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.

SPECIAL ANNOUNCEMENT

Announcement 97–44, page 19. The date and location of the public hearing on proposed regulation, REG–208172–91, 1997–10 I.R.B. 59, relating to basis reduction due to discharge of indebtedness, are changed.

EMPLOYEE PLANS

Notice 97–27, page 7. Weighted average interest rate update. Guidelines are set forth for determining for April 1997, the weighted average interest rate and the resulting permissible range of interest rates used to calculate current liability for purposes of the full funding limitation of section 412(c)(7) of the Code as amended by the Omnibus Budget Reconciliation Act of 1987 and the Uruguay Round Agreements Act (GATT).

Announcement 97–45, page 20. The Service is reexamining the plan qualification and other tax issues raised by a contribution of stock options to a plan and subsequent exercise of those options.

TAX CONVENTIONS

Page 5. The bilateral agreements between the United States and Malta, providing for the reciprocal tax exemption of income from international operation of ships and/or aircraft, are set forth.

ADMINISTRATIVE

Rev. Proc. 97–23, page 7. This procedure provides that the Service will not rule on whether trusts that hold certain assets qualify as

Finding Lists begin on page 23. Announcement of Disbarments and Suspensions begins on page 21.