 IRS Computing Center BSA Compliance Branch P.O. Box 32063 Detroit, MI 48232-0063
5500, 5500-EZ, and Schedules A through E, G, H, I, P, R, SSA, and T for Form 5500 Check EFAST information at the Department of Labor’s website at www.efast.dol.gov
All others (except W-2, W-2c, W-3, W-3c, 1096, 1098, 1099, 5498, W-2G, and 1042-S) Internal Revenue Service Attn: Substitute Forms Program SE:W:CAR:MP:T:T:SP 1111 Constitution Avenue, NW Room 6406 Washington, DC 20224

In addition, the Substitute Forms Program Unit can be contacted via email at *taxforms@irs.gov . Please enter “Substitute Forms” on the subject line. Use this email address only to inquire about forms covered by this revenue procedure. Do not attach graphic files for approval with email.

For questions about Forms W-2 and W-3, refer to IRS Publication 1141, General Rules and Specifications for Substitute Forms W-2 and W-3. For Forms W-2c and W-3c, refer to IRS Publication 1223, General Rules and Specifications for Substitute Forms W-2c and W-3c. For Forms 1096, 1098, 1099, 5498, W-2G, and 1042-S, refer to IRS Publication 1179, General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, W-2G, and 1042-S.

Section 1.3 - What's New

1.3.1
What's New

The following changes have been made to the Revenue Procedure for 2004:

  • The Substitute Forms Program is now accepting substitute forms submissions via email. The email address is *taxforms@irs.gov . See Section 2.1.2.

  • The Substitute Forms Program office symbols have changed to SE:W:CAR:MP:T:T:SP. The room number has changed to 6406.

  • Exhibits D through G have been rearranged.

  • The formats for Schedules K-1 of Forms 1065 and 1120S have significantly changed for 2004. Because Publication 1167 is printed before the forms become finalized, draft copies are provided in the exhibits (see Exhibits D, E, and F). Before releasing their substitute forms, software vendors are responsible for making any subsequent changes made to the final official IRS forms after the draft forms have been posted.

  • The requirements for Schedules K-1 of Forms 1041, 1065, 1065-B and 1120S have changed. Among other changes, all lines must now be included on the substitute schedules. (See Section 7.1 and Exhibits D, E and F).

Section 1.4 - Definitions

1.4.1
Substitute Form

A tax form (or related schedule) that differs in any way from the official version and is intended to replace the form that is printed and distributed by the IRS. This term also covers those approved substitute forms exhibited in this revenue procedure.

1.4.2
Printed/Preprinted
Form

A form produced using conventional printing processes, or a printed form which has been reproduced by photocopying or a similar process.

1.4.3
Preprinted Pin-Fed
Form

A printed form that has marginal perforations for use with automated and high speed printing equipment.

1.4.4
Computer Prepared
Substitute Form

A preprinted form in which the taxpayer's tax entry information has been inserted by a computer, computer printer, or other computer type equipment such as word processing equipment.

1.4.5
Computer Generated Substitute Tax Return or Form

A tax return or form that is entirely designed and printed using a computer printer such as a laser printer, etc., on plain white paper. This return or form must conform to the physical layout of the corresponding IRS form, although the typeface may differ. The text should match the text on the officially printed form as closely as possible. Condensed text and abbreviations will be considered on a case-by-case basis.

Exception. All jurat (perjury statements) must be reproduced verbatim.

1.4.6
Manually Prepared
Form

A preprinted reproduced form in which the taxpayer's tax entry information is entered by an individual using a pen, pencil, typewriter, or other non-automated equipment.

1.4.7
Graphics

Parts of a printed tax form that are not tax amount entries or required information. Examples of graphics are line numbers, captions, shadings, special indicators, borders, rules, and strokes created by typesetting, photographics, photocomposition, etc.

1.4.8
Acceptable Reproduced
Form

A legible photocopy of an original form.

1.4.9
Supporting Statement (Supplemental Schedule)

A document providing detailed information to support a line entry on an official or approved substitute form and filed with (attached to) a tax return.

Note. A supporting statement is not a tax form and does not take the place of an official form unless specifically permitted elsewhere in this procedure.

1.4.10
Specific Form Terms

The following specific terms are used throughout this revenue procedure in reference to all substitute forms: format, sequence, line reference, item caption, and data entry field.

1.4.11
Format

The overall physical arrangement and general layout of a substitute form.

1.4.12
Sequence

Sequence is an integral part of the total format requirement. The substitute form should show the same numeric and logical placement order of data, as shown on the official form.

1.4.13
Line Reference

The line numbers, letters, or alphanumerics used to identify each captioned line on an official form. These line references are printed to the immediate left of each caption or data entry field.

1.4.14
Item Caption

The text on each line of a form, which identifies the data required.

1.4.15
Data Entry Field

Designated areas for the entry of data such as dollar amounts, quantities, responses and checkboxes, etc.

1.4.16
Advance Draft

A draft version of a new or revised form may be posted to the IRS website for information purposes. Substitute forms may be submitted based on these advance drafts, but any company that receives forms approval based on these early drafts is responsible for monitoring and revising forms to mirror any revisions in the final forms provided by the IRS.

Section 1.5 - Agreement

1.5.1
Important Stipulation
of This Revenue Procedure

Any person or company who uses substitute forms and makes all or part of the changes specified in this revenue procedure agrees to the following stipulations:

  • The IRS presumes the changes are made in accordance with these procedures and will not be disruptive to the processing of the tax return.

  • Should any of the changes prove to be not exactly as described, and as a result become disruptive to the IRS’s processing of the tax return, the person or company agrees to accept the determination of the IRS as to whether or not the form may continue to be used during the filing season.

  • The person or company agrees to work with the IRS in correcting noted deficiencies. Notification of deficiencies may be made by any combination of fax, letter, email, or phone contact and may include the return of unacceptable forms for re-submission of acceptable forms.

Part 2 General Guidelines for Submissions and Approvals

Section 2.1 - General Specifications for Approval

2.1.1
Overview

If you produce any tax forms using IRS guidelines on permitted changes, you can generate your own substitutes without further approval. If your changes are more extensive, you must get IRS approval before using substitute forms. These changes include the use of typefaces and sizes other than those found on the official form and the condensing of line item descriptions to save space.

2.1.2
Email Submissions

The Substitute Forms Program is now accepting substitute forms submissions via email. The email address is *taxforms@irs.gov . Please include “PDF Submissions” on the subject line.

Follow these guidelines:

  • Your submission should include all the forms you wish to submit in one attached pdf file. Do not email each form individually.

  • Emailing pdf submissions will not expedite review and approval. The pdf submissions will be assigned a control number and put in queue along with mailed-in paper submissions.

  • Small (fewer than 15 forms), rather than large submissions should expedite processing.

  • Optimize pdf files before submitting.

  • The maximum allowable email attachment is 2.5 megabytes.

  • The Substitute Forms Unit will accept zip files.

  • An approval checklist listing the forms you are submitting should always be included in the pdf file along with the forms.

  • To alleviate delays during the peak time of
    September through December, submit advance draft forms as early as possible.

If the guidelines are not followed, you may need to resubmit.

In addition to submitting forms via email, you may continue to send your submissions to:

Internal Revenue Service
SE:W:CAR:MP:T:T:SP
Attn: Substitute Forms Program
1111 Constitution Avenue, NW
Room 6406
Washington, DC 20224

2.1.3
Schedules

Schedules are considered to be an integral part of a complete tax return. A schedule may be included as part of a form or printed separately.

2.1.4
Examples of Schedules
That Must Be Submitted
with the Return

Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, is an example of this situation. Its Schedules A through U have pages numbered as part of the basic return. For Form 706 to be approved, the entire form including Schedules A through U must be submitted.

2.1.5
Examples of Schedules
That Can Be Submitted Separately

However, Schedules 1, 2, and 3 of Form 1040A are examples of schedules that can be submitted separately. Although printed by the IRS as a supplement to Form 1040A, none of these schedules are required to be filed with Form 1040A. These schedules may be separated from Form 1040A and submitted as substitute forms.

2.1.6
Use and Distribution of Unapproved Forms

The IRS is continuing a program to identify and contact tax return preparers, forms developers, and software publishers who use or distribute unapproved forms that do not conform to this revenue procedure. The use of unapproved forms hinders the processing of the returns.

Section 2.2 - Highlights of Permitted Changes and Requirements

2.2.1
Methods of
Reproducing Internal
Revenue Service Forms

Official IRS tax forms are supplied by the IRS. These forms may be provided in the taxpayer’s tax package or over-the-counter. Forms can also be picked up at many IRS offices, post offices, or libraries, and are available on CD-ROM and on-line via the Internet.

There are methods of reproducing IRS printed tax forms suitable for use as substitutes without prior approval.

  • You can photocopy most tax forms and use them instead of the official ones. The entire substitute form, including entries, must be legible.

  • You can reproduce any current tax form as cut sheets, snap sets, and marginally punched, pin-fed forms as long as you use an official IRS version as the master copy.

  • You can reproduce a “signature form” as a valid substitute form. Many tax forms (including returns) have a taxpayer signature requirement as part of the form layout. The jurat/perjury statement/signature line areas must be retained and worded exactly as on the official form. The requirement for a signature by itself does not prohibit a tax form from being properly computer-generated.

Section 2.3 - Vouchers

2.3.1
Overview

All payment vouchers (Forms 940-V, 940-EZ(V), 941-V, 943-V, 945-V, 1040-V, and 2290-V) must be reproduced in conjunction with their forms. Substitute vouchers must be the same size as the officially printed vouchers. Vouchers that are prepared for printing on a laser printer may include a scan line.

2.3.2
Scan Line
Specifications

NNNNNNNNN AA AAAA NN N NNNNNN NNN
Item: A B C D E F G
A. Social Security Number/Employer Identification Number (SSN/EIN) has 9 numeric spaces.
B. Check Digits have 2 alpha spaces.
C. Name Control has 4 alphanumeric spaces.
D. Master File Tax (MFT) Code has 2 numeric spaces (see below).
E. Taxpayer Identification Number (TIN) Type has 1 numeric space (see below)
F. Tax Period has six numeric spaces in year/month format (YYYYMM).
G. Transaction Code has 3 numeric spaces.

2.3.3
MFT Code

Code Number for Forms:

  • 1040 family - 30;

  • 940/940-EZ - 10;

  • 941 - 01;

  • 943 - 11;

  • 945 - 16; and

  • 2290 - 60.

2.3.4
TIN Type

Type Number for:

  • Form 1040 family - 0; and

  • Forms 940, 940-EZ, 941, 943, 945, and 2290 - 2.

2.3.5
Voucher Size

The voucher size must be exactly 8.0′′ x 3.25′′ (Forms 1040-ES and 1041-ES must be 7.625′′ x 3.0′′). The document scan line must be vertically positioned 0.25 inches from the bottom of the scan line to the bottom of the voucher. The last character on the right of the scan line must be placed 3.5 inches from the right leading edge of the document. The minimum required horizontal clear space between characters is .014 inches. The line to be scanned must have a clear band 0.25 inches in height from top to bottom of the scan line, and from border to border of the document. “Clear band” means no printing except for dropout ink.

2.3.6
Print and Paper Weight

Vouchers must be imaged in black ink using OCR A, OCR B, or Courier 10. These fonts may not be mixed in the scan line. The horizontal character pitch is 10 CPI. The paper must be 20 to 24 pound OCR bond paper weight.

Section 2.4 - Restrictions on Changes

2.4.1
What You Cannot
Do to Forms Suitable for Substitute
Tax Forms

You cannot, without prior IRS approval, change any IRS tax form or use your own (non-approved) versions including graphics, unless specifically permitted by this revenue procedure.

You cannot adjust any of the graphics on Forms 1040, 1040A, and 1040EZ (except in those areas specified in Part 5 of this revenue procedure) without prior approval from the IRS Substitute Forms Unit.

You cannot use your own preprinted label on tax returns filed with the IRS unless you fully comply with the criteria specified in the section in this revenue procedure on the use of pre-addressed IRS labels.

Section 2.5 - Guidelines for Obtaining IRS Approval

2.5.1
Basic Requirements

Preparers who submit substitute privately designed, privately printed, computer generated, or computer prepared tax forms must develop these substitutes using the guidelines established in this part. These forms, unless excepted by the revenue procedure, must be approved by the IRS before being filed.

2.5.2
Conditional Approval Based on Advanced Drafts

The IRS cannot grant final approval of your substitute form until the official form has been published. However, the IRS has established a location on the Internet for posting advance draft forms. This site can be reached in the “Tax Professionals” area at:

www.irs.gov/taxpros/lists/0,,id=97782,00.html

We encourage submission of proposed substitutes of these advance draft forms, and will grant conditional approval based solely on these early drafts. These advance drafts are subject to significant change before forms are finalized. If these advance drafts are used as the basis for your substitute forms, you will be responsible for subsequently updating your final forms to agree with the final official version. These revisions need not be submitted for further approval.

Note. Approval of forms based on advance drafts will not be granted after the final version of an official form is published.

2.5.3
Submission Procedures

Please follow these general guidelines when submitting substitute forms for approval:

  • Any alteration of forms must be within the limits acceptable to the IRS. It is possible that, from one filing period to another, a change in law or a change in internal need (processing, audit, compliance, etc.) may change the allowable limits for the alteration of the official form.

  • When specific approval of any substitute form (other than those specified in Part 1, Section 1.2 - IRS Contacts) is desired, a sample of the proposed substitute form should be forwarded for consideration by letter to the Substitute Forms Unit at the address shown in Section 1.2.

  • To expedite multiple forms approval, we prefer that your proposed forms be submitted in separate sets by return. For example, Forms 1040 and their normally related schedules or attachments should be submitted separately from Forms 1120 and 1065 if possible. Schedules and forms (for example, Forms 3468, 4136, etc.) that can be used with more than one type of return (for example, 1040, 1041, 1120, etc.) should be submitted only once for approval, regardless of the number of different tax returns with which they may be associated. Also, all pages of multi-page forms or returns should be submitted in the same package.

2.5.4
Approving Offices

Because only the Substitute Forms Unit is authorized to approve substitute forms, unnecessary delays may occur if forms are sent to the wrong office. The Substitute Forms Unit may then coordinate the response with the initiator responsible for revising that particular form. Such coordination may include allowing the initiator to officially approve the form. No IRS office is authorized to allow deviations from this revenue procedure.

2.5.5
IRS Review of
Software Programs, etc.

The IRS does not review or approve the logic of specific software programs, nor does the IRS confirm the calculations on the forms produced by these programs. The accuracy of the program remains the responsibility of the software package developer, distributor, or user.

