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. 8733, page 8.

Final regulations under section 6114 of the Code pro v i d e that reporting is specifically required if the residency of an individual is determined under a treaty and apart from the Internal Revenue Code.

T.D. 8735, page 4.

Final regulations under section 861 of the Code relate to the taxation of certain payments made pursuant to a cross-border securities lending transaction.

EMPLOYEE PLANS

Notice 97–56, page 19. Weighted average interest rate update. Guidelines are set forth for determining for October 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).

Notice 97–57, page 19. Education individual retirement accounts. This notice informs certain entities that they are approved to serve as nonbank trustees and custodians of Education individual retirement accounts. It also provides guidance on the procedures for being approved to be a nonbank trustee or custodian of an Education IRA.

EXEMPT ORGANIZATIONS

Announcement 97–108, page 25.

A list is provided of organizations now classified as private foundations.