HIGHLIGHTS OF THIS ISSUE

These synopses are intended only as aids to the reader in identifying the subject matter covered. They may not be relied upon as authoritative interpretations.

INCOME TAX

Rev. Rul. 99–49, page 667. CPI adjustments for below-market loans for 2000. The amount that section 7872(g) of the Code permits a taxpayer to lend to a qualified continuing care facility without incurring imputed interest is adjusted for years 1987–2000. Rev. Rul. 98–59 supplemental and superseded.

Rev. Rul. 99–50, page 656. Section 1274A inflation-adjusted numbers for 2000. This ruling provides the dollar amounts, increased by the 2000 inflation adjustment, for section 1274A of the Code. Rev. Rul. 98–58 supplemented and superseded.

Rev. Rul. 99–52, page 652. 1999 base period T-bill rate. The base period T-bill rate, under section 995 of the Code, is 4.80 percent for the period ending September 30, 1999.

Rev. Rul. 99–53, page 657. Interest rates; underpayments and overpayments. The rate of interest determined under section 6621 of the Code for the calendar quarter beginning January 1, 2000, will be 8 percent for overpayments (7 percent in the case of a corporation), 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.

T.D. 8844, page 661. Final regulations clarify the tax consequences for an existing entity that makes an election under section 7701 of the Code to change its classification for federal tax purposes.

Finding Lists begin on page ii.

Department of the Treasury Internal Revenue Service