INCOME TAX

Rev. Rul. 2004–23, page 585. Section 355; stock distribution. This ruling examines whether a distribution that is expected to increase aggregate stock value satisfies the business purpose requirement of section 355 of the Code when the increased value is expected to serve both a corporate business purpose and a shareholder purpose.

Rev. Rul. 2004–25, page 587. Federal rates; adjusted federal rates; adjusted federal long-term rate and the long-term exempt rate. For purposes of sections 382, 642, 1274, 1288, and other sections of the Code, tables set forth the rates for March 2004.

Rev. Rul. 2004–26, page 598. Interest rates; underpayments and overpayments. The rate of interest determined under section 6621 of the Code for the calendar quarter beginning April 1, 2004, will be 5 percent for overpayments (4 percent in the case of a corporation), 5 percent for underpayments, and 7 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 2.5 percent.

Rev. Rul. 2004–37, page 583. Reduction in stated principal amount of a recourse note issued by employee to employer to acquire employer stock. This ruling provides guidance in cases where an employer and employee reduce the stated principal amount of a recourse note issued by an employee to the employer to acquire employer stock. This ruling holds that the employee recognizes compensation income equal to the amount of the reduction.

Finding Lists begin on page ii.