INCOME TAX

T.D. 8840, page 575. REG–115932–99, page 583. Temporary and proposed regulations under sections 163 and 1275 of the Code relate to the federal income tax treatment of reopenings of Treasury securities and other debt instruments. A public hearing is scheduled for March 22, 2000.

T.D. 8842, page 576. Final regulations provide specific rules under section 1502 of the Code that apply to the acquisition of the stock of an S corporation by a member of a consolidated group. These rules eliminate the compliance burdens associated with filing a separate return for the day that an S corporation is acquired by a consolidated group. Additionally, the regulations clarify that section 1.1502– 76(c) continues to provide rules for filing the separate return for a corporation’s items for the period not included in the consolidated return.