2004 Tax Year
Tax Related Files

These are miscellaneous informational tax items of interest to tax professionals. Some of the information is from the IRS, some from other government agencies, and some are from public sources. You will find that the items are very interesting, informative, and perhaps helpful to you in your practice.

The files below are only available in the Adobe PDF format. You will need the appropriate PDF Reader to view, print, or download the PDF version of these files. If you do not have the appropriate Acrobat Reader plugged into your browser, click the link at the bottom of the page to obtain a FREE copy from Adobe.

Files Already in the Internal Revenue Bulletin	Bulletin	IRB Date
Notice 2004-84(PDF)	IRB #2004-52(HTML)	12/27/2004
Retirement plans; qualification, list of changes. This notice sets forth a list of changes referred to in Announcement 2004-71, 2004-40 I.R.B. 569, pertaining to the statutory, regulatory, and guidance changes needed for certain requests to the Service as well as the designation of the regulations pertaining to a retroactive annuity starting date as a disqualifying provision.
Rev. Proc. 2004-72(PDF)	IRB #2004-52(HTML)	12/27/2004
This procedure allocates the national limitation of $400 million for year 2005 for Qualified Zone Academy Bonds (QZABs) among the States ("States" includes the District of Columbia and possessions of the U.S. (American Samoa, Northern Marianas, Puerto Rico, Guam, and the Virgin Islands)). The procedure implements the amendments to section 1397E(e)(1) of the Code made by section 304 of the Working Families Tax Relief Act of 2004, which extended the authority to issue QZABs in the amount of $400 million each for years 2004 and 2005.
Notice 2004-82(PDF)	IRB #2004-51(HTML)	12/20/2004
Weighted average interest rate update; corporate bond indices; 30-year Treasury securities. The weighted average interest rate for December 2004 and the resulting permissible range of interest rates used to calculate current liability and to determine the required contribution are set forth.
REG-149519-03(PDF)	IRB #2004-51(HTML)	12/20/2004
Proposed regulations under section 707 of the Code provide guidance relating to the treatment of transactions between a partnership and its partners as disguised sales of partnership interests between partners. The regulations describe circumstances in which a transfer of consideration (including the assumption of a liability) by a purchasing partner to a partnership and a transfer of consideration by the partnership to a selling partner constitute a sale of a partnership interest. In addition, the proposed rules require disclosure of certain transfers and assumptions of liabilities to the Service. A public hearing is scheduled for March 8, 2005.
Rev. Rul. 2004-111(PDF)	IRB #2004-51(HTML)	12/20/2004
Interest rates; underpayments and overpayments. The rate of interest determined under section 6621 of the Code for the calendar quarter beginning January 1, 2005, will be 5 percent for overpayments (4 percent in the case of a corporation), 5 percent for underpayments, and 7 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 2.5 percent.
Rev. Rul. 2004-112(PDF)	IRB #2004-51(HTML)	12/20/2004
Internet activities. In one situation, the Internet activities conducted by a trade association described in section 501(c)(6) of the Code on a special supplementary section of its Internet website do not constitute unrelated trade or business under section 513(a), because such activities meet the exception for qualified convention and trade show activity under section 513(d)(3)(B). However, in a second situation, the Internet activities of another trade association do not meet the section 513(d)(3)(B) exception.
Rev. Proc. 2004-71(PDF)	IRB #2004-50(HTML)	12/13/2004
Cost-of-living adjustments for 2005. This procedure provides cost-of-living adjustments for the tax rate tables for individuals, estates, and trusts, the standard deduction amounts, the personal exemption, and several other items that use the adjustment method provided for the tax rate tables. The Service also provides the adjustment for eligible long-term care premiums and another item that uses the adjustment method provided for eligible long-term care premiums.
Rev. Rul. 2004-109(PDF)	IRB #2004-50(HTML)	12/13/2004
Signing or ratifying bonuses. This ruling holds that certain amounts paid to an employee as a signing bonus for a baseball contract or as a ratifying bonus pursuant to a collective bargaining agreement are wages for purposes of the Federal Insurance Contributions Act (FICA), the Federal Unemployment Tax Act (FUTA), and the Collection of Income Tax at Source on Wages (federal income tax withholding). Rev. Ruls. 58-145 and 74-108 revoked. Rev. Ruls. 69-424 and 71-532 obsoleted.
Rev. Rul. 2004-110(PDF)	IRB #2004-50(HTML)	12/13/2004
Contract cancellation; employment contract. This ruling holds that an amount paid to an employee as consideration for cancellation of an employment contract and relinquishment of contract rights is ordinary income and wages for purposes of the Federal Insurance Contributions Act (FICA), the Federal Unemployment Tax Act (FUTA), and the Collection of Income Tax at Source (federal income tax withholding). Rev. Ruls. 55-520 and 58-301 modified and superseded. Rev. Ruls. 74-252 and 75-44 modified.
Notice 2004-80(PDF)	IRB #2004-50(HTML)	12/13/2004
This notice alerts taxpayers to recent amendments to sections 6111, 6112, and 6708 of the Code and provides interim guidance until regulations or other guidance is published.
Rev. Proc. 2004-68(PDF)	IRB #2004-50(HTML)	12/13/2004
This procedure provides exceptions to the brief asset holding period filter, which is a reportable transaction under section 1.6011-4(b)(7) of the regulations.
Rev. Proc. 2004-67(PDF)	IRB #2004-50(HTML)	12/13/2004
This procedure provides exceptions to the book-tax filter, which is a reportable transaction under section 1.6011-4(b)(6) of the regulations. Rev. Proc. 2003-25 modified and superseded.
Rev. Proc. 2004-66(PDF)	IRB #2004-50(HTML)	12/13/2004
This procedure provides exceptions to the loss transaction filter, which is a reportable transaction under section 1.6011-4(b)(5) of the regulations. Rev. Proc. 2003-24 modified and superseded.
Rev. Proc. 2004-65(PDF)	IRB #2004-50(HTML)	12/13/2004
This procedure provides exceptions to the contractual protection filter, which is a reportable transaction under section 1.6011-4(b)(4) of the regulations.
Announcement 2004-98(PDF)	IRB #2004-50(HTML)	12/13/2004
Public hearings with Chief Counsel Donald L. Korb and Associate Chief Counsel (International) Hal Hicks will be held on January 5, 2005, and February 1, 2005, to solicit comments and suggestions regarding the operation of the Advance Pricing Agreement program within the Office of Associate Chief Counsel (International).
Rev. Proc. 2004-70(PDF)	IRB #2004-49(HTML)	12/6/2004
Insurance companies; discounted estimated salvage recoverable. The salvage discount factors are set forth for the 2004 accident year. These factors will be used to compute discounted estimated salvage recoverable under section 832 of the Code.
Rev. Proc. 2004-64(PDF)	IRB #2004-49(HTML)	12/6/2004
Optional standard mileage rates. This procedure announces 40.5 cents as the optional rate for deducting or accounting for expenses for business use of an automobile, 14 cents as the optional rate for use of an automobile as a charitable contribution, and 15 cents as the optional rate for use of an automobile as a medical or moving expense for 2005. It provides rules for substantiating the deductible expenses of using an automobile for business, moving, medical, or charitable purposes. Rev. Proc. 2003-76 superseded.
Rev. Proc. 2004-69(PDF)	IRB #2004-49(HTML)	12/6/2004
Insurance companies; loss reserves; discounting unpaid losses. The loss payment patterns and discount factors are set forth for the 2004 accident year. These factors will be used to compute discounted unpaid losses under section 846 of the Code.
Notice 2004-79(PDF)	IRB #2004-49(HTML)	12/6/2004
This notice provides guidance regarding the definition of dependent under section 106 of the Code.
