HIGHLIGHTS OF THIS ISSUE

These synopses are intended only as aids to the reader in identifying the subject matter covered. They may not be relied upon as authoritative interpretations.

INCOME TAX

Rev. Rul. 2005–5, page 445. LIFO; price indexes; department stores. The November 2004 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, November 30, 2004.

Notice 2005–6, page 448. This notice announces that the Treasury Department and the Service will issue regulations providing that certain exchanges described in section 354 of the Code by a U.S. person involving securities of a foreign or domestic corporation will not be subject to section 367(a).

EMPLOYEE PLANS

T.D. 9169, page 381. Final regulations provide guidance for certain retirement plans containing cash or deferred arrangements under section 401(k) of the Code, and provide for matching contributions or employee contributions under section 401(m).

ADMINISTRATIVE

Notice 2005–3, page 447. Presidentially declared disasters. This notice advises taxpayers that Rev. Proc. 2004–13, 2004–4 I.R.B. 335, will be modified retroactively to provide additional tax relief to taxpayers (transferors) involved in section 1031 like-kind exchange transactions affected by a Presidentially declared disaster (in

Announcements of Disbarments and Suspensions begin on page 450. Finding Lists begin on page ii. Index for January begins on page iv.