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.

SPECIAL ANNOUNCEMENT

Announcement 96–75, page 29. A public hearing will be held on September 4, 1996, on issues related to a study of ‘‘global interest netting’’ being conducted by the Internal Revenue Service and Treasury.

INCOME TAX

Rev. Rul. 96–39, page 4. LIFO; price indexes; department stores. The June 1996 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, June 30, 1996.

Ct.D. 2058, page 13. Refund claims; Tax Court; return not filed. The Tax Court lacks jurisdiction to award a refund of taxes paid more than two years before the date the taxpayer was mailed a notice of deficiency, if, on the date that the notice was mailed, the taxpayer had not yet filed a return. In these circumstances, the applicable look-back period under section 6512 of the Code is two years. Commissioner of Internal Revenue v. Robert F. Lundy.

Ct.D. 2059, page 10. Validity of liens; bankruptcy. A bankruptcy court may not equitably subordinate claims on a categorical basis in derogation of Congress’ priorities scheme. United States v. Thomas R. Noland.

FI–32–95, page 21. Proposed regulations under section 475 of the Code

Finding Lists begin on page 32.