Ford Hybrids Still Qualify for Tax Credit

Ford Hybrids Still Qualify for Tax Credit

IR-2007-108, May 24, 2007 WASHINGTON — The Internal Revenue Service announced that purchasers of qualified Ford Motor Company vehicles may continue to claim the Alternative Motor Vehicle Credit. The announcement comes after the IRS concluded its quarterly review of the number of hybrid vehicles sold. Ford sold 5,149 qualifying vehicles to retail dealers during the quarter ending March 31, 2007. This brings the total number of Ford qualifying hybrids reported to date to 27, 275. The credit amount and make and model of the certified vehicles sold are: Ford Escape 2WD Hybrid Model Year 2008 — $3,000 Ford Escape 2WD, Model Years 2005, 2006 and 2007 — $2,600 Ford Escape 4WD Hybrid Model Year 2008 — $2,200 Ford Escape 4WD, Model Years 2005, 2006 and 2007 — $1,950 Mercury Mariner 4WD Hybrid Model year 2008 — $2,200 Mercury Mariner 4WD, Model Years 2006 and 2007 — $1,950 Mercury Mariner 2WD Hybrid Model Year 2008 — $3,000 Taxpayers may claim the full amount of the allowable credit up to the end of the first calendar quarter after the quarter in which the manufacturer records its sale of the 60,000th vehicle. For the second and third calendar quarters after the quarter in which the 60,000th vehicle is sold, taxpayers may claim 50 percent of the credit. For the fourth and fifth calendar quarters, taxpayers may claim 25 percent of the credit. No credit is allowed after the fifth quarter.

IRS Seeking ETAAC Applicants from Large Businesses

IRS Seeking ETAAC Applicants from Large Businesses

IR-2007-106, May 24, 2007 WASHINGTON — The Internal Revenue Service is seeking applicants from large businesses who file annual corporation or partnership returns for membership on the Electronic Tax Administration Advisory Committee (ETAAC). The IRS defines large businesses as enterprises with assets greater than $10 million. The 13-member ETAAC panel provides an organized public forum for discussion of electronic tax administration issues in support of the overriding goal that paperless filing as the preferred and most convenient method of filing tax and information returns. “ETAAC members convey the public’s perception of IRS electronic tax administration activities, offer constructive observations on current or proposed policies and programs," said Bert DuMars, IRS Electronic Tax Administration director. “It is critically important that our ETAAC includes members with a strong background in corporate and partnership tax issues.” The ETAAC also provides an annual report to Congress on IRS’s progress in meeting the Restructuring and Reform Act of 1998 goals for electronic filing of tax returns. The ETAAC researches, analyzes and make recommendations on a wide range of electronic tax administration issues and provides input into the development of the strategic plan for Electronic Tax Administration. Application packages should include a resume and a completed application form. They can be submitted via email at ETAAC@irs.gov. They can also be mailed to: Internal Revenue Service ATTN: Cassandra Daniels 5000 Ellin Rd C4-226, SE:W:ETA:S:RM Lanham, MD 20706. Packages can also be faxed to 202-283-2845 (not a toll-free call). The deadline for submitting applications is June 6, 2007 Related Item: ETAAC Membership Application

