Breadcrumb Region

Internal Revenue Bulletin: 2005-45

November 7, 2005


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.

SPECIAL ANNOUNCEMENT

Announcement 2005-81

The Eighteenth Annual Institute on Current Issues in International Taxation, jointly sponsored by the Internal Revenue Service and The George Washington University Law School, will be held on December 8 and 9, 2005, at the J.W. Marriott Hotel in Washington, DC.

INCOME TAX

Rev. Rul. 2005-70

2005 base period T-bill rate. The “base period T-bill rate” for the period ending September 30, 2005, is published as required by section 995(f) of the Code.

Rev. Rul. 2005-71

Federal rates; adjusted federal rates; adjusted federal long-term rate and the long-term exempt rate. For purposes of sections 382, 642, 1274, 1288, and other sections of the Code, tables set forth the rates for November 2005.

Announcement 2005-79

Form 8884, New York Liberty Zone Business Employee Credit, is obsolete as of December 31, 2004. As a result, any carryforward credit from Form 8884 is now reported in Section B of Form 8835, Renewable Electricity, Refined Coal, and Indian Coal Production Credit.

EMPLOYEE PLANS

Notice 2005-75

2006 cost-of-living adjustments; retirement plans, etc. This notice sets forth certain cost-of-living adjustments effective January 1, 2006, applicable to the dollar limits on benefits under qualified defined benefit pension plans and to other provisions affecting (1) certain plans of deferred compensation and (2) “control employees.” This notice restates the data in News Release IR-2005-120 issued October 14, 2005.

EXEMPT ORGANIZATIONS

Announcement 2005-82

Delta Regional Transit System, Inc., of Greenville, MS; Gibson Trust, Inc., of Hollywood, FL; Housing Development Group, Inc., of Providence, RI; and National Credit Education and Review, of Canton, MI, no longer qualify as organizations to which contributions are deductible under section 170 of the Code.

Announcement 2005-83

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

EMPLOYMENT TAX

REG-114371-05

Proposed regulations under section 7701 of the Code explain that certain disregarded entities (qualified subchapter S subsidiaries and single owner eligible entities) are to be treated as entities separate from their owners for purposes of paying and reporting federal employment and certain excise taxes.

EXCISE TAX

REG-114371-05

Proposed regulations under section 7701 of the Code explain that certain disregarded entities (qualified subchapter S subsidiaries and single owner eligible entities) are to be treated as entities separate from their owners for purposes of paying and reporting federal employment and certain excise taxes.

ADMINISTRATIVE

T.D. 9227

REG–114444–05

Final, temporary, and proposed regulations under section 7804 of the Code amend 26 CFR Part 801 to clarify when quantity measures, which are not tax enforcement results, may be used in measuring organizational and employee performance.

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. 2005-70

2005 base period T-bill rate. The “base period T-bill rate” for the period ending September 30, 2005, 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, 2005 is 3.18 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 2005 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. 2004-99, 2004-2 C.B. 720, Rev. Rul. 2003-111, 2003-2 C.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).

2005 ANNUAL RATE, COMPOUNDED DAILY
3.180 PERCENT
DAYS FACTOR
1 .000087123
2 .000174254
3 .000261393
4 .000348539
5 .000435692
6 .000522854
7 .000610022
8 .000697199
9 .000784383
10 .000871575
11 .000958774
12 .001045981
13 .001133195
14 .001220417
15 .001307647
16 .001394884
17 .001482129
18 .001569381
19 .001656641
20 .001743909
21 .001831184
22 .001918467
23 .002005757
24 .002093055
25 .002180361
26 .002267674
27 .002354995
28 .002442323
29 .002529659
30 .002617003
31 .002704354
32 .002791713
33 .002879080
34 .002966454
35 .003053836
36 .003141225
37 .003228622
38 .003316027
39 .003403439
40 .003490859
41 .003578286
42 .003665721
43 .003753164
44 .003840614
45 .003928072
46 .004015537
47 .004103011
48 .004190491
49 .004277980
50 .004365476
51 .004452979
52 .004540491
53 .004628009
54 .004715536
55 .004803070
56 .004890612
57 .004978161
58 .005065718
59 .005153283
60 .005240855
61 .005328435
62 .005416022
63 .005503618
64 .005591220
65 .005678831
66 .005766449
67 .005854075
68 .005941708
69 .006029349
70 .006116997
71 .006204654
72 .006292317
73 .006379989
74 .006467668
75 .006555355
76 .006643049
77 .006730751
78 .006818461
79 .006906178
80 .006993903
81 .007081636
82 .007169376
83 .007257124
84 .007344880
85 .007432643
86 .007520414
87 .007608192
88 .007695978
89 .007783772
90 .007871574
91 .007959383
92 .008047199
93 .008135024
94 .008222856
95 .008310695
96 .008398543
97 .008486398
98 .008574260
99 .008662131
100 .008750009
101 .008837894
102 .008925788
103 .009013689
104 .009101597
105 .009189513
106 .009277437
107 .009365369
108 .009453308
109 .009541255
110 .009629210
111 .009717172
112 .009805142
113 .009893119
114 .009981104
115 .010069097
116 .010157098
117 .010245106
118 .010333122
119 .010421145
120 .010509177
121 .010597216
122 .010685262
123 .010773316
124 .010861378
125 .010949448
126 .011037525
127 .011125610
128 .011213703
129 .011301803
130 .011389911
131 .011478026
132 .011566150
133 .011654281
134 .011742419
135 .011830566
136 .011918720
137 .012006881
138 .012095051
139 .012183228
140 .012271412
141 .012359605
142 .012447805
143 .012536013
144 .012624228
145 .012712451
146 .012800682
147 .012888921
148 .012977167
149 .013065421
150 .013153682
151 .013241952
152 .013330229
153 .013418513
154 .013506806
155 .013595106
156 .013683413
157 .013771729
158 .013860052
159 .013948383
160 .014036721
161 .014125068
162 .014213421
163 .014301783
164 .014390152
165 .014478529
166 .014566914
167 .014655306
168 .014743707
169 .014832114
170 .014920530
171 .015008953
172 .015097384
173 .015185823
174 .015274269
175 .015362723
176 .015451185
177 .015539654
178 .015628131
179 .015716616
180 .015805109
181 .015893609
182 .015982117
183 .016070633
184 .016159156
185 .016247687
186 .016336226
187 .016424773
188 .016513327
189 .016601889
190 .016690459
191 .016779036
192 .016867621
193 .016956214
194 .017044815
195 .017133423
196 .017222039
197 .017310663
198 .017399294
199 .017487933
200 .017576580
201 .017665235
202 .017753897
203 .017842567
204 .017931245
205 .018019930
206 .018108624
207 .018197325
208 .018286033
209 .018374750
210 .018463474
211 .018552206
212 .018640945
213 .018729693
214 .018818448
215 .018907211
216 .018995981
217 .019084760
218 .019173546
219 .019262339
220 .019351141
221 .019439950
222 .019528767
223 .019617592
224 .019706424
225 .019795264
226 .019884112
227 .019972968
228 .020061831
229 .020150702
230 .020239581
231 .020328468
232 .020417362
233 .020506264
234 .020595174
235 .020684092
236 .020773017
237 .020861950
238 .020950891
239 .021039840
240 .021128796
241 .021217760
242 .021306732
243 .021395712
244 .021484699
245 .021573694
246 .021662697
247 .021751708
248 .021840726
249 .021929752
250 .022018786
251 .022107828
252 .022196877
253 .022285934
254 .022374999
255 .022464072
256 .022553152
257 .022642240
258 .022731336
259 .022820440
260 .022909551
261 .022998671
262 .023087798
263 .023176933
264 .023266075
265 .023355225
266 .023444383
267 .023533549
268 .023622723
269 .023711904
270 .023801093
271 .023890290
272 .023979495
273 .024068707
274 .024157928
275 .024247156
276 .024336391
277 .024425635
278 .024514886
279 .024604145
280 .024693412
281 .024782687
282 .024871969
283 .024961260
284 .025050558
285 .025139863
286 .025229177
287 .025318498
288 .025407827
289 .025497164
290 .025586509
291 .025675861
292 .025765222
293 .025854590
294 .025943966
295 .026033349
296 .026122741
297 .026212140
298 .026301547
299 .026390962
300 .026480384
301 .026569814
302 .026659253
303 .026748699
304 .026838152
305 .026927614
306 .027017083
307 .027106560
308 .027196045
309 .027285538
310 .027375038
311 .027464547
312 .027554063
313 .027643587
314 .027733118
315 .027822658
316 .027912205
317 .028001760
318 .028091323
319 .028180894
320 .028270472
321 .028360058
322 .028449653
323 .028539254
324 .028628864
325 .028718482
326 .028808107
327 .028897740
328 .028987381
329 .029077030
330 .029166687
331 .029256351
332 .029346023
333 .029435703
334 .029525391
335 .029615087
336 .029704790
337 .029794501
338 .029884220
339 .029973947
340 .030063682
341 .030153425
342 .030243175
343 .030332933
344 .030422699
345 .030512473
346 .030602254
347 .030692044
348 .030781841
349 .030871646
350 .030961459
351 .031051280
352 .031141109
353 .031230945
354 .031320789
355 .031410641
356 .031500501
357 .031590369
358 .031680244
359 .031770128
360 .031860019
361 .031949918
362 .032039825
363 .032129740
364 .032219662
365 .032309593
366 .032399531
367 .032489477
368 .032579431
369 .032669392
370 .032759362
371 .032849339

Rev. Rul. 2005-71

Federal rates; adjusted federal rates; adjusted federal long-term rate and the long-term exempt rate. For purposes of sections 382, 642, 1274, 1288, and other sections of the Code, tables set forth the rates for November 2005.

This revenue ruling provides various prescribed rates for federal income tax purposes for November 2005 (the current month). Table 1 contains the short-term, mid-term, and long-term applicable federal rates (AFR) for the current month for purposes of section 1274(d) of the Internal Revenue Code. Table 2 contains the short-term, mid-term, and long-term adjusted applicable federal rates (adjusted AFR) for the current month for purposes of section 1288(b). Table 3 sets forth the adjusted federal long-term rate and the long-term tax-exempt rate described in section 382(f). Table 4 contains the appropriate percentages for determining the low-income housing credit described in section 42(b)(2) for buildings placed in service during the current month. Finally, Table 5 contains the federal rate for determining the present value of an annuity, an interest for life or for a term of years, or a remainder or a reversionary interest for purposes of section 7520.

REV. RUL. 2005-71 TABLE 1
Applicable Federal Rates (AFR) for November 2005
Period for Compounding
Annual Semiannual Quarterly Monthly
Short-term
AFR 4.04% 4.00% 3.98% 3.97%
110% AFR 4.45% 4.40% 4.38% 4.36%
120% AFR 4.86% 4.80% 4.77% 4.75%
130% AFR 5.27% 5.20% 5.17% 5.14%
Mid-term
AFR 4.23% 4.19% 4.17% 4.15%
110% AFR 4.66% 4.61% 4.58% 4.57%
120% AFR 5.09% 5.03% 5.00% 4.98%
130% AFR 5.52% 5.45% 5.41% 5.39%
150% AFR 6.39% 6.29% 6.24% 6.21%
175% AFR 7.46% 7.33% 7.26% 7.22%
Long-term
AFR 4.57% 4.52% 4.49% 4.48%
110% AFR 5.03% 4.97% 4.94% 4.92%
120% AFR 5.49% 5.42% 5.38% 5.36%
130% AFR 5.97% 5.88% 5.84% 5.81%
REV. RUL. 2005-71 TABLE 2
Adjusted AFR for November 2005
Period for Compounding
Annual Semiannual Quarterly Monthly
Short-term adjusted AFR 2.87% 2.85% 2.84% 2.83%
Mid-term adjusted AFR 3.32% 3.29% 3.28% 3.27%
Long-term adjusted AFR 4.22% 4.18% 4.16% 4.14%
REV. RUL. 2005-71 TABLE 3
Rates Under Section 382 for November 2005
Adjusted federal long-term rate for the current month 4.22%
Long-term tax-exempt rate for ownership changes during the current month (the highest of the adjusted federal long-term rates for the current month and the prior two months.) 4.24%
REV. RUL. 2005-71 TABLE 4
Appropriate Percentages Under Section 42(b)(2) for November 2005
Appropriate percentage for the 70% present value low-income housing credit 8.02%
Appropriate percentage for the 30% present value low-income housing credit 3.44%
REV. RUL. 2005-71 TABLE 5
Rate Under Section 7520 for November 2005
Applicable federal rate for determining the present value of an annuity, an interest for life or a term of years, or a remainder or reversionary interest 5.0%

T.D. 9227

Balanced System for Measuring Organizational and Employee Performance Within the Internal Revenue Service

DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 801

AGENCY:

Internal Revenue Service (IRS), Treasury.