The Substitute Forms Unit is primarily concerned with the pre-filing quality review of the final forms, produced by whatever means, that are expected to be processed by IRS field offices. For these, you should submit forms without including any taxpayer information such as names, addresses, monetary amounts, etc.

2.5.6
When To Send
Proposed Substitutes

Proposed substitutes, which are required to be submitted per this revenue procedure, should be sent as much in advance of the filing period as possible. This is to allow adequate time for analysis and response.

2.5.7
Accompanying
Statement

When submitting sample substitutes, you should include an accompanying statement that lists each form number and its changes from the official form (position, arrangement, appearance, line numbers, additions, deletions, etc.). With each of the items you should include a detailed reason for the change.

When requesting approval, please include a checklist. Checklists expedite the approval process. The checklist may look like the example in Exhibit G displayed in the back of this procedure or may be one of your own design. Please include your fax number on the checklist.

2.5.8
Approval/Non-
Approval Notice

The Substitute Forms Unit will fax the checklist or an approval letter to the originator if a fax number has been provided, unless:

  • The requester has asked for a formal letter; or

  • Significant corrections to the submitted forms are required.

Notice of approval may contain qualifications for use of the substitutes. Notices of unapproved letters may specify the changes required for approval, and may also require re-submission of the form(s) in question. Telephone contact is used when possible.

2.5.9
Duration of
Approval

Most signature tax returns and many of their schedules and related forms have the tax (liability) year printed in the upper right corner. Approvals for these forms are usually good for one calendar year (January through December of the year of filing). Quarterly tax forms in the 940 series and Form 720 require approval for any quarter in which the form has been revised.

Because changes are made to a form every year, each new filing season generally requires a new submission of a form. Very rarely is updating the preprinted year the only change made to a form.

2.5.10
Limited Continued Use
of an Approved Change

Limited changes approved for one tax year may be allowed for the same form in the following tax year. Examples of such limitations and requirements are the use of abbreviated words, revised form spacing, compressed text lines, and shortened captions, etc., which do not change the consistency of lines or text on the official forms.

If substantial changes are made to the form, new substitutes must be submitted for approval. If only minor editorial changes are made to the form, it is not subject to review. It is the responsibility of each vendor who has been granted permission to use substitute forms to monitor and revise forms to mirror any revisions to official forms made by the Service. If there are any questions, please contact the Substitute Forms Unit.

2.5.11
When Approval
Is Not Required

If you received written approval for a specific change on a form last year, such as deleting the vertical lines used to separate dollars and cents, you may make the same change this year if the item is still present on the official form.

  • The new substitute form does not have to be sent to the IRS and written approval is not required.

  • However, the new substitute form must conform to the official current year IRS form in other respects: date, Office of Management and Budget (OMB) approval number, attachment sequence number, Paperwork Reduction Act Notice statement, arrangement, item caption, line number, line reference, data sequence, etc.

  • The new substitute must also comply with this revenue procedure. The procedure may have eliminated, added to, or otherwise changed the guideline(s) that affected the change approved last year.

  • An approved change is authorized only for the period from a prior tax year substitute form to a current tax year substitute form.

Exception. Forms with temporary, limited, or interim approvals (or with approvals that state a change is not allowed in any other tax year) are subject to review in subsequent years.

2.5.12
Continuous
Use Forms

Forms without preprinted tax years are called “continuous use” forms. Continuous use forms are revised when a legislative change affects the form or a change will facilitate processing. These forms may have revision dates that are valid for longer than one year.

2.5.13
Internet
Program Chart

A chart of print dates (for annual and quarterly forms) and most current revision dates (for continuous use forms) will be maintained on the Internet. For further details, see Section 4.3.1 on access for the Internet and the Official Forms Release Schedule.

2.5.14
Required Copies

Generally, you must send us one copy of each form being submitted for approval. However, if you are producing forms for different computer systems (for example, IBM compatible vs. Macintosh) or different types of printers (for example, laser vs. inkjet), and these forms differ significantly in appearance, submit one copy for each type of system or printer.

2.5.15
Requestor's
Responsibility

Following receipt of an initial approval for a substitute forms package or a software output program to print substitute forms, it is the responsibility of the originator (designer or distributor) to provide client firms or individuals with forms that meet the IRS’s requirements for continuing acceptability. Examples of this responsibility include:

  • Using the prescribed print paper, font size, legibility, state tax data deletion, etc.

  • Informing all users of substitute forms of the legal requirements of the Paperwork Reduction Act Notice, which is generally found in the instructions for the official IRS forms.

2.5.16
Source Code

The Substitute Forms Unit, SE:W:CAR:MP:T:T:SP, will assign a unique source code to each firm that submits substitute paper forms for approval. This source code will be a permanent identifier that should be used on every submission by a particular firm.

The source code:

  • Consists of three alpha characters.

  • Should be printed at the bottom left margin area on the first page of every approved substitute form.

  • Should not be used on optically scanned (OCR) forms.

Section 2.6 - Office of Management and Budget (OMB) Requirements for All Substitute Forms

2.6.1
OMB Requirements
for All Substitute Forms

There are legal requirements of the Paperwork Reduction Act of 1995 (The Act). Public Law 104-13 requires that:

  • OMB approve all IRS tax forms that are subject to the Act,

  • Each IRS form contains (in the upper right corner) the OMB number, if any, and

  • Each IRS form (or its instructions) states why the IRS needs the information, how it will be used, and whether or not the information is required to be furnished.

This information must be provided to every user of official or substitute tax forms.

2.6.2
Application of the Paperwork Reduction Act

On forms that have been assigned OMB numbers:

  • All substitute forms must contain in the upper right corner the OMB number that is on the official form.

  • The required format is: OMB No. 1545-XXXX (Preferred) or OMB # 1545-XXXX (Acceptable).

2.6.3
Required
Explanation to Users

You must inform the users of your substitute forms of the IRS use and collection requirements stated in the instructions for official IRS forms.

  • If you provide your users or customers with the official IRS instructions, each form must retain either the Paperwork Reduction Act Notice (or Disclosure, Privacy Act, and Paperwork Reduction Act Notice), or a reference to it as the IRS does on the official forms (usually in the lower left corner of the forms).

  • This notice reads, in part, “We ask for the information on this form to carry out the Internal Revenue laws of the United States...”

Note. If the IRS instructions are not provided to users of your forms, the exact text of the Paperwork Reduction Act Notice (or Disclosure, Privacy Act, and Paperwork Reduction Act Notice) must be furnished separately or on the form.

2.6.4
Finding the OMB
Number and Paperwork Reduction Act Notice

The OMB number and the Paperwork Reduction Act Notice, or references to it, may be found printed on an official form (or its instructions). The number and the notice are included on the official paper format and in other formats produced by the IRS (for example, compact disc (CD) or Internet download).

Part 3 Physical Aspects and Requirements

Section 3.1 - General Guidelines for Substitute Forms

3.1.1
General Information

The official form is the standard. Because a substitute form is a variation from the official form, you should know the requirements of the official form for the year of use before you modify it to meet your needs. The IRS provides several means of obtaining the most frequently used tax forms. These include the Internet, fax-on-demand, and CD-ROM (see Part 4).

3.1.2
Design

Each form must follow the design of the official form as to format arrangement, item caption, line numbers, line references, and sequence.

3.1.3
State Tax
Information Prohibited

State tax information must not appear on the federal tax return, associated form, or schedule that is filed with the IRS. Exceptions occur when amounts are claimed on, or required by, the federal return (for example, state and local income taxes, on Schedule A of Form 1040).

3.1.4
Vertical Alignment
of Amount Fields

IF a form is to be... THEN...
Manually prepared 1. The column must have a vertical line or some type of indicator in the amount field to separate dollars from cents if the official form has a vertical line.
2. The cents column must be at least 3/10′′ wide.
Computer generated 1. Vertically align the amount entry fields where possible.
2. Use one of the following amount formats:
a) 0,000,000.
b) 0,000,000.00
Computer prepared 1. You may remove the vertical line in the amount field that separates dollars from cents.
2. Use one of the following amount formats:
a) 0,000,000.
b) 0,000,000.00

3.1.5
Attachment
Sequence Number

Many individual income tax forms have a required “attachment sequence number” located just below the year designation in the upper right corner of the form. The IRS uses this number to indicate the order in which forms are to be attached to the tax return for processing. Some of the attachment sequence numbers may change from year to year.

On computer prepared forms:

  • The sequence number may be printed in no less than 12-point boldface type and centered below the form’s year designation.

  • The sequence number may also be placed following the year designation for the tax form and separated with an asterisk.

  • The actual number may be printed without labeling it the “Attachment Sequence Number.”

3.1.6
Paid Preparer's
Information and
Signature Area

On Forms 1040EZ, 1040A, 1040, and 1120, etc., the “Paid Preparer's Use Only” area may not be rearranged or relocated. You may, however, add three extra lines to the paid preparer’s address area without prior approval. This applies to other tax forms as well.

3.1.7
Assembly of Forms

If developing software or forms for use by others, please inform your customers/clients that the order in which the forms are arranged may affect the processing of the package. A return must be arranged in the order indicated below.

IF the form is... THEN the sequence is...
1040 • Form 1040. • Schedules and forms in attachment sequence number order.
Any other tax return (Form 1120, 1120S, 1065, 1041, etc.) • The tax returns. • Directly associated schedules (Schedule D, etc.). • Directly associated forms. • Additional schedules in alphabetical order. • Additional forms in numerical order.

Supporting statements should then follow in the same sequence as the forms they support. Additional information required should be attached last.

In this way, the forms are received in the order in which they must be processed. If you do not send returns to us in order, processing may be delayed.

Section 3.2 - Paper

3.2.1
Paper Content

The paper must be:

  • Chemical wood writing paper that is equal to or better than the quality used for the official form,

  • At least 18 pound (17′′ x 22′′, 500 sheets), or

  • At least 50 pound offset book (25′′ x 38′′, 500 sheets).

3.2.2
Paper with
Chemical Transfer
Properties

There are several kinds of paper prohibited for substitute forms. These are:

1. Carbon-bonded paper
2. Chemical transfer paper except when the following specifications are met:
a. Each ply within the chemical transfer set of forms must be labeled.
b. Only the top ply (ply one and white in color), the one that contains chemical on the back only (coated back), may be filed with the IRS.

3.2.3
Example

A set containing three plies would be constructed as follows: ply one (coated back), “Federal Return, File with IRS”; ply two (coated front and back), “Taxpayer's copy”; and ply three (coated front), “Preparer’s copy.”

The file designation, “Federal Return, File with IRS” for ply one, must be printed in the bottom right margin (just below the last line of the form) in 12- point boldface type.

It is not mandatory, but recommended, that the file designation “Federal Return, File with IRS” be printed in a contrasting ink for visual emphasis.

3.2.4
Carbon Paper

Do not attach any carbon paper to any return you file with the IRS.

3.2.5
Paper and Ink
Color

We prefer that the color and opacity of paper substantially duplicates that of the original form. This means that your substitute must be printed in black ink and may be on white or on the colored paper the IRS form is printed on. Forms 1040A and 1040 substitute reproductions may be in black ink without the colored shading. The only exception to this rule is Form 1041-ES, which should always be printed with a very light gray shading in the color screened area. This is necessary to assist us in expeditiously separating this form from the very similar Form 1040-ES.

3.2.6
Page Size

Substitute or reproduced forms and computer prepared/generated substitutes may be the same size as the official form or they may be the standard commercial size (8 1/2′′ x 11′′). The thickness of the stock cannot be less than .003 inches.

Section 3.3 - Printing

3.3.1
Printing Medium

The private printing of all substitute tax forms must be by conventional printing processes, photocopying, computer graphics, or similar reproduction processes.

3.3.2
Legibility

All forms must have a high standard of legibility as to printing, reproduction, and fill-in matter. Entries of taxpayer data may be no smaller than eight points. The IRS reserves the right to reject those with poor legibility. The ink and printing method used must ensure that no part of a form (including text, graphics, data entries, etc.) develops “smears” or similar quality deterioration. This includes any subsequent copies or reproductions made from an approved master substitute form, either during preparation or during IRS processing.

3.3.3
Type Font

Many federal tax forms are printed using “Helvetica” as the basic type font. We request that you use this type font when composing substitute forms.

3.3.4
Print Spacing

Substitute forms should be printed using a 6 lines/inch vertical print option. They should also be printed horizontally in 10 pitch pica (that is, 10 print characters per inch) or 12 pitch elite (that is, 12 print positions per inch).

3.3.5
Image Size

The image size of a printed substitute form should be as close as possible to that of the official form. You may omit any text on both computer prepared and computer generated forms that is solely instructional.

3.3.6
Title Area Changes

To allow a large top margin for marginal printing and more lines per page, the title line(s) for all substitute forms (not including the form’s year designation and sequence number, when present), may be photographically reduced by 40 percent or reset as one line of type. When reset as one line, the type size may be no smaller than 14-point. You may omit “Department of the Treasury, Internal Revenue Service” and all reference to instructions in the form’s title area.

3.3.7
Remove
Government Printing Office Symbol and IRS
Catalog Number

When privately printing substitute tax forms, the Government Printing Office (GPO) symbol and/or jacket number must be removed. In the same place, using the same type size print the Employer Identification Number (EIN), the Social Security Number (SSN) of the printer or designer, or the IRS assigned source code. (We prefer this last number be printed in the lower left area of the first page of each form.) Also, remove the IRS Catalog Number (Cat. No.) if one is present in the bottom center margin, and the recycle symbol if the substitute is not produced on recycled paper.

3.3.8
Printing on One
Side of Paper

While it is preferred that both sides of the paper be used for substitutes and reproduced forms, resulting in the same page arrangement as that of the official form or schedule, the IRS will not reject your forms if only one side of the paper is used.

3.3.9
Photocopy
Equipment

The IRS does not undertake to approve or disapprove the specific equipment or process used in reproducing official forms. Photocopies of forms must be entirely legible and satisfy the conditions stated in this and other revenue procedures.

3.3.10
Reproductions

Reproductions of official forms and substitute forms that do not meet the requirements of this revenue procedure may not be filed instead of the official forms. Illegible photocopies are subject to being returned to the filer for re-submission of legible copies.

3.3.11
Removal of
Instructions

You may remove references to instructions. No prior approval is needed.

Exception. The words “For Paperwork Reduction Act Notice, see instructions” must be retained or a similar statement provided on each form. Some forms refer the taxpayer to a page number in the instructions for information on the Paperwork Reduction Act Notice.

Section 3.4 - Margins

3.4.1
Margin Size

The format of a reproduced tax form when printed on the page must have margins on all sides at least as large as the margins on the official form. This allows room for IRS employees to make necessary entries on the form during processing.

