INCOME TAX

Rev. Rul. 2003–104, page 636. Interest rates; underpayments and overpayments. The rate of interest determined under section 6621 of the Code for the calendar quarter beginning October 1, 2003, will be 4 percent for overpayments (3 percent in the case of a corporation), 4 percent for underpayments, and 6 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 1.5 percent.

T.D. 9078, page 630. Final regulations under section 1361 of the Code provide guidance regarding a qualified subchapter S trust election for testamentary trusts and the period for which former qualified subpart E trusts and testamentary trusts may be permitted shareholders of an S corporation. In addition, these regulations provide that the definition of a testamentary trust also includes a trust to which S corporation stock is either transferred under the terms of an electing qualified revocable trust during its election period or deemed to be distributed at the close of the last day of the election period.

Notice 2003–64, page 646. Investments through multiple CDEs. The Treasury Department and the Service announce that they will amend regulations section 1.45D–1T(d)(1)(iv) to include investments through two additional qualified community development entities (CDEs) described in section 45D(c) of the Code.

Finding Lists begin on page ii.