ACTION:

Final and temporary regulations.

SUMMARY:

This document contains final and temporary regulations relating to the balanced system for measuring organizational and employee performance within the IRS. The temporary regulations prospectively amend the existing final regulations in 26 CFR Part 801 to clarify when quantity measures, which are not tax enforcement results, may be used in measuring organizational and employee performance. The portions of this document that are final regulations provide necessary cross-references to the temporary regulations. These regulations affect internal operations of the IRS and the systems it employs to evaluate the performance of organizations within the IRS. The text of the temporary regulations also serves as the text of proposed regulations (REG-114444-05) set forth in this issue of the Bulletin.

DATES:

Effective Date: These regulations are effective on October 17, 2005.

Applicability Date: For dates of applicability, see §§801.7 and 801.8T.

FOR FURTHER INFORMATION CONTACT:

Neil Worden, (202) 283-7900 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

This document amends final regulations in 26 CFR Part 801 (the Final Regulations) that implement the Balanced System for Measuring Organizational and Employee Performance within the IRS. The Final Regulations were published in the Federal Register on August 6, 1999 (T.D. 8830, 1999-2 C.B. 430 [64 FR 42834-42837]). The Final Regulations emanated from section 1201 of the Internal Revenue Service Restructuring and Reform Act of 1998, Public Law 105-206, 112 Stat. 685, 713 (1998) (the Act), which required the IRS to establish a performance management system for those employees covered by 5 U.S.C. 4302 that, among other things, establishes “goals or objectives for individual, group, or organizational performance (or any combination thereof), consistent with the IRS’ performance planning procedures, including those established under the Government Performance and Results Act of 1993, division E of the Clinger-Cohen Act of 1966 . . ., Revenue Procedure 64-22 . . ., and taxpayer service surveys.” Section 1201 further required the IRS to use “such goals and objectives to make performance distinctions among employees or groups of employees,” and to use “performance assessments as a basis for granting employee awards, adjusting an employee’s rate of basic pay, and other appropriate personnel actions . . . .”

In addition, section 1201 of the Act required that the IRS performance management system comply with section 1204, which prohibits the use of “records of tax enforcement results” (ROTERs) in the evaluation of IRS employees or to suggest or impose production goals for such employees. Section 1204, however, does not prohibit the use of quantity measures in evaluating organizational and employee performance. The temporary regulations in this document amend the existing regulations in part 801 to clarify when quantity measures may be used in measuring organizational and employee performance.

Explanation of Provisions

The final regulations provide guidance and direction for the establishment of a balanced performance measurement system for the IRS. The three elements of this balanced measurement system are (1) customer satisfaction measures, (2) employee satisfaction measures and (3) business results measures. These organizational measures may be used to evaluate the performance of, or to impose or suggest production goals for, any organizational unit.

The temporary regulations contained in this document relate primarily to the business results measures. Business results are measured through quality measures and quantity measures. Quality measures are based on reviews of a statistically valid sample of cases handled by certain organizational units such as examination, collection and Automated Collection System units. The quality review of other work units is determined according to criteria established by the Commissioner or his delegate.

The IRS and Treasury Department have determined that the provisions of the existing Part 801 regulations that limit the use of quantity measures in evaluating organizational units and imposing or suggesting production goals for employees restrict the IRS’ ability to monitor program performance and track effectiveness of operations, and have caused confusion as to what types of data or measures may be discussed between managers and employees and reflected in manager and employee goals. These temporary regulations remove the limitations on the use of quantity measures in evaluating the performance of, or imposing or suggesting goals for organizational units. These temporary regulations also remove the limitations on the use of quantity measures to impose or suggest goals for employees. The regulations continue to provide that performance measures based on quantity measures will not be used to evaluate the performance of such employees. The temporary regulations do not affect the continuing prohibition on the use of ROTERS to evaluate employee performance or to impose or suggest production quotas or goals for any employee.

Special Analyses

It has been determined that this is not a significant regulatory action as defined in Executive Order 12866. Therefore, a regulatory assessment is not required. It also has been determined that section 553(b) of the Administrative Procedure Act ( 5 U.S.C. chapter 5) does not apply to these regulations. For applicability of the Regulatory Flexibility Act, please refer to the cross-reference notice of proposed rulemaking published elsewhere in this Bulletin. Pursuant to section 7805(f) of the Internal Revenue Code, these temporary regulations will be submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on its impact on small business.

Amendments to the Regulations

Accordingly, 26 CFR Part 801 is amended as follows:

PART 801—BALANCED SYSTEM FOR MEASURING ORGANIZATIONAL AND INDIVIDUAL PERFORMANCE WITHIN THE INTERNAL REVENUE SERVICE

Paragraph 1. The authority citation for Part 801 continues to read in part as follows:

Authority: 5 U.S.C. 9501 * * *

Par. 2. Section 801.1 is amended by:

1. Adding the new center heading.

2. Removing and reserving paragraph (b).

The addition reads as follows:

REGULATIONS APPLICABLE BEFORE OCTOBER 17, 2005

§801.1 Balanced performance measurement system; in general.

* * * * *

Par. 3. Section 801.7 is added to read as follows:

§801.7 Effective dates.

The provisions of §§801.1 through 801.6 apply before October 17, 2005. For the applicable provisions on or after October 17, 2005, see §§801.1T through 801.7T.

Par. 4. Sections 801.1T through 801.8T and a new center heading are added to read as follows:

REGULATIONS APPLICABLE ON OR AFTER OCTOBER 17, 2005

§801.1T Balanced performance measurement system; in general (temporary).

(a) In general. (1) The regulations in this part 801 implement the provisions of sections 1201 and 1204 of the Internal Revenue Service Restructuring and Reform Act of 1998 (Public Law 105-106, 112 Stat. 685, 715-716, 722) (the Act) and provide rules relating to the establishment by the Internal Revenue Service (IRS) of a balanced performance measurement system.

(2) Modern management practice and various statutory and regulatory provisions require the IRS to set performance goals for organizational units and to measure the results achieved by those units with respect to those goals. To fulfill these requirements, the IRS has established a balanced performance measurement system, composed of three elements: Customer Satisfaction Measures; Employee Satisfaction Measures; and Business Results Measures. The IRS is likewise required to establish a performance evaluation system for individual employees.

(b) [Reserved].

§801.2T Measuring organizational performance (temporary).

The performance measures that comprise the balanced measurement system will, to the maximum extent possible, be stated in objective, quantifiable, and measurable terms and will be used to measure the overall performance of various operational units within the IRS. In addition to implementing the requirements of the Act, the measures described here will, where appropriate, be used in establishing performance goals and making performance evaluations established, inter alia, under Division E, National Defense Authorization Act for Fiscal Year 1996 (the Clinger-Cohen Act of 1996) (Public Law 104-106, 110 Stat. 186, 679); the Government Performance and Results Act of 1993 (Public Law 103-62, 107 Stat. 285); and the Chief Financial Officers Act of 1990 (Public Law 101-576, 108 Stat. 2838). Thus, organizational measures of customer satisfaction, employee satisfaction, and business results (including quality and quantity measures as described in §801.6T) may be used to evaluate the performance of or to impose or suggest production goals for, any organizational unit.

§801.3T Measuring employee performance (temporary).

(a) In general. All employees of the IRS will be evaluated according to the critical elements and standards or such other performance criteria as may be established for their positions. In accordance with the requirements of 5 U.S.C. 4312, 4313, and 9508 and section 1201 of the Act, the performance criteria for each position as are appropriate to that position, will be composed of elements that support the organizational measures of Customer Satisfaction, Employee Satisfaction, and Business Results; however, such organizational measures will not directly determine the evaluation of individual employees.

(b) Fair and equitable treatment of taxpayers. In addition to all other criteria required to be used in the evaluation of employee performance, all employees of the IRS will be evaluated on whether they provided fair and equitable treatment to taxpayers.

(c) Senior Executive Service and special positions. Employees in the Senior Executive Service will be rated in accordance with the requirements of 5 U.S.C. 4312 and 4313 and employees selected to fill positions under 5 U.S.C. 9503 will be evaluated pursuant to workplans, employment agreements, performance agreements, or similar documents entered into between the IRS and the employee.

(d) General workforce. The performance evaluation system for all other employees will—

(1) Establish one or more retention standards for each employee related to the work of the employee and expressed in terms of individual performance;

(2) Require periodic determinations of whether each employee meets or does not meet the employee’s established retention standards;

(3) Require that action be taken in accordance with applicable laws and regulations, with respect to employees whose performance does not meet the established retention standards;

(4) Establish goals or objectives for individual performance consistent with the IRS’s performance planning procedures;

(5) Use such goals and objectives to make performance distinctions among employees or groups of employees; and

(6) Use performance assessments as a basis for granting employee awards, adjusting an employee’s rate of basic pay, and other appropriate personnel actions, in accordance with applicable laws and regulations.

(e) Limitations. (1) No employee of the IRS may use records of tax enforcement results (as described in §801.6T) to evaluate any other employee or to impose or suggest production quotas or goals for any employee.

(i) For purposes of the limitation contained in this paragraph (e), employee has the meaning as defined in 5 U.S.C. 2105(a).

(ii) For purposes of the limitation contained in this paragraph (e), evaluate includes any process used to appraise or measure an employee’s performance for purposes of providing the following:

(A) Any required or requested performance rating.

(B) A recommendation for an award covered by Chapter 45 of Title 5; 5 U.S.C. 5384; or section 1201(a) of the Act.

(C) An assessment of an employee’s qualifications for promotion, reassignment, or other change in duties.

(D) An assessment of an employee’s eligibility for incentives, allowances, or bonuses.

(E) Ranking of employees for release/recall and reductions in force.

(2) Employees who are responsible for exercising judgment with respect to tax enforcement results in cases concerning one or more taxpayers may be evaluated on work done on such cases only in the context of their critical elements and standards.

(3) Performance measures based in whole or in part on quantity measures (as described in §801.6T) will not be used to evaluate the performance of any non-supervisory employee who is responsible for exercising judgment with respect to tax enforcement results (as described in §801.6T).

§801.4T Customer satisfaction measures (temporary).

The customer satisfaction goals and accomplishments of operating units within the IRS will be determined on the basis of information gathered through various methods. For example, questionnaires, surveys and other types of information gathering mechanisms may be employed to gather data regarding customer satisfaction. Information to measure customer satisfaction for a particular work unit will be gathered from a statistically valid sample of the customers served by that operating unit and will be used to measure, among other things, whether those customers believe that they received courteous, timely, and professional treatment by the IRS personnel with whom they dealt. Customers will be permitted to provide information requested for these purposes under conditions that guarantee them anonymity. For purposes of this section, customers may include individual taxpayers, organizational units, or employees within the IRS and external groups affected by the services performed by the IRS operating unit.

§801.5T Employee satisfaction measures (temporary).

The employee satisfaction numerical ratings to be given operating units within the IRS will be determined on the basis of information gathered through various methods. For example, questionnaires, surveys, and other information gathering mechanisms may be employed to gather data regarding satisfaction. The information gathered will be used to measure, among other factors bearing upon employee satisfaction, the quality of supervision and the adequacy of training and support services. All employees of an operating unit will have an opportunity to provide information regarding employee satisfaction within the operating unit under conditions that guarantee them anonymity.

§801.6T Business results measures (temporary).

(a) In general. The business results measures will consist of numerical scores determined under the quality measures and the quantity measures described elsewhere in this section.

(b) Quality measures. Quality measures will be determined on the basis of a review by a specially dedicated staff within the IRS of a statistically valid sample of work items handled by certain functions or organizational units determined by the Commissioner or his delegate such as the following:

(1) Examination and collection units and Automated Collection System Units (ACS). The quality review of the handling of cases involving particular taxpayers will focus on such factors as whether IRS personnel devoted an appropriate amount of time to a matter, properly analyzed the facts, and complied with statutory, regulatory, and IRS procedures, including timeliness, adequacy of notifications, and required contacts with taxpayers.

(2) Toll-free telephone sites. The quality review of telephone services will focus on such factors as whether IRS personnel provided accurate tax law and account information.

(3) Other work units. The quality review of other work units will be determined according to criteria prescribed by the Commissioner or his delegate.