  • A 1/2-inch to 1/4-inch margin must be maintained across the top, bottom, and both sides of all substitute forms.

  • The marginal, perforated strips containing pin-fed holes must be removed from all forms prior to filing with the IRS.

3.4.2
Marginal Printing

Prior approval is not required for the marginal printing allowed when printed on an official form or on a photocopy of an official form.

  • With the exception of the actual tax forms (for example, Forms 1040, 1040A, 1040EZ, 1120, 940, 941, etc.), you may print in the left vertical margin and in the left half of the bottom margin.

  • Printing is never allowed in the top right margin of the tax form (for example, Forms 1040, 1040A, 1040EZ, 1120, 940, 941, etc.). The Service uses this area to imprint a Document Locator Number for each return. There are no exceptions to this requirement.

Section 3.5 - Examples of Approved Formats

3.5.1
Examples of
Approved Formats From
the Exhibits

Three sets of exhibits (Exhibits A-1, 2; B-1, 2; and C-1, 2) are at the end of this revenue procedure as examples of how these guidelines may be used. Vertical spacing is six (6) lines to the inch. A combination of upper-case and lower-case print font is acceptable in producing substitute forms.

The same logic may be applied to any IRS form that is normally reproducible as a substitute form, with the exception of the tax return forms as discussed elsewhere. These exhibits may be from a prior year and are not to be used as current substitute forms.

Section 3.6 - Miscellaneous Information for Substitute Forms

3.6.1
Filing Substitute
Forms

To be acceptable for filing, a substitute form must print out in a format that will allow the filer to follow the same instructions as for filing official forms. These instructions are in the taxpayer’s tax package or in the related form instructions. The form must be on the appropriately sized paper, legible, and include a jurat, where one appears on the published form.

3.6.2
Caution to Software
Publishers

The IRS has received returns produced by software packages with approved output where either the form heading was altered or the lines were spaced irregularly. This produces an illegible or unrecognizable return or a return with the wrong number of pages. We realize that many of these problems are caused by individual printer differences but they may delay input of return data and, in some cases, generate correspondence to the taxpayer. Therefore, in the instructions to the purchasers of your product, both individual and professional, please stress that their returns will be processed more efficiently if they are properly formatted. This includes:

  • Having the correct form numbers and titles at the top of the return, and

  • Submitting the same number of pages as if the form were an official IRS form with the line items on the proper pages.

3.6.3
Use Pre-Addressed
IRS Label

If you are a practitioner filling out a return for a client or a software publisher who prints instruction manuals, stress the use of the pre-addressed label provided in the tax package the IRS sent to the taxpayer, when available. The use of this label (or its precisely duplicated label information) is extremely important for the efficient, accurate, and economical processing of a taxpayer's return. Labeled returns indicate that a taxpayer is an established filer and permits the IRS to automatically accelerate processing of those returns. This results in quicker refunds, less manual review by IRS functions, and greater accuracy in names, addresses, and postal deliveries.

3.6.4
Caution to
Producers of
Software Packages

If you are producing a software package that generates name and address data onto the tax return, do not under any circumstances program either the IRS preprinted check digits or a practitioner derived name control to appear on any return prepared and filed with the IRS.

3.6.5
Programming
to Print Forms

Whenever applicable:

  • Use only the following label information format for single filers:
    JOHN Q. PUBLIC 310 OAK DRIVE HOMETOWN, STATE 94000

  • Use only the following information for joint filers: JOHN Q. PUBLIC
    MARY I. PUBLIC 310 OAK DRIVE HOMETOWN, STATE 94000

Part 4
Additional Resources

Section 4.1 - Guidance From Other Revenue Procedures

4.1.1
General

Guidance for the substitute tax forms not covered in this revenue procedure and the revenue procedures that govern their use are as follows:

  • Revenue Procedure 2004-54, IRS Publication 1141, General Rules and Specifications for Substitute Forms W-2 and W-3.

  • Revenue Procedure 2004-58, IRS Publication 1179, General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, W-2G and 1042-S.

  • Revenue Procedure 2004-63, IRS Publication 1187, Specifications for Filing Forms 1042S, Foreign Person's U.S. Source Income Subject to Withholding, Electronically or Magnetically.

  • Revenue Procedure 2004-50, IRS Publication 1220, Specifications for Filing Forms 1098, 1099, 5498, and W-2G Electronically or Magnetically.

  • Revenue Procedure 2003-31, IRS Publication 1223, General Rules and Specifications for Substitute Forms W-2c and W-3c.

Section 4.2 - Ordering Publications

4.2.1
Sources of
Publications

The publications listed below are available either on the IRS website or may be ordered by calling 1-800-TAX-FORM (1-800-829-3676). Identify the requested document by IRS publication number:

  • Publication 1141, the revenue procedure on specifications for private printing of Forms W-2 and W-3.

  • Publication 1167, the revenue procedure on substitute printed, computer-prepared, and computer-generated tax forms and schedules.

  • Publication 1179, the revenue procedure on paper substitute information returns (Forms 1096, 1098, 1099, 5498, W-2G and 1042-S).

  • Publication 1220, the revenue procedure on electronic or magnetic reporting for information returns (Forms 1098, 1099 series, 5498, and W-2G).

  • Publication 1223, the revenue procedure on substitute Forms W-2c and W-3c.

  • Publication 1239, Specifications for Filing Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips, Magnetically/Electronically.

  • Publication 1245, electronic and magnetic reporting for Forms W-4.

  • Publication 1345, Handbook for Authorized IRS e-file Providers of Individual Income Tax Returns. (This is an annual publication; tax year is subject to change).

  • Publication 1345-A, Filing Season Supplement For Authorized IRS e-file Providers. This publication, printed in the late fall, supplements Publication 1345.

4.2.2
Where To Order

If you are mailing your order, the address to use is determined by your location.

IF you live in the... THEN mail your order to...
Western United States Western Area Distribution Center Rancho Cordova, CA 95743-0001
Central United States Central Area Distribution Center P.O. Box 8903 Bloomington, IL 61702-8903
Eastern United States or a foreign country Eastern Area Distribution Center P.O. Box 85074 Richmond, VA 23261-5074

Section 4.3 - Electronic Tax Products

4.3.1
The Internet

Copies of tax forms with instructions, publications, and other tax-related materials may be obtained via the Internet at www.irs.gov.

4.3.2
Tax Fax

The most frequently requested tax forms, instructions, and other information are available through IRS Tax Fax at 703-368-9694. Call from your fax machine and follow the voice prompts. Your request will be transmitted directly back to you. Each call is limited to requesting three items. Users pay the telephone line charges.

4.3.3
Official Forms
Release Schedule

The IRS website provides an Official Forms Release Schedule for the official forms released for use by taxpayers. The schedule has three parts:

  • Anticipated print dates of annual returns,

  • Anticipated print dates of quarterly returns, and

  • Last revision dates for continuous-use only forms.

The site address is www.irs.gov/formspubs/article/0,,id=103641,00.html. The site will be updated weekly during peak printing periods and as necessary at other times. The planned dates are subject to change.

Section 4.4 - Federal Tax Forms on CD-ROM

4.4.1
Information
About Federal
Tax Forms CD-ROM

The CD-ROM contains over 3,000 tax forms and publications for small businesses, return preparers, and others who frequently need current or prior year tax products. Most current tax forms on the CD-ROM may be filled in electronically, then printed out for submission and saved for recordkeeping. Other products on the CD-ROM include the Internal Revenue Bulletins, Tax Supplements, and Internet resources for the tax professional with links to the World Wide Web.

All necessary software to view the files must be installed from the CD-ROM. Software for Adobe Acrobat Reader is included on the disk. The software will run under Windows 95/98/NT and Macintosh System 7.5 and later versions of these programs. All products are presented in Adobe's Portable Document Format (PDF). In addition, tax publications are provided in the Hyper Text Markup Language (HTML).

4.4.2
System
Requirements and
How To Order the Federal Tax
Forms CD-ROM

For system requirements, contact the National Technical Information Service (NTIS) help desk at 703-487-4608. Prices are subject to change.

The cost of the CD if purchased via the Internet at http://www.irs.gov/cdorders from NTIS, is $22 (with no handling fee).

If purchased using the following methods, the cost for each CD is $22 (plus a $5 handling fee). These methods are:

  • By phone - 1-877-CDFORMS (1-877-233-6767)

  • By fax - 703-605-6900

  • By mail using the order form contained in IRS Publication 1045 (Tax Professionals Program)

  • By mail to:

    • National Technical Information Service

    • 5285 Port Royal Road

    • Springfield, VA 22161

Part 5
Requirements for Specific Tax Returns

Section 5.1 - Tax Returns (Form 1040, 1040A, 1120, etc.)

5.1.1
Acceptable Forms

Tax forms (such as Forms 1040, 1040A, and 1120) require a signature and establish tax liability. Computer generated versions are acceptable under the following conditions:

  • These substitute forms must be printed on plain white paper.

  • Substitute forms must conform to the physical layout of the corresponding IRS form although the typeface may differ. The text should match the text on the officially published form as closely as possible. Condensed text and abbreviations will be considered on a case-by-case basis.
    Caution. All jurat (perjury statements) must be reproduced verbatim. No text can be added, deleted, or changed in meaning.

  • Various computer graphic print media such as laser printing, inkjet printing, etc., may be used to produce the substitute forms.

  • The substitute form must be the same number of pages and contain the same line text as the official form.

  • All substitute forms must be submitted for approval prior to their original use. You do not need approval for a substitute form if its only change is the preprinted year and you had received a prior year approval letter.

    Exception. If the approval letter specifies a one time exception for your form, the next year's form must be approved.

5.1.2
Prohibited Forms

The following are prohibited:

  • Computer generated tax forms (for example, Form 1040, etc.) on lined or color barred paper.

  • Tax forms that differ from the official IRS forms in a manner that makes them not standard or unable to process.

5.1.3
Changes
Permitted to Forms
1040 and 1040A

Certain changes (listed in Sections 5.2 through 5.4) are permitted to the graphics of the form without prior approval, but these changes apply to only acceptable preprinted forms. Changes not requiring prior approval are good only for the annual filing period, which is the current tax year. Such changes are valid in subsequent years only if the official form does not change.

5.1.4
Other Changes
Not Listed

All changes not listed in Sections 5.2 through 5.4 require approval from the IRS before the form can be filed.


Section 5.2 - Changes Permitted to Graphics (Forms 1040A and 1040)

5.2.1
Adjustments

You may make minor vertical and horizontal spacing adjustments to allow for computer or word processing printing. This includes widening the amount columns or tax entry areas if the adjustments comply with other provisions stated in revenue procedures. No prior approval is needed for these changes.

5.2.2
Name and Address Area

The horizontal rules and instructions within the name and address area may be removed and the entire area left blank. No line or instruction can remain in the area. However, the statement regarding use of the IRS label should be retained. The heavy ruled border (when present) that outlines the name, address area, and social security number must not be removed, relocated, expanded, or contracted.

5.2.3
Required Format

When the name and address area is left blank, the following format must be used when printing the taxpayer's name and address. Otherwise, unless the taxpayer's preprinted label is affixed over the information entered in this area, the lines must be filled in as shown:

  • 1st name line (35 characters maximum).

  • 2nd name line (35 characters maximum).

  • In-care-of name line (35 characters maximum).

  • City, state (25 characters maximum), one blank character, & ZIP code.

5.2.4
Conventional
Name and
Address Data

When there is no in-care-of name line, the name and address will consist of only three lines (single filer) or four lines (joint filer). Name and address (joint filer) with no in-care-of name line:

JOHN Z. JONES
MARY I. JONES
1234 ANYWHERE ST., APT. 111
ANYTOWN, STATE 12321

5.2.5
Example of
In-Care-Of
Name Line

Name and address (single filer) with in-care-of name line:

JOHN Z. JONES
C/O THOMAS A. JONES
4311 SOMEWHERE AVE.
SAMETOWN, STATE 54345

5.2.6
SSN and
Employer Identification
Number (EIN) Area

The vertical lines separating the format arrangement of the SSN/EIN may be removed. When the vertical lines are removed, the SSN and EIN formats must be 000-00-0000 or 00-0000000, respectively.


5.2.7
Cents Column

  • You may remove the vertical rule that separates the dollars from the cents.

  • All entries in the amount column should have a decimal point following the whole dollar amounts whether or not the vertical line that separates the dollars from the cents is present.

  • You may omit printing the cents, but all amounts entered on the form must follow a consistent format. You are strongly urged to round off the figures to whole dollar amounts, following the official form instructions.

  • When several amounts are summed together, the total should be rounded off after addition (that is, individual amounts should not be rounded off for computation purposes).

  • When printing money amounts, you must use one of the following formats: (a) 0,000,000.; (b) 0,000,000.00

  • When there is no entry for a line, leave the line blank.

5.2.8
“Paid Preparer's
Use Only” Area

On all forms, the paid preparer’s information area may not be rearranged or relocated. You may add three lines and remove the horizontal rules in the preparer’s address area.

Section 5.3 - Changes Permitted to Form 1040A Graphics

5.3.1
General

No prior approval is needed for the following changes (for use with computer prepared forms only).

5.3.2
Line 4 of
Form 1040A

This line may be compressed horizontally (to allow for same line entry for the name of the qualifying child) by using the following caption: “Head of household; child’s name” (name field).

5.3.3
Other Lines

Any line with text that takes up two or more vertical lines may be compressed to one line by using contractions, etc., and by removing instructional references.

5.3.4
Page 2 of
Form 1040A

All lines must be present and numbered in the order shown on the official form. These lines may also be compressed.

5.3.5
Color Screening

It is not necessary to duplicate the color screening used on the official form. A substitute Form 1040A may be printed in black and white only with no color screening.

5.3.6
Other Changes
Prohibited

No other changes to the Form 1040A graphics are allowed without prior approval except for the removal of instructions and references to instructions.

Section 5.4 - Changes Permitted to Form 1040 Graphics

5.4.1
General

No prior approval is needed for the following changes (for use with computer prepared forms only). Specific line numbers in the following headings may have changed due to tax law changes.

5.4.2
Line 4 of
Form 1040

This line may be compressed horizontally (to allow for a larger entry area for the name of the qualifying child) by using the following caption: “Head of household; child’s name” (name field).

5.4.3
Line 6c of
Form 1040

The vertical lines separating columns (1) through (4) may be removed. The captions may be shortened to allow a one line caption for each column.

5.4.4
Other Lines

Any other line with text that takes up two or more vertical lines may be compressed to one line by using contractions, etc., and by removing instructional references.

5.4.5
Line 21 - Other Income

The fill-in portion of this line may be expanded vertically to three lines. The amount entry box must remain a single entry.

