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. 96–62, page 6. Training costs; business expenses. The Supreme Court’s decision in INDOPCO, Inc. v. Commissioner, 503 U.S. 79 (1992), does not affect the treatment of training costs as business expenses which are generally deductible under section 162 of the Code.

Rev. Rul. 96–63, page 8. Section 1274A inflation-adjusted numbers for 1997. This ruling provides the dollar amounts, increased by the 1997 inflation-adjustment, for section 1274A of the Code. Rev. Rul. 96–4 supplemented and superseded.

Rev. Rul. 96–64, page 11. CPI adjustment for below-market loans for 1997. The amount that section 7872(g) of the Code permits a taxpayer to lend to a qualified continuing care facility without incurring imputed interest is published and adjusted for inflation for years 1987–1997. Rev. Rul. 96–5 supplemented and superseded.

Rev. Rul. 96–65, page 5. Damages received on account of personal injuries or sickness. Under current section 104(a)(2) of the Code, back pay and damages for emotional distress received to satisfy a claim for disparate treatment employment discrimination under Title VII of the 1964 Civil Rights Act are not excludable from gross income. Under former section 104(a)(2), back pay received to satisfy such a claim was not excludable from gross income, but damages received for emotional distress were excludable. Rev. Ruls. 72–341, 94–92, and 93–88 obsoleted. Notice 95–45 superseded. Rev. Proc. 96–3 modified.

Notice 96–67, page 12. Notice on application of section 401(a)(9) to employ- ees who attain age 70½ in 1996. This notice provides transitional guidance on the application of the definition of ‘‘required beginning date’’ found in section 401(a)

Finding Lists begin on page 64. Announcement of Disbarments and Suspensions begins on page 62.