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.

SPECIAL ANNOUNCEMENT

Announcement 2003–46, page 222. This announcement informs the public that the Service is currently reviewing information regarding test procedures and results that have been presented as evidence that fuel underwent a significant chemical change. Until the review is complete, rulings on the question of significant chemical change will be suspended for requests relying on the procedures and results being reviewed.

INCOME TAX

Rev. Rul. 2003–81, page 126. Depreciation of assets. This ruling provides guidance as to the proper asset class under Rev. Proc. 87–56, 1987–2 C.B. 674, to depreciate assets owned by a utility that are used in the business operations of the utility. Rev. Proc. 2002–9 modified and amplified.

Rev. Rul. 2003–82, page 125. Tertiary injectant expenses. This ruling clarifies whether only the costs of acquiring tertiary injectants are eligible for the enhanced oil recovery credit provided in section 43 of the Code or whether the costs of using tertiary injectants also are eligible for the credit.

Notice 2003–47, page 132. This notice announces the ServiceÊs position regarding certain transactions involving the transfer of nonstatutory stock options to a related person in exchange for a long-term, unsecured deferred payment obligation. The notice provides that the transfer will not constitute an armÊs length transaction for purposes of regulations section 1.83–7, and that the receipt

Announcements of Disbarments and Suspensions begin on page 222. Finding Lists begin on page ii.