(c) Quantity measures. Quantity measures will consist of outcome-neutral production and resource data that does not contain information regarding the tax enforcement result reached in any case that involves particular taxpayers. Examples of quantity measures include, but are not limited to—

(1) Cases started;

(2) Cases closed;

(3) Work items completed;

(4) Customer education, assistance, and outreach efforts completed;

(5) Time per case;

(6) Direct examination time/out of office time;

(7) Cycle time;

(8) Number or percentage of overage cases;

(9) Inventory information;

(10) Toll-free level of access; and

(11) Talk time.

(d) Definitions—(1) Tax enforcement results. A tax enforcement result is the outcome produced by an IRS employee’s exercise of judgment in recommending or determining whether or how the IRS should pursue enforcement of the tax laws. Examples of tax enforcement results include a lien filed, a levy served, a seizure executed, the amount assessed, the amount collected, and a fraud referral. Examples of data that are not tax enforcement results include a quantity measure and data derived from a quality review or from a review of an employee’s or a work unit’s work on a case, such as the number or percentage of cases in which correct examination adjustments were proposed or appropriate lien determinations were made.

(2) Records of tax enforcement results. Records of tax enforcement results are data, statistics, compilations of information or other numerical or quantitative recordations of the tax enforcement results reached in one or more cases. Such records may be used for purposes such as forecasting, financial planning, resource management, and the formulation of case selection criteria. Records of tax enforcement results may be used to develop methodologies and algorithms for use in selecting tax returns to audit. Records of tax enforcement results do not include tax enforcement results of individual cases when used to determine whether an employee exercised appropriate judgment in pursuing enforcement of the tax laws based upon a review of the employee’s work on that individual case.

§801.7T Examples (temporary).

(a) The rules of §801.3T are illustrated by the following examples:

Example 1. (i) Each year Division A’s Examination and Collection functions develop detailed workplans that set goals for specific activities (e.g., number of audits or accounts closed) and for other quantity measures such as cases started, cycle time, overage cases, and direct examination time. These quantity measure goals are developed nationally and by Area Office based on budget allocations, available resources, historical experience, and planned improvements. These plans also include information on measures of quality, customer satisfaction, and employee satisfaction. Results are updated monthly to reflect how each organizational unit is progressing against its workplan, and this information is shared with all levels of management.

(ii) Although specific workplans are not developed at the Territory level, Headquarters management expects the Area Directors to use the information in the Area plans to guide the activity in their Territories. For 2005, Area Office 1’s workplan has a goal to close 1,000 examinations of small business corporations and 120,000 taxpayer delinquent accounts (TDAs), and there are 10 Exam Territories and 12 Collection Territories in Area Office 1. While taking into account the mix and priority of workload, and available staffing and grade levels, the Examination Area Director communicates to the Territory Managers the expectation that, on average, each Territory should plan to close about 100 cases. The Collection Area Director similarly communicates to each Territory the expectation that, on average, they will close about 10,000 TDAs, subject to similar factors of workload mix and staffing.

(iii) Similar communications then occur at the next level of management between Territory Managers and their Group Managers, and between Group Managers and their employees. These communications will emphasize the overall goals of the organization and each employee’s role in meeting those goals. The communications will include expectations regarding the average number of case closures that would have to occur to reach those goals, taking into account the fact that each employee’s actual closures will vary based upon the facts and circumstances of specific cases.

(iv) Setting these quantity measure goals, and the communication of those goals, is permissible because case closures are a quantity measure. Case closures are an example of outcome-neutral production data that does not specify the outcome of any specific case such as the amount assessed or collected.

Example 2. In conducting a performance evaluation, a supervisor is permitted to take into consideration information the supervisor has developed showing that the employee failed to propose an appropriate adjustment to tax liability in one of the cases the employee examined, provided that information is derived from a review of the work done on the case. All information derived from such a review of individual cases handled by the employee, including time expended, issues raised, and enforcement outcomes reached should be considered and discussed with the employee and used in evaluating the employee.

Example 3. When assigning a case, a supervisor is permitted to discuss with the employee the merits, issues, and development of techniques of the case based upon a review of the case file.

Example 4. A supervisor is not permitted to establish a goal for proposed adjustments in a future examination.

(b) [Reserved].

§801.8T Effective dates (temporary).

(a) The provisions of §§801.1T through 801.7T apply on or after October 17, 2005.

(b) The applicability of §§801.1T through 801.7T expires on or before October 14, 2008.

Mark E. Matthews,
Deputy Commissioner for
Services and Enforcement.

Approved October 3, 2005.

Eric Solomon,
Acting Deputy Assistant Secretary
(Tax Policy).

Note

(Filed by the Office of the Federal Register on October 14, 2005, 8:45 a.m., and published in the issue of the Federal Register for October 17, 2005, 70 F.R. 60214)

Drafting Information

The principal author of these regulations is Karen F. Keller, Office of Associate Chief Counsel (General Legal Services). However, other personnel from the IRS participated in their development.

* * * * *

Part III. Administrative, Procedural, and Miscellaneous

Notice 2005-75

2006 Limitations Adjusted As Provided in Section 415(d), etc. [1]

Section 415 of the Internal Revenue Code (the Code) provides for dollar limitations on benefits and contributions under qualified retirement plans. Section 415 also requires that the Commissioner annually adjust these limits for cost-of-living increases. Other limitations applicable to deferred compensation plans are also affected by these adjustments. Many of the limitations will change for 2006. For most of the limitations, the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment. Furthermore, several of these limitations, set by the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), are scheduled to increase at the beginning of 2006. For example, under EGTRRA, the limitation under § 402(g)(1) of the Code on the exclusion for elective deferrals described in § 402(g)(3) is increased from $14,000 to $15,000. This limitation affects elective deferrals to section 401(k) plans and to the Federal Government’s Thrift Savings Plan, among other plans.

Cost-of-Living limits for 2006

Effective January 1, 2006, the limitation on the annual benefit under a defined benefit plan under § 415(b)(1)(A) is increased from $170,000 to $175,000. For participants who separated from service before January 1, 2006, the limitation for defined benefit plans under § 415(b)(1)(B) is computed by multiplying the participant’s compensation limitation, as adjusted through 2005, by 1.0383.

The limitation for defined contribution plans under § 415(c)(1)(A) is increased from $42,000 to $44,000.

The Code provides that various other dollar amounts are to be adjusted at the same time and in the same manner as the dollar limitation of § 415(b)(1)(A). These dollar amounts and the adjusted amounts are as follows:

The annual compensation limit under §§ 401(a)(17), 404(l), 408(k)(3)(C), and 408(k)(6)(D)(ii) is increased from $210,000 to $220,000.

The dollar limitation under § 416(i)(1)(A)(i) concerning the definition of key employee in a top-heavy plan is increased from $135,000 to $140,000.

The dollar amount under § 409(o)(1)(C)(ii) for determining the maximum account balance in an employee stock ownership plan subject to a 5-year distribution period is increased from $850,000 to $885,000, while the dollar amount used to determine the lengthening of the 5-year distribution period is increased from $170,000 to $175,000.

The limitation used in the definition of highly compensated employee under § 414(q)(1)(B) is increased from $95,000 to $100,000.

The annual compensation limitation under § 401(a)(17) for eligible participants in certain governmental plans that, under the plan as in effect on July 1, 1993, allowed cost-of-living adjustments to the compensation limitation under the plan under § 401(a)(17) to be taken into account, is increased from $315,000 to $325,000.

The compensation amount under § 408(k)(2)(C) regarding simplified employee pensions (SEPs) remains unchanged at $450.

The compensation amounts under § 1.61-21(f)(5)(i) of the Income Tax Regulations concerning the definition of “control employee” for fringe benefit valuation purposes remains unchanged at $85,000. The compensation amount under § 1.61-21(f)(5)(iii) is increased from $170,000 to $175,000.

The limitation under § 408(p)(2)(E) regarding SIMPLE retirement accounts remains unchanged at $10,000.

Limitations specified by statute

The Code, as amended by EGTRRA, specifies the applicable dollar amount for a particular year for certain limitations. These applicable dollar amounts are as follows:

The limitation under § 402(g)(1) on the exclusion for elective deferrals described in § 402(g)(3) is increased from $14,000 to $15,000.

The limitation on deferrals under § 457(e)(15) concerning deferred compensation plans of state and local governments and tax-exempt organizations is increased from $14,000 to $15,000.

The dollar limitation under § 414(v)(2)(B)(i) for catch-up contributions to an applicable employer plan other than a plan described in § 401(k)(11) or 408(p) for individuals aged 50 or over is increased from $4,000 to $5,000. The dollar limitation under § 414(v)(2)(B)(ii) for catch-up contributions to an applicable employer plan described in § 401(k)(11) or 408(p) for individuals aged 50 or over is increased from $2,000 to $2,500.

Administrators of defined benefit or defined contribution plans that have received favorable determination letters should not request new determination letters solely because of yearly amendments to adjust maximum limitations in the plans.

Drafting Information

The principal author of this notice is John Heil of the Employee Plans, Tax Exempt and Government Entities Division. For further information regarding the data in this notice, please contact the Employee Plans’ taxpayer assistance telephone service at 1-877-829-5500 (a toll-free call) between the hours of 8 a.m. and 6:30 p.m. Eastern time Monday through Friday. For information regarding the methodology used in arriving at the data in this notice, please contact Mr. Heil at 1-202-283-9888 (not a toll-free call).



[1] Based on News Release IR-2005-120 dated October 14, 2005.

Part IV. Items of General Interest

REG-114371-05

Notice of Proposed Rulemaking Disregarded Entities; Employment and Excise Taxes

AGENCY:

Internal Revenue Service (IRS), Treasury.

ACTION:

Notice of proposed rulemaking.

SUMMARY:

This document contains proposed regulations under which qualified subchapter S subsidiaries and single-owner eligible entities that currently are disregarded as entities separate from their owners for federal tax purposes would be treated as separate entities for employment tax and related reporting requirement purposes. These regulations also propose to treat such disregarded entities as separate entities for purposes of certain excise taxes reported on Forms 720, 730, 2290, and 11-C; excise tax refunds or payments claimed on Form 8849; and excise tax registrations on Form 637. These proposed regulations would affect disregarded entities and the owners and employees of disregarded entities in the payment and reporting of federal employment taxes. These regulations also would affect disregarded entities and their owners in the payment and reporting of certain Federal excise taxes and in registration and claims related to certain Federal excise taxes.

DATES:

Written or electronic comments and requests for a public hearing must be received by January 17, 2006.

ADDRESSES:

Send submissions to: CC:PA:LPD:PR (REG-114371-05), room 5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044. Submissions may be hand delivered Monday through Friday between the hours of 8 a.m. and 4 p.m. to: CC:PA:LPD:PR (REG-114371-05), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue, NW, Washington, DC. Alternatively, taxpayers may submit electronic comments directly to the IRS Internet site at www.irs.gov/regs or via the Federal eRulemaking Portal at www.regulations.gov (IRS and REG-114371-05).

FOR FURTHER INFORMATION CONTACT:

Concerning the proposed regulations, John Richards at (202) 622-6040 (on the employment tax provisions) or Susan Athy at (202) 622-3130 (on the excise tax provisions); concerning the submission of comments or requests for a hearing, Robin Jones at (202) 622-7180 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

1. Disregarded Entities

Under the Internal Revenue Code (Code) and its regulations, qualified subchapter S subsidiaries (QSubs) (under section 1361(b)(3)(B)) and certain single-owner eligible entities (under §§301.7701-1 through 301.7701-3 of the Procedure and Administration Regulations) are disregarded as entities separate from their owners (“disregarded entities”). The disregarded entity rules of section 1361(b)(3)(A) and §§301.7701-1 through 301.7701-3 apply for all purposes of the Code, including employment and excise taxes.

2. Employment Taxes

Employers are required to deduct and withhold income and Federal Insurance Contributions Act (FICA) taxes from their employees’ wages under sections 3402(a) and 3102(a), and are separately liable for their share of FICA taxes as well as for Federal Unemployment Tax Act (FUTA) taxes under sections 3111 and 3301 (the withholding, FICA and FUTA taxes are collectively referred to herein as employment taxes). Sections 3403, 3102(b), 3111, and 3301 provide that the employer is the person liable for the withholding and payment of employment taxes. In addition, the employer is required to make timely tax deposits, file employment tax returns, and issue wage statements (Forms W-2) to employees (collectively, other employment tax obligations). An employer is generally defined as the person for whom an individual performs services as an employee. Sections 3401(d), 3121(d), and 3306(a). Because a disregarded entity is not recognized for Federal tax purposes, the owner of the disregarded entity is treated as the employer for purposes of employment tax liabilities and all other employment tax obligations related to wages paid to employees performing services for the disregarded entity.