5.4.6
Line 43 of
Form 1040-Tax

You may change the line caption to read “Tax” and computer print the words “Total includes tax from” and either “Form(s) 8814” or “Form 4972.” If both forms are used, print both form numbers. This specific line number may have changed.

5.4.7
Line 54 of
Form 1040

You may change the caption to read: “Other credits from Form” and computer print only the form(s) that apply.

5.4.8
Color Screening

It is not necessary to duplicate the color screening used on the official form. A substitute Form 1040 may be printed in black and white only with no color screening.

5.4.9
Other Changes
Prohibited

No other changes to the Form 1040 graphics are permitted without prior approval except for the removal of instructions and references to instructions.

Part 6
Format and Content of Substitute Returns

Section 6.1 - Acceptable Formats for Substitute Forms and Schedules

6.1.1
Exhibits and Use of Acceptable Formats

Exhibits of acceptable formats for the schedules (A and B) usually attached to the Form 1040 and Form 2106-EZ are shown in the exhibits section of this revenue procedure.

  • If your computer generated forms appear exactly like the exhibits, no prior authorization is needed.

  • You may computer generate forms not shown here, but you must design them by following the manner and style of those in the exhibits section.

  • Take care to observe other requirements and conditions in this revenue procedure. The IRS encourages the submission of all proposed forms covered by this revenue procedure.

6.1.2
Instructions

The format of each substitute form or schedule must follow the format of the official form or schedule as to item captions, line references, line numbers, sequence, form arrangement and format, etc. Basically, try to make the form look like the official one, with readability and consistency being primary factors. You may use periods and/or other similar special characters to separate the various parts and sections of the form. Do not use alpha or numeric characters for these purposes. With the exceptions described in Section 6.1.3, all line numbers and items must be printed even though an amount is not entered on the line.

6.1.3
Line Numbers

When a line on an official form is designated by a number or a letter, that designation (reference code) must be used on a substitute form. The reference code must be printed to the left of the text of each line and immediately preceding the data entry field, even if no reference code precedes the data entry field on the official form. If an entry field contains multiple lines and shows the line references once on the left and right side of the form, use the same number of line references on the substitute form.

In addition, the reference code that is immediately before the data field must either be followed by a period or enclosed in parentheses. There also must be at least two blank spaces between the period or the right parenthesis and the first digit of the data field. (See example below.)

6.1.4
Decimal Points

A decimal point (that is, a period) should be used for each money amount regardless of whether the amount is reported in dollars and cents or in whole dollars, or whether or not the vertical line that separates the dollars from the cents is present. The decimal points must be vertically aligned when possible.

Example:
5 STATE & LOCAL INC. TAXES............... 5. 495.00
6 REAL ESTATE TAXES............................ 6.
7 PERSONAL PROPERTY TAXES............ 7. 198.00
or
5 STATE & LOCAL INC. TAXES............... (5) 495.00
6 REAL ESTATE TAXES............................. (6)
7 PERSONAL PROPERTY TAXES............. (7) 198.00

6.1.5
Multi-Page Forms

When submitting a multi-page form, send all its pages in the same package. If you are not producing certain pages, please note that in your cover letter.

Section 6.2 - Additional Instructions for All Forms

6.2.1
Use of Your
Own Internal Control Numbers and
Identifying Symbols

You may show the computer prepared internal control numbers and identifying symbols on the substitute if using such numbers or symbols is acceptable to the taxpayer and the taxpayer’s representative. Such information must not be printed in the top 1/2 inch clear area of any form or schedule requiring a signature. Except for the actual tax return form (Forms 1040, 1120, 940, 941, etc.), you may print in the left vertical and bottom left margins. The bottom left margin you may use extends 31/2 inches from the left edge of the form.

6.2.2
Descriptions for
Captions, Lines, etc.

Descriptions for captions, lines, etc., appearing on the substitute forms may be limited to one print line by using abbreviations and contractions, and by omitting articles, prepositions, etc. However, sufficient key words must be retained to permit ready identification of the caption, line, or item.

6.2.3
Determining
Final Totals

Explanatory detail and/or intermediate calculations for determining final line totals may be included on the substitute. We prefer that such calculations be submitted in the form of a supporting statement. If intermediate calculations are included on the substitute, the line on which they appear may not be numbered or lettered. Intermediate calculations may not be printed in the right column. This column is reserved only for official numbered and lettered lines that correspond to the ones on the official form. Generally, you may choose the format for intermediate calculations or subtotals on supporting statements to be submitted.

6.2.4
Instructional
Text on the Official Form

Text on the official form, which is solely instructional (for example, “Attach this schedule to Form 1040,” “See instructions,” etc.), may generally be omitted from the substitute form.

6.2.5
Mixing Forms
on the Same Page Prohibited

You may not show more than one form or schedule on the same printout page. Both sides of the paper may be printed for multi-page official forms, but it is unacceptable to intermix single page schedules of forms except for Schedules A and B (Form 1040), which are printed back to back by the IRS.

For instance, Schedule E can be printed on both sides of the paper because the official form is multi-page, with page 2 continued on the back. However, do not print Schedule E on the front page and Schedule SE on the back, or Schedule A on the front and Form 8615 on the back, etc. Both pages of a substitute form must match the official form. The back page may be left blank if the official form contains only the instructions.

6.2.6
Identifying
Substitutes

Identify all computer prepared substitutes clearly. Print the form designation 1/2 inch from the top margin and 11/2 inches from the left margin. Print the title centered on the first line of print. Print the taxable year and, where applicable, the sequence number on the same line 1/2 inch to 1 inch from the right margin. Include the taxpayer's name and SSN on all forms and attachments. Also, print the OMB number as reflected on the official form.

6.2.7
Negative Amounts

Negative (or loss) amount entries should be enclosed in brackets or parentheses or include a minus sign. This assists in accurate computation and input of form data. The IRS pre-prints parentheses in negative data fields on many official forms. These parentheses should be retained or inserted on affected substitute forms.

Part 7
Miscellaneous Forms and Programs

Section 7.1 - Specifications for Substitute Schedules K-1

7.1.1
Requirements
for Schedules K-1 That Accompany
Forms 1041, 1065, 1065-B, and 1120S

Note. The formats for Schedules K-1 of Forms 1065 and 1120S have significantly changed for 2004. Because Publication 1167 is printed before the forms become finalized, draft copies are provided in the exhibits (see Exhibits D, E, and F). Before releasing their substitute forms, software vendors are responsible for making any subsequent changes that have been made to the final official IRS forms after the draft forms have been posted.

Because of significant changes to the 2004 Schedules K-1 for Forms 1065 and 1120S and to improve processing, prior approval is now required for substitute Schedules K-1 that accompany Form 1041 (for estates and trusts), Form 1065 (for partnerships), Form 1065-B (for electing large partnerships), or Form 1120S (for S corporations). Substitute Schedules K-1 should be as close as possible to exact replicas of copies of the official IRS schedules and follow the same process for submitting other substitute forms and schedules.

If you feel you will suffer a financial hardship in producing the 2004 Schedules K-1 of Forms 1065 and 1120S because of the significant changes to the form and format, the IRS will consider allowing deviations from the official form for tax year 2004 only. However, you must include all information on the form. Only deviations in placement and format will be considered. You may prepare a justification and submit it to the IRS at *taxforms@irs.gov with “Attn: Substitute Forms” on the subject line or:

Internal Revenue Service
Attn: Substitute Forms Program
SE:W:CAR:MP:T:T:SP
1111 Constitution Avenue, NW
Room 6406
Washington, D.C. 20224

Schedules K-1 that accompany Forms 1041, 1065, 1065-B, or 1120S must meet all specifications. The specifications include, but are not limited to, the following requirements:

  • You will no longer be able to produce Schedules K-1 that contain only those lines or boxes that taxpayers are required to use. All lines must be included.

  • The words “*See attached statement for additional information.” must be preprinted in the lower right hand side on Schedules K-1 of Forms 1065 and 1120S.

  • All K-1s that are filed with the IRS should be printed on standard 8.5” x 11” paper (the international standard (A4) of 8.27” x 11.69” may be substituted).

  • Each recipient's information must be on a separate sheet of paper. Therefore, you must separate all continuously printed substitutes, by recipient, before filing with the IRS.

  • No carbon copies or pressure-sensitive copies will be accepted.

  • The Schedule K-1 must contain the name, address, and SSN or EIN of both the entity (estate, trust, partnership, or S Corporation) and the recipient (beneficiary, partner, or shareholder).

  • The Schedule K-1 must contain the tax year, the OMB number, the schedule number (K-1), the related form number (1041, 1065, 1065-B, or 1120S), and the official schedule name in substantially the same position and format as shown on the official IRS schedule.

  • The Schedule K-1 must contain all the line items as shown on the official form, except for the instructions, if any are printed on the back of the official Schedule K-1.

  • The line items or boxes must be in the same order and arrangement as those on the official form.

  • The amount of each recipient's share of each item must be shown. Furnishing a total amount of each item and a percentage (or decimal equivalent) to be applied to such total amount by the recipient does not satisfy the law and the specifications of this revenue procedure.

  • State or local tax-related information may not be included on the Schedules K-1 filed with the IRS.

  • The entity may have to pay a penalty if substitute Schedules K-1 are filed that do not conform to specifications.

  • Additionally, the IRS may consider the Schedules K-1 that do not conform to specifications as not being able to process and may return Forms 1041, 1065, 1065-B, or 1120S to the entity to be filed correctly.

Schedules K-1 that are 2-D bar-coded will continue to require prior approval from the IRS (see Sections 7.1.3 through 7.1.5).

7.1.2
Special Requirements for Recipient Copies of
Schedules K-1

Standardization for reporting information is required for recipient copies of substitute Schedules K-1 of Forms 1041, 1065, 1065-B, and 1120S. Uniform visual standards are provided to increase compliance by allowing recipients and practitioners to more easily recognize a substitute Schedule K-1. The entity must furnish to each recipient a copy of Schedule K-1 that meets the following requirements:

  • You will no longer be able to produce Schedules K-1 that contain only those lines or boxes that taxpayers are required to use. All lines must be included.

  • Both pages 1 and 2 of Schedules K-1 of Forms 1065 and 1120S must be provided to each recipient.

  • The words “*See attached statement for additional information.” must be preprinted in the lower right hand side on Schedules K-1 of Forms 1065 and 1120S.

  • The Schedule K-1 must contain the name, address, and SSN or EIN of both the entity and recipient.

  • The Schedule K-1 must contain the tax year, the OMB number, the schedule number (K-1), the related form number (1041, 1065, 1065-B, or 1120S), and the official schedule name in substantially the same position and format as shown on the official IRS schedule.

  • All applicable amounts and information required to be reported must be titled and numbered in the same manner as shown on the official IRS schedule. The line items or boxes must be in the same order and arrangement and must be numbered like those on the official IRS schedule.

  • The Schedule K-1 must contain all items required for use by the recipient. The instructions to the schedule must identify the line or box number and code, if any, for each item as shown in the official IRS schedule.

  • The amount of each recipient’s share of each item must be shown. Furnishing a total amount of each line item and a percentage (or decimal equivalent) to be applied to such total amount by the recipient does not satisfy the law and the specifications of this revenue procedure.

  • Instructions to the recipient that are substantially similar to those on or accompanying the official IRS schedule must be provided to aid in the proper reporting of the items on the recipient’s income tax return. Where items are not reported to a recipient because they do not apply, the related instructions may be omitted.

  • The quality of the ink or other material used to generate recipients’ schedules must produce clearly legible documents. In general, black chemical transfer inks are preferred.

  • In order to assure uniformity of substitute Schedules K-1, the paper size should be standard 8.5” x 11” (the international standard (A4) of 8.27” x 11.69” may be substituted.)

  • The paper weight, paper color, font type, font size, font color, and page layout must be such that the average recipient can easily decipher the information on each page.

  • State or local tax-related information may be included on recipient copies of substitute Schedules K-1. All non-tax-related information should be separated from the tax information on the substitute schedule to avoid confusion for the recipient.

  • The legend “Important Tax Return Document Enclosed” must appear in a bold and conspicuous manner on the outside of the envelope that contains the substitute recipient copy of Schedule K-1.

  • The entity may have to pay a penalty if a substitute Schedule K-1 furnished to any recipient does not conform to the specifications of this revenue procedure and results in impeding processing.

7.1.3
Requirements
for Schedules K-1 with Two-Dimensional
(2-D) Bar Codes

In an effort to reduce the burden of manually transcribing tax documents, improve quality, and increase government efficiency, the IRS is pleased to provide specifications for 2-D bar-coded substitute Schedules K-1 for Forms 1041, 1065, and 1120S. The IRS encourages voluntary participation in adding 2-D barcoding. See Exhibits D, E, and F for examples of draft bar-coded Schedules K-1.

Note. If software vendors do not want to produce bar-coded Schedules K-1, they may produce the official IRS Schedules K-1 but cannot use the expedited process for approving bar-coded K-1’s and their parent returns as outlined in Section 7.1.5.

In addition to the above requirements, the bar-coded Schedules K-1 must meet the following specifications.

  • The bar code should print in the space labeled “For IRS Use Only” on each Schedule K-1. The entire bar code must print within the “For IRS Use Only” box surrounded by a white space of at least 1/4-inch.

  • Bar codes will print in PDF 417 format.

  • The bar codes must always be in the specified format with every field represented by at least a field delimiter (carriage return). Leaving out a field in a bar code will cause every subsequent field to be misread.

7.1.4
Approval
Process for
Bar-Coded Schedules K-1

Prior to releasing commercially available tax software that creates bar-coded Schedules K-1, the printed schedule and the bar code must both be tested. Bar code testing must be done using the final official IRS Schedule K-1. Bar code approval requests must be resubmitted for any subsequent changes to the official IRS form that would affect the bar-code. Below are instructions and a sequence of events that will comprise the testing process.

  • The IRS has released the final Schedule K-1 bar-code specifications by publishing them on the IRS.gov web site (see http://www.irs.gov/efile/article/0,,id=113408,00.html)

  • The IRS will publish a set of test documents that will be used to test the ability of tax preparation software to create bar codes in the correct format.

  • Software developers will submit two identical copies of the test documents - one to the IRS and one to a contracted testing vendor.

  • The IRS will use one set to ensure the printed schedules comply with standard substitute forms specifications.

  • If the printed forms fail to meet the substitute form criteria, the IRS will inform the software developer of the reason for noncompliance.

  • The software developer must resubmit the Schedule(s) K-1 until they pass the substitute forms criteria.

  • The testing vendor will review the bar codes to ensure they meet the published bar-code specifications.

