Eric Solomon
Deputy Assistant Secretary
(Regulatory Affairs)
U.S. Department of the Treasury

Mark W. Everson
Commissioner
Internal Revenue Service

Donald L. Korb
Chief Counsel
Internal Revenue Service

On July 26, 2004, we released the 2004 - 2005 Priority Guidance Plan listing 276 projects for the plan year beginning July 1, 2004 and ending June 30, 2005.  In our Joint Statement that accompanied the release of the 2004 - 2005 Priority Guidance Plan, we emphasized our commitment to increased and more timely published guidance.  We indicated that we would update the plan quarterly to reflect additional guidance that we intend to publish during the plan year.  Updating the plan also provides flexibility to respond to developments arising during the year.  On October 22, 2004, the American Jobs Creation Act of 2004 (AJCA) was enacted.  In order to take account of the extensive guidance necessary to implement the AJCA, we have combined the first and second quarterly updates of the 2004 - 2005 Priority Guidance Plan in this document.  This update includes 33 additional projects implementing the AJCA.

The attached update sets forth the guidance on the original 2004 - 2005 Priority Guidance Plan that we have published.  Although the update may indicate that a particular item on the plan has been completed, it is possible that one or more additional projects may be completed in the plan year relating to that item.  The update also includes 67 items of additional guidance (including the 33 AJCA-related projects mentioned above), some of which have already been published.

We continue to invite the public to provide us with comments and suggestions as we identify and write guidance throughout the plan year.

A copy of the update of the 2004 - 2005 Priority Guidance Plan is attached.  The updated 2004 -2005 Priority Guidance Plan will also be republished on the IRS website on the Internet (www.irs.gov) under Tax Professionals, IRS Resources, Administrative Information and Resources, 2004 - 2005 Priority Guidance Plan.  Copies can also be obtained by calling Treasury's Office of Public Affairs at (202) 622-2960.