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. 2007–11, page 606. LIFO; price indexes; department stores. The December 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, December 31, 2006.

REG–159444–04, page 618. Proposed regulations under section 6325 of the Code outline specific procedures for obtaining a release of a federal tax lien or a discharge of a federal tax lien from property to which it has attached. The regulations incorporate changes to the Code that were made by the IRS Restructuring and Reform Act of 1998, which afford a means for a person whose property is encumbered by a federal tax lien, but who does not owe the tax giving rise to the lien, to have his property discharged from the lien.

Notice 2007–21, page 611. Donor advised funds and supporting organizations. This notice requests public comments in connection with a study being conducted by the Department of the Treasury and the Service on the organization and operation of donor advised funds and supporting organizations. The study is required by section 1226 of the Pension Protection Act of 2006.

Announcement 2007–18, page 625. This announcement sets forth a compliance resolution program (Program) that permits employers to pay the additional section 409A taxes arising due to the exercise of certain stock options and stock appreciation rights (stock rights). The Program (1) applies only to discounted stock rights exercised during 2006,

Finding Lists begin on page ii. Index for January through February begins on page iv.