INCOME TAX

T.D. 8972, page 443. Final regulations under section 1301 of the Code provide guidance to individuals engaged in a farming business who may elect to income average and thereby reduce their regular tax liability by treating all or a portion of the current year’s farming income as if it had been earned in equal portions over the prior three years.

T.D. 8976, page 421. Final regulations under section 472 of the Code relate to accounting for inventories under the last-in, first-out (LIFO) method. The regulations provide guidance regarding methods of valuing dollar-value LIFO pools and affect persons who elect to use the dollar-value LIFO and inventory price index computation (IPIC) methods or who receive dollar-value LIFO inventories in certain nonrecognition transactions. Rev. Procs. 84–57 and 98–49 obsoleted. Rev. Rul. 89–29 obsoleted.