TaxNewsFlash January 2004 Editions

To obtain a copy of any of these issues, please send an e-mail to the US-KPMG Washington National Tax.

January 2004

Issue	Date	Subject
2004-19	January 30, 2004	Weekly Wrap-up: Tax Committee Leaders Intend to Clarify Dividend Provision; IRS Proposes New Corporate Tax Forms
2004-18	January 29, 2004	Legislative Update: Senate Finance Committee Releases Summaries of Tax Administration, COLI, Transportation Bills
2004-17	January 29, 2004	IRS Releases Variety of Guidance on Qualified Retirement Plans
2004-16	January 29, 2004	IRS Issues Guidance Concerning Application of US-German and Other Income Tax Treaties to Nonresident Partner
2004-15	January 28, 2004	IRS Issues Guidance on Short Sales
2004-14	January 28, 2004	Legislative Update: Senate Passes Bill to Change Defined Benefit Contribution Requirements
2004-13	January 23, 2004	IRS Identifies Certain ESOP Ownership Situations as "Listed Transactions"
2004-12	January 23, 2004	Proposed U.S.-Japan Tax Treaty: Update on Ratification Process in the United States
2004-11	January 21, 2004	Seventh Circuit: Payment of Court Judgment Is Capital Expenditure, Part of Cost Basis of Acquired Property
2004-10	January 20, 2004	IRS Allows Plan Administrators, Trustees to Issue Electronic Payee Statements After 2003
2004-09	January 20, 2004	New York City: Tax Appeals Tribunal Rejects Forced Combination for Royalty Company
2004-08	January 20, 2004	Reminder: Deadline Approaches for Comments on INDOPCO Notice
2004-07	January 19, 2004	Corporate Tax Symposium: Responding to New Challenges of a Changing Landscape
2004-06	January 19, 2004	Video/Audio Conference: Emerging Issues in State Taxation
2004-05	January 13, 2004	Legislative Update: Treasury Releases Revenue Raisers, Tax-Avoidance Measures, Simplification Proposals in Advance of FY '05 Budget
2004-04	January 9, 2004	Fifth Circuit: COLI Policy Taken Out in Employee's Name Violated Texas Insurable Interest Doctrine
2004-03	January 6, 2004	IRS Semiannual Regulatory Agenda for 2004
2004-02	January 5, 2004	Saudi Arabia: Overview of New Capital Markets, Insurance Companies Control Laws; New Rules for Foreign Investments in Health Care Sector; Oil and Gas Update
2004-01	January 5, 2004	IRS Summarizes 2003 Tax Changes for Business, Individual Taxpayers

February 2004

Issue	Date	Subject
2004-44	February 27, 2004	Regulations Address Depreciation of MACRS Property Acquired in Like-Kind Exchange or Involuntary Conversion
2004-43	February 25, 2004	Revenue Ruling Addresses Exercise of Stock Option by Employees Using Debt Financing Provided by the Corporation
2004-42	February 25, 2004	Proposed Regulations Addressing Notional Principal Contracts
2004-41	February 25, 2004	U.S. Treasury Department Releases Technical Explanations of Income Tax Treaties and Protocols Between the United States and Japan, and the United States and Sri Lanka
2004-40	February 23, 2004	Changes in Reporting Requirements for Certain 2002 Forms of Partnerships, S Corporations, and Estates to Reflect Pre-Enactment Application of Technical Corrections on Qualified Dividends
2004-39	February 19, 2004	Treasury, IRS to Apply Prior to Enactment Technical Corrections on Qualified Dividends on 2003 Tax Returns
2004-38	February 19, 2004	Comments Are Requested Concerning Amounts to Be Capitalized in Certain Acquisitions of a Trade or Business
2004-37	February 17, 2004	Treasury, IRS Address "Abusive" Foreign Tax Credit Transactions by Withdrawing Notice 98-5, and Providing Details of Other Guidance
2004-36	February 17, 2004	Federal District Court: Long-Distance Service Is Not Taxable "Toll Telephone Service" for Federal Communications Excise Tax Purposes
2004-35	February 16, 2004	Legislative Update: Proposals Would Make Partnership Basis Adjustments Mandatory
2004-34	February 13, 2004	IRS Addresses Spouse's COBRA Coverage When Former Employee Becomes Eligible for Medicare
2004-33	February 13, 2004	Revenue Ruling Addresses Business Purpose Requirement for Spin-Off to Increase Aggregate Value of Distributing and Controlled Corporations
2004-32	February 13, 2004	Final Regulations on Furnishing Electronic Forms W-2, Forms 1098-T and Forms 1098-E
2004-31	February 13, 2004	Legislative Update: Senate Passes Highway Bill With Additional Tax Provisions
2004-30	February 13, 2004	Treasury, IRS Issue Guidance on Life Insurance Policies in Retirement Plans; Certain Arrangements Are Identified as "Listed Transactions"
2004-29	February 13, 2004	Treasury, IRS Release Second Quarterly Update of 2003-2004 Priority Guidance Plan
2004-28	February 12, 2004	IRS Clarifies Form 1099 Reporting Requirements for FSAs and HRAs
2004-27	February 10, 2004	Legislative Update: Amendment to Senate Highway Bill Submitted; Contains Revenue Offsets
2004-26	February 9, 2004	Tax Court Denies Taxpayer's Deferral of Gain on Stock Sale to ESOP; Timely Section 1042 Election Not Made
2004-25	February 6, 2004	Revenue Rulings Address Tax Treatment of Certain Environmental Remediation Costs
2004-24	February 4, 2004	Israel: Tax Update
2004-23	February 4, 2004	Federal District Court: Long-Distance Service Is Taxable "Toll Telephone Service" for Federal Communications Excise Tax Purposes
2004-21	February 2, 2004	Legislative Update: Administration's Fiscal Year 2005 Budget Is Released
2004-20	February 2, 2004	New IRS Litigating Position on Depreciation Method Changes for Property Placed in Service in Tax Years Ending Before December 30, 2003, Provides Opportunities for Taxpayers

