INCOME TAX

Rev. Rul. 2005–34, page 1098. LIFO; price indexes; department stores. The March 2005 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, March 31, 2005.

Notice 2005–38, page 1100. This document provides guidance under new section 965 of the Code generally concerning limitations described in sections 965(b)(1), (2), and (3) on the amount of dividends that a corporation that is a U.S. shareholder of a controlled foreign corporation (CFC) may treat as eligible for the dividends received deduction (DRD) under section 965(a), including the effects of certain corporate transactions on such limitations. In general, and subject to limitations and conditions, section 965(a) provides that a corporation that is a U.S. shareholder of a CFC may elect, for one taxable year, an 85 percent DRD with respect to certain cash dividends it receives from its CFCs. This document also addresses certain foreign tax credit and other consequences of elections under section 965. See also Notice 2005–10, 2005–6 I.R.B. 474, which primarily addresses requirements concerning domestic reinvestment plans described in section 965(b)(4). Notice 2005–10 modified.

Rev. Proc. 2005–30, page 1148. This procedure extends the time for issuing authorities to make a carryforward election of unused private activity bond volume cap under section 146(f) of the Code, provided that the issuing authority meets the requirements of the revenue procedure.

Announcement 2005–39, page 1151. This announcement provides supplemental information for the settlement initiative described in Announcement 2005–19 to resolve transactions that are the same as or substantially sim

Finding Lists begin on page ii. Index for January through May begins on page vi.