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

T.D. 8722, page 4. REG-104893–97, page 13. Temporary and proposed regulations under section 894 of the Code relate to eligibility for benefits under income tax treaties for payments to entities. The regulations set forth rules for determining whether U.S. source payments made to entities are eligible for treaty-reduced tax rates. A public hearing on the proposed regulations will be held on September 24, 1997.

EMPLOYEE PLANS

Announcement 97–70, page 14. This announcement describes certain transition relief to the minimum distribution rules of section 401(a)(9)(C) of the Code as amended by section 1404 of the Small Business Job Protection Act of 1996.