HIGHLIGHTS OF THIS ISSUE

These synopses are intended only as aids to the reader in identifying the subject matter covered. They may not be relied upon as authoritative interpretations.

INCOME TAX

Rev. Rul. 96–37, page 4. Federal rates; adjusted federal rates; adjusted fed- eral long-term rate, and the long-term exempt rate. For purposes of sections 1274, 1288, 382, and other sections of the Code, tables set forth the rates for August 1996.

Rev. Proc. 96–41, page 9. Tax-exempt bonds; arbitrage. If an issuer of state or local bonds used the proceeds of those bonds to pay more than fair market value for nonpurpose investments deposited into an advance refunding escrow, procedures are provided for an issuer to request a closing agreement pursuant to which the purchase of those investments alone will not cause sections 103(b)(2) and 148 of the Code to apply to those bonds.

EXEMPT ORGANIZATIONS

Rev. Proc. 96–40, page 8. Exempt organizations holding group exemption letters should file the annual reports required to maintain a group exemption letter at the Ogden Service Center. Rev. Proc. 80–27 modified.