  • If the bar code(s) does not meet published specifications, the testing vendor will contact the software developer directly informing them of the reason for noncompliance.

  • Software developers must submit new bar-coded schedules until they pass the bar-code test.

  • When the bar code passes, the testing vendor will inform the IRS that the developer has passed the bar-code test and the IRS will issue an overall approval for both the substitute form and the bar code.

  • After receiving this consolidated response, the software vendor is free to release software for tax preparation as long as any subsequent revisions to the schedules do not change the fields.

  • Find the mailing address for the testing vendor below. Separate and simultaneous mailings to the IRS and the vendor will reduce testing time.

7.1.5
Procedures
for Reducing Testing Time

In order to help provide incentives to the software development community to participate in the Schedule K-1 2-D project, the IRS has committed to expediting the testing of bar-coded Schedules K-1 and their associated parent returns. To receive this expedited service, closely follow the bullets below.

  • Mail the parent returns (Forms 1065, 1120S, 1041) and associated bar-coded Schedule(s) K-1 to the appropriate address below in a separate package from all other approval requests.

    Internal Revenue Service
    Attn: Bar-Coded K-1
    SE:W:CAR:MP:T:T:SP
    1111 Constitution Avenue, NW
    Room 6406
    Washington, D.C. 20224
    Northrop Grumman Information Tech
    Attn: Bill Philpot, Product Assurance Manager
    1800 Alexander Bell Drive
    Suite 300
    Reston, VA 20191
    Phone: (703) 453-1200
  • While the IRS can expedite bar-coded Schedules K-1 and their associated parent returns, it cannot expedite the approval of non-associated tax returns.

  • Mail one copy of the parent form(s) and Schedule(s) K-1 to the IRS and another copy to the testing vendor.

  • Include multiple email and phone contact points in the packages.

Section 7.2 - Procedures for Printing IRS Envelopes

7.2.1
Procedures for Printing IRS Envelopes

Organizations are permitted to produce substitute tax return envelopes. Use of substitute return envelopes that comply with the requirements set forth in this section will assist in delivery of mail by the U.S. Postal Service and facilitate internal sorting at the Internal Revenue Service Centers.

Use the following five-digit ZIP codes when mailing returns to the IRS Service Centers:

Service Center ZIP Code
Atlanta, GA 39901
Kansas City, MO 64999
Austin, TX 73301
Philadelphia, PA 19255
Memphis, TN 37501
Andover, MA 05501
Cincinnati, OH 45999
Ogden, UT 84201
Fresno, CA 93888

7.2.2
Sorting Returns
by Form Type

Sorting returns by form type is accomplished by the preprinted bar codes on return envelopes included in each specific type of form or package mailed to the taxpayers. The 32 bit bar code on the left of the address on each envelope identifies the type of form the taxpayer is filing, and it assists in consolidating like returns for processing. Failure to use the envelopes furnished by the IRS results in additional processing time and effort, and possibly delays the timely deposit of funds, processing of returns, and issuance of refund checks.

7.2.3
ZIP+4 or 9-Digit
ZIP Codes

The IRS will not furnish or sell bulk quantities of preprinted tax return envelopes to taxpayers or tax practitioners. A suitable alternative has been developed that will accommodate the sorting needs of both the IRS and the United States Postal Service (USPS). The alternative is based on the use of ZIP + 4, or 9-digit ZIP codes for mailing various types of tax returns to the IRS Service Centers. The IRS uses the last four digits to identify and sort the various form types into separate groups for processing. The list of 4-digit extensions with the related form designations is provided below.

ZIP+FOUR Package
XXXXX-0002 1040
XXXXX-0005 941
XXXXX-0006 940
XXXXX-0008 943
XXXXX-0011 1065
XXXXX-0012 1120
XXXXX-0013 1120S
XXXXX-0014 1040EZ
XXXXX-0015 1040A
XXXXX-0027 990
XXXXX-0031 2290

7.2.4
Guidelines for
Having Envelopes Preprinted

You may use the preparer’s company names, addresses, and logos as long as you do not interfere with the clear areas. The government recommends that the envelope stocks have an average opacity of not less than 89 percent and contain a minimum of 50 percent waste paper. Use of carbon based ink is essential for effective address and bar-code reading. Envelope construction can be of side seam or diagonal seam design. The government recommends that the size of the envelope should be 53/4 inches by 9 inches. Continuous pin-fed construction is not desirable, but is permissible, if the glued edge is at the top. This requirement is firm because mail opening equipment is designed to open the bottom edge of each envelope.

7.2.5
Envelopes/ZIP
Codes

The above procedures or guidelines are written for the user having envelopes preprinted. Many practitioners may not wish to have large quantities of envelopes with differing ZIP codes/form designations preprinted due to low volume, warehousing, waste, etc. In this case, the practitioner can type or machine print the addresses with the appropriate ZIP codes to accommodate sorting. If the requirements/guidelines outlined in this section cannot be met, then use only the appropriate five-digit service center ZIP code.

Section 7.3 - Procedures for Substitute Forms 5471 and 5472

7.3.1
Forms 5471
and 5472

This section covers instructions for producing substitutes for:

  • Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations, and accompanying Schedules J, M, N, and O.

  • Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business.

7.3.2
Paper and
Computer
Generated
Substitutes

Substitutes for Form 5471 and the accompanying Schedules J, M, N, and O, and Form 5472 that totally conform to the specifications contained in this procedure may be privately printed, but must have prior approval and are subject to annual review from the IRS.

7.3.3
Where To Get
the Official Forms

Copies of the official Forms 5471 and 5472 for the reporting year may be obtained from most IRS offices. The IRS provides only cut sheets of these forms.

7.3.4
Quality
Substitute Forms

The IRS will accept quality substitute tax forms that are consistent with the official forms they represent and that do not have an adverse impact on processing. Therefore, only those substitute forms that conform to, and do not deviate from, the corresponding official forms are acceptable.

7.3.5
Computer
Prepared Tax Forms

If the substitute returns and schedules meet the guidelines in this revenue procedure, the IRS will (for filing purposes) accept computer prepared Forms 5471 and 5472 filled in by a computer, word processor, or similar automated equipment. The IRS will also accept a combination of computer prepared/generated and filled-in information. They may be filed separately or attached to individual or business income tax returns.

7.3.6
Format
Arrangement

The specifications for Forms 5471 and 5472 are as follows:

  • The substitute must follow the design of the official form as to format, arrangement, item caption, line numbers, line references, and sequence. It must be an exact textual and graphic mirror image of the official form.

  • The filer must use one of the official ten character amount formats. All entries in the amount column should have a decimal point following the whole dollar amounts whether or not the vertical line that separates the dollars from the cents is present. It must follow a consistent format.

  • The reference code must be printed to the left of the corresponding captioned line and also immediately preceding the data entry field even if there is no reference code preceding the data entry field on the official form. The reference code that is immediately before the data field must either be followed by a period or enclosed in parentheses. There also must be at least two blank spaces between the period or the right parenthesis and the first digit of the data field.

  • The size of the page must be the same as the official form (81/2′′ x 11′′).

  • The acceptable type is Helvetica.

  • The spacing of the type must be 6 lines per inch vertically, 10 or 12 print characters per inch horizontally.

  • A 1/4 inch to 1/2 inch margin must be maintained across the top, bottom, and both sides.

  • The substitute form must be the same number of pages as the official one.

  • The preprinted parentheses in the money fields should be retained.

  • The filer must completely fill in all the specified numbers or referenced lines as they appear on the official form (not just totals) before attaching any supporting statement.

  • Supporting statements are never to be used until the required official form they support are completely filled in. A blank or incomplete form that refers to a supporting statement, in lieu of completing a tax return, is unacceptable.

  • Descriptions for captions, lines, etc., appearing in the substitute forms may be limited to one print line by using abbreviations and contractions, and by omitting articles, prepositions, etc. However, sufficient key words must be retained to permit ready identification of the caption, line, or item.

  • Text prescribed for the official form, which is solely instructional (for example , “Attach this schedule to Form 1120,” “See instructions”, etc.) may be omitted from the form.

7.3.7
Filing Instructions

Instructions for filing substitute forms are the same as for filing official forms.

Part 8
Alternative Methods of Filing

Section 8.1 - Forms for Electronically Filed Returns

8.1.1
Electronic Filing
Program

Electronic filing is a method by which qualified filers transmit tax return information directly to an IRS Service Center over telephone lines in the format of the official IRS forms. The IRS accepts both refund and balance due individual tax returns that are filed electronically.

8.1.2
Applying for the
Electronic Filing Program

Anyone wishing to participate in the IRS e-file program for individual income tax returns must submit a Form 8633, Application to Participate in the IRS e-file Program.


8.1.3
Mailing
Instructions

IF Form 8633 is used for... THEN mail it to...
Individual income taxes (regular mail) Internal Revenue Service Andover Submission Processing Center Attn: EFU Acceptance - Testing Stop 983 P.O. Box 4099 Woburn, MA 01888-4099
Individual income taxes (overnight mail) Internal Revenue Service Andover Submission Processing Center Attn: EFU Acceptance - Testing Stop 983 310 Lowell Street Andover, MA 05501-0001
Forms 940, 941, and 1065 Internal Revenue Service Andover Submission Processing Center Attn: EFU Acceptance - Testing Stop 983 P.O. Box 4099 Woburn, MA 01888-4099
Forms 1041 Internal Revenue Service Andover Submission Processing Center Attn: EFU Acceptance - Testing Stop 983 P.O. Box 4099 Woburn, MA 01888-4099

8.1.4
Obtaining the
Taxpayer Signature

Form 8453, U.S. Individual Income Tax Declaration for an IRS e-file Return, is the signature document for an electronically filed 1040, 1040A, or 1040EZ return not filed with an electronic signature. Form 8453, which serves as a transmittal for associated nonelectronic (paper) documents such as Forms 3115, 5713, 8283, 8332, and 8609, is a one page form and can only be approved through the Substitute Forms Program in that format. Forms 8453-OL and 8453-NR serve the same purpose for taxpayers filing through online services and Form 1040-NR filers, respectively. For specific information about electronic filing, refer to Publication 1345, Handbook for Authorized IRS e-file Providers of Individual Income Tax Returns.

8.1.5
Guidelines for
Preparing Substitute Forms in the Electronic Filing Program

A participant in the electronic filing program, who wants to develop a substitute form should follow the guidelines throughout this publication and send a sample form for approval to the Substitute Forms Unit at the address in Part 1. If you do not prepare Substitute Form 8453 using a font in which all IRS wording fits on a single page, the form will not be accepted.

Note. Use of unapproved forms could result in suspension of the participant from the electronic filing program.

Section 8.2 - Effect on Other Documents

8.2.1
Effect on Other
Documents

This revenue procedure supersedes Revenue Procedure 2003-73, 2003-39 I.R.B. 647.

Exhibits A-F. Samples of Preferred Formats for Substitute Forms

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Exhibit G - Checklist of IRS Substitute Forms

Exhibit G
Checklist of IRS Substitute Forms Submitted on 20:
Company:
Contact:
Phone:
Fax:
Source Code:
Form Number Approved With Corrections Must Be Resubmitted Approved Comments
Authorized Name:________________________________________________
Title:________________________________________________________________________
Reviewer's Name:________________________________________________
Telephone:____________________________________________________________
Date:________________________________________________________________________

Exhibit H - List of Forms Referred to in the Revenue Procedure

Form Title Section
706 United States Estate (and Generation-Skipping Transfer) Tax Return 2.1
720 Quarterly Federal Excise Tax Return 2.5
940-EZ Employer’s Annual Federal Unemployment (FUTA) Tax Return 2.3
941 Employer’s Quarterly Federal Tax Return 2.3; 3.4; 6.2; 7.2
943 Employer’s Annual Tax Return for Agricultural Employees 2.3
945 Annual Return of Withheld Federal Income Tax 2.3
1040 U.S. Individual Income Tax Return 2.3; 2.4; 2.5; 3.1; 3.2; 3.4; 5.1; 5.2; 5.4; 6.1; 6.2; 7.2; 8.1
1040-ES Estimated Tax for Individuals 1.1; 2.3; 3.2; 4.2
1040A U.S. Individual Income Tax Return 2.1; 2.4; 3.1; 3.2; 3.4; 5.1; 5.2; 5.3; 7.2; 8.1
1040EZ Income Tax Return for Single and Joint Filers with No Dependents 2.4; 3.1; 3.4; 7.2; 8.1
1040-NR U.S. Nonresident Alien Income Tax Return 8.1
1040-V Form 1040-V Payment Voucher 2.3
1041 U.S. Income Tax Return for Estates and Trusts 2.5; 3.1; 7.1; 8.1
1041-ES Estimated Income Tax for Estates and Trusts 2.3; 3.2
1042-S Foreign Person’s U.S. Source Income Subject to Withholding 1.2; 4.1; 4.2
1065 U.S. Return of Partnership Income 2.5; 3.1; 7.1; 8.1
1065-B U.S. Return of Income for Electing Large Partnerships 7.1
1096 Annual Summary and Transmittal of U.S. Information Returns 1.1; 1.2; 4.1; 4.2
1098 Mortgage Interest Statement 1.1; 1.2; 4.1; 4.2
1099 Series 1.1; 1.2; 4.1; 4.2
1120 U.S. Corporation Income Tax Return 2.5; 3.1; 3.4; 5.1; 6.2; 7.2; 7.3
1120-S U.S. Income Tax Return for an S Corporation 3.1; 7.1; 7.2
2106-EZ Unreimbursed Employee Business Expenses 6.1
2290 Heavy Highway Vehicle Use Tax Return 2.3; 7.2
3468 Investment Credit 2.5
4136 Credit for Federal Tax Paid on Fuels 2.5
4972 Tax on Lump-Sum Distributions 5.4
5471 Information Return of U.S. Persons With Respect to Certain Foreign Corporations 7.3
5472 Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business 7.3
5498 IRA Contribution Information 1.1; 1.2; 4.1; 4.2
5500 Annual Return/Report of Employee Benefit Plan 1.1; 1.2
5500-EZ Annual Return of One-Participant (Owners and Their Spouses) Retirement Plan 1.1; 1.2
8453 U.S. Individual Income Tax Declaration for an IRS e-file Return 8.1
8453-OL U.S. Individual Income Tax Declaration for an IRS e-file Online Return 8.1
8633 Application to Participate in the IRS e-file Program 8.1
8814 Parents’ Election To Report Child’s Interest and Dividends 5.4
W-2 Wage and Tax Statement 1.1; 1.2; 4.1; 4.2
W-2c Corrected Wage and Tax Statement 1.1; 1.2; 4.1; 4.2
W-2G Certain Gambling Winnings 1.1; 1.2; 4.1; 4.2
W-3 Transmittal of Wage and Tax Statements 1.1; 1.2; 4.1; 4.2
W-3c Transmittal of Corrected Wage and Tax Statements 1.1; 1.2; 4.1; 4.2
W-4 Employee’s Withholding Allowance Certificate 4.2

Part IV. Items of General Interest

Announcement 2004-88

Foundations Status of Certain Organizations

The following organizations have failed to establish or have been unable to maintain their status as public charities or as operating foundations. Accordingly, grantors and contributors may not, after this date, rely on previous rulings or designations in the Cumulative List of Organizations (Publication 78), or on the presumption arising from the filing of notices under section 508(b) of the Code. This listing does not indicate that the organizations have lost their status as organizations described in section 501(c)(3), eligible to receive deductible contributions.

