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. 97–26, page 4. LIFO; price indexes; department stores. The April 1997 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, April 30, 1997.

T.D. 8717, page 5. Final regulations under section 708 of the Code relate to the termination of a partnership upon the sale or exchange of 50 percent or more of the total interest in partnership capital and profits within a 12-month period.

EMPLOYEE PLANS

Rev. Proc. 97–29, page 9. SIMPLE IRAs; prototypes; amendments. This procedure describes model amendments for SIMPLE IRAs; guidance to drafters of prototype SIMPLE IRAs on obtaining opinion letters; permissive amendments to

Finding Lists begin on page 18. Announcement of Disbarments and Suspensions begins on page 15.