INCOME TAX

Rev. Rul. 2002–30, page 971. Notional principal contract. This ruling provides that where a nonperiodic payment made pursuant to a notional principal contract is comprised of noncontingent and contingent components, the parties must recognize the noncontingent component of the nonperiodic payment over the term of the notional principal contract.

T.D. 8992, page 981. Final regulations under section 6050S relate to information reporting, including magnetic media reporting requirements for payments of interest on qualified education loans (Form 1098–E) and the continuation of Notice 98–7 for the calendar year 2002.

REG–161424–01, page 1010. Proposed regulations under section 6050S relate to information reporting, including magnetic media reporting for qualified tuition and related expenses (Form 1098–T) and the continuation of Notice 97–73 for the calendar year 2002. A public hearing is scheduled for August 13, 2002. REG–105316–98 withdrawn.

Notice 2002–35, page 992. Notional principal contract tax shelter . The Service may challenge transactions using notional principal contracts to claim current deductions for periodic payments made by a taxpayer while disregarding the accrual of a right to receive offsetting payments in the future. These transactions are designated as “listed transactions” for purposes of sections 1.6011– 4T(b)(2) and 301.6111–2T of the regulations.