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. 96–61, page 24. Interest rates; underpayments and overpayments. The rate of interest determined under section 6621 of the Code for the calendar quarter beginning January 1, 1997, will be 8 percent for overpayments, 9 percent for underpayments, and 11 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 is 6.5 percent.

T.D. 8687, page 4. Final regulations under section 863 of the Code governs the source of income from sales of natural resources or other inventory produced in and sold outside the United States.

Notice 96–68, page 30. Definitions relating to application of exclusion under section 127. This notice provides guidance regarding the definitions of the terms “graduate level course” and “courses beginning.”

EXEMPT ORGANIZATIONS

Announcement 96–131, page 32. A list is given of organizations now classified as private foundations.

ESTATE TAX

T.D. 8686, page 14. Final regulations provide guidance relating to the additional requirements necessary to ensure the collection

Finding Lists begin on page 36. Announcement of Disbarments and Suspensions begins on page 34.