Former Public Charities. The following organizations (which have been treated as organizations that are not private foundations described in section 509(a) of the Code) are now classified as private foundations:

Org. Name City State
3rd Step Family Home, Athens GA
5th Regiment Tennessee Infantry Company E Reactivated, Inc., Providence KY
50-Plus Foundation, McLean VA
A A I M, Inc., Rockmart GA
ABBA Ministries, North Augusta SC
Abiding Life in Christ Ministries, Inc., Iverness FL
Adventure Foundation, Norfolk VA
AFC Child Enrichment Center, Inc., Atlanta GA
African-American Culture Center of Rowan County, East Spencer NC
Agape Ministries Unlimited, Inc., Warner Robins GA
Aids Resource Council, Inc., Rome GA
Aids Walk San Juan, Inc., Carolina PR
Alabama Association of Assessing Officials, Cullman AL
Alafia Village, Inc., Highland City FL
Alcance Juvenil, Inc., San Antonio TX
Alliance for Modern Transit and Livable Communities, Inc., Tampa FL
Alternatives for Better Classrooms, Arlington VA
American Air Combat Museum, Greenville TN
American States Services, Inc., Vienna VA
Angels in Action, Springfield VA
Angels in the Sun, South Pasadena FL
Animal House Zoological Society, Inc., Moulton AL
Animal Welfare, Inc., Louisville KY
Anna R. King Community Development, Inc., Aventura FL
Apostolic Messianic Evangelist Network, Inc., Chesterfield VA
Arkansas Association of Partners in Education, Little Rock AR
Arkansas Radio Emergency Services, Little Rock AR
Arms of Agape, Inc., Tallahassee FL
Art Soup, Inc., Knoxville TN
Artsource, Inc., Lexington SC
Asian-American Association for Advancement, Inc., Duluth GA
Association Culturelle et Humanitaire Des Coti-Ferois, Inc., Miami FL
Association for Fair Housing, Santa Monica CA
B & H Community Book Center, Inc., Riviera Beach FL
Baptist Mission Center, Inc., Jacksonville FL
Barnabas Foundation, Inc., Smyrna GA
Begin Again, Inc., Atlanta GA
Being Self Sufficient Today, Dunn NC
B E S T, Inc., Pikeville TN
Better Life Foundation, Birmingham AL
Black Jade, Inc., Atlanta GA
Blackque Gyrlz, Inc., Orlando FL
Blessed Beginnings Learning Academy, Memphis TN
Blood N Fire of Athens, Watkinsville GA
Bowen Research and Training Institute, Inc., Palm Harbor FL
Brain Center, Inc., Chantilly VA
Brevard Emergency Amateur Radio Services, Inc., Cocoa Beach FL
Brotherhood Club of St. Augustine Florida, Inc., St. Augustine FL
Bur Boyd Memorial Scholarship, Inc., Bradenton FL
C & G Music Tours for Children, Inc., Nashville TN
California Research Institute for the Plumbing Heating & Piping Industry, Los Angeles CA
Call to Action South Florida, Inc., Miami FL
Calvary Community Corporation, Inc., North Lauderdale FL
Cancer Survivorship Alliance, Weston FL
Cannon County Dixie Youth Association, Inc., Woodbury TN
Capital City BMX Association, Raleigh NC
Care Facilitators International, Inc., West Des Moines IA
Caribbean Missions for Christ and World Outreach, Hohenwald TN
Caricature Carvers of America, Inc., Lake Charles LA
Carlos & Algeria Beracasa Foundation, Inc., Miami FL
Carolina Mudcats Foundation, Inc., Raleigh NC
Carolina-Virginia Reading Service, Incorporated, Roanoke Rapids NC
Catholic Lay Persons International, Inc., Coral Gables FL
Center for Aids Education and Senior Empowerment, Inc., Miami FL
Center for International Agricultural Development, Inc., Plantation FL
Central Mississippi Emmaus Community, Jackson MS
Certification Education & Research Foundation, Inc., Raleigh NC
Chandak International Charitable Foundation, Raleigh NC
Charlie Kubala Memorial Scholarship Trust, Sumter SC
Charlottesville Pride, Charlottesville VA
Children and Youth Behavioral Health Center, Inc., Buckhannon WV
Children to Children Foundation, Inc., Atlanta GA
Childrens Recovery Center, Inc., Conway SC
Childrens Touch Institute, Inc., Pompano Beach FL
Chippenham Place Youth Group, Richmond VA
Choctaw Baseball Diamond Club, Inc., Fort Walton Beach FL
Christ Fellowship Daycare, Incorporated, Memphis TN
Christian County Ralph Bell Crusade, Inc., Hopkinsville KY
Christian Oriented Education, Inc., Rockvale TN
Christian Safety, Inc., Decatur GA
Christian Womens Spiritual Fellowship, Inc., Nashville TN
Circulo Lirico De La Opera, Coral Gables FL
City-County Community Education Program, Waveland MS
Claudia M. Lee Golden Years Day Care Center, Columbia SC
Clearview Recovery Foundation, Inc., Daphne AL
Clothes Less Traveled Thrift Shop, Inc., Peachtree City GA
Cobb Training Institute, Inc., Marietta GA
Cole Youth Baseball, Inc., Nashville TN
Colombian American Coalition of Florida, Inc., Coral Gables FL
Columbia Mission Project, Inc., Tallahassee FL
Commonwealth Center for Continuing Education & Training, Tuskegee AL
Communion, Inc., Asheville NC
Community Alternative Services Agency, Inc., Port Richey FL
Community Blood Bank Center of St. Croix, Inc., St. Croix VI
Community Housing Corporation of Broward, Plantation FL
Community Safety Net, Inc., Atlanta GA
Conquest of Paradise, Inc., Miami FL
Coral Reef Wrestling Club, Inc., Coral Gables FL
Coral Springs Parents Hoop Club, Inc., Coral Springs FL
Council for Human Development, Inc., Alexandria VA
Council for the Advancement of Minority Business International, Inc., Lake Park FL
Count the Cost, Inc., Decatur GA
Covenant Homes, Inc., Lexington SC
Craggy Mountain Line, Inc., Arden NC
Credit Education Services of America, Inc., Cary NC
Crossroads 2000, Inc., Lithonia GA
Damascus Music Ministries, Inc., Marietta GA
Dame-Marie An Movement, Inc., Miami FL
Daughters of the Covenant, Durham NC
David & Tina Skinner Ministries, Inc., Greenwood IN
DC Childrens Education Fund, Washington DC
Deborah Kelley Herndon Memorial Foundation, Northport AL
Debt Management Corporation, Orange Park FL
Deer Park Fire Department, Deer Park CA
Delaware Safe Kids, Inc., Dover DE
Devans World Foundation for Children With Special Needs, Inc., Fayetteville NC
Dinwiddie County Sports Club, Inc., Dinwiddie VA
Disability Awareness Foundation, Nashville TN
Discovery Camping, Inc., Lawrenceville GA
Disease Awareness Resources & Treatment Corporation, Miami Shores FL
DKG Enterprises, Inc., West Palm Beach FL
Domestic Violence Advisory Council, Brandon MS
Don Herrick Evangelistic Association, Cary NC
Dots Child Care Center, Inc., Thibodaux LA
Douglas County Food Bank, Douglasville GA
Dr. Beatriz Lopez-Van Beuren Internal Medicine Award Fund, Marathon FL
Drug Free America, Inc., Delray Beach FL
Dyno-Might Ministries, Inc., Nashville TN
Earlston Development Corporation, Atlanta GA
East Consortium, Charleston SC
Eastwood Neighbors Nashville, TN, Nashville TN
Essex Village Community Outreach Center, Inc., Richmond VA
Estero Bay Marine Laboratory, Inc., Ft. Myers FL
Eternal Change Ministries, Inc., Port Washington NY
Faith Defenders, Inc., Mt. Morris PA
Faith in Action Ministries, Inc., St. Thomas VI
Family Advocacy Foundation, Winston Salem NC
Family Entertainment Workshop, Inc., Tampa FL
Family Institution for the Homeless, Inc., Kissimmee FL
Fanues Foundation, Inc., Louisville KY
Fentress County Food Bank, Inc., Allardt TN
Fish-N-4-Kids, High Point NC
Flame Ministries, Inc., Sumner WA
Florida Crime Prevention Federation, Inc., Davie FL
Florida-Georgia K-9 Search and Rescue Squad, Inc., Havana FL
Forward Steps, Inc., Jacksonville FL
Foster Parenting, Inc., Winter Park FL
Foundation for American Liberty, McLean VA
Foundation for Genetic Education & Counselling, Inc., Baltimore MD
Foundation for Osteopathic Research and Training, Inc., Manchester NH
F.R.E.E., Madisonville TN
Friends of the Playground of Paris and Bourbon County, Inc., Paris KY
Fully Persuaded Ministries, Bowling Green KY
Gary Hash Ministries, Inc., Pulaski VA
General Alumni Association of Allen University, Inc., Columbia SC
George High Community Association, Inc., Atlanta GA
Georgia Childrens Food Services, Inc., Marietta GA
Georgia Golden Wings Track Club, Inc., Stone Mountain GA
Georgia Soccer Development Foundation, Inc., Atlanta GA
Georgia Training & Development Center, Albany GA
Getting Involved and Volunteering Efforts, Inc., Lexington KY
Gifts From the Garden, Alexandria VA
Global Elephant Organization, Inc., Gulf Breeze FL
Global Ministries, Inc., Fayetteville GA
Glynn Academy Alumni Association, Inc., Brunswick GA
Gods Refuge, Tampa FL
Good Shepherd Ministry, Inc., Lynchburg VA
Grand Farms of America, Inc., Warrenton NC
Grand Prep Limited, Riverdale GA
Grant Writing Assistance Program of Ellerbee, Ellerbee NC
Greater Memphis Child Care Service, Inc., Memphis TN
Greater Piedmont Aids Educational Team, Inc., Kannapolis NC
Greenbrier Land Conservation Trust, Inc., Lewisburg WV
Guardian Angel House, Inc., Malabar FL
Haitian Coalition of Central Florida, Inc., Orlando FL
Hampton Roads Sailing Center, Inc., Hampton VA
Haralson Arts Alliance, Inc., Bremen GA
Harmony at Home, Incorporated, Nashville TN
Harry T. & Harriette V. Moore Justice Center Committee, Inc., Melbourne FL
Harvey Foundation, Inc., Hiram GA
Health Alliances International, Incorporated, Richmond VA
Heart of Georgia Walk to Emmaus, Inc., Warner Robbins GA
Helping Hands Child Advocacy, Incorporated, Mobile AL
Higher Hope Ministries, Inc., Pace FL
Holistic Alliance of Professional Practitioners, Gainesville FL
Holy Ghost Council 11484 Charity Fund, Issue MD
Homecoming, Inc., Atlanta GA
Homeless Emergency Love Project, Inc., Raleigh NC
Humane Society of Laurel County, Inc., London KY
In His Name Christian Ministries, Inc., Nashville TN
In His Name Ministry of Helps, Inc., St. Augustine FL
Indo-American Host Committee for 1996-Games, Inc., Lilburn GA
Inner City Acheivers Foundation, Atlanta GA
Inner City Fund, Inc., Tampa FL
Institute for Work and Learning, Hendersonville TN
Inter-Neighborhood Resident Association, Inc., Macon GA
Interface Network Group, Inc., Miami FL
International Adoption Foundation, Cedar Grove NC
International Bemisia Working Group, Orlando FL
International Evangelism Missions, Inc., Rocky Mount NC
J & H South Foundation, Inc., Atlanta GA
Journey Institute, Winston Salem NC
Just for Children, Inc., Atlanta GA
Kids Can Too, Inc., Stone Mountain GA
Kids Connection Development, Inc., Decatur GA
Kids Film Festival of Virginia, Inc., Richmond VA
Kitchens Evangelistic Ministries, Inc., Dalton GA
Lake Chelan Chamber Community Enrichment Fund, Chelan WA
Lamb of God, Inc., Franklin NC
Law & Liberty Foundation, Inc., Tallahassee FL
Leadership Encouragement and Development, Lexington SC
Lee County Soccer, Inc., Dryden VA
Liberty Foundation, Charleston WV
Lightworks Technology Foundation, Chapel Hill NC
Living Light Foundation, Inc., Augusta GA
Living Waters Foundation, Inc., Lexington KY
Los Ninos De Guatemala Foundation, McLean VA
Louis A. Martin & Behold Him Ministries, Inc., Dry Fork VA
Love God Ministries of Tallahassee, Inc., Tallahassee FL
Maguire Voorhis & Wells Foundation, Inc., Orlando FL
Make it Happen, Inc., Marietta GA
Marian County Community Development Corp., Marion SC
Marian County Humane Society, Marion SC
Marine Service Education Corporation, Clearwater FL
Marshall County Safe Home, Inc., Calver City KY
Masterworks for Kids, Inc., Franklin TN
Mayfield Main Street, Inc., Mayfield KY
Mecklenburg Academic Rehabilitation Scholarship Fund, Matthews NC
Metropolitan Civic Orchestra, Inc., Sullivans Island SC
Midlands Community Enrichment Thru Education & Athletics Project, Orangeburg SC
Mission America, Inc., Gainesville GA
Mission Ministries Association, Inc., Bowling Green KY
Mitchells Truck Drivers School, Inc., Chicago IL
Mobile VOA Home Development, Mobile AL
Morning Star Youth Ministries, Inc., Pensacola FL
Mountain Opportunities Corporation, Clarksburg WV
Mt. Pleasant Family Care Center, Clinton NC
Museum Displays, Inc., Destin FL
My Sisters Place, Columbia TN
National Association of Church Recreators & Sports Ministers, Knoxville TN
National Centurion Corporation, Inc., St. Petersburg FL
National Coalition of Women of Commitment, Inc., Memphis TN
National Womens Recovery Network, Inc., Atlanta GA
Natural Resources Education Council, Inc., Lincolton NC
NCYAP at Colony Place, Inc., Columbia SC
Nearby in Nature, Inc., Gladstone VA
Nehemiahs Open Arms Mission, Inc., Glen Rogers WV
Network of Family Services, Inc., Atlanta GA
Never Be Defeated Ministries, Inc., Lutz FL
New Day Family-Community Life Center, Stone Mountain GA
New Hope Community Development Center, Inc., Hopewell VA
New Life Christian Training Centers, Chincoteague VA
New Sounds of Inspiration, Incorporated, Looneyville WV
Next Exit Outreach, Inc., Marietta GA
Norm Grey Creative Foundation, Inc., Atlanta GA
Northern Kentucky African-American Heritage Task Force, Covington KY
Oak Forest Amity Resident Council, Inc., Forest City NC
Ohara Ministries, Nashville TN
Okinawan Karate Club of Charlotte, Charlotte NC
Organ Donor Foundation, Inc., Marietta GA
Our Town, Inc., W. Pointe GA
P A C T Ministry, Inc., Alpharetta GA
Palama Scholarship Foundation, Honolulu HI
Parent & Child Connections, Inc., Great Falls VA
Partnership for a Healthy Community, Inc., Pensacola FL
Patch of Harrison County, Inc., Clarksburg WV
Patrons of the Arts in the Vatican Museums, Washington DC
Patterson Outreach Ministries, Greensboro NC
Paulding Pregnancy Services, Inc., Dallas TX
Peach Foundation for Children, Inc., Atlanta GA
Peachcrest, Inc., Red Oak GA
People Encouraging People, Inc., Lakeland FL
People Helping People Ministries, Inc., Stanley NC
Perez Momon Evangelistic Ministries, Inc., Stone Mountain GA
Pinellas County Allstars, Inc., Clearwater FL
Pop Warner Little Scholars, Inc., Clermont FL
Pop Warner Little Scholars, Inc., Immokalee FL
Pop Warner Little Scholars, Inc./ Greater Port St. Lucie Football League, Inc., Port St. Lucie FL
Positive People, Inc., Fayetteville NC
Potomac Westmoreland Shores Neighborhood Watch Committee, Colonial Beach VA
Praise Ministry, Inc., Partners for Christ, Sanford NC
Project of Pike C A S A Program, Inc., Elkhorn City KY
Psalms 23 Project, Inc., Decatur GA
Quiet Miracles, Inc., Winston Salem NC
R & R Series Company, Incorporated, Hampton VA
Re-Birth Childrens Center, Inc., Tampa FL
Red & White, Inc., Winter Park FL
Revelations Gospel Music Ministries, Inc., Charleston WV
RIFF, Inc., Piedmont SC
Rimes Ministries, Elizabethtown NC
Rossetter House Foundation, Inc., Tampa FL
Rowland Youth Club, Rowland NC
Saddle Up for Kids, Lawrenceville GA
Sandyridge Action Community Organization, Inc., Rockingham NC
SBH Genetic Foundation, Inc., Tallahassee FL
SC Chapter of the Alexander Graham Bell Association for the Deaf, Columbia SC
Seek Jesus Ministries, Alamance NC
Serenata, Greenville SC
Shackelford Horse Association, Inc., Cedar Island NC
Shared Resources, Inc., Orlando FL
Shelter Society, Inc., Oneida TN
Shenandoah Legends Fast Pitch, Harrisburg VA
Shirleys Home, Inc., Durham NC
Sickle Cell Disease Association of Okaloosa & Walton County, Inc., Eglin AFB FL
So Can I, Inc., Deland FL
Society of Primary Care Policy Fellows, Washington DC
Sonsa, Burlington NC
South Gwinnett Diamond Club, Inc., Snellville GA
South Hillsborough Community Cupboard, Inc., Ruskin FL
South Memphis Alliance, Incorporated, Memphis TN
Southern Baseball Classic, Inc., Hartsville SC
Southway Alumni Association, Charleston WV
Sox Association, Alpharetta GA
Space Coast Sports Promotion, Inc., Cocoa Beach FL
Spencer J. McCallie Homes Resident Council, Incorporated, Chattanooga TN
Springdale Housing Phase II, Inc., Dunn NC
Spruce River Volunteer Fire Dept. Ladies Auxiliary, Madison WV
St. Mark Family Life Center, Inc., Orlando FL
Stefanie Roth Memorial Cancer Foundation, Inc., Naples FL
Storytime Childrens Outreach, Inc., McDonough GA
Strikeforce Softball Association, Ozona FL
Students for Community Assistance Regarding the Elderly, Inc., Orange Park FL
STUN-Stop Teens From Using Narcotics, Charlotte NC
Summerhill Sports Foundation, Inc., Atlanta GA
Sumter Leaders for Sumter School District 17, Sumter SC
S W A T Team Ministry, Milton FL
T-Connection for Senior Citizens Club, Southern Pines NC
Tampa Bay Academy of Hope, Inc., Tampa FL
Tennessee Valley Building Energy Management Corporation, Nashville TN
TFA Environmental Services, Inc., Yorkville TN
Timothy Foundation Ministries, Inc., Taylors SC
Tiny Treasures-A Child's Place, Inc., Stockbridge GA
Torah From Dixie, Inc., Atlanta GA
Torch Missions USA, Inc., Fairfax VA
Trans-World Bible Society, Memphis TN
Triangle Knights, Inc., Durham NC
Twin Towers BMX Association, Inc., Raleigh NC
Ugandan North American Association, Inc., Burke VA
Upper Ohio Valley Redevelopment and Housing Corporation, Moundsville WV
Upward Challenge, Inc., Beaufort SC
Urbana Swim Team, Inc., Urbana VA
Vernon K. Willoborg Charitable Trust, Houston TX
Veterans Assistance Foundation of Georgia, Inc., Smyrna GA
Victims of Violent Crimes Foundation, Jacksonville FL
Vietnamese Community of Louisville, KY, Louisville KY
Village Alliance, Inc., Atlanta GA
Vision Outreach Ministries, Inc., Statesville NC
W. E. Freeman Outreach, Inc., Orlando FL
Waccamaw Animal Rescue Mission, Conway SC
Washad, Inc., East Point GA
We Care for You Ministries, Tampa FL
We Love Your Children Day Care, Inc., Forrest Park GA
Wesley at Brownsville, Inc., Memphis TN
Wesley at Milan, Inc., Memphis TN
West Jackson Booster Club, Braselton GA
West Tennesseans for Clean Water & Environment, Arlington TN
White Station Baseball Club, Memphis TN
Whizz Kids, Inc., Memphis TN
Wilmington Sports Alliance Soccer Academy, Inc., Wilmington NC
Wolverine Baseball Foundation, Garrisonville VA
Woman to Woman Resource Center, Salisbury NC
Women in Transition 2000, Alexandria CA
Word Power Prison Ministry, Inc., Newnan GA
Youth on Ice, Inc., Virginia Beach VA
Youth Quest Corporation, Memphis TN

