Revenue Procedure 2005-77

Appendix

Guidance
Retroactive Annuity
Starting Date

Date of Publication
July 17, 2003

Effective Date of
Published Guidance
Plan years beginning on
or after January 1, 2004.

§ 1.417(e)–1

Automatic Rollover

Deadline to Adopt
Plan Amendment under
this Notice

If discretionary — end
of the plan year in
which plan amendment
is put into effect.

Later of (1) the
deadline under Rev.
Proc. 2005-66 or (2)
December 31, 2005.

If required — later
of the end of the
employer’s tax filing
date for the taxable year
that contains January
1, 2004 or the last day
of the first plan year
beginning on or after
January 1, 2004.
December 28, 2004

Mandatory distributions
made on or after March
28, 2005.

Notice 2001-42 and
Notice 2005–5 required
the amendment to be
adopted by the end of
the plan year ending on
or after March 28, 2005.

Latest of (1) December
31, 2005, (2) the end
of the plan year that
contains March 28,
2005, or (3) the tax
filing deadline for the
employer’s tax year
containing March 28,
2005.

December 29, 2004

Generally, plan years
beginning on or after
January 1, 2006.
Plan sponsors are
permitted to apply final
regulations to any plan
year that ends after
December 29, 2004.

If discretionary — end
of plan year in which
plan amendment is put
into effect.

Later of (1) December
31, 2005 or (2) the
end of the plan year in
which the §§ 401(k) and
401(m) regulations are
implemented.

§ 401(a)(31)(B)

Final §§ 401(k) and
401(m) Regulations

Deadline to Adopt Plan
Amendment under Rev.
Proc. 2005–66 (or
Notice 2005–5)

§§ 1.401(k)–1 through
–6 and 1.401(m)–1
through –5

26 CFR 1.1441–5: Withholding on payments to partnerships, trusts and estates.

Rev. Proc. 2005–77

(Amendment is
discretionary if it is
adopted prior to the
effective date.)

procedures. This revenue procedure also
makes a conforming change to the portion
of the Qualified Intermediary (“QI”) withholding agreement (the “QI agreement”)
contained in Rev. Proc. 2003–64.
SECTION 2. BACKGROUND

SECTION 1. PURPOSE
This revenue procedure modifies the
final withholding foreign partnership
(“WP”) and withholding foreign trust
(“WT”) agreements, contained in Rev.
Proc. 2003–64, 2003–2 C.B. 306, by
expanding the availability of certain documentation, reporting, and withholding

December 19, 2005

Rev. Proc. 2003–64 contains the WP
and WT agreements described in Treasury Regulation § 1.1441–5(c)(2)(ii) and
(e)(5)(v) and sets forth the application
procedures for entering into such agreements. Rev. Proc. 2003–64 also amended
the QI agreement, contained in Rev. Proc.
2000–12, 2000–1 C.B. 387, to add new

1176

Section 4A. In Rev. Proc. 2004–21,
2004–1 C.B. 702, the Internal Revenue
Service (IRS) and the Treasury Department amended Section 10.01 of the WP
and WT agreements and new Section
4A.01 of the QI agreement to eliminate a
$200,000 cap that restricted the application of those provisions.
Section 10.02 of the WP and WT agreements and new Section 4A.02 of the QI
agreement provide generally that a QI, WP,
or WT may apply simplified documentation, reporting, and withholding procedures to a foreign trust or foreign partnership if certain conditions are met (the
“Agency Provision”). Currently a QI, WP,

2005–51 I.R.B.

or WT may apply the Agency Provision
only if, among other things, the QI (or an
affiliate), WP or WT is a general partner of
the partnership or a trustee of the trust (the
“relatedness requirement”). Upon consideration of comments received, the IRS and
the Treasury Department have concluded
that the relatedness requirement is unnecessary and that its elimination will facilitate compliance consistent with the objectives of the underlying reporting and withholding regimes.

effective date of Rev. Proc. 2003–64.
Pursuant to Section 12.02 of the QI agreement, and Section 11.02 of the WP and WT
agreements, these amendments apply to
all existing QI, WP, and WT agreements.
These amendments will be incorporated
into the text of all QI, WP, and WT agreements entered into on or after the date this
revenue procedure is released.

