ADMINISTRATIVE

REG–104762–00, page 825. Proposed regulations under section 6331 of the Code provide for the prohibition of levy while an installment agreement is pending with the Secretary, while an installment agreement is in effect, and following the rejection or termination of an installment agreement. The regulations clarify when levy is prohibited and the effect of that prohibition on the statute of limitations for collection. They also provide that the IRS may not commence a proceeding in court for the collection of a tax included in a proposed or active installment agreement while levy is prohibited by this section.

REG–105369–00, page 828. Proposed regulations under sections 148 and 141 of the Code provide guidance on the definitions of investment-type property and private loan for the arbitrage and private activity restrictions applicable to tax-exempt bonds issued by state and local governments. A public hearing is scheduled for September 24, 2002. REG–113526–98 withdrawn.

Announcement 2002–45, page 833 . Methods of accounting; small business taxpayers. This announcement discusses some of the most significant issues raised in comments received in response to Notice 2001–76 (2001–52 I.R.B. 613). The notice proposed procedures under which qualifying small business taxpayers with average annual gross receipts of $10,000,000 or less would be excepted from the requirements to use an accrual method of accounting under section 446 of the Code and to account for inventories under section 471 of the Code for eligible businesses.

May 6, 2002 2002–18 I.R.B.