March 2004

Issue	Date	Subject
2004-74	March 31, 2004	IRS Grants Extension of Time for Amending Disqualifying Provisions of a Qualified Plan
2004-73	March 30, 2004	Transfer Pricing: IRS Releases Annual APA Program Report for 2003
2004-72	March 30, 2004	Treasury, IRS Release Guidance for Health Savings Accounts
2004-71	March 30, 2004	United States, Japan Exchange Instruments of Ratification; New Income Tax Treaty Enters Into Force
2004-70	March 29, 2004	IRS Announces Luxury Automobile Depreciation Deduction Limitations for 2004
2004-69	March 26, 2004	Legislative Update: Senate FSC/ETI Bill in Limbo
2004-68	March 25, 2004	IRS Issues Guidance on Decrease in Stock Value Attributable to Corporate Misconduct
2004-67	March 25, 2004	Temporary Regulations Provide Alternative Method for Determining Tax Book Value of Assets for Allocation and Apportionment of Expenses That May Increase Foreign Tax Credit Limitation
2004-66	March 24, 2004	IRS Issues Rev. Proc. 2004-23 - Guidance on Accounting Method Changes Relating to the Treatment of Intangibles
2004-65	March 23, 2004	Proposed Regulations Provide Additional Guidance on Elimination of Forms of Benefit From Defined Contribution Plans
2004-64	March 19, 2004	Proposed U.S.-Japan Tax Treaty Closer to Entering into Force in 2004: Approved by Upper House of Japanese Diet On March 19, 2004
2004-63	March 17, 2004	Amendment to Withholding Rules for Foreign Partnerships and Foreign Trusts
2004-62	March 17, 2004	Legislative Update: Ways and Means Committee Approves Fuel Excise Tax Provisions
2004-61	March 17, 2004	Loss Disallowance Regulations Are Amended
2004-60	March 12, 2004	Tax Court: Taxpayer Not Entitled to $4 Million in Loss Deductions Relating to Health Insurance Group Contracts Terminated in 1994
2004-59	March 12, 2004	Guidance for Consolidated Groups When Group Member Realizes Discharge of Indebtedness Income
2004-58	March 12, 2004	Legislative Update: Senate Completes Action on Budget Resolution
2004-57	March 12, 2004	Analysis: New Research Credit Final Regulations � What's Gone, What's New, and What's Missing
2004-56	March 11, 2004	Treasury, IRS Release Draft Book-Tax Schedule Instructions for Corporate Return Filers; Comments Are Requested
2004-55	March 10, 2004	U.S. Senate Approves United States-Japan Income Tax Treaty
2004-54	March 9, 2004	Tax Court Holds Section 461(d) Bars the Acceleration of Deduction of California Franchise Tax; Acquired Brokerage Customer Accounts May Be Amortized
2004-53	March 8, 2004	Protocol to U.S.-Netherlands Income Tax Treaty Is Signed; New Zero Rate on Dividends, Revised Limitation on Benefits Article, and Fiscally Transparent Entity Rules Similar to 2001 U.S.-U.K. Income Tax Treaty
2004-52	March 5, 2004	Legislative Update: Senate Postpones Consideration of FSC/ETI Bill; Extenders Amendment Is Pending
2004-51	March 4, 2004	IRS Reminds Business Taxpayers of the March 31st Deadline for Submitting Issues for Resolution Under the Industry Issue Resolution Program
2004-50	March 4, 2004	Legislative Update: House Leaders Seek Support for Revised FSC/ETI Bill
2004-49	March 3, 2004	Legislative Update: Senate Takes Up FSC/ETI Replacement Bill; Adopts SILOs, R&E Extension Amendments
2004-48	March 3, 2004	Iraq: Coalition Provisional Authority's Tax Strategy for 2004
2004-47	March 2, 2004	U.S. Supreme Court: Sole Shareholder-Owner Can Qualify as "Participant" in Pension Plan Covered by ERISA
2004-46	March 1, 2004	Proposed Regulations Would Expand the Scope of Permissible Transfers of Assets or Stock Following Tax-Free Reorganizations
2004-45	March 1, 2004	IRS Announces Revision of Form 3115, Application for Change in Accounting Method