If an organization listed above submits information that warrants the renewal of its classification as a public charity or as a private operating foundation, the Internal Revenue Service will issue a ruling or determination letter with the revised classification as to foundation status. Grantors and contributors may thereafter rely upon such ruling or determination letter as provided in section 1.509(a)-7 of the Income Tax Regulations. It is not the practice of the Service to announce such revised classification of foundation status in the Internal Revenue Bulletin.

Definition of Terms and Abbreviations

Definition of Terms

Amplified describes a situation where no change is being made in a prior published position, but the prior position is being extended to apply to a variation of the fact situation set forth therein. Thus, if an earlier ruling held that a principle applied to A, and the new ruling holds that the same principle also applies to B, the earlier ruling is amplified. (Compare with modified, below).

Clarified is used in those instances where the language in a prior ruling is being made clear because the language has caused, or may cause, some confusion. It is not used where a position in a prior ruling is being changed.

Distinguished describes a situation where a ruling mentions a previously published ruling and points out an essential difference between them.

Modified is used where the substance of a previously published position is being changed. Thus, if a prior ruling held that a principle applied to A but not to B, and the new ruling holds that it applies to both A and B, the prior ruling is modified because it corrects a published position. (Compare with amplified and clarified, above).

Obsoleted describes a previously published ruling that is not considered determinative with respect to future transactions. This term is most commonly used in a ruling that lists previously published rulings that are obsoleted because of changes in laws or regulations. A ruling may also be obsoleted because the substance has been included in regulations subsequently adopted.

Revoked describes situations where the position in the previously published ruling is not correct and the correct position is being stated in a new ruling.

Superseded describes a situation where the new ruling does nothing more than restate the substance and situation of a previously published ruling (or rulings). Thus, the term is used to republish under the 1986 Code and regulations the same position published under the 1939 Code and regulations. The term is also used when it is desired to republish in a single ruling a series of situations, names, etc., that were previously published over a period of time in separate rulings. If the new ruling does more than restate the substance of a prior ruling, a combination of terms is used. For example, modified and superseded describes a situation where the substance of a previously published ruling is being changed in part and is continued without change in part and it is desired to restate the valid portion of the previously published ruling in a new ruling that is self contained. In this case, the previously published ruling is first modified and then, as modified, is superseded.

Supplemented is used in situations in which a list, such as a list of the names of countries, is published in a ruling and that list is expanded by adding further names in subsequent rulings. After the original ruling has been supplemented several times, a new ruling may be published that includes the list in the original ruling and the additions, and supersedes all prior rulings in the series.

Suspended is used in rare situations to show that the previous published rulings will not be applied pending some future action such as the issuance of new or amended regulations, the outcome of cases in litigation, or the outcome of a Service study.

Revenue rulings and revenue procedures (hereinafter referred to as “rulings”) that have an effect on previous rulings use the following defined terms to describe the effect:

Abbreviations

The following abbreviations in current use and formerly used will appear in material published in the Bulletin.

A—Individual.

Acq.—Acquiescence.

B—Individual.

BE—Beneficiary.

BK—Bank.

B.T.A.—Board of Tax Appeals.

C—Individual.

C.B.—Cumulative Bulletin.

CFR—Code of Federal Regulations.

CI—City.

COOP—Cooperative.

Ct.D.—Court Decision.

CY—County.

D—Decedent.

DC—Dummy Corporation.

DE—Donee.

Del. Order—Delegation Order.

DISC—Domestic International Sales Corporation.

DR—Donor.

E—Estate.

EE—Employee.

E.O.—Executive Order.

ER—Employer.

ERISA—Employee Retirement Income Security Act.

EX—Executor.

F—Fiduciary.

FC—Foreign Country.

FICA—Federal Insurance Contributions Act.

FISC—Foreign International Sales Company.

FPH—Foreign Personal Holding Company.

F.R.—Federal Register.

FUTA—Federal Unemployment Tax Act.

FX—Foreign corporation.

G.C.M.—Chief Counsel’s Memorandum.

GE—Grantee.

GP—General Partner.

GR—Grantor.

IC—Insurance Company.

I.R.B.—Internal Revenue Bulletin.

LE—Lessee.

LP—Limited Partner.

LR—Lessor.

M—Minor.

Nonacq.—Nonacquiescence.

O—Organization.

P—Parent Corporation.

PHC—Personal Holding Company.

PO—Possession of the U.S.

PR—Partner.

PRS—Partnership.

PTE—Prohibited Transaction Exemption.

Pub. L.—Public Law.

REIT—Real Estate Investment Trust.

Rev. Proc.—Revenue Procedure.

Rev. Rul.—Revenue Ruling.

S—Subsidiary.

S.P.R.—Statement of Procedural Rules.

Stat.—Statutes at Large.

T—Target Corporation.

T.C.—Tax Court.

T.D. —Treasury Decision.

TFE—Transferee.

TFR—Transferor.

T.I.R.—Technical Information Release.

TP—Taxpayer.

TR—Trust.

TT—Trustee.

U.S.C.—United States Code.

X—Corporation.

Y—Corporation.

Z —Corporation.

Numerical Finding List

Numerical Finding List

A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2004-1 through 2004-26 is in Internal Revenue Bulletin 2004-26, dated June 28, 2004.

Bulletins 2004-27 through 2004-44

Announcements

Article Issue Link Page
2004-55 2004-27 I.R.B. 2004-27 15
2004-56 2004-28 I.R.B. 2004-28 41
2004-57 2004-27 I.R.B. 2004-27 15
2004-58 2004-29 I.R.B. 2004-29 66
2004-59 2004-30 I.R.B. 2004-30 94
2004-60 2004-29 I.R.B. 2004-29 43
2004-61 2004-29 I.R.B. 2004-29 67
2004-62 2004-30 I.R.B. 2004-30 103
2004-63 2004-31 I.R.B. 2004-31 149
2004-64 2004-35 I.R.B. 2004-35 402
2004-65 2004-33 I.R.B. 2004-33 300
2004-66 2004-35 I.R.B. 2004-35 402
2004-67 2004-36 I.R.B. 2004-36 459
2004-68 2004-38 I.R.B. 2004-38 508
2004-69 2004-39 I.R.B. 2004-39 542
2004-70 2004-39 I.R.B. 2004-39 543
2004-71 2004-40 I.R.B. 2004-40 569
2004-72 2004-41 I.R.B. 2004-41 650
2004-73 2004-39 I.R.B. 2004-39 543
2004-74 2004-40 I.R.B. 2004-40 579
2004-75 2004-40 I.R.B. 2004-40 580
2004-76 2004-40 I.R.B. 2004-40 588
2004-77 2004-41 I.R.B. 2004-41 662
2004-78 2004-40 I.R.B. 2004-40 592
2004-79 2004-41 I.R.B. 2004-41 662
2004-80 2004-41 I.R.B. 2004-41 663
2004-81 2004-42 I.R.B. 2004-42 675
2004-83 2004-43 I.R.B. 2004-43 712
2004-84 2004-43 I.R.B. 2004-43 712
2004-85 2004-43 I.R.B. 2004-43 712
2004-88 2004-44 I.R.B. 2004-44


