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

REG–251703–96, page 5. Proposed regulations under section 7701 of the Code provide guidance relating to the definition of a trust as a United States person (domestic trust) or foreign trust. A public hearing will be held on September 16, 1997.

REG–252487–96, page 9. Proposed regulations under section 672 of the Code relate to the application of the grantor trust rules to certain trusts established by foreign persons. A public hearing will be held on August 27, 1997.

EMPLOYEE PLANS

Notice 97–35, page 32. Weighted average interest rate update. Guidelines are set forth for determining for June 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 by the Uruguay Round Agreements Act (GATT).

Finding Lists begin on page 38. Announcement of Disbarments and Suspensions begins on page 35.