Rev. Rul. 2004-106(PDF)	IRB #2004-49(HTML)	12/6/2004
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 December 2004.
Notice 2004-74(PDF)	IRB #2004-48(HTML)	11/29/2004
The Service is suspending certain income limitation requirements under section 42 of the Code for certain low-income housing credit properties in Alabama as a result of the devastation caused by Hurricane Ivan.
Notice 2004-75(PDF)	IRB #2004-48(HTML)	11/29/2004
The Service is suspending certain income limitation requirements under section 42 of the Code for certain low-income housing credit properties in Ohio as a result of the devastation caused by remnants of Hurricanes Ivan and Frances.
Notice 2004-78(PDF)	IRB #2004-48(HTML)	11/29/2004
Actuarial assumptions; distributions under section 101 of Pension Funding Equity Act of 2004. This notice provides guidance in question and answer format on the use of actuarial assumptions in determining certain single sum distributions and the limitations of section 415(b)(2) of the Code as a result of section 415(b)(2)(E)(ii) as amended by section 101(b)(4) of the Pension Funding Equity Act of 2004.
Notice 2004-76(PDF)	IRB #2004-48(HTML)	11/29/2004
The Service is suspending certain income limitation requirements under section 42 of the Code for certain low-income housing credit properties in Florida as a result of the devastation caused by Hurricanes Charley, Frances, Ivan, and Jeanne. Notice 2004-66 amplified and superseded.
Notice 2004-77(PDF)	IRB #2004-47(HTML)	11/22/2004
Weighted average interest rate update; corporate bond indices; 30-year Treasury securities. The weighted average interest rate for November 2004 and the resulting permissible range of interest rates used to calculate current liability and to determine the required contribution are set forth.
Rev. Rul. 2004-108(PDF)	IRB #2004-47(HTML)	11/22/2004
CPI adjustment for below-market loans for 2005. The amount that section 7872(g) of the Code permits a taxpayer to lend to a qualified continuing care facility without incurring imputed interest is published and adjusted for inflation for years 1987-2005. Rev. Rul. 2003-118 supplemented and superseded.
Rev. Rul. 2004-107(PDF)	IRB #2004-47(HTML)	11/22/2004
Section 1274A -- inflation adjusted numbers for 2005. This ruling provides the dollar amounts, increased by the 2005 inflation adjustment, for section 1274A of the Code. Rev. Rul. 2003-119 supplemented and superseded.
Rev. Rul. 2004-102(PDF)	IRB #2004-45(HTML)	11/8/2004
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 2004.
Announcement 2004-87(PDF)	IRB #2004-45(HTML)	11/8/2004
This announcement is a public notice of the suspension of the federal tax exemption under section 501(p) of the Code of a certain organization that has been designated as supporting or engaging in terrorist activity or supporting terrorism. Contributions made to this organization during the period that the organization’s tax-exempt status is suspended are not deductible for federal tax purposes.
Rev. Rul. 2004-103(PDF)	IRB #2004-45(HTML)	11/8/2004
Modification of Rev. Rul. 95-63. Rev. Rul. 95-63, with respect to countries described in section 901(j)(2)(A) of the Code, is modified by providing that Iraq ceased to be described in that section on June 27, 2004. Rev. Rul. 95-63 modified.
Notice 2004-71(PDF)	IRB #2004-45(HTML)	11/8/2004
Section 1(h)(11) of the Code provides that certain dividends paid to an individual shareholder from either a domestic corporation or a "qualified foreign corporation" are subject to tax at the reduced rates applicable to certain capital gains. This notice provides guidance for persons required to make returns and provide statements under section 6042 of the Code (e.g., Form 1099-DIV) regarding distributions with respect to securities issued by a foreign corporation, and for individuals receiving such statements. The notice also describes when a security (or an American depositary receipt in respect of such security) issued by a foreign corporation that is other than ordinary or common stock (such as preferred stock) will satisfy the readily tradable test.
Announcement 2004-82(PDF)	IRB #2004-45(HTML)	11/8/2004
This announcement notifies Archer MSA trustees of their obligation to report the number of Archer MSAs established between January 1, 2004, and June 30, 2004.
Notice 2004-70(PDF)	IRB #2004-44(HTML)	11/1/2004
This document provides guidance regarding the treatment as qualified dividend income, for purposes of section 1(h)(11) of the Code, of distributions, inclusions, and other amounts from foreign corporations subject to certain anti-deferral regimes.
Rev. Proc. 2004-61(PDF)	IRB #2004-43(HTML)	10/25/2004
This procedure allocates the national limitation of $400 million for year 2004 for Qualified Zone Academy Bonds (QZABs) among the states ("states" includes the District of Columbia and possessions of the U.S. (American Samoa, Northern Marianas, Puerto Rico, Guam, and the Virgin Islands)). The procedure implements the amendments to section 1397E(e)(1) of the Code made by section 304 of the Working Families Tax Relief Act of 2004, which extended the authority to issue QZABs in the amount of $400 million each for years 2004 and 2005.
Notice 2004-69(PDF)	IRB #2004-43(HTML)	10/25/2004
Weighted average interest rate update; corporate bond indices; 30-year Treasury securities. The weighted average interest rate for October 2004 and the resulting permissible range of interest rates used to calculate current liability and to determine the required contribution are set forth.
Notice 2004-68(PDF)	IRB #2004-43(HTML)	10/25/2004
This notice announces that the IRS and Treasury will amend regulations section 301.7701-2(b)(8) to include certain foreign entities on the list of entities always treated as corporations under section 7701 of the Code.
Rev. Proc. 2004-61(PDF)	IRB #2004-43(HTML)	10/25/2004
This procedure allocates the national limitation of $400 million for year 2004 for Qualified Zone Academy Bonds (QZABs) among the states ("states" includes the District of Columbia and possessions of the U.S. (American Samoa, Northern Marianas, Puerto Rico, Guam, and the Virgin Islands)). The procedure implements the amendments to section 1397E(e)(1) of the Code made by section 304 of the Working Families Tax Relief Act of 2004, which extended the authority to issue QZABs in the amount of $400 million each for years 2004 and 2005.
Notice 2004-66(PDF)	IRB #2004-42(HTML)	10/18/2004
The Service is suspending certain income limitation requirements under section 42 of the Code for certain low-income housing credit properties in Florida as a result of the devastation caused by Hurricane Charley and Hurricane Frances.
Rev. Proc. 2004-60(PDF)	IRB #2004-42(HTML)	10/18/2004
Per diem allowances. This procedure provides rules for deeming substantiated the amount of certain reimbursed traveling expenses of an employee as well as optional rules for determining the amount of deductible meals and incidental expenses while traveling away from home. Rev. Proc. 2003-80 superseded.
Rev. Rul. 2004-98(PDF)	IRB #2004-42(HTML)	10/18/2004
Parking reimbursements. This ruling holds that certain amounts paid to an employee as "reimbursements" for a parking expense that the employee supposedly "paid" through a salary reduction are wages for purposes of the Federal Insurance Contributions Act (FICA), the Federal Unemployment Tax Act (FUTA), and the collection of income tax at source on wages (federal income tax withholding).
Rev. Proc. 2004-60(PDF)	IRB #2004-42(HTML)	10/18/2004
Per diem allowances. This procedure provides rules for deeming substantiated the amount of certain reimbursed traveling expenses of an employee as well as optional rules for determining the amount of deductible meals and incidental expenses while traveling away from home. Rev. Proc. 2003-80 superseded.
Rev. Proc. 2004-59(PDF)	IRB #2004-42(HTML)	10/18/2004
This procedure describes the section 1441 Voluntary Compliance Program (VCP) which is available to certain withholding agents with respect to the withholding, payment, and reporting of certain taxes due on payments to foreign persons.
