FROM THE OFFICE OF PUBLIC AFFAIRS

 We are pleased to announce the first quarterly update of the 2002 - 2003 Priority Guidance Plan. 

 On July 10, 2002, we released the 2002 - 2003 Priority Guidance Plan listing 250 projects for the plan year beginning July 1, 2002 and ending June 30, 2003.  In our Joint Statement that accompanied the release of the 2002 - 2003 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.  We expressed our intent to add a number of revenue rulings and revenue procedures not previously reflected on the plan.  Updating the plan also provides flexibility to respond to developments arising during the year.

 The attached update sets forth the guidance on the original 2002 - 2003 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 57 items of additional guidance, some of which have already been published.  As promised, many of the additional items are revenue rulings and revenue procedures.

Some of the additional guidance projects were identified from suggestions received from taxpayers and practitioners.  We continue to invite the public to provide us with comments and suggestions as we identify and write guidance throughout the plan year.

 The updated 2002 -2003 Priority Guidance Plan will be republished on the IRS website on the Internet (www.irs.gov) under Tax Professionals, IRS Resources, Administrative Information and Resources, 2002 - 2003 Priority Guidance Plan.  Copies can also be obtained by calling Treasury’s Office of Public Affairs at (202) 622-2960.

The text of the first quarterly update of the 2002 - 2003 Priority Guidance Plan is attached.