April 2004

Issue	Date	Subject
2004-96	April 30, 2004	Proposed Regulations for Determining Basis of Stock or Securities Received in Certain Reorganization Transactions
2004-95	April 30, 2004	Final Regulations Modify At-Risk Rules Under Section 465
2004-94	April 30, 2004	Legislative Update: Will the Research Credit Be Extended? Will the Statutory Rules for Computing the Credit Be Changed?
2004-93	April 30, 2004	Legislative Update: U.S. Products Subject to EU Sanctions in the FSC/ETI Dispute
2004-92	April 29, 2004	Final Mark-to-Market Regulations for Passive Foreign Investment Company Stock Are Released
2004-91	April 28, 2004	Legislative Update: House Passes First of Several Bills to Extend Middle-Class Tax Cuts
2004-90	April 28, 2004	Virginia: Expense Disallowance Legislation, Other Measures Are Passed
2004-89	April 26, 2004	IRS Expands Scope of Executive Compensation Examination Initiative
2004-88	April 23, 2004	Tax Court: Allocation of Recourse Liability in Purchase of Aircraft by Limited Liability Company
2004-87	April 23, 2004	Upcoming KPMG Transfer Pricing Seminars on the West Coast
2004-86	April 20, 2004	Section 704(b) Regulations Prospectively Address Partnership Allocations of Foreign Taxes and Foreign Source Income That Can Affect Foreign Tax Credits
2004-85	April 16, 2004	IRS Issues Guidance on Future of Employee Plans Determination Letter Program
2004-84	April 15, 2004	Webcast: Follow-up on Pension Funding Equity Act
2004-83	April 12, 2004	IRS Issues Guidance on Assets-Over Partnership Mergers
2004-82	April 12, 2004	President Signs Pension Bill and Treasury Releases Guidance
2004-81	April 9, 2004	Legislative Update: Conference Agreement on Pension Bill Includes Insurance Provisions
2004-80	April 8, 2004	Department of Labor: HSAs Are Generally Not ERISA Plans
2004-79	April 8, 2004	Legislative Update: Congress Passes Two-Year Substitution of 30-Year Treasury Securities
2004-78	April 8, 2004	Legislative Update: Status of Proposal to Require Chief Executive Officers to Sign Corporate Tax Returns
2004-77	April 7, 2004	Legislative Update: Senate Fails to Invoke Cloture on FSC/ETI Replacement Bill
2004-76	April 2, 2004	Legislative Update: At Easter Break, Congress Stymied on Most Tax Issues
2004-75	April 1, 2004	IRS Identifies Certain S Corporation and Partnership Transactions as "Listed Transactions"

May 2004

Issue	Date	Subject
2004-131	May 27, 2004	Maryland: Expense Disallowance and Settlement Period Legislation Enacted
2004-130	May 27, 2004	IRS Guidance on Tax Treatment of Creative Properties Acquired in the Film Production Industry
2004-129	May 25, 2004	IRS Addresses Federal Tax Treatment of Partnership Conversion to State Law Corporation Under State Law Formless Conversion Statute
2004-128	May 24, 2004	New Jersey: State Court Addresses Deductibility of REIT Dividends
2004-127	May 21, 2004	Webcast: New Procedural and Documentation Rules Under the United States-Japan Tax Treaty; U.S., Japanese Officials Clarify Treaty's Interest Provision
2004-126	May 20, 2004	Legislative Update: Revenue Estimate of Senate-Approved FSC/ETI Repeal Bill
2004-125	May 20, 2004	Legislative Update: Senate Approves IRS Reform Bill
2004-124	May 19, 2004	Legislative Update: Statutory Language of Senate-Approved FSC/ETI Bill
2004-123	May 19, 2004	Regulations Address Uniform Capitalization of Interest Expense in Safe Harbor Sale and Leaseback Transactions
2004-122	May 17, 2004	Analysis: Tax Court's Opinion in Dover Corp. � "Check and Sell" Transactions Do Not Give Rise to Subpart F Income
2004-121	May 12, 2004	Legislative Update: House Approves Flexible Spending Account Rollovers
2004-120	May 12, 2004	Legislative Update: Senate-Approved FSC/ETI Bill Includes Late Changes
2004-119	May 11, 2004	Legislative Update: Senate Nears Passage of FSC/ETI Repeal Bill
2004-118	May 11, 2004	Analysis: IRS Guidance Regarding Deferral Of Advance Payments
2004-117	May 11, 2004	IRS Clarifies Interaction of HSAs with Other Employer-Sponsored Health Reimbursement Plans (i.e., FSAs and HRAs)
2004-116	May 10, 2004	Analysis: Late Fees Received on Credit Cards to Be Treated as Interest or OID; Credit Card Annual Fees May Be Recognized Ratably Over the Period Covered by the Fee
2004-115	May 10, 2004	Final Regulations: Reduction of Tax Attributes Due to Discharge of Indebtedness
2004-114	May 7, 2004	Legislative Update: Senate Continues Debate on FSC/ETI Repeal Bill
2004-113	May 7, 2004	Final Regulations Providing Accounting Rules for REMIC Inducement Fees
2004-112	May 7, 2004	Fourth Circuit Affirms Decision Denying Refund of Federal Excise Tax Imposed on Manufacturer's Sale of Heavy Trucks to Its Dealers
2004-111	May 6, 2004	Guidance Concerning Tax Treatment of Deductions for Interest Relating to Tax-Exempt Income
2004-110	May 6, 2004	IRS Guidance on Advance Payments
2004-109	May 6, 2004	IRS Rules on Joint Ventures Between Tax-Exempt Organizations and For-Profit Entities
2004-108	May 6, 2004	IRS Guidance on Credit Card Fee Income
2004-107	May 6, 2004	IRS Addresses When Taxpayer's Position in Repurchase Agreement May Be Treated as a Government Security for Tax Purposes
2004-106	May 6, 2004	IRS Guidance on Capital Gains Dividends From RICs and REITs
2004-105	May 6, 2004	IRS Procedures for Accounting Method Changes Relating to Transactions Involving Contested Liability Trusts
2004-104	May 6, 2004	Final Regulations on Student Loan Interest Deductions
2004-103	May 5, 2004	Tax Court: "Check and Sell" Transactions Do Not Give Rise to Subpart F Income
2004-102	May 5, 2004	Legislative Update: House Approves One-Year Extension of Individual Alternative Minimum Tax Relief
2004-101	May 5, 2004	Final Regulations Allow Partnerships to Revalue Property on Issuance of Profits Interests to Service Partners
2004-100	May 4, 2004	Partnership Revaluing Intangible Asset May Allocate the Asset's Amortization to Account for Built-in Gain/Loss From the Revaluation
2004-99	May 3, 2004	Tax Court: Taxpayer Must Capitalize Lease Advisory Fees, Legal Expenses Relating to Modification of Sale and Leaseback Agreement
2004-98	May 3, 2004	Statistical Sampling for Use in Establishing Meal and Entertainment Expenses Excepted From the 50% Deduction Allowance Under Section 274(n)(1)
2004-97	May 3, 2004	Treasury, IRS to Issue Regulations Establishing Period for Filing Amended Returns Concerning John Doe Summonses, Listed Transactions