If an entity is disregarded for Federal tax purposes under section 1361(b)(3)(A) or §§301.7701-1 through 301.7701-3, Notice 99-6, 1999-1 C.B. 321, provides that employment taxes and other employment tax obligations with respect to employees performing services for the disregarded entity may be satisfied in one of two ways: (1) calculation and payment of all employment taxes and satisfaction of all other employment tax obligations with respect to employees performing services for the disregarded entity by its owner under the owner’s name and employer identification number (EIN); or (2) separate calculation and payment of all employment taxes and satisfaction of all other employment tax obligations by the disregarded entity with respect to employees performing services for the disregarded entity by the disregarded entity under its own name and EIN. The notice states that ultimate liability for employment taxes remains with the owner of the disregarded entity regardless of which alternative is chosen.

3. Excise Taxes

A. Liability for excise taxes

Liability for federal excise taxes is imposed on certain transactions and activities under the following chapters of the Internal Revenue Code (Code).

Chapter 31 imposes retail excise taxes on the sale or use of special fuels (section 4041); the use of fuel in commercial transportation on inland waterways (section 4042); and the sale of heavy trucks and trailers (section 4051).

Chapter 32 imposes manufacturers excise taxes on the sale of gas guzzler automobiles (section 4064); the sale of highway-type tires (section 4071); the removal, entry, or sale of taxable fuel (section 4081); the sale of coal (section 4121); the sale of vaccines (section 4131); and the sale of sporting goods (section 4161).

Chapter 33 imposes excise taxes on payments for communications facilities and services (section 4251); payments for transportation of persons by air (section 4261); and payments for transportation of property by air (section 4271).

Chapter 34 imposes excise taxes on policies issued by foreign insurers (section 4371).

Chapter 35 imposes excise taxes on wagers (sections 4401 and 4411).

Chapter 36 imposes excise taxes on transportation by water (section 4471) and the use of heavy highway vehicles (section 4481).

Chapter 38 imposes excise taxes on the sale of ozone-depleting chemicals and imported taxable products (section 4681).

The IRS does not administer, and these regulations have no effect on the chapter 32 tax on firearms (section 4181) or the chapter 36 tax on port use (section 4461).

B. Excise tax registration

A person may be required to register with the IRS for certain excise tax purposes. Registration may be required under section 4101 with respect to the taxes imposed on motor fuels or under section 4412 in the case of persons subject to the occupational tax on wagering. In addition, section 4222 generally permits sales for certain exempt purposes to be made on a tax-free basis only if the sellers and purchasers are registered.

C. Excise tax credits, refunds, and payments

The Code allows excise taxpayers to claim credits or refunds for overpayments, including overpayments determined under sections 4081(e), 6415, 6416, and 6419 (section 6402). The Code generally allows non-excise taxpayers to claim credits or payments for fuels used for nontaxable purposes (sections 6420, 6421, and 6427) and allows blenders to claim credits or payments for the production of alcohol and biodiesel mixtures (sections 6426 and 6427(e)). Section 34 provides an income tax credit for amounts payable for the nontaxable use of fuels under sections 6420, 6421, and 6427, if these amounts have not been previously claimed, and section 38 provides an income tax credit (general business credit) for alcohol or biodiesel used as a fuel (under sections 40 and 40A).

4. Reason for Change

Administrative difficulties have arisen from the interaction of the disregarded entity rules and the federal employment tax provisions. Problems have arisen for both taxpayers and the IRS with respect to reporting, payment and collection of employment taxes, particularly where state employment tax law also sets requirements for reporting, payment and collection that may be in conflict with the federal disregarded entity rules. The Treasury Department and the IRS believe that treating the disregarded entity as the employer for purposes of federal employment taxes will improve the administration of the tax laws and simplify compliance.

Difficulties also have arisen from the interaction of the disregarded entity rules and certain federal excise tax provisions. Many of these provisions rely on state law, rather than federal law, to determine liability for an excise tax, attachment of a tax, and allowance of a credit, refund, or payment. For example, §48.0-2(b) of the Manufacturers and Retailers Excise Tax Regulations provides that such excise taxes attach when title to an article passes to the purchaser. In general, determining when title passes depends on the intention of the parties. Absent express intention, however, the laws of the jurisdiction where the sale is made govern this determination. Such a determination is required also in applying certain excise tax credit, refund, and payment provisions that allow claims by ultimate purchasers, ultimate vendors, and producers.

Explanation of Provisions

These proposed regulations would treat QSubs and single-owner eligible entities that are disregarded entities for Federal tax purposes as separate entities for purposes of employment taxes and other requirements of law arising under subtitle C of the Code, certain excise taxes, and the application of the rules under subtitle F of the Code relating to matters such as reporting, assessment, collection, and refunds regarding employment and certain excise taxes. Under the proposed regulations, these entities generally would continue to be treated as disregarded entities for other federal tax purposes.

1. Employment Taxes

The proposed regulations would eliminate disregarded entity status for purposes of federal employment taxes. A disregarded entity would be regarded for employment tax purposes, and, accordingly, become liable for employment taxes on wages paid to employees of the disregarded entity, and be responsible for satisfying other employment tax obligations (e.g., backup withholding under section 3406, making timely deposits of employment taxes, filing returns, and providing wage statements to employees on Forms W-2). The owner of the disregarded entity would no longer be liable for employment taxes or satisfying other employment tax obligations with respect to the employees of the disregarded entity. The disregarded entity would continue to be disregarded for other Federal tax purposes. The proposed regulations contain an example illustrating the interaction of the income tax provisions and employment tax provisions. For example, the proposed regulations illustrate that an individual owner of a disregarded entity would continue to be treated as self-employed for purposes of Self Employment Contributions Act (SECA) taxes (section 1401 et sequitur), and not as an employee of the disregarded entity for employment tax purposes.

The employment tax provisions of these regulations are proposed to apply to wages paid on or after January 1 following the date these regulations are published as final regulations in the Federal Register. QSubs, single-owner eligible entities disregarded under §§301.7701-1 through 301.7701-3, and the owners of such entities may continue to use the procedures permitted by Notice 99-6 to satisfy the owners’ employment tax liabilities and other employment tax obligations for periods before the effective date of these regulations. As required by Notice 99-6, if the owner currently satisfies the employment tax liabilities and other employment tax obligations with respect to wages paid to employees performing services for the disregarded entity, then the owner must continue to satisfy such liabilities and obligations until these regulations become final and effective, at which time Notice 99-6 will be obsoleted.

2. Excise Taxes

The proposed regulations would eliminate disregarded entity status for purposes of certain excise taxes. An entity that is disregarded for other federal tax purposes would be required to pay and report excise taxes, required and allowed to register, and allowed to claim any credits (other than income tax credits), refunds, and payments. The excise tax provisions that are excluded from the proposed regulations are specified. Because a disregarded entity does not file an income tax return, the credit on Form 4136 under section 34 is claimed on the owner’s income tax return and appropriate identification of the single-owner entity and its taxpayer identification number is required. The income tax credit under section 38 (including any credit under sections 40 and 40A) is not affected by these proposed regulations.

The excise tax provisions in these regulations are proposed to apply to liabilities imposed and actions first required or permitted in periods beginning on or after January 1 following the date these regulations are published as final regulations in the Federal Register. For periods beginning before the effective date of these regulations, the IRS will treat payments made by a disregarded entity, or other actions taken by a disregarded entity, with respect to the excise taxes affected by these regulations as having been made or taken by the sole owner of that entity. Thus, for such periods, the owner of a disregarded entity will be treated as satisfying the owner’s obligations with respect to the excise taxes affected by these regulations, provided that those obligations are satisfied either (i) by the owner itself or (ii) by the disregarded entity on behalf of the owner.

Special Analyses

It has been determined that this notice of proposed rulemaking is not a significant regulatory action as defined in Executive Order 12866. Therefore, a regulatory assessment is not required. It also has been determined that section 553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) does not apply to these proposed regulations, and because these proposed regulations do not impose a collection of information on small entities, the Regulatory Flexibility Act (5 U.S.C. chapter 6) does not apply. Pursuant to section 7805(f) of the Code, this notice of proposed rulemaking will be submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on their impact on small business.

Comments and Requests for a Public Hearing

Before these proposed regulations are adopted as final regulations, consideration will be given to any written (a signed original and (8) copies) or electronic comments that are submitted timely to the IRS. The IRS and the Treasury Department request comments on the clarity of the proposed regulations and how they may be made easier to understand. In addition, comments are requested specifically on any transition issues that might arise with respect to employment taxes, and any transition relief that should be provided with respect to employment tax obligations. All comments will be available for public inspection and copying. A public hearing will be scheduled if requested in writing by any person that timely submits written comments. If a public hearing is scheduled, notice of the date, time, and place for the hearing will be published in the Federal Register.

Proposed Amendments to the Regulations

Accordingly, 26 CFR parts 1 and 301 are proposed to be amended as follows:

PART 1—INCOME TAX

Paragraph 1. The authority citation for part 1 continues to read, in part, as follows:

Authority: 26 U.S.C. 7805 * * *

Par. 2. Section 1.34-1 is revised to read as follows:

§1.34-1 Special rule for owners of certain business entities.

Amounts payable under sections 6420, 6421, and 6427 to a business entity that is treated as separate from its owner under §1.1361-4(a)(8) (relating to certain qualified subchapter S subsidiaries) or §301.7701-2(c)(2)(v) of this chapter (relating to certain wholly-owned entities) are, for purposes of section 34, treated as payable to the owner of that entity.

§§1.34-2 through 1.34-6 [Removed]

Par. 3. Sections 1.34-2 through 1.34-6 are removed.

Par. 4. Section 1.1361-4 is amended as follows:

1. In paragraph (a)(1), the language "Except as otherwise provided in paragraphs (a)(3) and (a)(6)" is removed, and "Except as otherwise provided in paragraphs (a)(3), (a)(6), (a)(7), and (a)(8)" is added in its place.

2. Paragraphs (a)(7) and (a)(8) are added.

The additions read as follows:

§1.1361-4 Effect of QSub election.

(a) * * *

(7) Treatment of QSubs for purposes of employment taxes—(i) In general. A QSub is treated as a separate corporation for purposes of Subtitle C — Employment Taxes and Collection of Income Tax (Chapters 21, 22, 23, 23A, 24, and 25 of the Internal Revenue Code).

(ii) Effective date. This paragraph (a)(7) applies with respect to wages paid on or after January 1 following the date these regulations are published as final regulations in the Federal Register.

(8) Treatment of QSubs for purposes of certain excise taxes—(i) In general. A QSub is treated as a separate corporation for purposes of—

(A) Federal tax liabilities imposed by Chapters 31, 32 (other than section 4181), 33, 34, 35, 36 (other than section 4461), and 38 of the Internal Revenue Code, or any floor stocks tax imposed on articles subject to any of these taxes;

(B) Collection of tax imposed by Chapter 33 of the Internal Revenue Code;

(C) Registration under sections 4101, 4222, and 4412; and

(D) Claims of a credit (other than a credit under section 34), refund, or payment related to a tax described in paragraph (a)(8)(A) of this section.

(ii) Effective date. This paragraph (a)(8) applies to liabilities imposed and actions first required or permitted in periods beginning on or after January 1 following the date these regulations are published as final regulations in the Federal Register.

Par. 5. Section 1.1361-6 is amended as follows:

The language “Except as otherwise provided in §§1.1361-4(a)(3)(iii), 1.1361-4(a)(5)(i), and 1.1361-5(c)(2)" is removed, and "Except as provided in §§1.1361-4(a)(3)(iii), 1.1361-4(a)(5)(i), 1.1361-4(a)(6)(iii), 1.1361-4(a)(7)(ii), 1.1361-4(a)(8)(ii), and 1.1361-5(c)(2)" is added in its place.

PART 301—PROCEDURE AND ADMINISTRATION

Par. 6. The authority citation for part 301 continues to read in part as follows:

Authority: 26 U.S.C. 7805 * * *

Par. 7. Section 301.7701-2 is amended as follows:

1. In paragraph (a), a sentence is added at the end.

2. In paragraph (c)(2)(i), the language “A business” is removed, and “Except as otherwise provided in this paragraph (c), a business” is added in its place.

3. Paragraphs (c)(2)(iv), (c)(2)(v), (e)(3), and (e)(4) are added.

The additions read as follows:

§301.7701-2 Business entities; definitions.