Announcement 2004-80(PDF)	IRB #2004-41(HTML)	10/12/2004
Form 5500; Schedule B; actuarial data. This announcement clarifies the instructions to line 8c of the 2003 Schedule B of Form 5500.
Notice 2004-64(PDF)	IRB #2004-41(HTML)	10/12/2004
This notice alerts taxpayers to recent amendments to section 501(c)(15) of the Code that may affect the qualification of entities as tax-exempt property and casualty insurance companies described in section 501(c)(15). The notice advises taxpayers that the Service will continue to scrutinize the eligibility of entities claiming to be tax-exempt property and casualty insurance companies.
Notice 2004-65(PDF)	IRB #2004-41(HTML)	10/12/2004
This document modifies Notice 2002-70, 2002-2 C.B. 765, and Notice 2003-76, 2003-49 I.R.B. 1181, to remove certain reinsurance arrangements, which involve producer owned reinsurance companies (PORCs) from those identified as a "listed transaction," and notifies taxpayers that the Service will continue to scrutinize such arrangements. Notices 2002-70 and 2003-76 modified.
Rev. Rul. 2004-96(PDF)	IRB #2004-41(HTML)	10/12/2004
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 October 2004.
Notice 2004-61(PDF)	IRB #2004-41(HTML)	10/12/2004
This notice describes the transition period for purposes of sections 7702 and 7702A of the Code from the 1980 Commissioners Standard Ordinary mortality tables (CSO tables) to the 2001 CSO tables that are to be used by issuers of life insurance products. Notice 88-128 supplemented.
Notice 2004-63(PDF)	IRB #2004-41(HTML)	10/12/2004
This notice announces that the Service will not assert penalties for failure to report, under section 6050S of the Code, payments of loan origination fees and capitalized interest received in calendar year 2004 on qualified education loans made on or after September 1, 2004.
Announcement 2004-77(PDF)	IRB #2004-41(HTML)	10/12/2004
This document states that relief from the section 6715 penalty for highway use of dyed diesel fuel in Florida is extended until October 5, 2004. Announcement 2004-70 amended.
Notice 2004-67(PDF)	IRB #2004-41(HTML)	10/12/2004
This notice sets out transactions that have been identified by the Department of the Treasury and the IRS as "listed transactions" for purposes of the regulations under sections 6011 and 6111 of the Code. Notice 2003-76 supplemented and superseded.
Announcement 2004-71(PDF)	IRB #2004-40(HTML)	10/4/2004
Qualification; determination letters; staggered remedial amendment periods. This announcement includes a draft revenue procedure that contains the Service’s procedures for issuing letters pursuant to section 401(a) of the Code with respect to a staggered remedial amendment period system for plans that have not been pre-approved as well as for pre-approved plans. This document also invites comments from the public.
Notice 2004-62(PDF)	IRB #2004-40(HTML)	10/4/2004
Minimum funding standards; disaster relief. The Service, the Employee Benefits Security Administration (EBSA) of the Department of Labor, and the Pension Benefit Guaranty Corporation (PBGC) are providing relief in connection with certain employee benefit plans because of damage in Florida caused by Tropical Storm Bonnie, Hurricane Charley, and Hurricane Frances (Florida Storms). The relief provided by this notice is in addition to the relief already provided by the Service to victims of the Florida Storms.
Notice 2004-60(PDF)	IRB #2004-40(HTML)	10/4/2004
Weighted average interest rate update; corporate bond indices; 30-year Treasury securities. The weighted average interest rate for September 2004 and the resulting permissible range of interest rates used to calculate current liability and to determine the required contribution are set forth.
Announcement 2004-74(PDF)	IRB #2004-40(HTML)	10/4/2004
This announcement is a public notice of the suspension of the federal tax exemption under section 501(p) of the Code of a certain organization that has been designated as supporting or engaging in terrorist activity or supporting terrorism. Contributions made to this organization during the period that the organization’s tax-exempt status is suspended are not deductible for federal tax purposes.
Announcement 2004-70(PDF)	IRB #2004-39(HTML)	9/27/2004
The Service will not assert the penalty under section 6715 of the Code for diesel fuel that has been delivered or sold in Florida by wholesale dealers to retail dealers for resale to highway users or directly to end users for highway use for the period September 2, 2004, through September 15, 2004.
Notice 2004-58(PDF)	IRB #2004-39(HTML)	9/27/2004
This notice sets forth a method that the IRS will accept for determining whether subsidiary stock loss is disallowed and subsidiary stock basis is reduced under regulations section 1.337(d)-2T, and requests comments as to what method should be adopted in prospective regulations.
Rev. Rul. 2004-97(PDF)	IRB #2004-39(HTML)	9/27/2004
Section 7805(b); Rev. Rul. 2004-75. This ruling grants insurance companies section 7805(b) relief from the retroactive application of Rev. Rul. 2004-75. Rev. Rul. 2004-75 will not be applied to payments made to nonresident alien individuals or bona fide residents of Puerto Rico under life insurance or annuity contracts issued by foreign or Puerto Rican branches of U.S. life insurance companies before January 1, 2005, provided such payments are made pursuant to binding life insurance or annuity contracts issued by such branches on or before July 12, 2004. Rev. Rul. 2004-75 amplified.
Rev. Proc. 2004-57(PDF)	IRB #2004-38(HTML)	9/20/2004
This procedure allows taxpayers additional time to file the written statement required by Rev. Proc. 2004-23, 2004-16 I.R.B. 785, relating to changes in methods of accounting for costs to acquire or create intangible assets. Rev. Proc. 2004-23 modified.
Rev. Rul. 2004-92(PDF)	IRB #2004-37(HTML)	9/13/2004
Interest rates; underpayments and overpayments. The rate of interest determined under section 6621 of the Code for the calendar quarter beginning October 1, 2004, will be 5 percent for overpayments (4 percent in the case of a corporation), 5 percent for underpayments, and 7 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 2.5 percent.
Rev. Rul. 2004-69(PDF)	IRB #2004-36(HTML)	9/7/2004
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 September 2004.
Notice 2004-59(PDF)	IRB #2004-36(HTML)	9/7/2004
Alternative deficit reduction election; amendment following election. This notice provides guidance on the restrictions that are placed on plan amendments following an employer’s election of the alternative deficit reduction contribution under § 412(l)(12) of the Code and section 302(d)(12) of the Employee Retirement Income Security Act of 1974, as added by section 102 of the Pension Funding Equity Act of 2004.
Notice 2004-56(PDF)	IRB #2004-35(HTML)	8/30/2004
Weighted average interest rate update; corporate bond indices; 30-year Treasury securities. The weighted average interest rate for August 2004 and the resulting permissible range of interest rates used to calculate current liability and to determine the required contribution are set forth.
Notice 2004-57(PDF)	IRB #2004-35(HTML)	8/30/2004
This notice confirms that the Service will continue to assess and collect tax under section 4251 of the Code on all taxable communications services, including those communications services recently litigated with conflicting results.
Rev. Proc. 2004-56(PDF)	IRB #2004-35(HTML)	8/30/2004
Section 457(b) plan model amendments for governmental plans. This procedure provides model amendments that may be used by a state or local government eligible employer (as defined in section 457(e)(1)(A) of the Code) to amend or draft its eligible section 457(b) plan to reflect the requirements of section 457 and the regulations thereunder. Rev. Proc. 98-41 superseded.
Rev. Rul. 2004-82(PDF)	IRB #2004-35(HTML)	8/30/2004
Low-income housing credit. This ruling answers 12 questions about the low-income housing credit provisions under section 42 of the Code.