June 2004

Issue	Date	Subject
2004-160	June 30, 2004	IRS Delays Effective Date of Disclosure Rules for Certain Pension Plans to 2006
2004-159	June 25, 2004	Legislative Update: Different Approaches for Changes to the Foreign Tax Credit in Proposed Legislation
2004-158	June 25, 2004	Legislative Update: Status of Mental Health Parity Bill
2004-157	June 25, 2004	PATA Releases Mutual Agreement Procedure, Bilateral Advance Pricing Arrangement Guidance
2004-156	June 25, 2004	Virginia: Tax Bill Is Signed by the Governor
2004-155	June 24, 2004	Proposed Regulations Would Allow Adjustments for S Corporations Concerning Net Unrealized Built-in Gain for Certain Assets Acquired From C Corporations
2004-154	June 24, 2004	Regulations Concerning the Depreciation of Vans and Light Trucks
2004-153	June 23, 2004	California: Franchise Tax Board's Response to Unconstitutional DRD Found in Farmer Bros.
2004-152	June 23, 2004	New United States-Japan Income Tax Treaty: IRS and Japanese Tax Agency Issue Guidance on Whether Dividends, Interest and Royalties Satisfy July 1, 2004 Effective Date for Reduced Withholding Tax Rates
2004-151	June 18, 2004	HSA Transition Relief Regarding State-Mandated Health Benefits
2004-150	June 18, 2004	Legislative Update: Comparison of House and Senate Versions of Incentives for Repatriation of Foreign Earnings
2004-149	June 17, 2004	Legislative Update: House Passes FSC/ETI Repeal Bill
2004-148	June 16, 2004	Final Regulations on Computing Depreciation Following a Change in Use
2004-147	June 16, 2004	New United States-Japan Income Tax Treaty: Japan Publishes New Application Forms for Persons Claiming Japanese Treaty Benefits
2004-146	June 15, 2004	Treasury, IRS Withdraw Proposed Regulations on Cash Balance Pension Plans
2004-145	June 15, 2004	IRS Guidance on Reduction in Retiree Health Coverage Due to Receipt of Enhanced Pension Benefits
2004-144	June 15, 2004	Final Regulations on Adjustment Period Rules for Changes in Methods of Accounting
2004-143	June 15, 2004	Legislative Update: Ways and Means Approves FSC/ETI Repeal Bill
2004-142	June 14, 2004	Final Regulations on Required Minimum Distributions
2004-141	June 11, 2004	Legislative Update: JCT Description of the FSC/ETI Repeal Bill Scheduled for Mark Up by the Ways and Means Committee on Monday, June 14
2004-140	June 9, 2004	IRS Ruling Addresses Long-Term Disability Benefits That Are Excludible From Disabled Employee's Gross Income Under Section 104(a)(3)
2004-139	June 9, 2004	IRS Guidance on Withholding Tax Obligations Concerning Cross-Border Pension Distributions
2004-138	June 9, 2004	Legislative Update: Comparison of Certain Provisions in the FSC/ETI Repeal Bill Scheduled for Mark Up by the Ways and Means Committee and in the Senate's Version of the Legislation
2004-137	June 8, 2004	IRS Revises Procedures for U.S. Residency Certification to Claim Treaty Benefits From Foreign Countries
2004-136	June 8, 2004	Legislative Update: Revenue Estimate of FSC/ETI Repeal Bill for Thursday's Mark Up by Ways and Means Committee
2004-135	June 4, 2004	Legislative Update: Ways and Means Chairman Thomas Introduces FSC/ETI Replacement Bill
2004-134	June 4, 2004	IRS Addresses Employment Tax and Reporting Issues Relating to Transfers of Nonstatutory Stock Options and Nonqualified Deferred Compensation to Former Spouse Incident to a Divorce
2004-133	June 3, 2004	IRS Continues to Focus on Contemporaneous Transfer Pricing Documentation and Makes Penalty Avoidance More Difficult
2004-132	June 2, 2004	IRS Rules Costs of Post-Establishment Fertilization of Established Timber Stand Are Deductible Ordinary and Necessary Business Expenses

