INCOME TAX

Rev. Rul. 98–19, page 5. Relocation payments; Housing and Community Devel- opment Act. A relocation payment, authorized by section 105(a)(11) of the Housing and Community Development Act and funded under the 1997 Emergency Supplemental Appropriations Act for Recovery From Natural Disasters, made by a local jurisdiction to an individual moving from a flood-damaged residence to another residence, is not includible in the individual’s gross income.

Rev. Rul. 98–20, page 8. LIFO; price indexes; department stores. The February 1998 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, February 28, 1998.

T.D. 8763, page 5. Final regulations under section 166 of the Code deem a charge-off and allow a deduction for a partially worthless debt when the terms of a debt instrument have been modified.

T.D. 8764, page 9. REG–102144–98, page 25. Temporary and proposed regulations under sections 925 and 927 of the Code provide guidance to taxpayers who have made an election to be treated as a foreign sales corporation (FSC). A public hearing on the proposed regulations will be held on June 24, 1998.

Finding Lists begin on page 35.

Department of the Treasury Internal Revenue Service