INCOME TAX

Rev. Rul. 2002–38, page 4. REIT noncustomary service income . Guidance is provided under sections 856 and 857(b)(7) of the Code for the situation when a REIT forms a taxable REIT subsidiary (TRS) to provide noncustomary services to tenants of the REIT and no service charges are separately stated from the rents paid by the tenants to the REIT.

T.D. 8997, page 6. REG–122564–02, page 25. Final and proposed regulations under section 1502 of the Code provide corporations filing consolidated returns with an election to waive the 5-year net operating loss carryback period with respect to certain acquired members.

T.D. 8998, page 1. REG–123305–02, page 26. Temporary and proposed regulations under sections 337(d) and 1502 of the Code clarify and amend certain aspects of the temporary regulations relating to the deductibility of losses recognized on dispositions of subsidiary stock by members of a consolidated group. The regulations apply to corporations filing consolidated returns, both during and after the period of affiliation, and also affect purchasers of the stock of members of a consolidated group. A public hearing on the proposed regulations is scheduled for July 17, 2002.

Finding Lists begin on page ii. Index for January through June begins on page vii.