July 2004

Issue	Date	Subject
2004-199	July 28, 2004	IRS Guidance on Truck and Tractor Excise Tax
2004-198	July 27, 2004	Temporary and Proposed Treasury Regulations Change Current Rules and Apportion Charitable Deductions Solely to U.S. Source Income; May Increase Foreign Tax Credit Limitation
2004-197	July 26, 2004	Treasury, IRS Release 2004-2005 Priority Guidance Plan
2004-196	July 26, 2004	Legislative Update: Proposed Changes to Tax Treatment of Inversion Transactions in Pending FSC/ETI Repeal Legislation
2004-195	July 23, 2004	IRS, Treasury Issue Comprehensive HSA Guidance
2004-194	July 23, 2004	Legislative Update: Congress Adjourns for Summer; Will Take Up Pending Tax Bills After Labor Day
2004-193	July 23, 2004	Legislative Update: Foreign Tax Credit Changes in Pending FSC/ETI Repeal Legislation
2004-192	July 22, 2004	Legislative Update: Subpart F and Other Anti-Deferral Provisions in Pending FSC/ETI Repeal Legislation
2004-191	July 21, 2004	Analysis: Treasury, IRS Issue Final Foreign Tax Credit Regulations and Partially Withdraw Proposed Regulations
2004-190	July 20, 2004	Final Regulations on Deemed IRAs in Qualified Plans Are Released for Publication
2004-189	July 20, 2004	IRS Requests Comments Concerning Application of Partnership Regulations to Certain Co-Owners of Investment Property
2004-188	July 20, 2004	IRS Ruling Addresses Whether Real Property Can Be Exchanged for Interests in a Delaware Statutory Trust Under the Like-Kind Exchange Provisions of Section 1031
2004-187	July 20, 2004	IRS Modifies "Parking" Transaction Rule for Like-Kind Exchanges of Property
2004-186	July 19, 2004	New IRS Guidance on Golden Parachute Payments During Bankruptcy Proceedings
2004-185	July 19, 2004	Simplified Method for Taxpayers Requesting Relief for Late S Corporation Elections
2004-184	July 19, 2004	IRS Requests Information on Credit Default Swaps
2004-183	July 19, 2004	Proposed Regulations on Optional 10-Year Writeoff of Certain Tax Preferences
2004-182	July 19, 2004	Regulations on Foreign Tax Credit Limitation and Exclusion of Certain Export Financing Interest From FPHC Income
2004-181	July 19, 2004	Final Regulations Are Issued Under Section 461(f) Concerning Contested Liabilities
2004-180	July 19, 2004	Regulations Concerning the Deemed Election by Certain Eligible Entities to Be Taxable As Corporations
2004-179	July 16, 2004	Cash Sale of Target Stock Between Related Parties Followed by Liquidation of Target Is Recast Into a Section 368(a)(1)(D) Reorganization
2004-178	July 16, 2004	IRS Releases Guidance on QSub Elections
2004-177	July 15, 2004	Legislative Update: Webcast Update on Status of FSC/ETI Repeal Legislation, and Expiring Tax Provisions Affecting Individual Taxpayers
2004-176	July 15, 2004	Final Regulations Provide Accounting Rules for Partnership Transactions Involving Long-Term Contracts
2004-175	July 14, 2004	United States, Barbados Sign Protocol to Income Tax Treaty
2004-174	July 14, 2004	Proposed Regulations Concerning Partnerships Owning Qualified Small Business Stock
2004-173	July 14, 2004	Revenue Procedures Offer Guidance on Information Reporting Related to Certain Credit Card Transactions
2004-172	July 13, 2004	Two IRS Revenue Rulings Offer Guidance Under Subchapter C
2004-171	July 12, 2004	Final Regulations on Backup Withholding Rules for Certain Credit Card Transactions
2004-170	July 12, 2004	Revenue Ruling Concerning Which U.S. Tax Treaty Applies When Corporation Could Be Treated as Resident of Two Foreign Countries
2004-169	July 8, 2004	IRS Releases Pre-Filing Agreement Report for 2003
2004-168	July 8, 2004	Federal Circuit: Taxpayer's Fleet of Vehicles Did Not Satisfy the Federal Excise Tax "Mobile Machinery" Exception
2004-167	July 7, 2004	Legislative Update: Pending Highway Reauthorization Legislation Would Change the Excise Tax Treatment of Mobile Machinery and Aviation Fuel
2004-166	July 7, 2004	Final Regulations Authorize IRS to Issue Guidance Allowing Advance Rentals to Be Included in Gross Income in a Year Other Than the Year of Receipt
2004-165	July 7, 2004	IRS Guidance for Disclosing Transactions with Significant Book-Tax Difference
2004-164	July 1, 2004	IRS Revises Procedures for Advance Pricing Agreement Requests
2004-163	July 1, 2004	Webcast Discussion of PATA Transfer Pricing Procedures
2004-162	July 1, 2004	IRS Requests Information on Current Communications Technologies and Services to Aid in Developing Federal Excise Tax Regulations
2004-161	July 1, 2004	IRS Revises Publication 686, Certification for Reduced Tax Rates in Tax Treaty Countries

