HIGHLIGHTS OF THIS ISSUE

These synopses are intended only as aids to the reader in identifying the subject matter covered. They may not be relied upon as authoritative interpretations.

INCOME TAX

Rev. Rul. 2003–34, page 813. Special estimated tax payments. Insurance companies taking deductions under section 847 of the Code are provided guidance with respect to discontinuing the deduction.

Rev. Rul. 2003–38, page 811. Section 355. Whether creation of an Internet web site to sell shoes at retail, by a corporation that conducts a retail shoe store business, is an expansion of the original business or an acquisition of a new or different business under section 355(b) of the Code.

Rev. Rul. 2003–39, page 811. Overrecovered fuel costs. Taxpayers may exclude fuel cost and energy conservation cost overrecoveries from gross income in cases involving facts substantially similar to Houston Industries Inc. v. United States, 32 Fed. C1. 202 (1994), ap- peal on other grounds dismissed, 78 F.3d 564 (Fed. Cir. 1996), aff’d, 125 F.3d 1442 (Fed. Cir. 1997), Florida Progress Corp. v. Commissioner, 114 T.C. 587 (2000), and Cinergy Corp. v. United States, Nos. 99–750 T and 00–572 T (Fed. C1. filed March 10, 2003).

Notice 2003–21, page 817. This notice provides guidance in a question and answer format on the tax relief provided under Executive Order No. 12744, 56 Fed. Reg. 2663 (Jan. 23, 1991), for U.S. military and support personnel involved in the military operations in the “Arabian Peninsula Areas” as defined by the Executive Order and listed in the notice.