Notice 2004-55(PDF)	IRB #2004-34(HTML)	8/23/2004
This notice solicits public comments concerning whether the existing final regulations under section 423 of the Code, concerning options granted under an employee stock purchase plan, should be amended.
Rev. Proc. 2004-55(PDF)	IRB #2004-34(HTML)	8/23/2004
This procedure provides the domestic asset/liability percentages and domestic investment yield percentages needed by foreign insurance companies to compute their minimum effectively connected net investment income for taxable years beginning after December 31, 2002.
Rev. Proc. 2004-53(PDF)	IRB #2004-34(HTML)	8/23/2004
This procedure explains both the standard procedure and an alternate procedure for preparing and filing Form W-2, Wage and Tax Statement; Form 941, Employer’s Quarterly Federal Tax Return; Form W-4, Employee’s Withholding Allowance Certificate; and Form W-5, Earned Income Credit Advance Payment Certificate, in certain acquisitions. It also provides guidance on the new schedule (Schedule D (Form 941), Report of Discrepancies Caused by Acquisitions, Statutory Mergers, or Consolidations) that employers will be able to use to explain discrepancies between Forms W-2 and 941. Rev. Proc. 96-60 superseded and Rev. Rul. 62-60 amplified.
Rev. Proc. 2004-49(PDF)	IRB #2004-33(HTML)	8/16/2004
This procedure grants relief to S corporations that had a QSub election of a subsidiary terminate as a result of a transfer described in Situation 2 of Rev. Rul. 2004-85.
Rev. Rul. 2004-85(PDF)	IRB #2004-33(HTML)	8/16/2004
Effect of mergers on qualified subchapter S subsidiary (QSub) elections. This ruling discusses the effect certain interest transfers have on QSub and entity classification elections.
Rev. Rul. 2004-86(PDF)	IRB #2004-33(HTML)	8/16/2004
Classification of Delaware statutory trust. This ruling explains how a Delaware statutory trust described in the ruling will be classified for federal tax purposes and whether a taxpayer may acquire an interest in the Delaware statutory trust without recognition of gain or loss under section 1031 of the Code. Rev. Ruls. 78-371 and 92-105 distinguished.
Notice 2004-53(PDF)	IRB #2004-33(HTML)	8/16/2004
Requests for comments concerning the application of section 761. This notice requests comments regarding the application of section 761 of the Code and whether section 1.761-2(a)(2) of the regulations should be revised, modified, or clarified.
Notice 2004-50(PDF)	IRB #2004-33(HTML)	8/16/2004
This notice consists of 88 questions and answers on Health Savings Accounts (HSAs) that have not been previously addressed. This notice also provides transition relief for months before January 1, 2005, for health plans, which would otherwise qualify as high deductible health plans (HDHPs) except for the absence of an express limit on out-of-pocket expenses. It also provides transition relief for months before January 1, 2006, for health plans which allow deductibles to be satisfied over a period of more than 12 months. Notice 2004-2 modified.
Rev. Proc. 2004-51(PDF)	IRB #2004-33(HTML)	8/16/2004
Like-kind exchanges using qualified exchange accommodation arrangements. This procedure modifies Rev. Proc. 2000-37, 2000-2 C.B. 308, to provide that the safe harbor of Rev. Proc. 2000-37 does not apply to replacement property held in a qualified exchange accommodation arrangement if the property is owned by a taxpayer within the 180-day period ending on the date of transfer of qualified indicia of ownership of the property to an exchange accommodation titleholder. Rev. Proc. 2000-37 modified.
Rev. Rul. 2004-80(PDF)	IRB #2004-32(HTML)	8/9/2004
Retail excise tax; highway tractor; truck. This ruling applies the primarily designed tests in section 145.4051-1(e)(1) and (2) of the regulations under the Highway Revenue Act of 1982 (Pub. L. 97-424) for purposes of determining whether a vehicle is a truck or a highway tractor.
Rev. Proc. 2004-48(PDF)	IRB #2004-32(HTML)	8/9/2004
This document provides that certain eligible entities may request relief for a late S corporation election and a late election to be classified as an association taxable as a corporation within 18 months of the original due date of the S corporation election (but in no event later than 6 months after the due date of the tax return, excluding extensions, for the first year the entity intended to be an S corporation).
Rev. Rul. 2004-83(PDF)	IRB #2004-32(HTML)	8/9/2004
Corporate reorganizations. This ruling provides that if, pursuant to an integrated plan, a parent corporation sells the stock of a subsidiary to another subsidiary and the acquired subsidiary liquidates into the acquiring subsidiary, the transaction is a reorganization under section 368(a)(1)(D) of the Code.
Rev. Rul. 2004-84(PDF)	IRB #2004-32(HTML)	8/9/2004
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 August 2004.
Notice 2004-52(PDF)	IRB #2004-32(HTML)	8/9/2004
This notice requests comments regarding the treatment of certain financial transactions commonly known as credit default swaps (CDSs).
Rev. Rul. 2004-87(PDF)	IRB #2004-32(HTML)	8/9/2004
Bankruptcy; golden parachute payments. This ruling provides rules for the application of section 280G of the Code, concerning golden parachute payments, in the context of a bankruptcy. Specifically, this ruling addresses whether the acquisition of stock by the former creditors results in a change in ownership or control, whether a corporation whose stock is de-listed is eligible for the exemption for certain corporations whose stock is not readily tradeable on an established securities market if the shareholder approval and disclosure requirements described in the final regulations are satisfied, and whether stock that is de-listed from a securities market is considered readily tradeable if it is traded on an over-the-counter market (such as the pink sheets).
Rev. Proc. 2004-43(PDF)	IRB #2004-31(HTML)	8/2/2004
This document establishes an optional procedure for payors who make payments in the course of their trade or business through payment cards to determine whether the payments are reportable under sections 6041 and 6041A of the Code and the regulations thereunder. This procedure classifies businesses by Merchant Category Codes (MCCs), or other similar codes, according to whether they predominantly furnish services or predominantly provide goods.
Rev. Proc. 2004-45(PDF)	IRB #2004-31(HTML)	8/2/2004
This procedure provides alternative disclosure procedures that are deemed to satisfy a taxpayer’s disclosure obligations under section 1.6011–4 of the regulations for transactions with a significant book-tax difference under section 1.6011–4(b)(6). Taxpayers also may continue to follow the disclosure procedures provided in section 1.6011–4 for disclosing transactions described in section 1.6011–4(b)(6).
Rev. Proc. 2004-42(PDF)	IRB #2004-31(HTML)	8/2/2004
This procedure provides the requirements for a payment card organization to request and obtain an IRS determination that it is a Qualified Payment Card Agent (QPCA) for purposes of the related final regulations under sections 3406 and 6724 of the Code that address the information reporting and backup withholding requirements for payment card transactions.
Rev. Rul. 2004-75(PDF)	IRB #2004-31(HTML)	8/2/2004
Annuity payments. This ruling addresses the taxation of income received by residents of Puerto Rico and nonresident aliens under life insurance and annuity contracts issued by a foreign branch of a U.S. life insurance company. The ruling holds that income received by nonresident aliens under life insurance and annuity contracts issued by a foreign branch of a U.S. life insurance company is U.S.-source FDAP income. The ruling also holds that income received by bonafide residents of Puerto Rico under life insurance or annuity contracts issued by a Puerto Rican branch of a U.S. life insurance company is U.S.-source income.
Rev. Rul. 2004-76(PDF)	IRB #2004-31(HTML)	8/2/2004
Dual resident company. This ruling concludes that a dual resident company, resident in both Country Y and Country X under the domestic laws of those countries, is not entitled to claim benefits under the U.S. income tax convention with Coun try X if it is treated as a resident of Country Y and not of Country X for purposes of the income tax convention between Country X and Country Y and, as a result, is not liable to tax in Country X by reason of its residence. Rev. Rul. 73–354 obsoleted.