August 2004

Issue	Date	Subject
2004-234	August 31, 2004	Reminder: 20% of September 2004 Corporate Estimated Tax Payments Are Deferred Until October 1, 2004
2004-233	August 31, 2004	U.S. District Court: Capital Losses of Structured Partnerships Are Disallowed
2004-232	August 27, 2004	Final Regulations on Contingent Payment Debt Instruments with Payment(s) Denominated in Nonfunctional Currency
2004-231	August 26, 2004	Legislative Update: Proposals in the Pending FSC/ETI Repeal Legislation to Encourage Repatriation of Foreign Earnings
2004-230	August 26, 2004	Legislative Update: Proposals in the Pending FSC/ETI Repeal Legislation to Curtail Abusive Tax Shelters
2004-229	August 25, 2004	IRS Provides Method for Determining Whether Subsidiary Stock Loss Is Disallowed; Taxpayers May Amend Loss Disallowance Calculation for Earlier Dispositions
2004-228	August 20, 2004	Legislative Update: Proposed Excise Tax Changes in Pending FSC/ETI Repeal Legislation
2004-227	August 19, 2004	Legislative Update: Proposals to Extend Expired or Expiring Provisions in Pending FSC/ETI Repeal Legislation, Including Extension and Modification of the Research Credit
2004-226	August 18, 2004	New Schedule on Form 941 to Be Used for Certain Mergers and Acquisitions
2004-225	August 17, 2004	New Proposed Regulations Further Expand the Scope of Permissible Transfers of Assets and Stock Following Tax-Free Reorganizations
2004-224	August 16, 2004	Withdrawal of Proposed Regulations That Would Have Expanded the Scope of Permissible Transfers of Assets or Stock Following Tax-Free Reorganizations
2004-223	August 13, 2004	Final Regulations Relating to Exclusion of Gain From Sale or Exchange of Taxpayer�s Principal Residence
2004-222	August 12, 2004	Federal Circuit Reverses Claims Court in Global Interest Netting Case
2004-221	August 12, 2004	Proposed Regulations Regarding LIFO Recapture by C Corporations Converting to S Corporations
2004-220	August 12, 2004	Proposed Regulations Concerning Treatment of Manufacturer Incentive Payments Between Members of a Consolidated Group
2004-219	August 12, 2004	Regulations Replace Classification System for Determining Like-Class Properties for Section 1031 Purposes
2004-218	August 12, 2004	Proposed Regulations Define Section 368(a)(1)(F) Reorganization; Eliminate Continuity of Interest and Continuity of Business Enterprise Requirements
2004-217	August 11, 2004	Proposed Rules for Transactions Qualifying as E or F Reorganizations
2004-216	August 11, 2004	Proposed Rules to Clarify When Partner Bears Economic Risk for Partnership Loss Based on Disregarded Entity's Obligation
2004-215	August 11, 2004	Regulations Clarify Classification of Entities Created or Organized in More Than One Jurisdiction
2004-214	August 9, 2004	IRS Announces That It Will Continue to Collect Communications Excise Taxes
2004-213	August 9, 2004	Temporary Regulations Specify Time Within Which Collectors of Federal Air Transportation and Communications Services Excise Taxes Must Report Refusals to Pay Tax by Taxpayers
2004-212	August 9, 2004	Proposed Guidance for Investors in REMIC Residual Interests
2004-211	August 9, 2004	Proposed Regulations Address Point in Time for Measuring Whether Section 368 �Continuity of Interest� Requirement Is Satisfied
2004-210	August 6, 2004	Treasury Provides Q&As Concerning Schedule M-3 and Book-Tax Difference
2004-209	August 6, 2004	Discussion of Proposed Regulations Relating to the Determination of a U.S. Shareholder's Pro Rata Share of Subpart F Income
2004-208	August 6, 2004	Legislative Update: Compensation and Benefit Changes in Pending FSC/ETI Repeal Legislation
2004-207	August 5, 2004	Proposed Rules for Determining U.S. Shareholder's Pro Rata Share of Subpart F Income
2004-206	August 5, 2004	Proposed Rules on Source of Compensation From Labor, Personal Services Performed Partly Within and Partly Outside the United States
2004-205	August 5, 2004	Legislative Update: Corporate Tax Changes in Pending FSC/ETI Repeal Legislation
2004-204	August 4, 2004	Regulatory Guidance for Election to Treat Qualified Dividend Income as Investment Income
2004-203	August 4, 2004	Legislative Update: Provisions Relating to the Repeal of FSC/ETI Rules and Proposed U.S. Manufacturing/Production Incentive
2004-202	August 3, 2004	Temporary Regulations Provide Rules for Making or Revoking a Section 179 Expensing Election on an Amended Tax Return
2004-201	August 2, 2004	Court of Federal Claims: IRS's Claim of Executive Privilege Must Be Asserted by the IRS Commissioner
2004-200	August 2, 2004	Final Regulations on Incentive Stock Options; IRS Requests Additional Comments Concerning the Treatment of ISOs in ESPPs

