INCOME TAX

Rev. Rul. 2005–35, page 1214. Interest rates; underpayments and overpayments. The rate of interest determined under section 6621 of the Code for the calendar quarter beginning July 1, 2005, will be 6 percent for overpayments (5 percent in the case of a corporation), 6 percent for underpayments, and 8 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 3.5 percent.

T.D. 9202, page 1213. Final regulations under section 1031 of the Code replace the Standard Industrial Classification (SIC) system of codes with the North American Industry Classification System (NAICS) for purposes of determining what depreciable tangible personal property is like-kind to other property.

REG–100420–03, page 1236. Proposed regulations under section 475 of the Code set forth an elective safe harbor for dealers in securities and/or commodities and traders in securities and commodities that permits these taxpayers to make an election pursuant to which the values of the positions reported on certain financial statements are the fair market values of those positions. The safe harbor is based upon the principle that if the mark-to-market method used for financial reporting is sufficiently consistent with the mark-to-market method required by section 475, then the values used for financial reporting should be acceptable values for purposes of section 475, even if those values are not fair market values under general tax principles. To ensure minimal divergence from fair market values under tax principles, the regulations impose certain restrictions on the financial accounting methods and statements that are eligible for the safe

Finding Lists begin on page ii.