Rev. Rul. 2004-78(PDF)	IRB #2004-31(HTML)	8/2/2004
Corporate reorganizations; exchange of debt instruments. This ruling discusses the exchange of a debt security for a debt instrument in a reorganization.
Rev. Rul. 2004-79(PDF)	IRB #2004-31(HTML)	8/2/2004
Corporate distributions of property. This ruling addresses the tax consequences of the distribution by a subsidiary to its parent of parent indebtedness that the subsidiary previously purchased from a party unrelated to the parent.
Rev. Proc. 2004-44(PDF)	IRB #2004-31(HTML)	8/2/2004
Minimum funding standards; amortization; extensions. This procedure sets forth guidelines for requesting extensions of the amortization period of the minimum funding standards with respect to defined benefit plans under section 412(e) of the Code. Rev. Proc. 79–61 superseded. Rev. Proc. 2004–4 modified.
Announcement 2004-59(PDF)	IRB #2004-30(HTML)	7/26/2004
This announcement contains the annual report concerning the Pre-Filing Agreement program of the Large and Mid-Size Business Division of the Service for Calendar Year 2003.
Notice 2004-51(PDF)	IRB #2004-30(HTML)	7/26/2004
Weighted average interest rate update; corporate bond indexes; 30-year Treasury securities. The weighted average interest rate for July 2004 and the resulting permissible range of interest rates used to calculate current liability and to determine the required contribution are set
Rev. Proc. 2004-41(PDF)	IRB #2004-30(HTML)	7/26/2004
This procedure describes circumstances under which an insurance company that makes incentive payments to health care providers will be permitted to deduct those payments without regard to section 404 of the Code. The procedure also provides automatic consent procedures for a taxpayer to change its method of accounting for such payments. Rev. Proc. 2002–9 modified and amplified.
Notice 2004-46(PDF)	IRB #2004-29(HTML)	7/19/2004
This notice requests comments on whether debit cards may be used to provide qualified transportation fringes described under section 132(f) of the Code.
Notice 2004-47(PDF)	IRB #2004-29(HTML)	7/19/2004
This notice relieves health insurance providers from preparing IRS Form 1099–H, “Health Coverage Tax Credit (HCTC) Advance Payments,” unless they affirmatively retain that obligation. A contractor of the IRS will prepare the form and file it with the Service and furnish copies to taxpayers.
Rev. Proc. 2004-39(PDF)	IRB #2004-29(HTML)	7/19/2004
This document sets forth procedures for determining whether a qualified residential rental project is in compliance with the applicable set-aside requirements contained in section 142(d) of the Code during the qualified project period (as defined in section 142(d)(2)(A)).
Announcement 2004–58(PDF)	IRB #2004-29(HTML)	7/19/2004
Relative value regulations; effective dates; notices; qualified joint and survivor annuities. This announcement postpones, in certain circumstances, the effective date of the relative value regulations. In addition, it responds to questions that have been raised in connection with the regulations. Finally, the announcement states the intention of the Treasury and the Service to clarify the interaction between the QJSA requirements and the requirements of section 417(e)(3).
Rev. Proc. 2004-40(PDF)	IRB #2004-29(HTML)	7/19/2004
This procedure explains the manner in which taxpayers may request an advance pricing agreement (APA) from the APA Program within the Office of the Associate Chief Counsel (International), the manner in which such a request will be processed by the APA Program, and the effect and administration of APAs. Rev. Proc. 96–53 and Notice 98–65 superseded.
Announcement 2004-56(PDF)	IRB #2004-28(HTML)	7/12/2004
This announcement is a public notice of the suspension of the federal tax exemption under section 501(p) of the Code of a certain organization that has been designated as supporting or engaging in terrorist activity or supporting terrorism. Contributions made to this organization during the period that the organization’s tax-exempt status is suspended are not deductible for federal tax purposes.
Notice 2004-41(PDF)	IRB #2004-28(HTML)	7/12/2004
Charitable contributions and conservation easements. This notice informs taxpayers that the Service will, in appropriate cases, reduce or disallow deductions claimed by taxpayers under section 170 of the Code for transfers in connection with conservation easements. This notice also informs participants in these transactions that they may be subject to other adverse tax consequences, including penalties, excise taxes, and loss of tax-exempt status, as appropriate.
Notice 2004-45(PDF)	IRB #2004-28(HTML)	7/12/2004
This notice advises taxpayers that the Service will challenge the meritless filing position of certain U.S. citizens who claim to be residents of the U.S. Virgin Islands and to have income from sources in the U.S. Virgin Islands or income effectively connected to the conduct of a trade or business in the U.S. Virgin Islands.
Notice 2004-44(PDF)	IRB #2004-28(HTML)	7/12/2004
Section 368(a)(1)(B). The Service is requesting public comments regarding Rev. Proc. 81–70, 1981–2 C.B. 729, which contains the guidelines for estimating the basis of stock acquired in a B reorganization.
Rev. Rul. 2004-67(PDF)	IRB #2004-28(HTML)	7/12/2004
Group or pooled trusts; participation; tax-exempt status, model language. This ruling provides that a governmental section 457(b) plan may invest in a second tier group or pooled trust as long as the criteria enumerated in the ruling are met. In addition, the ruling sets forth model language that may be adopted by existing group or pooled trusts so that they need not request determination letters merely to add a provision permitting participation by a governmental section 457(b) plan. Rev. Rul. 81–100 clarified and modified.
Rev. Proc. 2004-38(PDF)	IRB #2004-27(HTML)	7/6/2004
This procedure informs owners of qualified low-income housing projects how to obtain the waiver of annual recertification of tenant income provided in section 42(g)(8)(B) of the Code. New Form 8877, Request for Waiver of Annual Income Recertification Requirement for the Low-Income Housing Credit, will be used to make the request. Rev. Proc. 94–64 superseded.
Announcement 2004-57(PDF)	IRB #2004-27(HTML)	7/6/2004
Age-discrimination regulations; proposed withdrawal. Proposed regulations that would have interpreted the provisions of sections 411(b)(1)(H) and 411(b)(2) of the Code will be withdrawn. The mandatory technical advice cases involving cash balance conversions will not be processed while these issues are under consideration by Congress.
Rev. Rul. 2004-65(PDF)	IRB #2004-27(HTML)	7/6/2004
Post-retirement health benefits; waiver. This ruling holds that an employer has reduced retiree health coverage, within the meaning of section 420(c)(2)(E) of the Code, if an individual who has coverage for retiree health benefits (“covered individual”) accepts an offer from the employer to waive the coverage in exchange for enhanced pension benefits.
Notice 2004-43(PDF)	IRB #2004-27(HTML)	7/6/2004
This notice provides transition relief for individuals in states where high deductible health plans (HDHPs) are not available because state laws require health plans to provide certain benefits with a low or no deductible.
Rev. Rul. 2004-66(PDF)	IRB #2004-27(HTML)	7/6/2004
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 July 2004.
Rev. Proc. 2004-37(PDF)	IRB #2004-26(HTML)	6/28/2004
This procedure provides a method for determining the source of a pension payment to a nonresident alien from a defined benefit plan where the trust forming part of the plan is a trust created or organized in the United States that constitutes a qualified trust under section 401(a) of the Code. Rev. Proc. 2004–7 amplified.
Rev. Rul. 2004-55(PDF)	IRB #2004-26(HTML)	6/28/2004
Disability insurance benefits. This ruling addresses the income tax treatment of short-term and long-term disability benefits under sections 104(a)(3) and 105(a) of the Code.
