INCOME TAX

Rev. Rul. 2001–45, page 323. LIFO; price indexes; department stores. The August 2001 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, August 31, 2001.

Rev. Rul. 2001–46, page 321. Step transaction. Under the facts presented, if, pursuant to an integrated plan, a newly formed wholly owned subsidiary of an acquiring corporation merges into a target corporation, followed by the merger of the target corporation into the acquiring corporation, the transaction is treated as a single statutory merger of the target corporation into the acquiring corporation that qualifies as a reorganization under section 368(a)(1)(A) of the Code. Rev. Rul. 67-274 amplified. Rev. Rul. 90–95 distinguished.

Rev. Rul. 2001–48, page 324. This ruling updates the list of countries that grant a reciprocal exemption for income from the international operation of ships or aircraft to U.S. persons for purposes of sections 872(b) and 883 of the Code. Rev. Ruls. 89–42 and 97–31 modified and superseded.