INCOME TAX

Rev. Rul. 2002–85, page 986. Section 368(a)(1)(D) reorganization. Guidance is provided as to whether a transaction otherwise qualifying under section 368(a)(1)(D) of the Code will be prevented from so qualifying when the acquiring corporation transfers the target corporation’s assets to a subsidiary controlled by the acquiring corporation. Rev. Rul. 74–545 obsoleted.

Rev. Rul. 2002–87, page 989. LIFO; price indexes; department stores. The October 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, October 31, 2002.

Rev. Rul. 2002–89, page 984. Captive insurance. This ruling considers circumstances under which arrangements between a domestic parent corporation and its wholly owned insurance subsidiary constitute insurance for federal income tax purposes. Rev. Rul. 2001–31 amplified.

Rev. Rul. 2002–90, page 985. Captive insurance. This ruling considers circumstances under which payments for professional liability coverage by a number of operating subsidiaries to an insurance subsidiary of a common parent constitute insurance for federal income tax purposes. Rev. Rul. 2001–31 amplified.

Rev. Rul. 2002–91, page 991. Captive insurance; group captive. This ruling sets forth circumstances under which amounts paid to a group captive of unrelated insureds are deductible as insurance premiums and in which the group captive qualifies as an insurance company.

Finding Lists begin on page ii.