Bulletin No. 2002–34 August 26, 2002

REG–106359–02, page 405. Proposed regulations under section 482 of the Code clarify that stock-based compensation is taken into account in determining the intangible development costs of a controlled participant in a qualified cost sharing arrangement. The regulations also provide rules for measuring the cost associated with stockbased compensation; clarify that stock-based compensation is appropriately taken into account as a comparability factor for purposes of the comparable profits method; and clarify the coordination of the cost sharing rules with the arm’s length standard. A public hearing is scheduled for November 20, 2002.

REG–133254–02, page 412. Proposed regulations under section 6049 of the Code relate to the reporting requirements for interest on deposits maintained at U.S. offices of certain financial institutions and paid to nonresident alien individuals that are residents of certain specified countries. A public hearing is scheduled for December 5, 2002. REG–126100–00 withdrawn.