INCOME TAX

Rev. Rul. 2002–7, page 543. LIFO; price indexes; department stores. The December 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, December 31, 2001.

T.D. 8982, page 544. Final regulations under section 1031 of the Code narrow the definition of the term disqualified person for section 1031 likekind exchanges in response to recent changes in the federal banking law, especially the repeal of section 20 of the Banking Act of 1933 (the Glass-Steagall Act). The regulations will affect the eligibility of certain persons to serve as escrow holders of qualified escrow accounts, trustees of qualified trusts, and qualified intermediaries.

Notice 2002–13, page 547. Low-income housing tax credit. This notice reproduces the proper population figures to be used for determining the 2002 calendar year population-based component of the state housing credit ceiling under section 42(h) of the Code and the 2002 calendar year volume cap under section 146 of the Code.

Notice 2002–14, page 548. Automatic change to the cash method of accounting. Qualifying small business taxpayers within the scope of the proposed revenue procedure set forth in Notice 2001–76 (2001–52 I.R.B. 613) may change to the cash method of accounting and treat inventoriable items as non-incidental materials and supplies with respect to its eligible trades or businesses for any taxable year ending on or after December 31, 2001.

Finding Lists begin on page ii.