Rev. Rul. 2004-62(PDF)	IRB #2004-25(HTML)	6/21/2004
Business expenses; timber fertilization. The costs incurred by a timber grower for the post-establishment fertilization of an established timber stand are ordinary and necessary business expenses deductible under section 162 of the Code. This ruling also provides procedures for a taxpayer to automatically change its method of accounting for post-establishment fertilization costs to the method provided in this ruling. Rev. Proc. 2002–9 modified and amplified.
Notice 2004-42(PDF)	IRB #2004-25(HTML)	6/21/2004
Weighted average interest rate update; corporate bond indexes; 30-year Treasury securities. The weighted average interest rate for June 2004 and the resulting permissible range of interest rates used to calculate current liability and to determine the required contribution are set forth.
Rev. Rul. 2004-60(PDF)	IRB #2004-24(HTML)	6/14/2004
Federal Insurance Contributions Act (FICA); options and deferred compensation transfer on divorce. This ruling concludes that nonqualified stock options and nonqualified deferred compensation transferred by an employee to a former spouse incident to a divorce are subject to the Federal Insurance Contributions Act (FICA), the Federal Unemployment Tax Act (FUTA), and income tax withholding to the same extent as if retained by the employee. The ruling also provides reporting requirements applicable to the wage payments. Notice 2002–31 modified.
Rev. Proc. 2004-36(PDF)	IRB #2004-24(HTML)	6/14/2004
This procedure provides a safe harbor method of accounting that allows film producers to amortize certain creative property costs ratably over a period of 15 years beginning in the year the creative property costs are written off for book purposes under AICPA Statement of Position (SOP) 00–2, “Accounting for Producers or Distributors of Film.” Rev. Proc. 2002–9 modified and amplified.
Rev. Rul. 2004-56(PDF)	IRB #2004-24(HTML)	6/14/2004
Interest rates; underpayments and overpayments. The rate of interest determined under section 6621 of the Code for the calendar quarter beginning July 1, 2004, will be 4 per cent for overpayments (3 percent in the case of a corporation), 4 percent for underpayments, and 6 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 1.5 per cent.
Announcement 2004-52(PDF)	IRB #2004-24(HTML)	6/14/2004
Correction; section 457; Rev. Rul. 2004–57. A transition rule is set forth for a plan established before June 14, 2004, that does not satisfy the requirements of Rev. Rul. 2004–57 solely as a result of being established and maintained by a labor organization instead of being established and maintained by an eligible governmental employer.
Rev. Rul. 2004-57(PDF)	IRB #2004-24(HTML)	6/14/2004
Governmental plan; union; section 457(b). This ruling holds that a deferred compensation plan does not fail to be an eligible governmental plan under section 457(b) of the Code merely because the plan is created, offered, and administered by a union, provided adoption of the plan meets certain criteria set forth in the ruling.
Rev. Rul. 2004-58(PDF)	IRB #2004-24(HTML)	6/14/2004
Preproduction costs of creative property. This ruling pro vides that a taxpayer may not deduct as a loss under section 165 of the Code the costs of acquiring and developing creative property if the taxpayer does not establish an intention to abandon the property and an affirmative act of abandonment, or an identifiable event evidencing a closed and completed transac tion establishing the worthlessness of the property.
Rev. Rul. 2004-59(PDF)	IRB #2004-24(HTML)	6/14/2004
State law conversion from partnership to corporation. This ruling explains the federal tax consequences when an entity classified as a partnership for federal tax purposes converts into a state law corporation under a state statute that does not require an actual transfer of the unincorporated entity’s assets or interests.
Rev. Rul. 2004-54(PDF)	IRB #2004-23(HTML)	6/7/2004
For purposes of sections 382, 642, 1274, 1288, and other sections of the Code, tables set forth the rates for June 2004.
Rev. Proc. 2004-35(PDF)	IRB #2004-23(HTML)	6/7/2004
This procedure concerns automatic relief to file certain late shareholder consents to be an S corporation.
Notice 2004-40(PDF)	IRB #2004-23(HTML)	6/7/2004
Weighted average interest rate update; corporate bond indices; 30-year Treasury securities. The weighted average interest rate for May 2004 and the resulting permissible range of interest rates used to calculate current liability and to determine the required contribution are set forth.
Announcement 2004-48(PDF)	IRB #2004-22(HTML)	6/1/2004
This announcement provides background information relating to Rev. Proc. 2004-34 in this Bulletin. Rev. Proc. 2004-34 provides a method of accounting under which taxpayers using an accrual method of accounting may defer including all or part of certain advance payments in gross income until the year after the year the payment is received.
Rev. Rul. 2004-50(PDF)	IRB #2004-22(HTML)	6/1/2004
This ruling provides clarification with regard to an Indian tribal government’s ability to qualify as an eligible shareholder under section 1361 of the Code. Specifically, the ruling explains that a federally recognized Indian tribal government does not qualify as a permissible S corporation shareholder under section 1361(b)(1)(B) because it is not treated as an individual subject to individual income taxes under section 1 of the Code. The ruling also explains that a federally recognized Indian Tribe cannot qualify as a permissible S corporation shareholder under section 1361(c)(6) because it is neither a section 501(c)(3) organization, nor a section 401(a) qualified plan, profit-sharing, or stock bonus plan organization.
Rev. Rul. 2004-51(PDF)	IRB #2004-22(HTML)	6/1/2004
This ruling illustrates the tax consequences for a section 501(c)(3) organization that enters into a joint venture with a for-profit organization as an insubstantial part of its activities.
Rev. Rul. 2004-52(PDF)	IRB #2004-22(HTML)	6/1/2004
This ruling holds that credit card annual fees are not interest for federal income tax purposes. Moreover, the ruling holds that credit card annual fees are includible in the gross income by the card issuer when they become due and payable by cardholders under the terms of the credit card agreements.
Notice 2004-39(PDF)	IRB #2004-22(HTML)	6/1/2004
This notice explains how the changes to section 1(h) of the Code made by the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA) apply to capital gain dividends paid (or accounted for as if paid) by regulated investment companies (RICs) and real estate investment trusts (REITs) in taxable years that end on or after May 6, 2003.
Rev. Proc. 2004-34(PDF)	IRB #2004-22(HTML)	6/1/2004
This procedure provides a method of accounting under which taxpayers using an accrual method of accounting may defer including all or part of certain advance payments in gross income until the year after the year the payment is received. Rev. Proc. 71-21 modified and superseded and Rev. Proc. 2002-9 modified and amplified.
Rev. Proc. 2004-33(PDF)	IRB #2004-22(HTML)	6/1/2004
This procedure describes conditions under which the Commissioner will allow a taxpayer to treat its income from credit card late fees as interest income on a pool of credit card loans. This document also provides automatic consent procedures for a taxpayer to change its method of accounting for credit card late fee income to a method that treats these fees as interest that creates or increases the amount of OID on a pool of credit card loans to which the fees relate. Rev. Proc. 2002-9 modified and amplified.
Rev. Proc. 2004-32(PDF)	IRB #2004-22(HTML)	6/1/2004
This document provides automatic consent procedures for taxpayers to change their method of accounting to a method that complies with Rev. Rul. 2004-52, in this Bulletin, or to the Ratable Inclusion Method for Credit Card Annual Fees described in this revenue procedure. Rev. Proc. 2002-9 modified and amplified.
Rev. Proc. 2004-28(PDF)	IRB #2004-22(HTML)	6/1/2004
This procedure provides guidance to regulated investment companies (RICs) who must comply with the asset diversification rules of section 851(b)(3) of the Code. The procedure describes conditions under which a RIC may look through a repurchase agreement (repo) to government securities serving as the underlying collateral to treat itself as the owner of the government securities for purposes of these rules. The procedure is effective for repos held by a RIC on or after August 15, 2001.
