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

Notice 2006–76, page 459. This notice provides examples to illustrate and confirm the application of section 937(b) of the Code and regulations sections 1.937–2T and –3T in determining whether income is derived from sources within a U.S. possession or territory specified in section 937(a)(1) or whether income is effectively connected with the conduct of a trade or business within such a U.S. possession or territory.

Rev. Proc. 2006–37, page 499. This procedure modifies Rev. Proc. 2006–12, 2006–3 I.R.B. 310, to allow a taxpayer to utilize the advance consent procedures of Rev. Proc. 97–27, as modified and amplified by Rev. Proc. 2002–19, as amplified and clarified by Rev. Proc. 2002–54, when seeking a change to a method of accounting provided in regulations sections 1.263(a)–4, 1.263(a)–5, or 1.167(a)–3(b) in conjunction with a change for the same item to a method of accounting utilizing the 3 ¹ /2 month rule authorized by regulations section 1.461–4(d)(6)(ii) or the recurring item exception authorized by regulations section 1.461–5. Rev. Proc. 2006–12 modified.

EMPLOYEE PLANS

T.D. 9280, page 450. Final regulations under section 411(d)(6) of the Code provide guidance on the application of the anti-cutback rules.

Announcements of Disbarments and Suspensions begin on page 501. Finding Lists begin on page ii.