Bulletin No. 2004-32 August 9, 2004

sidered readily tradeable if it is traded on an over-the-counter market (such as the pink sheets).

T.D. 9138, page 160. This Treasury decision removes temporary regulation section 1.463–1T, which provides a rule for an election to deduct vested accrued vacation pay for a taxpayer’s first taxable year ending after July 18, 1984. The repeal of section 463 of the Code in 1987 has rendered the temporary regulation obsolete.

T.D. 9140, page 159. Final regulations under section 461 of the Code clarify that the transfer of a taxpayer’s note or promise to provide property or services in the future is not a transfer for the satisfaction of a contested liability under section 461(f). A transfer of a taxpayer’s stock or the stock or note of a related party also is not a transfer for the satisfaction of a contested liability under section 461(f). The regulations further provide that, in general, economic performance does not occur when a taxpayer transfers money or other property to a trust, escrow account, or court to provide for the satisfaction of a contested payment liability.

REG–150562–03, page 175. Proposed regulations relate to the application of section 1045 of the Code to partnerships and their partners. The regulations provide rules regarding the deferral of gain on a partner’s sale of qualified small business stock and deferral of gain on a partner’s sale of qualified small business stock distributed by a partnership. A public hearing is scheduled for November 2, 2004.

Notice 2004–52, page 168. This notice requests comments regarding the treatment of certain financial transactions commonly known as credit default swaps (CDSs).

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Actions Relating to Court Decisions is on the page following the Introduction. Announcements of Disbarments and Suspensions begin on page 184. Finding Lists begin on page ii.

Rev. Proc. 2004–48, page 172. This document provides that certain eligible entities may request relief for a late S corporation election and a late election to be classified as an association taxable as a corporation within 18 months of the original due date of the S corporation election (but in no event later than 6 months after the due date of the tax return, excluding extensions, for the first year the entity intended to be an S corporation).