Rev. Rul. 2004-45(PDF)	IRB #2004-22(HTML)	6/1/2004
This ruling addresses the interaction between Health Savings Accounts (HSAs), health flexible spending arrangements (health FSAs), and health reimbursement arrangements (HRAs).
Rev. Proc. 2004-31(PDF)	IRB #2004-22(HTML)	6/1/2004
Changes in method of accounting for transfers to trusts under section 461(f). This document provides procedures for taxpayers to change their method of accounting for deducting under section 461(f) of the Code amounts transferred to trusts in transactions described in Notice 2003-77, 2003-49 I.R.B. 1182.
Notice 2004-37(PDF)	IRB #2004-21(HTML)	5/24/2004
Section 1504. This notice announces circumstances in which the failure to satisfy the value requirement of section 1504(a)(2)(B) of the Code will be disregarded under section 1504(a)(5)(C) and (D) in determining whether a corporation is treated as a member of an affiliated group. The notice also announces that regulations will be proposed and invites comments.
Rev. Rul. 2004-47(PDF)	IRB #2004-21(HTML)	5/24/2004
This ruling deals with the application of section 265 of the Code to affiliated corporate groups when one member of the group borrows from outside the group and makes funds available to another member of the group that is a dealer in tax-exempt securities.
Rev. Rul. 2004-49(PDF)	IRB #2004-21(HTML)	5/24/2004
Partnerships; amortization of intangibles. This ruling provides that if a section 197(f)(9) intangible is amortizable in the hands of a partnership, the anti-churning rules under section 1.197-2(h)(12)(vii)(A) of the regulations do not apply to curative or remedial reverse section 704(c) allocations of amortization. It also provides that if a section 197(f)(9) intangible was not amortizable in the hands of the partnership, then remedial, not curative, reverse section 704(c) allocations of amortization are permitted.
Notice 2004-38(PDF)	IRB #2004-21(HTML)	5/24/2004
This notice announces that the Service and the Treasury Department will issue temporary and proposed regulations that will modify the definition of "qualified amended return" in regulations section 1.6664-2(c)(3).
Announcement 2004-43(PDF)	IRB #2004-21(HTML)	5/24/2004
Alternative deficit reduction election; notice to Pension Benefit Guaranty Corporation (PBGC) and plan participants and beneficiaries. This announcement describes how notice must be given to the Pension Benefit Guaranty Corporation and to plan participants and their beneficiaries under section 302(d)(12) of the Employee Retirement Income Security Act of 1974 when an employer elects to make an alternative deficit reduction contribution under section 412(1) of the Code. This announcement also provides special timing and transitional rules. Announcement 2004-38 modified.
Rev. Proc. 2004-30(PDF)	IRB #2004-21(HTML)	5/24/2004
This procedure provides automatic consent procedures for taxpayers to change their method of accounting for income from REMIC inducement fees to a safe harbor method set forth in T.D. 9128. Rev. Proc. 2002-9 modified and amplified.
Announcement 2004-46(PDF)	IRB #2004-21(HTML)	5/24/2004
This announcement is a settlement initiative for taxpayers to resolve transactions described in Notice 2000-44, 2000-2 C.B. 255, and substantially similar transactions (Son of Boss transactions).
Rev. Proc. 2004-29(PDF)	IRB #2004-20(HTML)	5/17/2004
Use of statistical sampling under section 274(n). This procedure provides the statistical sampling methodology by which a taxpayer may establish the amount of meal and entertainment expenses excepted from the 50% deduction disallowance of section 274(n)(1) of the Code.
Notice 2004-35(PDF)	IRB #2004-19(HTML)	5/10/2004
Net investment income of private foundation. This notice announces that the Treasury Department and the Service intend to propose regulations modifying regulations section 53.4940-1(d)(2) to provide that a private foundation’s net investment income for purposes of section 4940 of the Code does not include distributions from trusts and estates and that until further guidance is promulgated, income distributions from trusts and estates will not retain their character in the hands of a distributee private foundation for purposes of determining the foundation’s net investment income under section 4940(c). This notice also provides instructions on how a private foundation should fill out its applicable returns and how to claim refunds.
Notice 2004-36(PDF)	IRB #2004-19(HTML)	5/10/2004
Distributable amount of a private foundation. This notice states that the Treasury Department and the Service intend to propose regulations modifying regulations under section 4942 of the Code in a manner consistent with the holding of the Tax Court and the Ninth Circuit in Ann Jackson Family Foundation. It also states that until further guidance is promulgated, private foundations should compute the distributable amount under section 4942(d) without regard to regulations section 53.4942(a)-2(b)(2). Accordingly, income distributions received from section 4947(a)(2) trusts are not included in a private foundation’s distributable amount for purposes of section 4942. The notice also includes instructions for filling out the private foundation’s applicable information and excise tax returns and how to claim a refund pursuant to this notice.
Rev. Rul. 2004-44(PDF)	IRB #2004-19(HTML)	5/10/2004
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 May 2004.
Notice 2004-36(PDF)	IRB #2004-19(HTML)	5/10/2004
Distributable amount of a private foundation. This notice states that the Treasury Department and the Service intend to propose regulations modifying regulations under section 4942 of the Code in a manner consistent with the holding of the Tax Court and the Ninth Circuit in Ann Jackson Family Foundation. It also states that until further guidance is promulgated, private foundations should compute the distributable amount under section 4942(d) without regard to regulations section 53.4942(a)-2(b)(2). Accordingly, income distributions received from section 4947(a)(2) trusts are not included in a private foundation’s distributable amount for purposes of section 4942. The notice also includes instructions for filling out the private foundation’s applicable information and excise tax returns and how to claim a refund pursuant to this notice.
Announcement 2004-38(PDF)	IRB #2004-18(HTML)	5/3/2004
Minimum funding standards; alternative deficit reduction election. This announcement describes how an election to make an alternative deficit reduction contribution under section 412(l) of the Code may be made and describes some of the background to that election.
Notice 2004-34(PDF)	IRB #2004-18(HTML)	5/3/2004
Minimum funding standards; interest rates; section 101 of Pension Funding Equity Act. This notice describes the method for determining the permissible range of interest rates for current liability under section 412 of the Code as amended by section 101 of the Pension Funding Equity Act of 2004. In addition, comments are requested on this notice.
Notice 2004-32(PDF)	IRB #2004-18(HTML)	5/3/2004
Weighted average interest rate update. The weighted average interest rate for April 2004 and the resulting permissible range of interest rates used to calculate current liability and to determine the required contribution are set forth.
Announcement 2004-32(PDF)	IRB #2004-18(HTML)	5/3/2004
Employee Plans determination letter program; individually designed plans. This announcement describes the Service’s decisions resulting from its review of comments following the issuance of two white papers on the future of the Employee Plans determination letter program.
Announcement 2004-38(PDF)	IRB #2004-18(HTML)	5/3/2004
Minimum funding standards; alternative deficit reduction election. This announcement describes how an election to make an alternative deficit reduction contribution under section 412(l) of the Code may be made and describes some of the background to that election.
Announcement 2004-33(PDF)	IRB #2004-18(HTML)	5/3/2004
Pre-approved employee plans; proposed revenue procedure; request for comments. This announcement describes and contains a draft proposed revenue procedure pertaining to those employee plans (master and prototype (M&P) and volume submitter (VS)) that are pre-approved by the Service. Portions of the draft procedure are reserved pending comments.
