INCOME TAX

Rev. Rul. 2002–64, page 688. LIFO; price indexes; department stores. The August 2002 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, firstout inventory methods for valuing inventories for tax years ended on, or with reference to, August 31, 2002.

Notice 2002–64, page 690. New markets tax credit; other federal tax benefits. This notice provides guidance to taxpayers on federal tax benefits that do not limit the availability of the new markets tax credit under section 45D of the Code.

Notice 2002–65, page 690. This notice advises taxpayers and their representatives that the transaction it describes, which uses a straddle, an S corporation or a partnership, and one or more transitory shareholders or partners to claim a loss while deferring an offsetting gain, is subject to challenge by the Service on several grounds. This notice holds that the described transaction is a “listed transaction” and warns of penalties that may be imposed if taxpayers claim losses from such a transaction.