IRS Announces Public Meeting of ACT, Names New Members

IRS Announces Public Meeting of ACT, Names New Members

IR-2007-105, May 23, 2007 WASHINGTON — The Internal Revenue Service’s Advisory Committee on Tax Exempt and Government Entities (ACT) will hold a public meeting June 13, 2007, at 9 a.m. at 1111 Constitution Ave., N.W., Washington, D.C. At the public meeting, six ACT project teams will present recommendations to the IRS Commissioner and senior leadership of the IRS’s Tax Exempt and Government Entities Division (TE/GE). The projects are: A Review of the Voluntary Self-Compliance Program for Indian Tribal Governments, A Proposal for an Exempt Organizations Voluntary Compliance Program, After the Bonds Are Issued: What Then?, Improving Compliance for Adopters of Pre-Approved Plans, A Prototype for Public Sector Defined Contribution Plans, and Public Employers’ Withholding and Reporting for Non-Resident Aliens. The IRS has also named six new members who will begin their two-year terms on the ACT in June. They join 15 returning committee members. The six new members of the ACT are listed below by area of expertise. Employee Plans Michael M. Spickard, Summit Retirement Plan Services, Inc., Akron, Ohio Michael M. Spickard is the owner, chief executive officer and chief actuary of Summit Retirement Plans Services, a leading third-party administrator in northern Ohio. He is an Enrolled Actuary and has more than 16 years experience designing and administering all types of retirement plans, with in-depth experience in the areas of salaried, hourly and union defined benefit plans. Mr. Spickard holds a Bachelor of Science in Applied Mathematics from the University of Akron. Marcia S. Wagner, The Wagner Law Group, Boston Marcia S. Wagner is a principal of The Wagner Law Group, specializing in pension and employee benefits law. Previously, she was a partner at the Boston law firm of Warner & Stackpole LLP and the head of its ERISA/Employee Benefits Practice Group. In her practice, Ms. Wagner’s “core” client is in the small or mid-sized market, and her firm advises clients on matters concerning qualified, nonqualified and welfare benefits plans. Ms. Wagner received her Juris Doctorate from Harvard Law School. Exempt Organizations Fred T. Goldberg, Jr., Skadden, Arps, Slate, Meagher & Flom, LLP, Washington, D.C. Fred T. Goldberg is a partner at Skadden, Arps, Slate, Meagher & Flom LLP, with extensive experience not only in the area of exempt organizations, but also employee plans and tax-exempt bonds. Mr. Goldberg was Assistant Secretary for Tax Policy, U.S. Department of the Treasury (1992). He also served as Commissioner of Internal Revenue (1986–89) and Chief Counsel of the Internal Revenue Service (1984–86). He holds a Juris Doctorate from Yale University. Mary Rauschenberg, Deloitte Tax LLP, Chicago Mary Rauschenberg is Director of Deloitte Tax LLP’s Chicago healthcare and not-for-profit tax practices. Her clients include academic medical centers, colleges and universities, teaching hospitals, cultural organizations, trade associations, public and private foundations, and other tax-exempt organizations. Ms. Rauschenberg holds a Masters of Accounting Science from the University of Illinois. Government Entities: Indian Tribal Governments Dennis Puzz, Jr., Best & Flanagan LLC, Minneapolis Dennis Puzz is a member of the Yurok Tribe of Northern California and an attorney in the Native American Law section of Best & Flanagan. Mr. Puzz focuses his practice on representing tribal governments in the areas of gaming, economic development, constitution, ordinance and regulation drafting, and employment. Prior to rejoining the firm, he was executive director of the Yurok Tribe, in Klamath, Calif. As executive director, he oversaw all operations of the tribal government, which employs approximately 250 employees and operates on a yearly budget of $12 million. He was also tasked with managing all Tribal Council initiatives internally, representing the Tribe on these issues with outside entities, and managing four outside law firm relationships regarding these projects. Mr. Puzz has a Juris Doctorate from the University of Minnesota Law School. Government Entities: Tax Exempt Bonds John G. Pasicznyk, Dormitory Authority of the State of New York, Albany, N.Y. John G. Pasicznyk is the chief financial officer and treasurer of the Dormitory Authority of the State of New York, one of the largest issuers of tax-exempt debt and one of the largest public construction companies in the nation. In this position, Mr. Pasicznyk is responsible for all treasury, accounting, computer and information services functions related to a $34 billion debt portfolio. In addition to being responsible for administering all outstanding bond issues, he is also responsible for investments and arbitrage rebate compliance. Mr. Pasicznyk holds a Masters of Business Administration from the Duke University Fuqua School of Business. ACT Members Continuing on the Committee Employee Plans Susan D. Diehl, PenServ, Inc., Horsham, Pa. Dodi Walker Gross, Reed Smith, LLP, Pittsburgh Daniel J. Schwartz, Greensfelder, Hemker & Gale, P.C., St. Louis Michael S. Sirkin, Proskauer Rose LLP, New York Exempt Organizations Betsy Buchalter Adler, Silk, Adler & Colvin, San Francisco Bonnie Brier, The Children’s Hospital of Philadelphia, Philadelphia Sean Delany, Lawyers Alliance for New York, New York Ana Thompson, The Charles and Helen Schwab Foundation, San Mateo, Calif. Government Entities – Federal, State and Local Governments Steven W. Hoffman, The Ohio State University, Columbus, Ohio. Nicholas C. Merrill, Jr., State Employees’ Retirement System of Illinois, Springfield, Ill. Julian Regan, Fidelity Employer Services Company, Marlborough, Mass. Government Entities – Indian Tribal Governments Sandra Starnes, Port Gamble S’Klallam Tribe, Kingston, Wash. Mary J. Streitz, Dorsey & Whitney LLP, Minneapolis Government Entities – Tax Exempt Bonds Joan M. DiMarco, BondResources Partners, LP, Philadelphia Maxwell D. Solet, Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., Boston ACT Members Leaving the Committee in June 2007 Employee Plans Charles M. Lax, Maddin, Hauser, Wartell, Roth & Heller, P.C., Southfield, Mich. Charles F. Plenge, Hayes and Boone, LLP, Dallas Exempt Organizations Julie L. Floch, Eiser LLP, New York Suzanne Ross McDowell, Steptoe & Johnson, LLP, Washington, D.C. Government Entities – Indian Tribal Governments Lenor A. Scheffler, Best & Flanagan LLC, Minneapolis Government Entities – Tax Exempt Bonds Robert E. Donovan, Rhode Island Health and Educational Building Corporation, Providence, R.I. Maxwell D. Solet, with Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., will be the ACT Chair for 2007–2008. The 21-member advisory committee includes external stakeholders and representatives who deal with employee retirement plans, tax-exempt organizations, tax-exempt bonds and federal, state, local and Indian tribal governments. ACT members are appointed by the Secretary of the Treasury and generally serve two-year terms. They advise the IRS on operational policies and procedures. The ACT was established in May 2001 under the Federal Advisory Committee Act to provide an organized public forum for discussion of relevant issues affecting the tax exempt and government entities communities. It allows the IRS to receive regular input with respect to the development and implementation of policy concerning employee plans, exempt organizations, tax-exempt bonds and federal, state, local and Indian tribal government issues. The project reports and proceedings of the June 13 meeting will be made public under the Federal Advisory Committee Act. The report will be available on this Web site. Due to limited seating and security requirements, members of the public interested in attending the public meeting should call Cynthia Phillips Grady to confirm their attendance. She can be reached at 202-283-9954 (not a toll-free call). Attendees must have photo identification and are encouraged to arrive at least 30 minutes before the session begins.