September 2004

Issue	Date	Subject
2004-265	September 30, 2004	Legislative Update: Tax Leaders Press for Completion of FSC/ETI Repeal Bill
2004-264	September 29, 2004	Legislative Update: JCT Releases Side-by-Side Comparisons of Certain Provisions in FSC/ETI Repeal Bills
2004-263	September 29, 2004	IRS Establishes Temporary Section 1441 Voluntary Compliance Initiative for Use by Withholding Agents
2004-262	September 28, 2004	Legislative Update: Certain Financial Products and Insurance Provisions in Pending FSC/ETI Repeal Legislation
2004-261	September 27, 2004	United States, Bangladesh Sign New Income Tax Treaty
2004-260	September 27, 2004	Federal Circuit Affirms Taxpayer Was Not Entitled to Higher Statutory Rate of Interest on Overpayment, Remands for Determination of Amount of Interest
2004-259	September 24, 2004	Treasury Releases Technical Explanations of Protocols to United States-Netherlands Income Tax Treaty, and to United States-Barbados Income Tax Treaty
2004-258	September 24, 2004	Treasury, IRS Revise "Listed Transactions" List; Certain Reinsurance Arrangements Are Removed From the List
2004-257	September 24, 2004	Legislative Update: Technical Corrections Are Included in Tax Relief Bill
2004-256	September 23, 2004	Federal District Courts for D.C. and S.D.N.Y. Hold for Taxpayers in Federal Communications Excise Tax Refund Actions
2004-255	September 23, 2004	Legislative Update: House Prepares to Extend Expired Business Tax Provisions; Statutory Language Is Released
2004-254	September 23, 2004	Legislative Update: Conference Agreement Would Extend Expired Business Tax Provisions
2004-253	September 21, 2004	Legislative Update: Descriptions of Most Proposed Tax Changes in Pending FSC/ETI Repeal Legislation
2004-252	September 17, 2004	Penalty Relief for Lenders Concerning Certain Student Loan Interest Reporting
2004-251	September 17, 2004	Legislative Update: Provisions in the FSC/ETI Repeal Legislation That Would Affect Corporations and Businesses Including Tax Rates, Accounting Method Changes, and Other Measures
2004-250	September 17, 2004	Legislative Update: Other Provisions in the FSC/ETI Repeal Legislation That Would Affect Certain Businesses and Tax-Exempt Organizations, Tax-Exempt Bonds, and Other Measures
2004-249	September 16, 2004	Legislative Update: Provisions in the FSC/ETI Repeal Legislation, Including Proposals Affecting Individual Taxpayers, Charitable Contributions, and Charitable Donees
2004-248	September 14, 2004	Tax Information Exchange Agreement Between United States and Aruba Enters Into Force
2004-247	September 14, 2004	Final Regulations Concerning Electronic Filing of Duplicate Form 5472
2004-246	September 13, 2004	IRS Seeks Comments on Draft Revenue Procedure for Issuing Employee Plan Determination Letters Under a Staggered Remedial Amendment Period System
2004-245	September 10, 2004	IRS Grants Tax Relief for Florida Hurricane Victims
2004-244	September 8, 2004	Legislative Update: Provisions to Discourage Individuals� Expatriation in Pending FSC/ETI Repeal Legislation Include Mark-to-Market Tax
2004-243	September 8, 2004	Ohio: Federal Court of Appeals Finds Ohio Investment Tax Credit Unconstitutional
2004-242	September 3, 2004	Proposed Section 269B Regulations On �Stapled Stock� Prospectively Add To Notice 2003-50: Including Collecting Stapled Foreign Corporation�s U.S. Tax Liability From Stapled Domestic Corporation Or From Ten Percent Shareholders; Stapling Resulting in �F� Reorganization
2004-241	September 2, 2004	Legislative Update: Business Provisions in Pending FSC/ETI Repeal Legislation, Including Changes Relating to Depreciation, Leasing, AMT, NOLs, Credits, and Other Provisions
2004-240	September 2, 2004	Legislative Update: Miscellaneous International Tax Provisions in the Pending FSC/ETI Repeal Legislation
2004-239	September 1, 2004	IRS Revises Transition Rules Under Rev. Proc. 2004-23 for Taxpayers Who Filed Automatic �INDOPCO� Accounting Method Changes Prior to April 26, 2004
2004-238	September 1, 2004	Legislative Update: REIT Proposals in the Pending FSC/ETI Repeal Legislation
2004-237	September 1, 2004	Legislative Update: Practice and Procedure Changes in Pending FSC/ETI Repeal Legislation, Including CEO�s Declaration Relating to the Corporate Tax Return
2004-236	September 1, 2004	Legislative Update: S Corporation Reform and Simplification Changes in Pending FSC/ETI Repeal Legislation
2004-235	September 1, 2004	Legislative Update: Proposals in the Pending FSC/ETI Repeal Legislation Concerning Partnerships

October 2004

Issue	Date	Subject
2004-283	October 27, 2004	Legislative Update: Revenue Estimate of Provisions in the American Jobs Creation Act of 2004
2004-282	October 25, 2004	Final Draft Version of Schedule M-3 for Disclosing Transactions With Significant Book-Tax Difference
2004-281	October 22, 2004	Final Regulations Concerning Reporting Requirements for Discharges of Indebtedness
2004-280	October 22, 2004	IRS Notice Concerning Information Reporting of Dividends from Foreign Corporations Eligible for Reduced Rates of Tax
2004-279	October 22, 2004	President Bush Signs the American Jobs Creation Act of 2004
2004-278	October 21, 2004	District Court Finds Transaction Satisfies Economic Substance Prong of Sham Transactions Test
2004-277	October 20, 2004	The American Jobs Creation Act of 2004
2004-276	October 12, 2004	Senate Approves Protocol to Income Tax Treaty Between United States and Barbados; No Senate Action on Protocol to United States-Netherlands Income Tax Treaty
2004-275	October 11, 2004	Legislative Update: Description of Provisions in FSC/ETI Repeal Legislation as Approved by the House and Senate
2004-274	October 8, 2004	IRS Guidance Concerning When Certain Distributions From Foreign Corporations, Subject to Anti-Deferral Regimes, May Be Treated as Qualified Dividend Income
2004-273	October 8, 2004	Ratification of Protocol to United States-Netherlands Income Tax Treaty Could Be Delayed; Senate Expected to Consider Protocol to Income Tax Treaty with Barbados
2004-272	October 8, 2004	California: Legislation Enacted, Addresses Insurance Company DRD and Other Tax Consequences of Transactions Involving Insurance Company Subsidiaries
2004-271	October 8, 2004	Treasury and IRS Announce Intent to Amend Entity Classification Regulations to Add Additional European Entities to "Per Se" Corporation List
2004-270	October 7, 2004	Legislative Update: Outline and Descriptions of Provisions in the Conference Agreement Under the FSC/ETI Repeal Bill
2004-269	October 6, 2004	Legislative Update: Conference Agreement Reached on FSC/ETI Repeal Legislation
2004-268	October 5, 2004	Legislative Update: Update on Status of FSC/ETI Conference
2004-267	October 5, 2004	Legislative Update: Chairman of FSC/ETI Conference Releases �Mark�
2004-266	October 4, 2004	Legislative Update: President Signs Tax Relief Act

