INCOME TAX

REG–126485–01, page 555. Proposed regulations define the term statutory merger or consolidation as that term is defined in section 368(a)(1)(A) of the Code. This would permit certain transactions involving disregarded entities to qualify as statutory mergers or consolidations. A public hearing is scheduled for March 13, 2002.

REG–137519–01, page 559. Proposed amendments relate to the consolidated return regulations dealing with the nonapplicability of section 357(c) of the Code in a consolidated group. A public hearing is scheduled for March 21, 2002.