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. 2006–23, page 839. LIFO; price indexes; department stores. The February 2006 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, February 28, 2006.

T.D. 9257, page 821. REG–146384–05, page 843. Final regulations under section 338 of the Code apply to a deemed sale or acquisition of an insurance company’s assets, to a sale or acquisition of an insurance trade or business, and to the acquisition of insurance contracts through assumption reinsurance. It also contains final regulations concerning the effect of certain corporate liquidations and reorganizations on certain tax attributes of insurance companies. This document also contains temporary and proposed regulations relating to the determination of adjusted basis of amortizable section 197 intangibles, increases in reserves after a deemed asset sale, and the carryover of an election to use a company’s historical loss payment pattern.

EMPLOYEE PLANS

Notice 2006–39, page 841. Weighted average interest rate update; 30-year Trea- sury securities. The weighted average interest rate for April 2006 and the resulting permissible range of interest rates used to calculate current liability and to determine the required contribution are set forth.

Announcements of Disbarments and Suspensions begin on page 844. Finding Lists begin on page ii. Index for January through April begins on page vi.