ADMINISTRATIVE

Rev. Rul. 2004–50, page 977. Indian tribal government. This ruling provides clarification with regard to an Indian tribal government’s ability to qualify as an eligible shareholder under section 1361 of the Code. Specifically, the ruling explains that a federally recognized Indian tribal government does not qualify as a permissible S corporation shareholder under section 1361(b)(1)(B) because it is not treated as an individual subject to individual income taxes under section 1 of the Code. The ruling also explains that a federally recognized Indian Tribe cannot qualify as a permissible S corporation shareholder under section 1361(c)(6) because it is neither a section 501(c)(3) organization, nor a section 401(a) qualified plan, profit-sharing, or stock bonus plan organization.

Rev. Proc. 2004–28, page 984. This procedure provides guidance to regulated investment companies (RICs) who must comply with the asset diversification rules of section 851(b)(3) of the Code. The procedure describes conditions under which a RIC may look through a repurchase agreement (repo) to government securities serving as the underlying collateral to treat itself as the owner of the government securities for purposes of these rules. The procedure is effective for repos held by a RIC on or after August 15, 2001.

Rev. Proc. 2004–34, page 991. This procedure provides a method of accounting under which taxpayers using an accrual method of accounting may defer including all or part of certain advance payments in gross income until the year after the year the payment is received. Rev. Proc. 71–21 modified and superseded and Rev. Proc. 2002–9 modified and amplified.

Announcement 2004–48, page 998. This announcement provides background information relating to Rev. Proc. 2004–34 in this Bulletin. Rev. Proc. 2004–34 provides a method of accounting under which taxpayers using an accrual method of accounting may defer including all or part of certain advance payments in gross income until the year after the year the payment is received.

June 1, 2004 2004-22 I.R.B.