INCOME TAX

Rev. Rul. 97–49, page 4. 1997 base period T-bill rate. The “base period T-bill rate” for the period ending September 30, 1997, is published, as required by section 995(f)(4) of the Code.

REG–105162–97, page 13. Proposed regulations under section 7701 of the Code describe how elective changes in entity classification will be treated for Federal tax purposes. A public hearing will be held on February 24, 1998.

REG–251985–96, page 18. Proposed regulations under section 863 of the Code relate to the source of income from sales of inventory produced in the United States and sold in a U.S. possession or produced in a U.S. possession and sold in the United States. A public hearing will be held on January 29, 1998.

Notice 97–66, page 8. Securities lending transaction notice. Guidance is provided to payors of substitute interest payments made after November 13, 1997, and before January 1, 1999, to comply with the statement requirement of section 871(h)(5) of the Code in order to qualify the payments as portfolio interest payments for purposes of the tax imposed under sections 871 and 881 of the Code. Guidance is also provided to determine the amount of tax imposed and withheld on substitute dividend payments made by one foreign person to another foreign person.

Notice 97–68, page 11. This notice informs taxpayers that the rules in sections 1.664–2(a)(1)(i) and 1.664–3(a)(1)(i)(e) of the proposed Income Tax regulations, published in REG–209823–96, 1997–18 I.R.B. 47, will not be effective for certain charitable remainder trusts for the 1997 tax year.

Finding Lists begin on page 28. Index for July–November begins on page 30.

Department of the Treasury Internal Revenue Service