INCOME TAX—Cont.

Rev. Proc. 2003–18, page 439. Insurance companies; discounted estimated salvage re- coverable. The salvage discount factors are set forth for 2002. These factors must be used to compute discounted estimated salvage recoverable under section 832 of the Code.

Rev. Proc. 2003–20, page 445. Inventories; lower of cost or market; vehicle parts cores. This procedure provides a safe harbor method of accounting for the valuation of a taxpayer’s inventory of vehicle parts cores. The safe harbor method is available to remanufacturers and rebuilders of motor vehicle parts, as well as resellers of remanufactured and rebuilt motor vehicle parts, that use the lower of cost or market inventory valuation method to value their inventory of cores held for remanufacturing or sale. Automatic method change procedures are also provided for taxpayers wishing to change to the safe harbor method. Rev. Proc. 2002–9 modified and amplified.

Announcement 2003–7, page 450. This announcement provides transition rules for corporations and brokers required under sections 1.6043–4T and 1.6045–3T (T.D. 9022, 2002–48 I.R.B. 909) to file and furnish Form 1099– CAP with respect to acquisitions of control and substantial changes in corporate structure occurring in 2002. Affected corporations and brokers will not be required to file Form 1099– CAP for transactions occurring in 2002. In lieu of furnishing Form 1099–CAP to shareholders and actual stock owners, the corporations and brokers must furnish a letter containing specified language.