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. 97–8, page 4. LIFO; price indexes; department stores. The December 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, December 31, 1996.

T.D. 8700, page 5. Final regulations under section 475 of the Code provide guidance to enable taxpayers to comply with the mark-tomarket requirements applicable to dealers in securities.

T.D. 8701, page 23. Final regulations provide rules for making the deemed sale and deemed dividend elections under section 1291 of the Code.

T.D. 8707, page 17. Final regulations under section 731 of the Code provide rules for partnership distributions of marketable securities and for determining when those distributions are taxable to the distributee partner.

REG–209040–88, page 34. Proposed regulations under section 1295 permit certain shareholders to make a special election, in lieu of the election currently provided for under that section, for certain preferred shares of a passive foreign investment company (PFIC). A public hearing will be held on May 8, 1997.

REG–209817–96, page 41. Proposed regulations under section 7701 of the Code relate to the treatment of certain multiple-party financing

Finding Lists begin on page 59. Announcement of Disbarments and Suspensions begins on page 57.