Joint International Tax Shelter Information Centre Expands and Opens a Second Office in the United Kingdom

Joint International Tax Shelter Information Centre Expands and Opens a Second Office in the United Kingdom

IR-2007-104, May 23, 2007 WASHINGTON — The Commissioners of the Australian, Canadian, United Kingdom and United States tax administrations have decided to open a second office of the Joint International Tax Shelter Information Centre (JITSIC) in London in fall 2007. Additionally, Japan has accepted an invitation to join JITSIC, and a representative of the National Tax Agency will be present at the London centre. The Commissioners agreed that exchanging information in real-time is making a significant difference to the complex task of tracking tax avoidance and abusive cross-border transactions. JITSIC members have identified and challenged the following highly artificial arrangements: A cross-border scheme was marketed, involving hundreds of taxpayers and tens of millions of dollars in improper deductions and unreported income from retirement account withdrawals. Highly structured financing transactions created by financial institutions in which taxpayers generated inappropriate foreign tax credit benefits Brokers provided made-to-order losses on futures and options transactions for individuals in other JITSIC jurisdictions, leading to a tax loss of more than $100,000,000. The Commissioners have also made further plans for the future development of JITSIC, along with the measured expansion to cover North America, Europe and Asia - broadening the focus of its activities, further sharing best practices on risk assessment and other key areas of interest, and particularly increasing the transparency of cross-border transactions in order to create a level playing field for taxpayers who are voluntarily compliant. JITSIC was established in 2004 by the tax administrations of Australia, Canada, the United Kingdom and the United States to supplement the ongoing work of the Australian Taxation Office, the Canada Revenue Agency, HM Revenue and Customs, and the Internal Revenue Service in identifying and curbing tax avoidance and shelters and those who promote them and invest in them. To date, delegates from each of the four countries have been based in Washington DC, and exchange information on abusive tax schemes, their promoters and investors, consistent with the provisions of bilateral tax conventions.

Sidley Austin LLP Pays IRS $39.4 Million Penalty

Sidley Austin LLP Pays IRS $39.4 Million Penalty

IR-2007-103, May 23, 2007 WASHINGTON — The Internal Revenue Service today announced that it has reached a settlement with the law firm of Sidley Austin, LLP, the successor firm of the merger in 2001 between Sidley & Austin and Brown & Wood, LLP, which has paid a civil tax shelter promoter penalty of $39.4 million. The penalty stems from the firm’s promotion of abusive tax shelters and a failure to comply with tax shelter registration requirements. “Sidley Austin has paid a significant penalty for its role in promoting abusive tax shelters,” said IRS Acting Commissioner Kevin M. Brown. “The firm has also concrete steps to prevent a recurrence of this behavior in the future, which they have agreed to maintain going forward. We appreciate their actions and their cooperation in our ongoing investigations.” The firm issued opinions in connection with potentially abusive tax shelters to over high-net worth individuals and corporations. Some of the packages marketed to these individuals included listed transactions such as BOSS (Bond & Option Sale Strategy), variants of the so-called “Son of BOSS” shelter that went by names of COBRA (Currency Options Bring Reward Alternatives), BLIPS (Bond Linked Issue Premium Structure) and COINS (Currency Option Investment Strategy), and others that went by the names of FLIP (Foreign Leveraged Investment Program), OPIS (Offshore Portfolio Investment Strategy) and POPS (Partnership Option Portfolio Securities). The firm also issued tax opinions in connection with certain potentially abusive non-listed transactions involving distressed assets, bond and equity strips and lease strips. Sidley Austin LLP has offices in Beijing, Brussels, Chicago, Dallas, Frankfurt, Geneva, Hong Kong, London, Los Angeles, New York, San Francisco, Shanghai, Singapore, Tokyo and Washington, D.C.

