INCOME TAX

Rev. Rul. 2000–5, page 436. Application of section 368(a)(1)(A) to divisive merg- ers. This ruling holds that a state law merger will not qualify as a reorganization under section 368(a)(1)(A) of the Code if the merger does not result in one corporation acquiring the assets of a target corporation and the target corporation ceasing to exist.

T.D. 8859, page 429. Final regulations under section 42 of the Code amend various low-income housing tax credit regulations including the procedures for compliance monitoring by the state and local housing agencies, the requirements for making carryover allocations, and the rules for the agencies’ correction of administrative errors or omissions. In addition, the regulations require the independent verification of information on sources and uses of funds submitted by taxpayers to the agencies.

T.D. 8860, page 437. Final regulations under section 988 of the Code relate to the treatment of income and expenses from certain hyperinflationary, nonfunctional currency transactions and certain notional principal contracts.