INCOME TAX

Rev. Rul. 2005–47, page 261. ATM surcharge fees. This ruling holds that, for federal income tax purposes, a credit card issuer treats third-party ATM surcharge fees incurred by its cardholders as additional amounts loaned to those cardholders. Further, this is so whether the credit card issuer reflects the ATM surcharge fee on the cardholder’s account as part of the amount of the cardholder’s cash advance (as in Situation 1) or as a separately stated amount (as in Situation 2).

Rev. Rul. 2005–48, page 259. Restricted property received for services; securities law. This ruling clarifies that, except as otherwise provided by section 83 of the Code, transfer restrictions on restricted stock or other section 83 property do not prevent the property from being substantially vested for purposes of section 83.

Notice 2005–53, page 263. This notice provides supplemental guidance for foreign banks concerning interest expense allocation. The notice also indicates that the Treasury Department and the IRS are evaluating foreign banking industry data to determine whether the 93-percent fixed ratio in step 2 of the interest expense allocation formula under regulations section 1.882–5 should be increased, and whether the fair market value election for valuing U.S. assets should require the use of the actual ratio in step 2. The notice also permits taxpayers who use the adjusted U.S. book liability method to calculate excess interest by reference to a published LIBOR rate rather than the taxpayer’s actual non-U.S.-based dollar borrowing rate.

Announcements of Disbarments and Suspensions begin on page 275. Finding Lists begin on page ii.