INCOME TAX

Rev. Rul. 2004–97, page 516. Section 7805(b); Rev. Rul. 2004–75. This ruling grants insurance companies section 7805(b) relief from the retroactive application of Rev. Rul. 2004–75. Rev. Rul. 2004–75 will not be applied to payments made to nonresident alien individuals or bona fide residents of Puerto Rico under life insurance or annuity contracts issued by foreign or Puerto Rican branches of U.S. life insurance companies before January 1, 2005, provided such payments are made pursuant to binding life insurance or annuity contracts issued by such branches on or before July 12, 2004. Rev. Rul. 2004–75 amplified.

T.D. 9150, page 514. Final regulations under sections 141 and 142 of the Code finalize a portion of proposed regulations (REG–132483–03) that modify remedial action regulations. The regulations make one substantive change to the proposed regulations. This change provides an additional method for determining which bonds must be remediated for certain issuers with outstanding bonds. The regulations will generally apply to failures to properly use proceeds that occur on or after August 13, 2004.

T.D. 9152, page 509. Final regulations under section 121 of the Code provide rules relating to the reduced maximum exclusion of gain from the sale or exchange of property that the taxpayer has not owned and used as the taxpayer’s principal residence for two of the preceding five years or when the taxpayer has excluded gain from the sale or exchange of a principal residence within the preceding two years. T.D. 9031 removed.

Finding Lists begin on page ii. Index for July through September begins on page iv.