INCOME TAX

Ct.D. 2065, page 7. Treasury Regulation section 1.846–3(c)(3) reasonably interprets that the term “reserve strengthening” is broad enough to embrace all increases in the reserve’s amount. Atlantic Mutual Insurance Company v. Commissioner of Inter- nal Revenue.

T.D. 8780, page 14. Final regulations under section 7623 of the Code relate to rewards for information on violations of the internal revenue laws.

Rev. Rul. 98–46, page 10. Interest rates; underpayments and overpayments. The rate of interest determined under section 6621 of the Code for the calendar quarter beginning October 1, 1998, will be 7 percent for overpayments, 8 percent for underpayments, and 10 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 is 5.5 percent.

Rev. Rul. 98–47, page 4. Residential rental property. For purposes of section 142(d) and 145(d) of the Code, the ruling provides that the availability of continual or frequent medical, nursing, or psychiatric services in a facility for the residents of the facility will cause the facility to be other than residential rental property. Other non-housing services available in a facility for the residents of the facility generally will not cause the facility to be other than residential rental property.

Rev. Rul. 98–48, page 6. LIFO; price indexes; department stores. The July 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, July 31, 1998.