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. 96–50, page 4. LIFO; price indexes; department stores. The August 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, August 31, 1996.

REG–209826–96, page 10. Proposed regulations under section 671 of the Code relate to the application of the grantor trust rules to nonexempt employees’ trusts. A public hearing will be held on January 15, 1997.

Notice 96–51, page 6. Inflation-indexed debt instruments. Proposed and temporary regulations under sections 1275(d) and 1286 of the Code will be issued to provide guidance on the federal income tax treatment of Treasury InflationProtection Securities and other debt instruments with similar terms. This notice also describes, in general terms, the debt instruments that are expected to be subject to the regulations and how these instruments are expected to be taxed under the regulations.

Finding Lists begin on page 33. Announcements of Disbarments and Suspensions begin on page 30.