Industry Issue Resolution Program to Address Two New Issues |
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IRS News Release
Media Relations Office
Washington, DC
www.IRS.gov/newsroom
Media Contact: 202-622-4000
Public Contact: 800-829-1040
IR-2005-81, Aug. 8, 2005
WASHINGTON — The Internal Revenue Service and the Treasury Department today announced the Industry Issue Resolution (IIR) Program will address concerns relating to “member of a family receiving assistance” requirements for the Work Opportunity and Welfare to Work Tax Credits and the definition of home construction contracts.
Revenue Ruling 2003-112 provides guidance on when an individual meets the “member of a family receiving assistance” requirements. The National Employment Opportunities Network submitted a request for guidance to resolve the issues arising from the States’ interpretation of the requirements prior to the issuance of the revenue ruling.
The Construction Financial Management Association and Associate Builders and Contractors Inc. submitted a request to clarify the definition of home construction contracts, as outlined in IRC 460(e)(6)(A), primarily relating to income derived from residential real estate development that qualifies for the completed contract method of accounting.
"The IIR program provides clarity and consistency to complex tax issues, while reducing burden for taxpayers," said Large and Midsize Business Commissioner Deborah M. Nolan. "These are issues that can be resolved for groups of affected taxpayers so that they do not become contested issues during tax examinations."
Since its inception in 2000, the IIR program has resulted in resolution of many different tax issues cumulatively affecting thousands of taxpayers in many different lines of business. For each issue selected, a multi-functional team gathers and analyzes the relevant facts and recommends guidance.
At any time, business associations and taxpayers may submit tax issues that they believe could be resolved through the IIR program. IIR project selection criteria and submission procedures are outlined in Revenue Procedure 2003-36, which is available on the IRS Web site at IRS.gov. The IRS reviews submissions at least semi-annually with the next review to be completed by August 31, 2005.
Attached is detailed information regarding the issues the IRS considered during its latest review of IIR submissions.
ISSUES SUBMISSIONS FOR THE IIR PROGRAM REVIEWED - SELECTED AS A 2005 IIR PROJECT
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Cross Industry
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Issue Description: Clarification of Eligibility for Work Credit and Welfare to Work Credit
IRS Contact:
Henry Singleton
Industry Director, Retail, Food, Pharmaceutical and HealthCare
Phone # 630-493-5900
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Submitted by:
Dewey Ballantine on behalf of the National Employment Opportunities Network
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Construction Industry
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Issue Description: Definition of a Home Construction Contract
IRS Contact:
Paul Cordova
Director, Field Operations, Natural Resources and Construction Industry
Phone # 213-576-3604
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Submitted by:
Carbis Walker LLP on behalf of CFMA
Associate Builders and Contractors Inc.
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ISSUES SUBMISSIONS FOR THE IIR PROGRAM REVIEWED - NOT SELECTED AS A 2005 IIR PROJECT
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Motor Vehicle Industry
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Issue Description: Standardized Method for Interdepartmental Profit
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Submitted by:
Crowe Chizek and Co.
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Issue Description: Alternative LIFO Method for Used Vehicles Not in Official Used Vehicle Guides
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Submitted by:
Crowe Chizek and Co.
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Issue Description: Inventory Price Index Computation (IPIC) LIFO Method for Parts Inventory
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Submitted by:
Crowe Chizek and Co.
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Issue Description: Dealer Provided Fuel under Rev Proc 2001-56
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Submitted by:
Crowe Chizek and Co.
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Cross Industry
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Issue Description: Equipment Rental (Diving Gear)
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Submitted by:
Deloitte Tax LLP
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Issue Description: Stand-alone amendments to Form 941 and 945
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Submitted by:
National Payroll Reporting Consortium
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Issue Description: Form 1099 (MISC) for Medical Payment
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Submitted by:
Society of Professional Benefit Administrators
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Issue Description: Tax Treatment of Elders Who Invest in Fraudulent Scams
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Submitted by:
Bob Evans & Associates
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Page Last Reviewed or Updated: October 17, 2008