INCOME TAX

Rev. Rul. 2002–80, page 925. Advance reimbursement of medical expenses. This ruling amplifies Rev. Rul. 2002–3, 2002–3 I.R.B. 316, to clarify that amounts paid to an employee as “advance reimbursements” or “loans” without regard to whether the employee has suffered a personal injury or sickness or incurred medical expenses are not excludable from the employee’s gross income under section 105(b), whether or not that employee incurs medical expenses during the year.

Rev. Rul. 2002–81, page 928. Federal rates; adjusted federal rates; adjusted federal long- term rate and the long-term exempt rate. For purposes of sections 382, 1274, 1288, and other sections of the Code, tables set forth the rates for December 2002.

Rev. Rul. 2002–83, page 927. Related party like-kind exchanges. Under the facts described, a taxpayer who transfers relinquished property to a qualified intermediary in exchange for replacement property formerly owned by a related party is not entitled to nonrecognition treatment under section 1031(a) of the Code if, as part of the transaction, the related party receives cash or other non-like-kind property for the replacement property.