(a) * * * But see paragraphs (c)(2)(iv) and (v) of this section for special employment and excise tax rules that apply to an eligible entity that is otherwise disregarded as an entity separate from its owner.

* * * * *

(c) * * *

(2) * * *

(iv) Special rule for employment tax purposes—(A) In general. Paragraph (c)(2)(i) of this section (relating to certain wholly owned entities) does not apply to taxes imposed under Subtitle C — Employment Taxes and Collection of Income Tax (Chapters 21, 22, 23, 23A, 24, and 25 of the Internal Revenue Code).

(B) Example. The following example illustrates the application of paragraph (c)(2)(iv) of this section:

Example. (i) LLCA is an eligible entity owned by individual A and is generally disregarded as an entity separate from its owner for federal tax purposes. However, LLCA is treated as an entity separate from its owner for purposes of subtitle C of the Internal Revenue Code. LLCA has employees and pays wages as defined in sections 3121(a), 3306(b), and 3401(a).

(ii) LLCA is subject to the provisions of subtitle C of the Internal Revenue Code and related provisions under 26 CFR subchapter C, Employment Taxes and Collection of Income Tax at Source, parts 31 through 39. Accordingly, LLCA is required to perform such acts as are required of an employer under those provisions of the Code and regulations thereunder that apply. All provisions of law (including penalties) and the regulations prescribed in pursuance of law applicable to employers in respect of such acts are applicable to LLCA. Thus, for example, LLCA is liable for income tax withholding, Federal Insurance Contributions Act (FICA) taxes, and Federal Unemployment Tax Act (FUTA) taxes. See sections 3402 and 3403 (relating to income tax withholding); 3102(b) and 3111 (relating to FICA taxes), and 3301 (relating to FUTA taxes). In addition, LLCA must file under its name and EIN the applicable Forms in the 94X series, for example, Form 941, “Employer’s Quarterly Federal Tax Return,” Form 940, “Employer’s Annual Federal Unemployment (FUTA) Tax Return;” file with the Social Security Administration and furnish to LLCA’s employees statements on Forms W-2, “Wage and Tax Statement;” and make timely employment tax deposits. See §§31.6011(a)-1, 31.6011(a)-3, 31.6051-1, 31.6051-2, and 31.6302-1 of this chapter.

(iii) A is self-employed for purposes of subtitle A, chapter 2, Tax on Self-Employment Income, of the Internal Revenue Code. Thus, A is subject to tax under section 1401 on A’s net earnings from self-employment with respect to LLCA’s activities. A is not an employee of LLCA for purposes of subtitle C of the Code. Because LLCA is treated as a sole proprietorship of A for income tax purposes, A is entitled to deduct trade or business expenses paid or incurred with respect to activities carried on through LLCA, including the employer’s share of employment taxes imposed under sections 3111 and 3301, on A’s Form 1040, Schedule C, “Profit or Loss From Business (Sole Proprietorship).”

(v) Special rule for certain excise tax purposes—(A) In general. Paragraph (c)(2)(i) of this section (relating to certain wholly owned entities) does not apply for purposes of—

(1) Federal tax liabilities imposed by Chapters 31, 32 (other than section 4181), 33, 34, 35, 36 (other than section 4461), and 38 of the Internal Revenue Code, or any floor stocks tax imposed on articles subject to any of these taxes;

(2) Collection of tax imposed by Chapter 33 of the Internal Revenue Code;

(3) Registration under sections 4101, 4222, and 4412; and

(4) Claims of a credit (other than a credit under section 34), refund, or payment related to a tax described in paragraph (c)(2)(v)(A)(1) of this section.

(B) Example. The following example illustrates the provisions of this paragraph (c)(2)(v).

Example. (i) LLCB is an eligible entity that has a single owner, B. LLCB is generally disregarded as an entity separate from its owner. However, under paragraph (c)(2)(v) of this section, LLCB is treated as an entity separate from its owner for certain purposes relating to excise taxes.

(ii) LLCB mines coal from a coal mine located in the United States. Section 4121 of chapter 32 of the Internal Revenue Code imposes a tax on the producer’s sale of such coal. Section 48.4121-1(a) of this chapter defines a "producer" generally as the person in whom is vested ownership of the coal under state law immediately after the coal is severed from the ground. LLCB is the person that owns the coal under state law immediately after it is severed from the ground. Under paragraph (c)(2)(v)(A)(1) of this section, LLCB is the producer of the coal and is liable for tax on its sale of such coal under chapter 32 of the Internal Revenue Code. LLCB must report and pay tax on Form 720, “Quarterly Federal Excise Tax Return,” under its own name and taxpayer identification number.

(iii) LLCB uses undyed diesel fuel in an earthmover that is not registered or required to be registered for highway use. Such use is an off-highway business use of the fuel. Under section 6427(l), the ultimate purchaser is allowed to claim an income tax credit or payment related to the tax imposed on diesel fuel used in an off-highway business use. Under paragraph (c)(2)(v) of this section, for purposes of the credit or payment allowed under section 6427(l), LLCB is the person that could claim the amount on its Form 720 or on a Form 8849, “Claim for Refund of Excise Taxes.” Alternatively, if LLCB did not claim a payment during the time prescribed in section 6427(i)(2) for making a claim under section 6427, §1.34-1 of this chapter provides that B, the owner of LLCB, could claim the income tax credit allowed under section 34 for the nontaxable use of diesel fuel by LLCB.

* * * * *

(e) * * *

(3) Paragraph (c)(2)(iv) of this section applies with respect to wages paid on or after January 1 following the date these regulations are published as final regulations in the Federal Register.

(4) Paragraph (c)(2)(v) of this section applies to liabilities imposed and actions first required or permitted in periods beginning on or after January 1 following the date these regulations are published as final regulations in the Federal Register.

Mark E. Matthews,
Deputy Commissioner for
Services and Enforcement.

Note

(Filed by the Office of the Federal Register on October 17, 2005, 8:45 a.m., and published in the issue of the Federal Register for October 18, 2005, 70 F.R. 60475)

Drafting Information

The principal authors of these regulations are Susan Athy, Office of Associate Chief Counsel (Passthroughs and Special Industries), and John Richards, Office of Associate Chief Counsel (Tax Exempt and Government Entities). However, other personnel from the IRS and the Treasury Department participated in their development.

* * * * *

REG-114444-05

Notice of Proposed Rulemaking by Cross-Reference to Temporary Regulations Balanced System for Measuring Organizational and Employee Performance Within the Internal Revenue Service

AGENCY:

Internal Revenue Service (IRS), Treasury.

ACTION:

Notice of proposed rulemaking by cross-reference to temporary regulations

SUMMARY:

In this issue of the Bulletin, the IRS is issuing temporary regulations (T.D. 9227) designed to modify 26 CFR Part 801, the regulations governing the IRS Balanced System for Measuring Organizational and Employee Performance, to clarify when quantity measures, which are not tax enforcement results, may be used in measuring organizational and employee performance. The temporary regulations affect internal operations of the IRS and the systems it employs to evaluate the performance of organizations within the IRS. The text of the temporary regulations also serves as the text of these proposed regulations.

DATES:

Written or electronic comments and requests for a public hearing must be received by December 16, 2005.

ADDRESSES:

Send submissions to: CC:PA:LPD:PR (REG-114444-05), Room 5203, PO Box 7604, Ben Franklin Station, Washington, DC 20044. Submissions may be hand delivered Monday through Friday between the hours of 8 a.m. and 4 p.m. to: CC:PA:LPD:PR (REG-114444-05), Courier’s Desk, 1111 Constitution Avenue, NW, Washington, DC 20224, or sent electronically via the IRS Internet site at www.irs.gov/regs or via the Federal eRulemaking Portal at www.regulations.gov (IRS REG-114444-05).

FOR FURTHER INFORMATION CONTACT:

Concerning the proposed regulations, Neil Worden, (202) 283-7900; concerning submissions of comments, Robin Jones, Publications and Regulations Branch, (202) 622-3521 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

Temporary regulations in this issue of the Bulletin amend 26 CFR Part 801. The temporary regulations amend Part 801 to clarify when quantity measures, which are not tax enforcement results, may be used in measuring organizational and employee performance. The text of those regulations also serves as the text of these regulations. The “Explanation of Provisions” section of the temporary regulations explains the temporary regulations and these proposed regulations.

Special Analyses

It has been determined that this notice of proposed rulemaking is not a significant regulatory action as defined in Executive Order 12866. Therefore, a regulatory assessment is not required. It also has been determined that section 553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) does not apply to these regulations, and because the regulation does not impose a collection of information on small entities, the Regulatory Flexibility Act ( 5 U.S.C. chapter 6) does not apply. Pursuant to section 7805(f) of the Internal Revenue Code, this notice of proposed rulemaking will be submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on its impact on small business.

Comments and Requests for Public Hearing

Before these proposed regulations are adopted as final regulations, consideration will be given to any written or electronic comments that are timely submitted to the IRS. The IRS and the Treasury Department specifically request comments on the clarity of the proposed regulations and how they can be made easier to understand. All comments will be available for public inspection and copying. A public hearing may be scheduled if requested by any person who timely submits comments. If a public hearing is scheduled, notice of the date, time and place for the hearing will be published in the Federal Register.

Proposed Amendments to the Regulations

Accordingly, 26 CFR Part 801 is proposed to be amended as follows:

PART 801—BALANCED SYSTEM FOR MEASURING ORGANIZATIONAL AND INDIVIDUAL PERFORMANCE WITHIN THE INTERNAL REVENUE SERVICE

Paragraph 1. The authority citation for Part 801 continues to read in part as follows:

Authority: 5 U.S.C. 9501 * * *

Par. 2. Section 801.1T is redesignated as §801.1 and amended by revising the section heading to read as follows:

§801.1 Balanced performance measurement system; in general.

[The text of proposed §801.1 is the same as the text of §801.1T published elsewhere in this issue of the Bulletin].

Par. 3. Section 801.2T is redesignated as §801.2 and amended by revising the section heading to read as follows:

§801.2 Measuring organizational performance.

[The text of proposed §801.2 is the same as the text of §801.2T published elsewhere in this issue of the Bulletin.]

Par. 4. Section 801.3T is redesignated as §801.3 and amended by revising the section heading to read as follows:

§801.3 Measuring employee performance.

[The text of proposed §801.3 is the same as the text of §801.3T published elsewhere in this issue of the Bulletin].

Par. 5. Section 801.4T is redesignated as §801.4 and amended by revising the section heading to read as follows:

§801.4 Customer satisfaction measures.

[The text of proposed §801.4 is the same as the text of §801.4T published elsewhere in this issue of the Bulletin].

Par. 6. Section 801.5T is redesignated as §801.5 and amended by revising the section heading to read as follows:

§801.5 Employee satisfaction measures.

[The text of proposed §801.5 is the same as the text of §801.5T published elsewhere in this issue of the Bulletin].

Par. 7. Section 801.6T is redesignated as §801.6 and amended by revising the section heading to read as follows:

§801.6 Business results measures.

[The text of proposed §801.6 is the same as the text of §801.6T published elsewhere in this issue of the Bulletin].

Par. 8. Section 801.7T is redesignated as §801.7 and amended by revising the section heading to read as follows:

§801.7 Examples.

[The text of the proposed §801.7 is the same as the text of §801.7T published elsewhere in this issue of the Bulletin.]

Par. 9. Section 801.8T is redesignated as §801.8 and revised to read as follows:

§801.8 Effective dates.

[The text of proposed §801.8 is the same as the text of §801.8T(a) published elsewhere in this issue of the Bulletin].

Mark E. Matthews,
Deputy Commissioner for
Services and Enforcement.

Note

(Filed by the Office of the Federal Register on October 14, 2005, 8:45 a.m., and published in the issue of the Federal Register for October 17, 2005, 70 F.R. 60256)

Drafting Information

The principal author of these regulations is Karen F. Keller, Office of Associate Chief Counsel (General Legal Services). However, other personnel from the IRS participated in their development.

* * * * *

Announcement 2005-76

Announcement of Disciplinary Actions Involving Attorneys, Certified Public Accountants, Enrolled Agents, and Enrolled Actuaries — Suspensions, Censures, Disbarments, and Resignations

Under Title 31, Code of Federal Regulations, Part 10, attorneys, certified public accountants, enrolled agents, and enrolled actuaries may not accept assistance from, or assist, any person who is under disbarment or suspension from practice before the Internal Revenue Service if the assistance relates to a matter constituting practice before the Internal Revenue Service and may not knowingly aid or abet another person to practice before the Internal Revenue Service during a period of suspension, disbarment, or ineligibility of such other person.

