INCOME TAX

Rev. Rul. 2002–52, page 388. LIFO; price indexes; department stores . The June 2002 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, June 30, 2002.

T.D. 9012, page 389. Final regulations under section 7701 of the Code address the applicability of the elective federal tax classification regime (the check-the-box regulations) to business entities wholly owned by a foreign government and to wholly owned nonbank entities of foreign banks. These regulations also provide that the term “entity” for purposes of section 892(a)(2)(B) of the Code includes a partnership.

REG–106876–00, page 392. Proposed regulations under sections 897 and 1445 of the Code require the use of taxpayer identifying numbers on submissions. The regulations are necessary to properly identify submissions made by foreign taxpayers for the reduction or elimination of tax under these sections. The regulations also address miscellaneous items such as the amendment to section 1445(e)(3) under the Small Business Job Protection Act of 1996. A public hearing is scheduled for November 13, 2002.

REG–106879–00, page 402. Proposed regulations under section 1503(d) of the Code provide guidance regarding the events that require the recapture of dual consolidated losses. The regulations generally provide that certain events will not require recapture of a dual consolidated loss and provide for the reporting of certain information in such cases. This document also proposes certain conforming changes to the current regulations. A public hearing is scheduled for December 3, 2002.