INCOME TAX — Internal Revenue Bulletin 1998-33

Rev. Rul. 98–39, page 4 All events test; cooperative advertising. Under the all events test of section 461 of the Code, an accrual method manufacturer’s liability for cooperative advertising services of a retailer is incurred in Year 1, the year the services are performed, provided the manufacturer is able to reasonably estimate the liability, even though the retailer does not submit the required claim form until Year 2. Rev. Proc. 97–37 modified and amplified.

Rev. Rul. 98–40, page 4. Fringe benefits aircraft valuation formula. For purposes of section 1.61–21(g) of the Income Tax Regulations, relating to the rule for valuing noncommercial flights on employer-provided aircraft, the Standard Industry Fare Level (SIFL) cents-per-mile rates and terminal charges in effect for the second half of 1998 are set forth.

T.D.8776, page 6. REG–110332–98, page 18. Final, proposed, and temporary regulations under section 985 of the Code provide guidance regarding certain federal tax consequences arising from the introduction of the euro. A public hearing on the proposed regulations will be held on October 20, 1998.

Finding Lists begin on page 21.

Department of the Treasury Internal Revenue Service