To enable attorneys, certified public accountants, enrolled agents, and enrolled actuaries to identify persons to whom these restrictions apply, the Director, Office of Professional Responsibility, will announce in the Internal Revenue Bulletin their names, their city and state, their professional designation, the effective date of disciplinary action, and the period of suspension. This announcement will appear in the weekly Bulletin at the earliest practicable date after such action and will continue to appear in the weekly Bulletins for five successive weeks.

Consent Suspensions From Practice Before the Internal Revenue Service

Under Title 31, Code of Federal Regulations, Part 10, an attorney, certified public accountant, enrolled agent, or enrolled actuary, in order to avoid the institution or conclusion of a proceeding for his or her disbarment or suspension from practice before the Internal Revenue Service, may offer his or her consent to suspension from such practice. The Director, Office of Professional Responsibility, in his discretion, may suspend an attorney, certified public accountant, enrolled agent, or enrolled actuary in accordance with the consent offered.

The following individuals have been placed under consent suspension from practice before the Internal Revenue Service:

Name Location Designation Date
Reagan, John Cortland, NY CPA Indefinite from June 24, 2005
Harris, Alexander W. Chicago, IL Attorney July 1, 2005 to December 31, 2005
Belush, Glen J. Monroe, CT CPA Indefinite from July 15, 2005
Lamont, Alice Atlanta, GA CPA Indefinite from July 15, 2005
Morse, Kyle K. Bedford, TX CPA Indefinite from July 22, 2005
Duggan Jr., Joseph A. Jacksonville, OR Enrolled Agent Indefinite from August 1, 2005
Harper, Ivan Brooklyn, NY CPA Indefinite from August 15, 2005
Bandy, Robert M. Tyler, TX Attorney Indefinite from August 24, 2005
Peterson, Stanley Springfield, PA CPA Indefinite from August 26, 2005
Shorten, Judy Vacaville, CA Enrolled Agent Indefinite from September 1, 2005
Watkins, David E. Shelbyville, IN Enrolled Agent Indefinite from September 1, 2005

Expedited Suspensions From Practice Before the Internal Revenue Service

Under Title 31, Code of Federal Regulations, Part 10, the Director, Office of Professional Responsibility, is authorized to immediately suspend from practice before the Internal Revenue Service any practitioner who, within five years from the date the expedited proceeding is instituted (1) has had a license to practice as an attorney, certified public accountant, or actuary suspended or revoked for cause or (2) has been convicted of certain crimes.

The following individuals have been placed under suspension from practice before the Internal Revenue Service by virtue of the expedited proceeding provisions:

Name Location Designation Date
Leong, Thomas S. Honolulu, HI Attorney Indefinite from July 11, 2005
Clark, Mark S. Tucson, AZ Attorney Indefinite from July 11, 2005
Hudspeth, George E. St. Louis, MO Attorney Indefinite from July 11, 2005
Dodd, Alan F. Westborough, MA Attorney Indefinite from July 11, 2005
Crews, James F. Tipton, MO Attorney Indefinite from July 11, 2005
Luparella, Joseph Hoboken, NJ CPA Indefinite from July 13, 2005
Deutchman, Murray Barnesville, MD Attorney Indefinite from July 13, 2005
Cozier, Clifford G. Englewood, CO Attorney Indefinite from July 13, 2005
Segall, Steven M. Denver, CO Attorney Indefinite from July 14, 2005
Richardson, Bruce Reisterstown, MD Attorney Indefinite from July 15, 2005
Parsley, Jeffrey A. Englewood, CO Attorney Indefinite from July 15, 2005
Wyrick, Richard L. Hanford, CA Attorney Indefinite from July 15, 2005
Coates, Marsden S. Baltimore, MD Attorney Indefinite from July 15, 2005
McCampbell, Daniel Chico, CA Attorney Indefinite from July 15, 2005
Ralston, Ronald G. Fairmount, GA CPA Indefinite from July 18, 2005
Friemann, Robert F. Huntington Bay, NY CPA Indefinite from July 18, 2005
Friedman, Milton G. Ft. Lauderdale, FL CPA July 25, 2005 to January 24, 2007
Acheampong, Robert Columbus, OH CPA Indefinite from July 26, 2005
Elias, Robert F. Canfield, OH Attorney Indefinite from July 27, 2005
Stover, Kathy A. Topeka, KS Attorney Indefinite from July 29, 2005
Leffler, Fredric D. Columbia, MD Attorney Indefinite from July 29, 2005
Harmon, Anthony N. Batavia, IL Attorney Indefinite from July 29, 2005
Hames, David H. Dallas, TX CPA Indefinite from August 2, 2005
Au, Ronald G.S. Honolulu, HI Attorney Indefinite from August 9, 2005
Tilton Jr., George H. Denver, CO Attorney Indefinite from August 12, 2005
Spalsbury Jr., Clark Estes Park, CO Attorney Indefinite from August 12, 2005
Brockman, Louis R. Dallas, TX CPA Indefinite from August 12, 2005
Hill, Richard B. Kernersville, NC CPA Indefinite from August 12, 2005
Rosenberg, Jeffrey P. Morgan Hill, CA Attorney Indefinite from August 12, 2005
Link, Robert A. Waupaca, WI CPA Indefinite from August 15, 2005
Halcrow, David S. Taft, CA CPA Indefinite from September 9, 2005
Lieber, Daniel M. Edna, MO Attorney Indefinite from September 9, 2005
Kirchoff, William W. Jefferson City, MO Attorney Indefinite from September 9, 2005
Lauby, Gregory C. Lexington, NE Attorney Indefinite from September 9, 2005
Early, Michael J. Newburyport, MA Attorney Indefinite from September 9, 2005
Mickiewicz, Robert Dorchester, MA Attorney Indefinite from September 9, 2005
Conant, Jon F. Gloucester, MA Attorney Indefinite from September 9, 2005
Pennington, Jill Chevy Chase, MD Attorney Indefinite from September 9, 2005
Randolph, Robert E. Denham Springs, LA Attorney Indefinite from September 9, 2005
Carillo, Donald Chicago, IL Attorney Indefinite from September 9, 2005
Sloan Jr., Dewey Sioux City, IA Attorney Indefinite from September 9, 2005
Vogel, Garrett Dallas, TX CPA Indefinite from September 13, 2005
Becker, Joseph Houston, TX CPA Indefinite from September 13, 2005
Winick, Robert M. Sarasota, FL Attorney Indefinite from September 19, 2005
Hunsaker Jr., William Golden, CO Attorney Indefinite from September 19, 2005
Wheatley, Jay D. Boca Raton, FL Attorney Indefinite from September 19, 2005
Clark, Carroll A. Mesa, AZ Attorney Indefinite from September 19, 2005

Suspensions From Practice Before the Internal Revenue Service After Notice and an Opportunity for a Proceeding

Under Title 31, Code of Federal Regulations, Part 10, after notice and an opportunity for a proceeding before an administrative law judge, the following individuals have been placed under suspension from practice before the Internal Revenue Service:

Name Location Designation Date
Sobel, Herbert L. Elkins Park, PA CPA May 4, 2005 to February 3, 2007
Rubesh, Leland Gillette, WY CPA August 1, 2005 to January 31, 2007
Gregory, Carolyn S. Cathedral City, CA Enrolled Agent August 12, 2005 to November 11, 2007

Censure Issued by Consent

Under Title 31, Code of Federal Regulations, Part 10, in lieu of a proceeding being instituted or continued, an attorney, certified public accountant, enrolled agent, or enrolled actuary, may offer his or her consent to the issuance of a censure. Censure is a public reprimand.

The following individuals have consented to the issuance of a Censure:

Name Location Designation Date
Pugno, Thomas Rockwood, MI Enrolled Agent June 29, 2005
Barrett, Richard Tyler, TX CPA August 1, 2005
Kelly, Michael G. Odessa, TX Attorney August 1, 2005
Volstad, Paul S. Plymouth, MN CPA August 18, 2005
Quackenbush, Gary A. San Diego, CA Attorney September 2, 2005
Flores, Fred A. Laredo, TX CPA September 2, 2005
Velasquez, Felix Laredo, TX CPA September 2, 2005

Announcement 2005-79

Carryforward of Credit From Form 8884

Form 8884, New York Liberty Zone Business Employee Credit, is obsolete for tax years beginning after December 31, 2004. As a result, any carryforward of this credit to tax years beginning after 2004 will be reported on Form 8835, Renewable Electricity, Refined Coal, and Indian Coal Production Credit. The credit carryforward to 2005 is the excess of line 10 of the 2004 Form 8884 over line 23 of that form, to the extent not used in carrying back the credit. For tax years beginning in 2005, the credit carryforward is reported on Form 8835, Section B, line 28. See the 2005 Form 8835 for details on how to report this carryforward.

Announcement 2005-81

IRS and The George Washington University Law School To Sponsor Institute on International Tax Issues

The Internal Revenue Service announces the Eighteenth Annual Institute on Current Issues in International Taxation, jointly sponsored by the Internal Revenue Service and The George Washington University Law School, to be held on December 8 and 9, 2005, at the J.W. Marriott Hotel in Washington, DC. Registration is currently underway for the Institute, which is intended for international tax professionals.

The program will present a unique opportunity for top IRS and Treasury officials and tax experts, and leading private sector specialists, to address breaking issues and present key perspectives on new developments. The first day will feature sessions on the following:

  • Current Competent Authority Issues;

  • Intellectual Priority Issues;

  • Foreign Tax Credits;

  • Financially Troubled International Ventures;

  • Dual Consolidated Losses/Arbitrage Issues; and

  • Updates on Outbound Issues.

The Honorable Donald L. Korb, Chief Counsel, Internal Revenue Service, will deliver the luncheon address.

The second day will focus on the following topics:

  • Latest IRS Transfer Pricing Guidance;

  • Real world Advice on Transfer Pricing;

  • Updates on Inbound Issues; and

  • Circular 230/Tax Shelter/Ethics.

The second day will also include an “Ask the IRS” panel featuring senior officials from the Service.

Those interested in attending or obtaining more information should contact The George Washington University Law School, at http://www.law.gwu.edu/ciit.

Announcement 2005-82

Deletions From Cumulative List of Organizations Contributions to Which are Deductible Under Section 170 of the Code

The names of organizations that no longer qualify as organizations described in section 170(c)(2) of the Internal Revenue Code of 1986 are listed below.

Generally, the Service will not disallow deductions for contributions made to a listed organization on or before the date of announcement in the Internal Revenue Bulletin that an organization no longer qualifies. However, the Service is not precluded from disallowing a deduction for any contributions made after an organization ceases to qualify under section 170(c)(2) if the organization has not timely filed a suit for declaratory judgment under section 7428 and if the contributor (1) had knowledge of the revocation of the ruling or determination letter, (2) was aware that such revocation was imminent, or (3) was in part responsible for or was aware of the activities or omissions of the organization that brought about this revocation.

If on the other hand a suit for declaratory judgment has been timely filed, contributions from individuals and organizations described in section 170(c)(2) that are otherwise allowable will continue to be deductible. Protection under section 7428(c) would begin on November 7, 2005, and would end on the date the court first determines that the organization is not described in section 170(c)(2) as more particularly set forth in section 7428(c)(1). For individual contributors, the maximum deduction protected is $1,000, with a husband and wife treated as one contributor. This benefit is not extended to any individual, in whole or in part, for the acts or omissions of the organization that were the basis for revocation.