SECTION 3. EXPANSION OF AGENCY
PROVISION

Rev. Proc. 2003–64, 2003–2 C.B. 306,
is modified.

Appendices 1, 2, and 3 of Rev. Proc.
2003–64, containing the WP and WT
agreements and new Section 4A of the
QI agreement, respectively, are amended
as follows. In Appendices 1 and 2, the
first paragraph of Section 10.02 of the
WP and WT agreements is amended by
inserting “and” before “(2)”, by replacing
the semicolon before “(3)” with a period,
and by deleting “and (3) the [WP/WT] is
a general partner of the partnership or a
trustee of the trust.” In Appendix 3, the
first paragraph of Section 4A.02 of the QI
agreement is amended by inserting “and”
before “(2)”, by replacing the semicolon
before “(3)” with a period, and by deleting
“and (3) the QI, or an affiliate of the QI,
is a general partner of the partnership or a
trustee of the trust.”

SECTION 6. CONTACT
INFORMATION

SECTION 4. EFFECTIVE DATE
The modifications to Rev.
Proc
2003–64 made by this revenue procedure are effective as of July 10, 2003, the

SECTION 5. EFFECT ON OTHER
DOCUMENTS

For further information regarding this revenue procedure, contact
Kathryn T. Holman at (202) 622–3840
(not a toll-free call).
26 CFR 601.105: Examination of returns and claims
for refund, credit, or abatement; determination of
correct tax liability.
(Also Part I, §§ 62, 162, 170, 213, 217, 274, 1016;
1.62–2, 1.162–17, 1.170A–1, 1.213–1, 1.217–2,
1.274–5, 1.1016–3.)

Rev. Proc. 2005–78
SECTION 1. PURPOSE
This revenue procedure updates Rev.
Proc. 2004–64, 2004–2 C.B. 898, as modified by Announcement 2005–71, 2005–41
I.R.B. 714, and provides optional standard mileage rates for employees, selfemployed individuals, or other taxpayers

(1) Business (section 5 below)

to use in computing the deductible costs
of operating an automobile for business,
charitable, medical, or moving expense
purposes. In addition, this revenue procedure provides optional standard mileage
rates for computing the deductible costs of
operating an automobile in providing donated services to charity for the provision
of relief related to Hurricane Katrina and
for determining the amount that may be
excluded from income by taxpayers who
are reimbursed for such use. This revenue procedure also provides rules under
which the amount of ordinary and necessary expenses of local travel or transportation away from home that are paid or incurred by an employee will be deemed
substantiated under § 1.274–5 of the Income Tax Regulations if a payor (the employer, its agent, or a third party) provides a mileage allowance under a reimbursement or other expense allowance arrangement to pay for the expenses. Use
of a method of substantiation described
in this revenue procedure is not mandatory and a taxpayer may use actual allowable expenses if the taxpayer maintains
adequate records or other sufficient evidence for proper substantiation. The Internal Revenue Service prospectively adjusts
the business, medical, and moving standard mileage rates annually (to the extent
warranted).
SECTION 2. SUMMARY OF
STANDARD MILEAGE RATES
.01 Standard mileage rates

44.5 cents per mile

(2) Charitable contribution (section 7 below)
(a) General

14 cents per mile

(b) Hurricane Katrina deduction

32 cents per mile

(c) Hurricane Katrina reimbursement

44.5 cents per mile

(3) Medical and moving (section 7 below)
.02 Determination of standard mileage
rates. The business, medical, and moving
standard mileage rates reflected in this
revenue procedure are based on an annual
study of the fixed and variable costs of operating an automobile conducted on behalf

2005–51 I.R.B.

18 cents per mile
of the Service by an independent contractor. The charitable contribution standard
mileage rate is provided in § 170(i) of the
Internal Revenue Code. The Hurricane
Katrina charitable contribution deduction
standard mileage rate is established by

1177

§ 303 of the Katrina Emergency Tax Relief Act of 2005, Pub. L. No. 109–73,
119 Stat. 2016 (KETRA). The Hurricane
Katrina charitable contribution reimbursement standard mileage rate is established
by § 304 of KETRA.

December 19, 2005