Rev. Rul. 2004-43(PDF)	IRB #2004-18(HTML)	5/3/2004
Partnership mergers. This ruling describes the application of sections 704(c)(1)(B) and 737 of the Code to assets-over partnership mergers. The ruling holds that section 704(c)(1)(B) applies to newly created section 704(c) gain or loss in property contributed by the transferor partnership to the continuing partnership in an assets-over partnership merger, but does not apply to newly created reverse section 704(c) gain or loss resulting from a revaluation of property in the continuing partnership. The ruling also holds that for purposes of section 737(b), net precontribution gain includes newly created section 704(c) gain or loss in property contributed by the transferor partnership to the continuing partnership in an assets-over partnership merger, but does not include newly created reverse section 704(c) gain or loss resulting from a revaluation of property in the continuing partnership.
Rev. Proc. 2004-27(PDF)	IRB #2004-17(HTML)	4/26/2004
This procedure permits certain owners of royalty interests (RI) to claim the credit for producing fuel from a nonconventional source in the taxable year (including a 2003 taxable year) in which they receive the income from the sale of qualified fuel, rather than in a prior taxable year in which the owner of the operating interest (OI) sold the qualified fuel.
Notice 2004-31(PDF)	IRB #2004-17(HTML)	4/26/2004
This notice identifies as a listed transaction under section 6111 of the Code certain equity financing structures using partnerships, special allocations of partnership items, and guaranteed payments that are entered into to avoid the limitations of section 163(j).
Notice 2004-30(PDF)	IRB #2004-17(HTML)	4/26/2004
S corporation tax shelter. This notice advises taxpayers and their representatives about a tax shelter in which a shareholder of an S corporation donates nonvoting stock of the S corporation to an organization described in section 1361(c)(6) of the Code that is not subject to tax on unrelated business income under section 511 or that has UBIT carry-over losses. The transaction is made in order to defer taxation on S corporation income. The notice notifies taxpayers and their representatives that the claimed tax benefits purportedly generated by these transactions are not allowable for federal income tax purposes. The notice also states that this transaction is a listed transaction and warns of the potential penalties that may be imposed if taxpayers participate in such a transaction.
Announcement 2004-35(PDF)	IRB #2004-17(HTML)	4/26/2004
In Announcement 2003-68, 2003-45 I.R.B. 1050, the Office of Professional Responsibility delayed the implementation of the renewal of enrollment schedule for enrolled agents having social security numbers that end with a 0, 1, 2, or 3 (affected enrolled agents). This announcement provides that June 1, 2004, through July 31, 2004, will be the period for the affected enrolled agents to renew their enrollment.
Notice 2004-28(PDF)	IRB #2004-16(HTML)	4/19/2004
Frivolous claims for refunds of income or alternative minimum tax incurred upon the exercise of compensatory stock options. This notice describes five claims and explains that in most cases the arguments behind such claims are without merit and will not be respected by the Service. This notice also enumerates the penalties which may be applicable to taxpayers relying on such claims or arguments.
Notice 2004-27(PDF)	IRB #2004-16(HTML)	4/19/2004
Losses; decrease in stock value. This notice advises taxpayers that the Service will disallow deductions for theft losses claimed on account of decreases in the market value of stock purchased on the open market that may be attributable to fraudulent misrepresentations or other illegal misconduct of corporate officials. A taxpayer generally may deduct as a capital loss such a decrease in value when it is recognized by the taxpayer because the stock is sold or exchanged or becomes wholly worthless.
Rev. Proc. 2004-25(PDF)	IRB #2004-16(HTML)	4/19/2004
Remedial amendment period; disqualifying provisions; December 31, 2001. This procedure extends the remedial amendment period under section 401(b) of the Code with respect to certain disqualifying provisions of all new plans put into effect after December 31, 2001, until the end of the remedial amendment period for the Economic Growth and Tax Relief Reconciliation Act of 2001.
Notice 2004-26(PDF)	IRB #2004-16(HTML)	4/19/2004
Public comments are requested for items that should be included on the 2004–2005 Guidance Priority List. Taxpayers may submit recommendations at any time during the year. All recommendations received by April 30, 2004, will be reviewed for possible inclusion on the original 2004–2005 Guidance Priority List. Recommendations received after April 30, 2004, will be reviewed for inclusion in the quarterly updates if received by August 31, 2004; November 30, 2004; or February 28, 2005, respectively.
Rev. Proc. 2004-24(PDF)	IRB #2004-16(HTML)	4/19/2004
Qualified mortgage bonds; mortgage credit certificates; national median gross income. Guidance is provided concerning the use of the national and area median gross income figures by issuers of qualified mortgage bonds and mortgage credit certificates in determining the housing cost/income ratio described in section 143(f) of the Code. Rev. Proc. 2003–29, obsoleted, except as provided in section 5.02 of this procedure.
Rev. Proc. 2004-23(PDF)	IRB #2004-16(HTML)	4/19/2004
This document provides administrative procedures under which taxpayers may obtain automatic consent to change to a method of accounting provided in sections 1.263(a)–4, 1.263(a)–5, and 1.167(a)–3(b) of the regulations for the taxpayer’s first taxable year ending on or after December 31, 2003. Rev. Proc. 2002–9 modified and amplified. Announcement 93–60 obsoleted.
Notice 2004-23(PDF)	IRB #2004-15(HTML)	4/12/2004
This notice provides a safe harbor for preventive care benefits allowed to be provided by a high deductible health plan (HDHP) under section 223(c)(2) of the Code.
Notice 2004-25(PDF)	IRB #2004-15(HTML)	4/12/2004
This notice provides transition relief from the rule in Notice 2004-2, 2004-2 I.R.B. 269, Q&A 26, that a Health Savings Account (HSA) must pay or reimburse on a tax-free basis only qualified medical expenses incurred after the HSA has been established. The notice provides that for calendar year 2004, an HSA established on or before April 15, 2005, may pay or reimburse otherwise qualified medical expenses on a tax-free basis if the expenses were incurred on or after the later of (1) January 1, 2004, or (2) the first day of the first month the taxpayer became eligible to establish an HSA. Notice 2004-2 modified.
Announcement 2004-29(PDF)	IRB #2004-15(HTML)	4/12/2004
The definition of tax shelter opinion for purposes of section 10.35 of Treasury Department Circular No. 230 (31 CFR part 10) will not apply, if at all, to written advice concerning municipal bonds rendered less than 120 days after the publication of the final regulations in the Federal Register.
Rev. Rul. 2004-38(PDF)	IRB #2004-15(HTML)	4/12/2004
Health Savings Accounts (HSAs). This ruling provides that if an individual is covered by both a high deductible health plan (HDHP) that does not cover prescription drugs and by a separate prescription drug plan (or rider) that provides benefits before the minimum annual deductible of the HDHP has been satisfied, that individual is not an eligible individual under section 223(c)(1)(A) of the Code and may not make contributions to a Health Savings Account.
Announcement 2004-26(PDF)	IRB #2004-15(HTML)	4/12/2004
This document contains the annual report to the public concerning Advance Pricing Agreements (APAs) and the experience of the APA program during calendar year 2003. This document does not provide guidance regarding the application of the arm’s length standard; rather, it reports on the structure and activities of the APA program.
Rev. Proc. 2004-22(PDF)	IRB #2004-15(HTML)	4/12/2004
This procedure provides transition relief from Rev. Rul. 2004-38 for determining an "eligible individual" under section 223 of the Code who may make contributions to a Health Savings Account (HSA). The transition relief covers the months before January 1, 2006, in the case of an individual who is covered by both a high deductible health plan (HDHP) and by a separate plan or rider that provides prescription drug benefits before the minimum annual deductible of the HDHP is satisfied. Rev. Rul. 2004-38 modified.
Rev. Rul. 2004-39(PDF)	IRB #2004-14(HTML)	4/5/2004
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 April 2004.
Rev. Proc. 2004-21(PDF)	IRB #2004-14(HTML)