FROM THE OFFICE OF PUBLIC AFFAIRS
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September 29, 2004
JS-1968
Treasury and IRS Announce Voluntary Compliance Initiative
with Respect To Withholding Agents
Today the Treasury Department and the Internal Revenue Service announced a temporary voluntary compliance initiative with respect to tax, withholding, and reporting obligations that apply to withholding agents in connection with payments to foreign persons. As detailed in Revenue Procedure 2004-59, the program sets forth procedures for eligible withholding agents to disclose compliance shortcomings in these areas to the IRS, to pay any applicable tax, interest, and penalties, and to develop appropriate remedial procedures to ensure compliance in the future. Under this program, the IRS will review the withholding agent's proposed remedial procedures and, if they are acceptable, will provide the withholding agent with an acknowledgment letter.
This initiative is similar to a compliance initiative established in Rev. Proc. 2001-20 with respect to the withholding, tax, and reporting obligations of certain colleges and universities in connection with payments to foreign persons. Applications for the program announced today will be accepted through
Revenue Procedure 2004-59 is attached.
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REPORTS