INCOME TAX

Rev. Rul. 2001–38, page 124. Insurance companies; prevailing mortality and mor- bidity tables. The prevailing mortality and morbidity tables for contracts issued on or after January 1, 1999, are set forth for use by insurance companies to compute their reserves. Rev. Rul. 92–19 supplemented.

Rev. Rul. 2001–39, page 125. U.S. corporation; wholly-owned Mexican subsidiary treat- ed as a domestic corporation. This ruling obsoletes Rev. Rul. 70–379 (1970–2 C.B. 179) relating to a U.S. corporation electing under section 1504(d) of the Code to treat its wholly-owned Mexican subsidiary as a domestic corporation for the purpose of filing consolidated returns. Rev. Rul. 70–379 obsoleted.

Notice 2001–45, page 129. Basis shifting tax shelter. The Service will challenge certain basis shifting tax avoidance transactions and intends to disallow losses claimed or increase taxable income or gains. Such transactions are designated as “listed transactions” for purposes of sections 1.6011–4T(b)(2) and 301.6111–2T of the regulations.