Bulletin No. 2003-34 August 25, 2003

Rev. Rul. 2003–100, page 385. LIFO; price indexes; department stores. The June 2003 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, June 30, 2003.

REG–132483–03, page 410. Proposed regulations under section 141 of the Code revise the definition of nonqualified bonds contained in regulations section 1.141–12 by reducing the amount of outstanding bonds that are nonqualified bonds. Second, the proposed regulations simplify the rules for determining which bonds will be treated as the nonqualified bonds for purposes of the remedial action rules under sections 1.141–12 and 1.142–2. Finally, they clarify the remedial action rules applicable to bonds issued prior to May 16, 1997 (the effective date of the current private activity bond regulations). A public hearing is scheduled for November 4, 2003. Rev. Proc. 93–17 obsolete for actions that occur on or after May 16, 1997.

REG–141669–02, page 408. Proposed regulations under section 6724 of the Code provide rules designed to determine whether the correction of a failure to file a correct information return is considered prompt for purposes of waiving information reporting penalties. A public hearing is scheduled for October 21, 2003.

Notice 2003–55, page 395. This notice concerns the federal tax treatment of lease strips. Notice 95–53 modified and superseded.

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Notice 2003–56, page 396. Equity investment prior to allocation. The Treasury Department and the Service announce that they will amend section 1.45D–1T(c)(3)(ii) of the temporary regulations to provide an exception permitting certain equity investments made on or after the date the Community Development Financial Institutions Fund publishes a Notice of Allocation Availability in the Federal Register, and before the receipt of a new markets tax credit allocation under section 45D(f)(2), to be designated as qualified equity investments under section 45D(b)(1)(C) of the Code.

Rev. Proc. 2003–68, page 398. This procedure restates and modifies Rev. Procs. 2002–13 and 2002–45. The modifications include permitting the use of expected term in connection with the safe harbor valuation method and the ability to recalculate the option value under certain circumstances. Rev. Procs. 2002–13 and 2002–45 revoked.

Rev. Proc. 2003–70, page 406. This procedure provides the domestic asset/liability percentages and domestic investment yields needed by foreign insurance companies to compute their minimum effectively connected net investment income for taxable years beginning after December 31, 2001.