IRS ACCEPTING GRANT APPLICATIONS FOR LOW-INCOME TAXPAYER CLINICS

WASHINGTON - Organizations providing low-cost legal assistance to people
involved in tax disputes can apply for grants worth up to $100,000 for the
2001 grant cycle, the Internal Revenue Service announced July 18.  Grants
are also available for programs that assist taxpayers for whom English is a
second language.

The grant program, now in its third year, continues to expand.  In fiscal year 1999, the IRS awarded nearly $1.5 million in Low-Income Taxpayer Clinic
grants to 34 groups across the nation.  For fiscal year 2000, President Clinton and Congress approved up to $6 million for qualified applicants.  Of this amount, nearly $4.9 million was awarded to 82 organizations.

Applications for Low-Income Taxpayer Clinic grants must be received by Sept.25.  Details about the grant program were published in Fridays Federal
Register, and copies of the application package (Publication 3319) are available on the IRS web site at http:www.irs.gov under the Whats Hot
section.

The grants will be awarded in December 2000 for the grant period commencing in January 2001.

WASHINGTON - Following the successful start-up of the new Taxpayer Advocate Service, W. Val Oveson plans to step down as National Taxpayer Advocate this fall and continue his career in the private sector.

REDESIGNED APPEALS DIVISION BEGINS WORK AT IRS

As part of the Internal Revenue Service reorganization, the redesigned Appeals Division began work the week of August 14. The new
Appeals will strive for enhanced customer service through faster case resolution and a variety of initiatives designed to accommodate taxpayer
needs.

Appeals plays a vital role in the protection of taxpayer rights by having authority to settle disputes between taxpayers and operating divisions
within the IRS.  Appeals provides the final administrative opportunity to resolve the matter before going to court.  Typically, Appeals reaches
agreement with taxpayers on 90 percent of its cases.  Last year, Appeals received over 58,000 new cases.

Appeals has reorganized its staffing into a headquarters and three operating units that align with the larger IRS operating divisions.  Appeals
Headquarters is responsible for addressing Appeals' strategic needs while the operating units will focus on providing service to different segments of
taxpayers.  This will allow us to better focus our resources on providing top quality service to our customers, said  Daniel L. Black, Jr., National
Chief of Appeals.

To read this news release in its entirety, visit the IRS Web site at
http://ftp.fedworld.gov/pub/irs-news/ir-00-57.pdf


MEXICAN AND U.S. TAX AUTHORITIES EXTEND TAX REGIME APPLICABLE TO
MAQUILADORAS BEYOND 2002

Mexican and U.S tax authorities have concluded negotiations on an Addendum to the United States - Mexico Competent Authority Agreement
on the Maquiladora Industry, signed on October 27th, 1999. With this Addendum, both authorities agree to extend the Agreement beyond taxable year 2002.

The Addendum entered into force on August 3, 2000 and provides legal certainty to current and new investors in this important industry sector.
One of the reasons for negotiating the Agreement in the first instance was the absence of international guidance on the taxation of income attributable to manufacturing activities of a permanent establishment. Therefore, the
Addendum establishes that upon the issuance of OECD guidelines in this regard either Competent Authority may notify the other of its intent to
terminate the Agreement (at the end of the taxable year in which such notice is given if it is given in the first half of the year and at the end of the taxable year following the year in which notice is given if it is given in the second half), during which time both governments will attempt to agree
on the proper application of such guidelines or on extending the Agreement if that is determined to be more appropriate.

To read this news release in its entirety, visit the IRS Web site at
http://ftp.fedworld.gov/pub/irs-news/ir-00-56.pdf


IRS STARTS COMPREHENSIVE CASE RESOLUTION PILOT TO HELP LARGE BUSINESSES

WASHINGTON -- Under a new pilot program announced August 9, large business taxpayers may request resolution of cases they have open in the Large and Mid-Sized Business Division (LMSB), in Appeals and in docketed status through a new team process offered by the Internal Revenue Service.

The pilot program, called Comprehensive Case Resolution (CCR), will create IRS teams familiar with each case to resolve disagreements with business taxpayers.  The team approach will benefit both the taxpayers and the IRS by
reducing costs, burdens and delays through quick completion of the cases, which currently can be spread across different parts of the IRS.
The IRS believes the CCR program offers significant potential benefits for taxpayers as well as the IRS, and the agency invites large business
taxpayers to participate.  During the pilot phase, the program is available to large businesses that currently have an open cycle in Coordinated
Examination and at least one cycle docketed in Counsel or in Appeals.
To read this news release in its entirety, visit the IRS Web site at
http://ftp.fedworld.gov/pub/irs-news/ir-00-55.pdf


IRS ISSUES PROPOSED RULING ON 527 POLITICAL ORGANIZATIONS

The Internal Revenue Service announced August 9 it is issuing and seeking comments on a proposed revenue ruling concerning the new
reporting and disclosure requirements for 527 political organizations.

The IRS recognizes that there are many issues for which 527 organizations need guidance.  As a result, organizations may rely on this proposed revenue ruling until it is finalized.  The IRS plans to issue a final revenue ruling soon after the close of the comment period.

We encourage the public to submit comments on this proposed revenue ruling, said Steven T. Miller, Director of Exempt Organizations.It's
very important to us to provide organizations the guidance they need.

The proposed revenue ruling, which provides questions and answers about the reporting and disclosure requirements, follows up on a new law approved by Congress and signed by President Clinton on July 1. The law created a new
set of rules for political organizations described in section 527 of the Internal Revenue Code.  Under the new law, most of these 527 groups will be
required to publicly disclose information about their organization, contributors, expenditures and other information.

To read this news release in its entirety, visit the IRS Web site at http://ftp.fedworld.gov/pub/irs-news/ir-00-54.pdf


IRS MAKES INFORMATION FROM 527 GROUPS AVAILABLE ON INTERNET

The Internal Revenue Service on August 4 announced the first public release of the new forms filed by section 527 political organizations.

The IRS has started posting the new Form 8871 submitted by 527 organizations across the nation.  As of Friday, the IRS has received more than 4,900 paper forms.  These notices of organization can be reached through the IRS web site at http:www.irs.gov/bus_info/eo/8871.html

The public release comes within weeks of a new law approved by Congress and signed by President Clinton on July 1. The legislation creates a new set of rules for political organizations described in section 527 of the Internal Revenue Code.  Under the new law, most of these 527 groups will be required to publicly disclose details about their organization, contributors, expenditures and other information.

The tax agency anticipates posting more of these notices of organization on a daily basis.  The images are available in a Portable Document Format (PDF) format that many personal computers can access.

After reaching the web site for these forms, visit the index (titled 00-index.txt) for an alphabetical listing of the groups and their corresponding Employer Identification Number (EIN).  Then return to the main directory and use the EIN to link to individual organizations.
To read this news release in its entirety, visit the IRS Web site at
http://ftp.fedworld.gov/pub/irs-news/ir-00-53.pdf