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. 2006–36, page 353. Health reimbursement arrangements. This ruling holds that amounts that may be paid as medical benefits to a designated beneficiary (other than an employee’s spouse or an employee’s dependent) are not excludable from the employee’s gross income under section 105(b) of the Code. Notice 2002–45 and Rev. Ruls. 2002–41 and 2005–24 amplified.

Rev. Rul. 2006–44, page 361. Federal rates; adjusted federal rates; adjusted federal long-term rate and the long-term exempt rate. For purposes of sections 382, 642, 1274, 1288, and other sections of the Code, tables set forth the rates for September 2006.

T.D. 9279, page 355. REG–125071–06, page 375. Final, temporary, and proposed regulations under section 671 of the Code amend regulations section 1.671–5, reporting rules for widely held fixed investment trusts (WHFITs), to clarify and simplify the application of those rules to non-mortgage widely held fixed investment trusts (NMWHFITs). The proposed regulations also include a requirement that trustees of WHFITs file an information return with the IRS and provide for the IRS to create a directory of NMWHFITs and trustees of widely held mortgage trusts (WHMTs). The proposed regulations clarify the market discount reporting rules under the NMWHFIT safe harbor and solicit comments on the WHMT safe harbor.

REG–124152–06, page 368. Proposed regulations provide guidance relating to the determination of who is considered to pay a foreign tax for purposes of

Announcements of Disbarments and Suspensions begin on page 379. Finding Lists begin on page ii.