INCOME TAX

Rev. Rul. 2001–63, page 606. Interest rates; underpayments and overpayments. The rate of interest determined under section 6621 of the Code for the calendar quarter beginning January 1, 2002, will be 6 percent for overpayments (5 percent in the case of a corporation), 6 percent for underpayments, and 8 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 3.5 percent.

Notice 2001–76, page 613. Proposed revenue procedure regarding the cash method. This notice provides a proposed revenue procedure under section 446 of the Code that would permit the eligible trades or businesses of qualifying taxpayers to use the cash method of accounting as described in the procedure.

Notice 2001–82, page 619. This notice extends the safe harbor provisions of Notice 88–129 under section 118 of the Code to include transfers of interties from non-Qualifying Facilities and certain other transactions. Notices 88–129 and 90–60 amplified and modified.

Rev. Proc. 2001–59, page 623. Cost-of-living adjustments for 2002. This procedure provides cost-of-living adjustments for the tax rate tables for individuals, estates, and trusts, the standard deduction amounts, the personal exemption, and several other items that use the adjustment method provided for the tax rate tables. The Service also provides the adjustment for eligible long-term care premiums and another item that uses the adjustment method provided for eligible long-term care premiums.