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. 97–10, page 31. Federal rates; adjusted federal rates; adjusted fed- eral long-term rate, and the long-term exempt rate. For purposes of sections 1274, 1288, 382, and other sections of the Code, tables set forth the rates for March 1997.

Rev. Rul. 97–11, page 5. Election in respect of losses attributable to a disas- ter. This ruling lists the areas declared by the President to qualify as major disaster areas under the Disaster Relief and Emergency Assistance Act since the publication of Rev. Rul. 96–13.

T.D. 8708, page 14. Final regulations under section 902 of the Code relate to the computation of foreign taxes deemed paid.

REG–208172–91, page 59. Proposed regulations under sections 108 and 1017 of the Code provide ordering rules for the reduction of bases of property that affect taxpayers who exclude discharge of indebtedness from gross income. A public hearing will be held on April 24, 1997.

Rev. Proc. 97–18, page 53. This procedure provides guidance for any bank seeking to change its accounting method for bad debts from the section 585 reserve method to the section 166 specific charge-off method in order to elect S corporation status for the 1997 tax year.

Notice 97–20, page 52. Accounting periods; small business corporations. Procedures are provided under which a taxpayer may automatically change its annual accounting period in order elect to be an S corporation effective for the taxable year beginning January 1, 1997.

Finding Lists begin on page 71.