Notices

Article Issue Link Page
2004-41 2004-28 I.R.B. 2004-28 31
2004-43 2004-27 I.R.B. 2004-27 10
2004-44 2004-28 I.R.B. 2004-28 32
2004-45 2004-28 I.R.B. 2004-28 33
2004-46 2004-29 I.R.B. 2004-29 46
2004-47 2004-29 I.R.B. 2004-29 48
2004-48 2004-30 I.R.B. 2004-30 88
2004-49 2004-30 I.R.B. 2004-30 88
2004-50 2004-33 I.R.B. 2004-33 196
2004-51 2004-30 I.R.B. 2004-30 89
2004-52 2004-32 I.R.B. 2004-32 168
2004-53 2004-33 I.R.B. 2004-33 209
2004-54 2004-33 I.R.B. 2004-33 209
2004-55 2004-34 I.R.B. 2004-34 319
2004-56 2004-35 I.R.B. 2004-35 375
2004-57 2004-35 I.R.B. 2004-35 376
2004-58 2004-39 I.R.B. 2004-39 520
2004-59 2004-36 I.R.B. 2004-36 447
2004-60 2004-40 I.R.B. 2004-40 564
2004-61 2004-41 I.R.B. 2004-41 596
2004-62 2004-40 I.R.B. 2004-40 565
2004-63 2004-41 I.R.B. 2004-41 597
2004-64 2004-41 I.R.B. 2004-41 598
2004-65 2004-41 I.R.B. 2004-41 599
2004-66 2004-42 I.R.B. 2004-42 677
2004-67 2004-41 I.R.B. 2004-41 600
2004-68 2004-43 I.R.B. 2004-43 706
2004-69 2004-43 I.R.B. 2004-43 706
2004-70 2004-44 I.R.B. 2004-44


Proposed Regulations

Article Issue Link Page
208246-90 2004-36 I.R.B. 2004-36 450
138176-02 2004-43 I.R.B. 2004-43 710
153841-02 2004-31 I.R.B. 2004-31 145
163679-02 2004-35 I.R.B. 2004-35 390
163909-02 2004-38 I.R.B. 2004-38 499
108637-03 2004-37 I.R.B. 2004-37 472
120616-03 2004-37 I.R.B. 2004-37 474
124405-03 2004-35 I.R.B. 2004-35 394
131486-03 2004-28 I.R.B. 2004-28 36
131786-03 2004-38 I.R.B. 2004-38 500
145987-03 2004-39 I.R.B. 2004-39 523
145988-03 2004-42 I.R.B. 2004-42 693
149524-03 2004-39 I.R.B. 2004-39 528
150562-03 2004-32 I.R.B. 2004-32 175
152549-03 2004-36 I.R.B. 2004-36 451
154077-03 2004-37 I.R.B. 2004-37 476
169135-03 2004-42 I.R.B. 2004-42 697
171386-03 2004-37 I.R.B. 2004-37 477
101282-04 2004-42 I.R.B. 2004-42 698
101447-04 2004-34 I.R.B. 2004-34 344
106889-04 2004-38 I.R.B. 2004-38 501
116265-04 2004-38 I.R.B. 2004-38 505
117307-04 2004-28 I.R.B. 2004-28 39
124872-04 2004-39 I.R.B. 2004-39 533
128767-04 2004-39 I.R.B. 2004-39 534
129274-04 2004-40 I.R.B. 2004-40 567
129706-04 2004-37 I.R.B. 2004-37 478
129771-04 2004-36 I.R.B. 2004-36 453
130863-04 2004-39 I.R.B. 2004-39 538
131264-04 2004-38 I.R.B. 2004-38 506
135898-04 2004-40 I.R.B. 2004-40 568
136481-04 2004-37 I.R.B. 2004-37 480


Revenue Procedures

Article Issue Link Page
2004-38 2004-27 I.R.B. 2004-27 10
2004-39 2004-29 I.R.B. 2004-29 49
2004-40 2004-29 I.R.B. 2004-29 50
2004-41 2004-30 I.R.B. 2004-30 90
2004-42 2004-31 I.R.B. 2004-31 121
2004-43 2004-31 I.R.B. 2004-31 124
2004-44 2004-31 I.R.B. 2004-31 134
2004-45 2004-31 I.R.B. 2004-31 140
2004-46 2004-31 I.R.B. 2004-31 142
2004-47 2004-32 I.R.B. 2004-32 169
2004-48 2004-32 I.R.B. 2004-32 172
2004-49 2004-33 I.R.B. 2004-33 210
2004-50 2004-33 I.R.B. 2004-33 211
2004-51 2004-33 I.R.B. 2004-33 294
2004-52 2004-34 I.R.B. 2004-34 319
2004-53 2004-34 I.R.B. 2004-34 320
2004-54 2004-34 I.R.B. 2004-34 325
2004-55 2004-34 I.R.B. 2004-34 343
2004-56 2004-35 I.R.B. 2004-35 376
2004-57 2004-38 I.R.B. 2004-38 498
2004-58 2004-41 I.R.B. 2004-41 602
2004-59 2004-42 I.R.B. 2004-42 678
2004-60 2004-42 I.R.B. 2004-42 682
2004-61 2004-43 I.R.B. 2004-43 707
2004-62 2004-44 I.R.B. 2004-44


Revenue Rulings

Article Issue Link Page
2004-63 2004-27 I.R.B. 2004-27 6
2004-64 2004-27 I.R.B. 2004-27 7
2004-65 2004-27 I.R.B. 2004-27 1
2004-66 2004-27 I.R.B. 2004-27 4
2004-67 2004-28 I.R.B. 2004-28 28
2004-68 2004-31 I.R.B. 2004-31 118
2004-69 2004-36 I.R.B. 2004-36 445
2004-70 2004-37 I.R.B. 2004-37 460
2004-71 2004-30 I.R.B. 2004-30 74
2004-72 2004-30 I.R.B. 2004-30 77
2004-73 2004-30 I.R.B. 2004-30 80
2004-74 2004-30 I.R.B. 2004-30 84
2004-75 2004-31 I.R.B. 2004-31 109
2004-76 2004-31 I.R.B. 2004-31 111
2004-77 2004-31 I.R.B. 2004-31 119
2004-78 2004-31 I.R.B. 2004-31 108
2004-79 2004-31 I.R.B. 2004-31 106
2004-80 2004-32 I.R.B. 2004-32 164
2004-81 2004-32 I.R.B. 2004-32 161
2004-82 2004-35 I.R.B. 2004-35 350
2004-83 2004-32 I.R.B. 2004-32 157
2004-84 2004-32 I.R.B. 2004-32 163
2004-85 2004-33 I.R.B. 2004-33 189
2004-86 2004-33 I.R.B. 2004-33 191
2004-87 2004-32 I.R.B. 2004-32 154
2004-88 2004-32 I.R.B. 2004-32 165
2004-89 2004-34 I.R.B. 2004-34 301
2004-90 2004-34 I.R.B. 2004-34 317
2004-91 2004-35 I.R.B. 2004-35 357
2004-92 2004-37 I.R.B. 2004-37 466
2004-93 2004-37 I.R.B. 2004-37 462
2004-94 2004-38 I.R.B. 2004-38 491
2004-95 2004-38 I.R.B. 2004-38 492
2004-96 2004-41 I.R.B. 2004-41 593
2004-97 2004-39 I.R.B. 2004-39 516
2004-98 2004-42 I.R.B. 2004-42 664
2004-99 2004-44 I.R.B. 2004-44
2004-100 2004-44 I.R.B. 2004-44
2004-101 2004-44 I.R.B. 2004-44


Tax Conventions

Article Issue Link Page
2004-60 2004-29 I.R.B. 2004-29 43
2004-81 2004-42 I.R.B. 2004-42 675


Treasury Decisions

Article Issue Link Page
9131 2004-27 I.R.B. 2004-27 2
9132 2004-28 I.R.B. 2004-28 16
9133 2004-28 I.R.B. 2004-28 25
9134 2004-30 I.R.B. 2004-30 70
9135 2004-30 I.R.B. 2004-30 69
9136 2004-31 I.R.B. 2004-31 112
9137 2004-34 I.R.B. 2004-34 308
9138 2004-32 I.R.B. 2004-32 160
9139 2004-38 I.R.B. 2004-38 495
9140 2004-32 I.R.B. 2004-32 159
9141 2004-35 I.R.B. 2004-35 359
9142 2004-34 I.R.B. 2004-34 302
9143 2004-36 I.R.B. 2004-36 442
9144 2004-36 I.R.B. 2004-36 413
9145 2004-37 I.R.B. 2004-37 464
9146 2004-36 I.R.B. 2004-36 408
9147 2004-37 I.R.B. 2004-37 461
9148 2004-37 I.R.B. 2004-37 460
9149 2004-38 I.R.B. 2004-38 494
9150 2004-39 I.R.B. 2004-39 514
9151 2004-38 I.R.B. 2004-38 489
9152 2004-39 I.R.B. 2004-39 509
9153 2004-39 I.R.B. 2004-39 517
9154 2004-40 I.R.B. 2004-40 560
9155 2004-40 I.R.B. 2004-40 562
9156 2004-42 I.R.B. 2004-42 669
9157 2004-40 I.R.B. 2004-40 545
9158 2004-42 I.R.B. 2004-42 665
9161 2004-43 I.R.B. 2004-43 704


Effect of Current Actions on Previously Published Items

Findings List of Current Actions on Previously Published Items

A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2004-1 through 2004-26 is in Internal Revenue Bulletin 2004-26, dated June 28, 2004.

Bulletins 2004-27 through 2004-44

Announcements

Old Article Action New Article Issue Link Page
99-76 Obsoleted by T.D. 9157 2004-40 I.R.B. 2004-40 545
2003-54 Updated and superseded by Ann. 2004-72 2004-41 I.R.B. 2004-41 650
2004-70 Amended by Ann. 2004-77 2004-41 I.R.B. 2004-41 662


Notices

Old Article Action New Article Issue Link Page
88-128 Supplemented by Notice 2004-61 2004-41 I.R.B. 2004-41 596
98-65 Superseded by Rev. Proc. 2004-40 2004-29 I.R.B. 2004-29 50
2001-50 Modified by Rev. Proc. 2004-46 2004-31 I.R.B. 2004-31 142
2002-70 Modified by Notice 2004-65 2004-41 I.R.B. 2004-41 599
2003-76 Supplemented and superseded by Notice 2004-67 2004-41 I.R.B. 2004-41 600
2003-76 Modified by Notice 2004-65 2004-41 I.R.B. 2004-41 599
2004-2 Modified by Notice 2004-50 2004-33 I.R.B. 2004-33 196
2004-2 Corrected by Ann. 2004-67 2004-36 I.R.B. 2004-36 459


Proposed Regulations

Old Article Action New Article Issue Link Page
INTL-116-90 Withdrawn by REG-208246-90 2004-36 I.R.B. 2004-36 450
REG-208254-90 Withdrawn by REG-136481-04 2004-37 I.R.B. 2004-37 480
REG-104683-00 Partially withdrawn by Ann. 2004-64 2004-35 I.R.B. 2004-35 402
REG-165579-02 Withdrawn by Ann. 2004-69 2004-39 I.R.B. 2004-39 542
REG-150562-03 Corrected by Ann. 2004-68 2004-38 I.R.B. 2004-38 508
REG-150562-03 Corrected by Ann. 2004-73 2004-39 I.R.B. 2004-39 543


Revenue Procedures

Old Article Action New Article Issue Link Page
79-61 Superseded by Rev. Proc. 2004-44 2004-31 I.R.B. 2004-31 134
89-37 Obsoleted by Rev. Rul. 2004-90 2004-34 I.R.B. 2004-34 317
94-64 Superseded by Rev. Proc. 2004-38 2004-27 I.R.B. 2004-27 10
96-18 Obsoleted by Rev. Rul. 2004-90 2004-34 I.R.B. 2004-34 317
96-53 Superseded by Rev. Proc. 2004-40 2004-29 I.R.B. 2004-29 50
96-60 Superseded by Rev. Proc. 2004-53 2004-34 I.R.B. 2004-34 320
98-41 Superseded by Rev. Proc. 2004-56 2004-35 I.R.B. 2004-35 376
2000-37 Modified by Rev. Proc. 2004-51 2004-33 I.R.B. 2004-33 294
2002-9 Modified and amplified by Rev. Proc. 2004-41 2004-30 I.R.B. 2004-30 90
2003-28 Superseded by Rev. Proc. 2004-58 2004-41 I.R.B. 2004-41 602
2003-30 Superseded by Rev. Proc. 2004-54 2004-34 I.R.B. 2004-34 325
2003-52 Superseded by Rev. Proc. 2004-50 2004-33 I.R.B. 2004-33 211
2003-73 Superseded by Rev. Proc. 2004-62 2004-44 I.R.B. 2004-44
2003-80 Superseded by Rev. Proc. 2004-60 2004-42 I.R.B. 2004-42 682
2004-4 Modified by Rev. Proc. 2004-44 2004-31 I.R.B. 2004-31 134
2004-23 Modified by Rev. Proc. 2004-57 2004-38 I.R.B. 2004-38 498


Revenue Rulings

Old Article Action New Article Issue Link Page
54-379 Superseded by Rev. Rul. 2004-68 2004-31 I.R.B. 2004-31 118
58-120 Obsoleted by Rev. Rul. 2004-90 2004-34 I.R.B. 2004-34 317
62-60 Amplified by Rev. Proc. 2004-53 2004-34 I.R.B. 2004-34 320
70-58 Obsoleted by Rev. Rul. 2004-90 2004-34 I.R.B. 2004-34 317
73-354 Obsoleted by Rev. Rul. 2004-76 2004-31 I.R.B. 2004-31 111
78-371 Distinguished by Rev. Rul. 2004-86 2004-33 I.R.B. 2004-33 191
79-64 Obsoleted by Rev. Rul. 2004-90 2004-34 I.R.B. 2004-34 317
80-7 Amplified and clarified by Rev. Rul. 2004-71 2004-30 I.R.B. 2004-30 74
80-7 Amplified and clarified by Rev. Rul. 2004-72 2004-30 I.R.B. 2004-30 77
80-7 Amplified and clarified by Rev. Rul. 2004-73 2004-30 I.R.B. 2004-30 80
80-7 Amplified and clarified by Rev. Rul. 2004-74 2004-30 I.R.B. 2004-30 84
80-366 Obsoleted by Rev. Rul. 2004-90 2004-34 I.R.B. 2004-34 317
81-100 Clarified and modified by Rev. Rul. 2004-67 2004-28 I.R.B. 2004-28 28
85-70 Amplified and clarified by Rev. Rul. 2004-71 2004-30 I.R.B. 2004-30 74
85-70 Amplified and clarified by Rev. Rul. 2004-72 2004-30 I.R.B. 2004-30 77
85-70 Amplified and clarified by Rev. Rul. 2004-73 2004-30 I.R.B. 2004-30 80
85-70 Amplified and clarified by Rev. Rul. 2004-74 2004-30 I.R.B. 2004-30 84
92-105 Distinguished by Rev. Rul. 2004-86 2004-33 I.R.B. 2004-33 191
2004-75 Amplified by Rev. Rul. 2004-97 2004-39 I.R.B. 2004-39 516


Treasury Decisions

Old Article Action New Article Issue Link Page
9031 Removed by T.D. 9152 2004-39 I.R.B. 2004-39 509


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