IRS Announces 2007 Low Income Taxpayer Clinics Grant Recipients

IRS Announces 2007 Low Income Taxpayer Clinics Grant Recipients

IR-2007-102, May 21, 2007 WASHINGTON — National Taxpayer Advocate Nina E. Olson announced today that the Internal Revenue Service has awarded almost $8 million in matching grants to Low Income Taxpayer Clinics (LITCs) for the 2007 grant cycle (Jan. 1, 2007, through Dec. 31, 2007). LITCs are qualifying organizations that provide representation for free or a nominal fee to low-income taxpayers involved in tax disputes with the IRS or that provide education on taxpayer rights and responsibilities to taxpayers for whom English is a second language or who have limited English proficiency. For more details about languages other than English served by LITCs, see IRS Publication 4134, Low Income Taxpayer Clinic List. Under the LITC program, the IRS awards matching grants of up to $100,000 a year to qualifying organizations. For the 2007 grant cycle, the IRS awarded LITC grants to 154 organizations representing 49 states plus the District of Columbia, Puerto Rico and Guam. Currently there are no LITCs in the state of Colorado. The LITC Program Office will open a supplemental period for accepting LITC applications for the 2007 grant cycle for the state of Colorado. The supplemental application period will run from April 27 to May 25, 2007. LITC applications for this grant must be electronically submitted or postmarked by May 25, 2007. The 2007 Grant Application Package and Guidelines, IRS Publication 3319 (Rev. 5-2006), is available on the Taxpayer Advocate Web site. Questions about the LITC Program can be addressed to the LITC Program Office at (202) 622-4711 (not a toll-free call) or by e-mail at LITCProgramOffice@irs.gov. A list of organizations awarded a matching grant for the 2007 grant cycle is available.

IRS Accepting Applications for Low Income Taxpayer Clinic Matching Grants

IRS Accepting Applications for Low Income Taxpayer Clinic Matching Grants

IR-2007-101, May 17, 2007 WASHINGTON — National Taxpayer Advocate Nina E. Olson announced today that the 2008 Low Income Taxpayer Clinic (LITC) grant application process is now open. The LITC grant program is a federal program administered by the Taxpayer Advocate Service, an independent organization within the IRS that helps taxpayers resolve problems with the IRS and recommends changes to prevent taxpayer problems. Under the LITC grant program, the IRS awards matching grants of up to $100,000 per year to develop, expand or maintain low income taxpayer clinics. The program is in its ninth year and continues to expand. To date in 2007, the LITC Program Office has awarded LITC grants to 154 organizations in 49 states, the District of Columbia, Puerto Rico and Guam. There are currently no LITCs in the state of Colorado, but the IRS has opened a supplemental period for accepting applications for Colorado for the remainder of the 2007 grant cycle. LITCs are qualifying organizations that provide representation for free or a nominal fee to low income taxpayers involved in tax disputes with the IRS. They also provide education on taxpayer rights and responsibilities to taxpayers for whom English is a second language or who have limited English proficiency. Examples of qualifying organizations include: Clinical programs at accredited law, business or accounting schools, whose students may represent low income taxpayers in tax disputes with the IRS, and Organizations exempt from tax under I.R.C. § 501(a) that represent low income taxpayers in tax disputes with the IRS or refer those taxpayers to qualified representatives. The application period for this grant will run from May 7, 2007, to July 6, 2007. The grant will cover the 2008 grant cycle, from Jan. 1, 2008, through Dec. 31, 2008. Applications must be postmarked or filed electronically by July 6, 2007. Copies of the 2008 Grant Application Package and Guidelines, IRS Publication 3319 (Rev. 5-2007), are available on the Taxpayer Advocate Service Web site. Applicants may also order application packages from the IRS Distribution Center by calling 1-800-829-3676. Applicants can also file electronically at Grants.gov –– those applying through this Web site should use the Funding Number TREAS-GRANTS-052008-001. Questions about the LITC Program or grant application process can be addressed to the LITC Program Office at (202) 622-7186, not a toll-free call, or by e-mail at LITCProgramOffice@irs.gov.