November 2004

Issue	Date	Subject
2004-296	November 30, 2004	Recently Approved Mexican Legislation Could Unilaterally Override Business Profits Article of U.S.-Mexico Treaty, and Allow Imposition of Mexican Withholding Taxes
2004-295	November 24, 2004	Proposed Regulations Regarding Disguised Sales of Partnership Interests
2004-294	November 23, 2004	IRS Rules That Payments Related to Employment Contracts Are Wages for Withholding Purposes
2004-293	November 22, 2004	Legislative Update: Congress Approves Internet Tax Moratorium for Action by the President
2004-292	November 22, 2004	Legislative Update: Statutory Language and Descriptions of Tax Technical Corrections Act of 2004
2004-291	November 19, 2004	Proposed Regulations Define Predecessor and Successor Under Section 355(e), and Provide Limitations on the Recognition of Gain Under Section 355(e) in Certain Circumstances
2004-290	November 19, 2004	Depreciation Incentives Are Available for Property Placed in Service by the End of 2004; 50% Bonus Depreciation Deduction Generally Is Available Only for Investment Before 2005
2004-289	November 18, 2004	Senate Approves Protocol to Income Tax Treaty Between United States and the Netherlands
2004-288	November 17, 2004	IRS Intends to Revise Regulations to Provide Uniform Definition of “Dependent” for Employer-Provided Accident or Health Plans
2004-287	November 17, 2004	Standard Mileage Allowance to Increase to 40.5 Cents Per Mile for 2005
2004-286	November 16, 2004	Treasury, IRS Release Interim Guidance on New Requirements for Disclosing Reportable Transactions
2004-285	November 9, 2004	Regulations Propose Guidance on Phased Retirement
2004-284	November 4, 2004	Federal District Court, Court of Federal Claims Hold for Taxpayers in Two Separate Actions in Which Transactions Were Asserted to Be “Shams”

December 2004

Issue	Date	Subject
2004-320	December 30, 2004	IRS Requests Comments Concerning New Information Reporting Requirements Provided in Recently Enacted Section 6043A
2004-319	December 29, 2004	Regulations Concerning Health Coverage Portability for Group Health Plans and Group Health Insurance Issuers
2004-318	December 29, 2004	IRS Notice Provides Guidance for Making Election to Determine Corporate Tax Under New Tonnage Tax Regime
2004-317	December 28, 2004	IRS Guidance on Rollover Rules for Qualified Retirement Plans
2004-316	December 28, 2004	Final Regulations on Cash or Deferred Arrangements Under Section 401(k) and Matching or Employee Contributions Under Section 401(m)
2004-315	December 28, 2004	U.S. Government Provides the Netherlands With Formal Notice of Ratification of the 2004 Protocol to the United States-Netherlands Income Tax Treaty
2004-314	December 27, 2004	Application of New Inversion Rules to Joint Venture Structures
2004-313	December 22, 2004	IRS Expands Pre-Filing Agreement Program
2004-312	December 21, 2004	Applicability of Section 1374 to S Corporations Acquiring Assets in Carryover Basis Transactions from C Corporations
2004-311	December 21, 2004	Treasury, IRS Update the 2004-2005 Priority Guidance Plan to Include Guidance Needed to Implement Certain Provisions Under the American Jobs Creation Act
2004-310	December 21, 2004	Final Regulations on Optional 10-Year Writeoff of Certain Tax Preferences
2004-309	December 20, 2004	IRS Releases Guidance on Deferred Compensation
2004-308	December 17, 2004	IRS Releases Optional State Sales Tax Tables
2004-307	December 16, 2004	Regulations Address ESOPs Holding Stock of S Corporations and Prohibited Allocations of S Corporation Securities Under Section 409(p)
2004-306	December 15, 2004	IRS Releases Initial Guidance on Certain Excise Tax Changes Made Under the American Jobs Creation Act of 2004
2004-305	December 14, 2004	IRS Publishes 2004 Cumulative List of Changes in Plan Qualification Requirements
2004-304	December 14, 2004	Final Version of Information Returns for U.S. Persons Owning Foreign Disregarded Entities for 2004 Tax Years – IRS Provides Instructions for Form 8858 and Schedule M, Addressing When to File and Penalties
2004-303	December 13, 2004	IRS Administrative Procedures for Automatic Consent to Change Method of Accounting Under �INDOPCO Regulations� for Second Tax Year Ending After 2003
2004-302	December 10, 2004	Agreement Between Competent Authorities Identifies U.S., Swiss Pension Plans for Tax Treaty Benefits
2004-301	December 8, 2004	Protocols to United States-France Income Tax and Estate, Inheritance, and Gift Tax Treaties
2004-300	December 8, 2004	Another Federal District Court Finds for Taxpayer in Federal Communications Excise Tax Refund Action
2004-299	December 3, 2004	Discussion of Tax Incentive for U.S. Production Activities Under New Code Section 199
2004-298	December 2, 2004	Final Instructions for New Schedule M-3 Are Released
2004-297	December 1, 2004	Follow-Up Discussion of Proposed Regulations Regarding Disguised Sales of Partnership Interests

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