Org. Name City State
Delta Regional Transit System, Inc. Greenville MS
Gibson Trust, Inc. Hollywood FL
Housing Development Group, Inc. Providence RI
National Credit Education and Review Canton MI

Announcement 2005-83

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
4-Scor, Inc., Saylorsburg PA
ABZ Art Foundation, Inc., New York NY
Africana Literature Archives, Inc., New York NY
Albemarle Fire Safety Committee, Elizabeth City NC
All-Sports Hall of Fame Charitable Foundation, Inc., New York NY
Alpha Corporation, Atlanta GA
American Family Care and Immigration Services, Little Falls NJ
American Friends of Maccabi Health Services, New York NY
American Veterans Friendship Society, Inc., New Orleans LA
Angies Angels, Donaldsonville LA
Arc of Yadkin County, Inc., Yadkinville NC
Artists Betwixt and Between, Inc., New York NY
Arts America, Inc., Dumont NJ
Artspace at Tri-Main, Inc., Buffalo NY
Asian Culinary Society, Inc., New York NY
Basically Using Better Solutions, Incorporated, Northport NY
Big Piney Bluegrass Association, Inc., Houston MO
Blacks for Life, Milwaukee WI
Calumet Region Cluster Org., Chicago IL
Center for Brazilian Church Planting, New York NY
Chasdi Nissim Fund, Monsey NY
Chelsea Art Museum, West Orange NJ
Chien-Shiung Wu and Luke C L Yuan Natural Science Foundation, Inc., New York NY
Child Health Net, Inc., Mount Vernon NY
Children Living With Aids, Inc., Bronx NY
Church Upon This Rock, Houston TX
Citizens in Charge Foundation, Woodbridge VA
Cobblestone Productions, Incorporated, New York NY
Colorado Jesus Video Project, Colorado Springs CO
Columbus Archiver and History Center, Inc., Columbus GA
Costas Cure, New York NY
Costin Adoption Foundation, Norwich NY
Cumberland Island Conservancy, Inc., Atlanta GA
Delta Dawn Productions, Inc., New York NY
Dose, Inc., New York NY
Dynamic Empowerment, Inc., New York NY
ECDO Housing Development Fund Company, Inc., New York NY
Educational Opportunity Fund, Inc., New York NY
Exploring the Arts, Inc., New York NY
Families and Community Enrichment of Michigan, Inc., Detroit MI
Family Reunification Justice Project, Inc., New York NY
Flagler Volunteer Services, Inc., Flagler Beach FL
Forums Children Foundation, New York NY
Foundation for Tomorrows Leaders, New York NY
Foundation for Treatment of Mitochondrial Disorders, Inc., Silver Spring MD
Fowler Video Foundation, West Rockport ME
Fresh Start Women's Center, Memphis TN
Friendly Fifty Club, Inc., Mount Vernon NY
Friends of Kings Hill, Wallkill NY
Friends of the Dorothy Day Cottages, Inc., Staten Island NY
Friends of the Union County Animal Care and Education Center, Plainfield NJ
Friends of the West Orange Library, Inc., Winter Garden FL
Friendship House of India, Redford MI
General Daniel Chappie James Ch 1288 Experimental Aircraft Assoc., Valkaria FL
Genesis Life Center, Inc., Albany GA
Giving World Foundation, Inc., Williston VT
Givingwell Org., Inc., New York NY
Great American Duck Race of Deming, Inc., Deming NM
Grey Fox Foundation, Inc., Greenwich CT
Hands of Hope Development Corporation, Richmond VA
Hastings Waterfront Watch, Inc., Hastings Hudson NY
Healing Source, Rialto CA
Higher Education Opportunity Programs, Inc., New York NY
Historic Synagogue Restoration, Inc., New Rochelle NY
HOYA Human Development Corporation, Inc., Cypress TX
IABS Charities, Inc., New York NY
Independent Heights Park Community Redevelopment Corporation, Houston TX
Inner City Perception, Inc., New Kensington PA
Inspire, Inc., Indianapolis IN
Interfaith Housing Development Fund Corp., Suffern NY
International Anti-Poverty Law Center, Inc., New York NY
International Atlanta Ministries, Jonesboro GA
Irish Rail and Transport Heritage Foundation, Ltd., New York NY
Jasper County Historical Society, Bay Springs MS
Jeff County Conservancy Charitable Trust, Brookville PA
Jewish Alumni of Binghamton, Inc., New York NY
Jewish Center of the Hamptons, East Hampton NY
Jubillenium Foundation, Inc., New York NY
Karenina Dance Masters Intensive, Inc., New York NY
Kedma USA, Inc., Bronx NY
Kids Nutritional Services, Slidell LA
Klein Intermediate Parent Teacher Organization, Inc., Houston TX
Korean War Memorial of WNY, Buffalo NY
Last Witness Declaration Project, New York NY
Life Works Theatre, Inc., Rochester NY
Light of the Trinity Montessori School, Inc., West Orange NJ
Liza Barbieri Foundation, New York NY
Main Stage Coffeehouse Foundation, Yorktown Heights NY
Mars 2112 Education Outreach Program, Inc., New York NY
Matthew S. Hisiger Film Foundation, New York NY
McKinnleyleif Ericson Park Alliance, Ltd., Brooklyn NY
McMillans Helping Hands, Inc., Mineola NY
Meadowridge Ponds & Wetlands Preservation Association, Long Grove IL
Metro Wildlife Management Base, Inc., Brighton MI
Michael & Rochel Wolfe Charity Fund, Inc., New York NY
Mike Bright Basketball Camp, Inc., Bronx NY
Millenium Minds, Inc., Queens NY
Moazz Jazz Dance Ensemble, Seattle WA
Muse of Fire Theatre Co., Inc., New York NY
National Association of Blessed Billionaires, New Rochelle NY
No Walls Foundation, Inc., New York NY
Noble Heart Service, Gardena CA
Nonprofit Training Institute, Inc., Stone Mountain GA
Northern Burlington Soccer Club, Wrightstown NJ
Our Lady of Mercy Senior Manor Housing Development Fund Corporation, Bronx NY
Ox-Sheptyckyj Foundation, Inc., Yonkers NY
Paloverde Center for Behavioral Research and Education, La Verne CA
Palyul Changchub Dargyeling, Mill Valley CA
Panamerican Nikkei Association USA East, Inc., New York NY
Paradi, Inc., Mineola NY
Pendulum Dance Theater, Portland OR
Pennsylvania Station Arts Foundation, Inc., New York NY
Persuaders, Inc., Memphis TN
Photorelief Com, Inc., New York NY
Refuge, Inc., New York NY
Robert A. Patterson Memorial Scholarship Fund, Novato CA
Robert P. Joyce Scholarship Fund, Ltd., New Windsor NY
Rockland Business Association Foundation, Inc., Pearl River NY
Rockland County Jewish Childrens Museum, Inc., Pomona NY
Salve Regina, Inc., Staten Island NY
Sandra Brand Torah Distribution Fund, Inc., New York NY
Scripts Up, Inc., New York NY
Senior Care & Life Styles, Inc., Staten Island NY
SIKA, Inc., New York NY
Soma Partnership, Inc., San Francisco CA
Southeast Texas Fellowship of Churches, Beaumont TX
Spirit of Faith Community Development Corporation, N. Miami Beach FL
Stage of Learning, Inc., New York NY
Tell the Story Ministries, Inc., Deerfield Beach FL
Third Space Project, Inc., New York NY
Third World Records, New York NY
Topkid, Grosse Pointe MI
Tunnel Vision Writers Project, Inc., Montclair NJ
Tzidkas Rivka Memorial Fund Dankona, Inc., New Square NY
Zionist Information and Interment Organization of North America, Inc., New York NY

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 2005-1 through 2005-26 is in Internal Revenue Bulletin 2005-26, dated June 27, 2005.

Bulletins 2005-27 through 2005-45

Announcements

Article Issue Link Page
2005-46 2005-27 I.R.B. 2005-27 63
2005-47 2005-28 I.R.B. 2005-28 71
2005-48 2005-29 I.R.B. 2005-29 111
2005-49 2005-29 I.R.B. 2005-29 119
2005-50 2005-30 I.R.B. 2005-30 152
2005-51 2005-32 I.R.B. 2005-32 283
2005-52 2005-31 I.R.B. 2005-31 257
2005-53 2005-31 I.R.B. 2005-31 258
2005-54 2005-32 I.R.B. 2005-32 283
2005-55 2005-33 I.R.B. 2005-33 317
2005-56 2005-33 I.R.B. 2005-33 318
2005-57 2005-33 I.R.B. 2005-33 318
2005-58 2005-33 I.R.B. 2005-33 319
2005-59 2005-37 I.R.B. 2005-37 524
2005-60 2005-35 I.R.B. 2005-35 455
2005-61 2005-36 I.R.B. 2005-36 495
2005-62 2005-36 I.R.B. 2005-36 495
2005-63 2005-36 I.R.B. 2005-36 496
2005-64 2005-37 I.R.B. 2005-37 537
2005-65 2005-38 I.R.B. 2005-38 587
2005-66 2005-39 I.R.B. 2005-39 613
2005-67 2005-40 I.R.B. 2005-40 678
2005-68 2005-39 I.R.B. 2005-39 613
2005-69 2005-40 I.R.B. 2005-40 681
2005-70 2005-40 I.R.B. 2005-40 682
2005-71 2005-41 I.R.B. 2005-41 714
2005-72 2005-41 I.R.B. 2005-41 692
2005-73 2005-41 I.R.B. 2005-41 715
2005-74 2005-42 I.R.B. 2005-42 764
2005-75 2005-42 I.R.B. 2005-42 764
2005-76 2005-42 I.R.B. 2005-42 765
2005-77 2005-44 I.R.B. 2005-44 855
2005-78 2005-44 I.R.B. 2005-44 918
2005-79 2005-45 I.R.B. 2005-45
2005-81 2005-45 I.R.B. 2005-45
2005-82 2005-45 I.R.B. 2005-45
2005-83 2005-45 I.R.B. 2005-45


Notices

Article Issue Link Page
2005-48 2005-27 I.R.B. 2005-27 9
2005-49 2005-27 I.R.B. 2005-27 14
2005-50 2005-27 I.R.B. 2005-27 14
2005-51 2005-28 I.R.B. 2005-28 74
2005-52 2005-28 I.R.B. 2005-28 75
2005-53 2005-32 I.R.B. 2005-32 263
2005-54 2005-30 I.R.B. 2005-30 127
2005-55 2005-32 I.R.B. 2005-32 265
2005-56 2005-32 I.R.B. 2005-32 266
2005-57 2005-32 I.R.B. 2005-32 267
2005-58 2005-33 I.R.B. 2005-33 295
2005-59 2005-35 I.R.B. 2005-35 443
2005-60 2005-39 I.R.B. 2005-39 606
2005-61 2005-39 I.R.B. 2005-39 607
2005-62 2005-35 I.R.B. 2005-35 443
2005-63 2005-35 I.R.B. 2005-35 448
2005-64 2005-36 I.R.B. 2005-36 471
2005-65 2005-39 I.R.B. 2005-39 607
2005-66 2005-40 I.R.B. 2005-40 620
2005-67 2005-40 I.R.B. 2005-40 621
2005-68 2005-40 I.R.B. 2005-40 622
2005-69 2005-40 I.R.B. 2005-40 622
2005-70 2005-41 I.R.B. 2005-41 694
2005-71 2005-44 I.R.B. 2005-44 863
2005-73 2005-42 I.R.B. 2005-42 723
2005-74 2005-42 I.R.B. 2005-42 726
2005-75 2005-45 I.R.B. 2005-45


Proposed Regulations

Article Issue Link Page
106030-98 2005-42 I.R.B. 2005-42 739
144615-02 2005-40 I.R.B. 2005-40 625
150088-02 2005-43 I.R.B. 2005-43 774
150091-02 2005-43 I.R.B. 2005-43 780
131739-03 2005-36 I.R.B. 2005-36 494
130241-04 2005-27 I.R.B. 2005-27 18
138362-04 2005-33 I.R.B. 2005-33 299
138647-04 2005-41 I.R.B. 2005-41 697
149436-04 2005-35 I.R.B. 2005-35 454
156518-04 2005-38 I.R.B. 2005-38 582
158080-04 2005-43 I.R.B. 2005-43 786
104143-05 2005-41 I.R.B. 2005-41 708
111257-05 2005-42 I.R.B. 2005-42 759
114371-05 2005-45 I.R.B. 2005-45
114444-05 2005-45 I.R.B. 2005-45
121584-05 2005-37 I.R.B. 2005-37 523
122857-05 2005-39 I.R.B. 2005-39 609
129782-05 2005-40 I.R.B. 2005-40 675
133578-05 2005-39 I.R.B. 2005-39 610


