INCOME TAX

T.D. 9035, page 528. Final regulations under section 1041 of the Code relate to the tax treatment of redemptions, during marriage or incident to divorce, of stock in a corporation owned by a spouse or a former spouse.

T.D. 9038, page 524. REG–126485–01, page 542. Temporary and proposed regulations under section 368 of the Code provide guidance with respect to statutory mergers and consolidations. These regulations also provide that the merger of a domestic corporation into a domestic disregarded entity can qualify as a statutory merger or consolidation. A public hearing on the proposed regulations is scheduled for May 21, 2003.

REG–103580–02, page 543. Proposed regulations under section 721 of the Code describe the tax consequences of certain noncompensatory options and convertible instruments issued by partnerships. The regulations provide that section 721 generally applies to the exercise of a noncompensatory option. The regulations also modify the rules under section 704(b) regarding the determination of the partners’ distributive shares of partnership items, and provide that the holder of a noncompensatory option is treated as a partner under certain circumstances. A public hearing is scheduled for May 20, 2003.

Finding Lists begin on page ii. Index for January and February begins on page iv.