Bulletin No. 2002–35 September 3, 2002

Notice 2002–58, page 432. Capital gains and losses; sale or exchange . Taxpayers are informed that the election under section 311(e) of the Taxpayer Relief Act of 1997 to treat certain assets held on January 1, 2001, as having been sold and then reacquired on that date is properly made by following certain IRS forms and instructions. Under appropriate circumstances, the Service will grant requests to make a late election under sections 301.9100–1 through 301.9100–3 of the regulations.

Rev. Proc. 2002–54, page 432. Changes in method of accounting; prior consent; auto- matic consent . This procedure relates to the application of the 1-year section 481(a) adjustment period to pending or recently approved applications for changes in method of accounting under Rev. Proc. 97–27 and to applications filed under Rev. Proc. 2002–9. This procedure also relates to certain changes to and from UNICAP methods of accounting. Rev. Proc. 2002–9 amplified, clarified, and modified. Rev. Proc. 2002–19 amplified and clarified.

Rev. Proc. 2002–55, page 435. This procedure contains the final audit guidance for an external auditor engaged by a qualified intermediary (QI) to verify the QI’s compliance with the withholding agreement entered into with the Service pursuant to Rev. Proc. 2000–12, 2000–1 C.B. 387, and regulations section 1.1441–1(e)(5).

Announcement 2002–76, page 471. This document provides clarification and changes to Publication 1220, Specifications for Filing Forms 1098, 1099, 5498 and W–2G Electronically or Magnetically .

Announcements of Disbarments and Suspensions begin on page 474. Finding Lists begin on page ii. Index for July and August begins on page iv.