Revenue Procedures

Article Issue Link Page
2005-35 2005-28 I.R.B. 2005-28 76
2005-36 2005-28 I.R.B. 2005-28 78
2005-37 2005-28 I.R.B. 2005-28 79
2005-38 2005-28 I.R.B. 2005-28 81
2005-39 2005-28 I.R.B. 2005-28 82
2005-40 2005-28 I.R.B. 2005-28 83
2005-41 2005-29 I.R.B. 2005-29 90
2005-42 2005-30 I.R.B. 2005-30 128
2005-43 2005-29 I.R.B. 2005-29 107
2005-44 2005-29 I.R.B. 2005-29 110
2005-45 2005-30 I.R.B. 2005-30 141
2005-46 2005-30 I.R.B. 2005-30 142
2005-47 2005-32 I.R.B. 2005-32 269
2005-48 2005-32 I.R.B. 2005-32 271
2005-49 2005-31 I.R.B. 2005-31 165
2005-50 2005-32 I.R.B. 2005-32 272
2005-51 2005-33 I.R.B. 2005-33 296
2005-52 2005-34 I.R.B. 2005-34 326
2005-53 2005-34 I.R.B. 2005-34 339
2005-54 2005-34 I.R.B. 2005-34 353
2005-55 2005-34 I.R.B. 2005-34 367
2005-56 2005-34 I.R.B. 2005-34 383
2005-57 2005-34 I.R.B. 2005-34 392
2005-58 2005-34 I.R.B. 2005-34 402
2005-59 2005-34 I.R.B. 2005-34 412
2005-60 2005-35 I.R.B. 2005-35 449
2005-61 2005-37 I.R.B. 2005-37 507
2005-62 2005-37 I.R.B. 2005-37 507
2005-63 2005-36 I.R.B. 2005-36 491
2005-64 2005-36 I.R.B. 2005-36 492
2005-65 2005-38 I.R.B. 2005-38 564
2005-66 2005-37 I.R.B. 2005-37 509
2005-67 2005-42 I.R.B. 2005-42 729
2005-68 2005-41 I.R.B. 2005-41 694
2005-69 2005-44 I.R.B. 2005-44 864


Revenue Rulings

Article Issue Link Page
2005-38 2005-27 I.R.B. 2005-27 6
2005-39 2005-27 I.R.B. 2005-27 1
2005-40 2005-27 I.R.B. 2005-27 4
2005-41 2005-28 I.R.B. 2005-28 69
2005-42 2005-28 I.R.B. 2005-28 67
2005-43 2005-29 I.R.B. 2005-29 88
2005-44 2005-29 I.R.B. 2005-29 87
2005-45 2005-30 I.R.B. 2005-30 123
2005-46 2005-30 I.R.B. 2005-30 120
2005-47 2005-32 I.R.B. 2005-32 261
2005-48 2005-32 I.R.B. 2005-32 259
2005-49 2005-30 I.R.B. 2005-30 125
2005-50 2005-30 I.R.B. 2005-30 124
2005-51 2005-31 I.R.B. 2005-31 163
2005-52 2005-35 I.R.B. 2005-35 423
2005-53 2005-35 I.R.B. 2005-35 425
2005-54 2005-33 I.R.B. 2005-33 289
2005-55 2005-33 I.R.B. 2005-33 284
2005-56 2005-35 I.R.B. 2005-35 427
2005-57 2005-36 I.R.B. 2005-36 466
2005-58 2005-36 I.R.B. 2005-36 465
2005-59 2005-37 I.R.B. 2005-37 505
2005-60 2005-37 I.R.B. 2005-37 502
2005-61 2005-38 I.R.B. 2005-38 538
2005-62 2005-38 I.R.B. 2005-38 557
2005-63 2005-39 I.R.B. 2005-39 603
2005-64 2005-39 I.R.B. 2005-39 600
2005-65 2005-41 I.R.B. 2005-41 684
2005-66 2005-41 I.R.B. 2005-41 686
2005-67 2005-43 I.R.B. 2005-43 771
2005-68 2005-44 I.R.B. 2005-44 853
2005-69 2005-44 I.R.B. 2005-44 852
2005-70 2005-45 I.R.B. 2005-45
2005-71 2005-45 I.R.B. 2005-45


Tax Conventions

Article Issue Link Page
2005-47 2005-28 I.R.B. 2005-28 71
2005-72 2005-41 I.R.B. 2005-41 692
2005-77 2005-44 I.R.B. 2005-44 855


Treasury Decisions

Article Issue Link Page
9208 2005-31 I.R.B. 2005-31 157
9209 2005-31 I.R.B. 2005-31 153
9210 2005-33 I.R.B. 2005-33 290
9211 2005-33 I.R.B. 2005-33 287
9212 2005-35 I.R.B. 2005-35 429
9213 2005-35 I.R.B. 2005-35 440
9214 2005-35 I.R.B. 2005-35 435
9215 2005-36 I.R.B. 2005-36 468
9216 2005-36 I.R.B. 2005-36 461
9217 2005-37 I.R.B. 2005-37 498
9218 2005-37 I.R.B. 2005-37 503
9219 2005-38 I.R.B. 2005-38 538
9220 2005-39 I.R.B. 2005-39 596
9221 2005-39 I.R.B. 2005-39 604
9222 2005-40 I.R.B. 2005-40 614
9223 2005-39 I.R.B. 2005-39 591
9224 2005-41 I.R.B. 2005-41 688
9225 2005-42 I.R.B. 2005-42 716
9226 2005-43 I.R.B. 2005-43 772
9227 2005-45 I.R.B. 2005-45


Effect of Current Actions on Previously Published Items

Finding List of Current Actions on Previously Published Items

A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2005-1 through 2005-26 is in Internal Revenue Bulletin 2005-26, dated June 27, 2005.

Bulletins 2005-27 through 2005-45

Announcements

Old Article Action New Article Issue Link Page
84-26 Obsoleted by REG-149436-04 2005-35 I.R.B. 2005-35 454
2004-72 Updated and superseded by Ann. 2005-59 2005-37 I.R.B. 2005-37 524
2005-36 Modified by Rev. Proc. 2005-66 2005-37 I.R.B. 2005-37 509
2005-53 Corrected by Ann. 2005-61 2005-36 I.R.B. 2005-36 495


Notices

Old Article Action New Article Issue Link Page
89-111 Amplified by Notice 2005-61 2005-39 I.R.B. 2005-39 607
2001-42 Modified by Rev. Proc. 2005-66 2005-37 I.R.B. 2005-37 509
2005-4 Modified by Notice 2005-62 2005-35 I.R.B. 2005-35 443
2005-10 Clarified by Notice 2005-64 2005-36 I.R.B. 2005-36 471
2005-38 Modified by Notice 2005-64 2005-36 I.R.B. 2005-36 471
2005-51 Modified and superseded by Notice 2005-57 2005-32 I.R.B. 2005-32 267


Proposed Regulations

Old Article Action New Article Issue Link Page
108524-00 Corrected by Ann. 2005-68 2005-39 I.R.B. 2005-39 613
142686-01 Withdrawn by Ann. 2005-55 2005-33 I.R.B. 2005-33 317
100420-03 Corrected by Ann. 2005-57 2005-33 I.R.B. 2005-33 318
102144-04 Corrected by Ann. 2005-56 2005-33 I.R.B. 2005-33 318


Revenue Procedures

Old Article Action New Article Issue Link Page
64-54 Obsoleted by Rev. Rul. 2005-43 2005-29 I.R.B. 2005-29 88
66-33 Obsoleted by Rev. Rul. 2005-43 2005-29 I.R.B. 2005-29 88
69-13 Obsoleted by Rev. Rul. 2005-43 2005-29 I.R.B. 2005-29 88
70-8 Modified by Rev. Proc. 2005-46 2005-30 I.R.B. 2005-30 142
71-1 Obsoleted by Rev. Rul. 2005-43 2005-29 I.R.B. 2005-29 88
72-22 Obsoleted by Rev. Rul. 2005-43 2005-29 I.R.B. 2005-29 88
83-77 Superseded by Rev. Proc. 2005-63 2005-36 I.R.B. 2005-36 491
87-8 Obsoleted by Rev. Proc. 2005-44 2005-29 I.R.B. 2005-29 110
87-9 Obsoleted by Rev. Proc. 2005-44 2005-29 I.R.B. 2005-29 110
89-20 Superseded by Rev. Proc. 2005-52 2005-34 I.R.B. 2005-34 326
90–11 Modified by Rev. Proc. 2005-40 2005-28 I.R.B. 2005-28 83
90-30 Section 4 superseded by Rev. Proc. 2005-54 2005-34 I.R.B. 2005-34 353
90-30 Section 5 superseded by Rev. Proc. 2005-55 2005-34 I.R.B. 2005-34 367
90-30 Section 6 superseded by Rev. Proc. 2005-56 2005-34 I.R.B. 2005-34 383
90-30 Section 7 superseded by Rev. Proc. 2005-58 2005-34 I.R.B. 2005-34 402
90-30 Section 8 superseded by Rev. Proc. 2005-59 2005-34 I.R.B. 2005-34 412
90-31 Section 4 superseded by Rev. Proc. 2005-52 2005-34 I.R.B. 2005-34 326
90-31 Section 5 superseded by Rev. Proc. 2005-54 2005-34 I.R.B. 2005-34 353
90-31 Section 6 superseded by Rev. Proc. 2005-55 2005-34 I.R.B. 2005-34 367
90-31 Section 7 superseded by Rev. Proc. 2005-56 2005-34 I.R.B. 2005-34 383
90-31 Section 8 superseded by Rev. Proc. 2005-58 2005-34 I.R.B. 2005-34 402
90-31 Section 9 superseded by Rev. Proc. 2005-59 2005-34 I.R.B. 2005-34 412
93-22 Obsoleted by Rev. Proc. 2005-44 2005-29 I.R.B. 2005-29 110
98-18 Obsoleted by Rev. Proc. 2005-45 2005-30 I.R.B. 2005-30 141
99-39 Superseded by Rev. Proc. 2005-60 2005-35 I.R.B. 2005-35 449
2000-27 Modified and superseded by Rev. Proc. 2005-66 2005-37 I.R.B. 2005-37 509
2000-31 Superseded by Rev. Proc. 2005-60 2005-35 I.R.B. 2005-35 449
2000-49 Superseded by Rev. Proc. 2005-41 2005-29 I.R.B. 2005-29 90
2001-9 Superseded by Rev. Proc. 2005-60 2005-35 I.R.B. 2005-35 449
2001-16 Superseded by Rev. Proc. 2005-42 2005-30 I.R.B. 2005-30 128
2002-9 Modified and amplified by Rev. Rul. 2005-42 2005-28 I.R.B. 2005-28 67
2002-9 Modified and amplified by Rev. Proc. 2005-35 2005-28 I.R.B. 2005-28 76
2002-9 Modified and amplified by Rev. Proc. 2005-43 2005-29 I.R.B. 2005-29 107
2002-9 Modified and amplified by Rev. Proc. 2005-47 2005-32 I.R.B. 2005-32 269
2002-49 Modified, amplified, and superseded by Rev. Proc. 2005-62 2005-37 I.R.B. 2005-37 507
2004-50 Superseded by Rev. Proc. 2005-49 2005-31 I.R.B. 2005-31 165
2004-54 Superseded by Rev. Proc. 2005-65 2005-38 I.R.B. 2005-38 564
2004-58 Superseded by Rev. Proc. 2005-69 2005-44 I.R.B. 2005-44 864
2004-64 Modified by Ann. 2005-71 2005-41 I.R.B. 2005-41 714
2005-1 Amplified by Rev. Proc. 2005-68 2005-41 I.R.B. 2005-41 694
2005-3 Amplified by Rev. Proc. 2005-68 2005-37 I.R.B. 2005-37 507
2005-6 Modified by Rev. Proc. 2005-66 2005-37 I.R.B. 2005-37 509
2005-10 Superseded by Rev. Proc. 2005-67 2005-42 I.R.B. 2005-42 729
2005-16 Modified by Rev. Proc. 2005-66 2005-37 I.R.B. 2005-37 509
2005-65 Corrected by Ann. 2005-78 2005-44 I.R.B. 2005-44 918


Revenue Rulings

Old Article Action New Article Issue Link Page
65-109 Obsoleted by Rev. Rul. 2005-43 2005-29 I.R.B. 2005-29 88
68-549 Obsoleted by Rev. Rul. 2005-43 2005-29 I.R.B. 2005-29 88
74-203 Revoked by Rev. Rul. 2005-59 2005-37 I.R.B. 2005-37 505
82-29 Modified and clarified by Rev. Proc. 2005-39 2005-28 I.R.B. 2005-28 82
2005-41 Corrected by Ann. 2005-50 2005-30 I.R.B. 2005-30 152


Treasury Decisions

Old Article Action New Article Issue Link Page
9149 Removed by T.D. 9221 2005-39 I.R.B. 2005-39 604
9186 Corrected by Ann. 2005-53 2005-31 I.R.B. 2005-31 258
9193 Corrected by Ann. 2005-62 2005-36 I.R.B. 2005-36 495
9205 Corrected by Ann. 2005-63 2005-36 I.R.B. 2005-36 496
9206 Corrected by Ann. 2005-49 2005-29 I.R.B. 2005-29 119
9207 Corrected by Ann. 2005-52 2005-31 I.R.B. 2005-31 257
9210 Corrected by Ann. 2005-64 2005-37 I.R.B. 2005-37 537


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