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Compliance November 3, 2005
IRS Extends Corrections Program Regarding Foreign Tax Withholding
November 3, 2005 (PLANSPONSOR.com) - The IRS has
issued Revenue Procedure 2005-71, extending the deadline for
entering a voluntary correction program (VCP) relating to
certain tax withholding and reporting obligations with
respect to foreign persons.
Reported by Rebecca Moore
InRP-2005-71, the IRS explains that the Section 1441 VCP was initiated as a temporary program. The program was effective September 29, 2004 and would be available for submissions made on or before December 31, 2005.
Citing the steady increase of submissions for the VCP, the IRS said it is amending RP-2004-59 to extend the deadline for submissions to March 31, 2006. In addition, for those submissions made after December 31, 2005, the IRS will not grant any extensions beyond June 30, 2006.
The IRS said submissions after December 31, 2005 must include Form 872, Consent to Extend the Time to Assess Tax.
More information can be obtained by calling the VCP coordinator at 212-298-2698.