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. 2007–12, page 685. Payroll taxes on deferred compensation. This ruling provides guidance on when a taxpayer using an accrual method of accounting incurs a liability under section 461 of the Code for payroll taxes on deferred compensation. Rev. Rul. 69–587 revoked. Rev. Rul. 96–51 amplified.

Rev. Rul. 2007–13, page 684. Investor control and general public; taxation of variable contracts; insurance and annuities. This ruling treats the grantor of a grantor trust as the owner of a life insurance contract that is owned by the trust for purposes of determining whether a transfer of a contract (a) is a transfer for valuable consideration, and (b) if so, is a transfer to the insured within the meaning of section 101(a)(2)(B) of the Code.

Rev. Rul. 2007–15, page 687. 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 March 2007.

Notice 2007–19, page 689. This notice provides interim rules, pending the issuance of regulations under sections 932(c) and 7654(e), concerning the statute of limitations on assessment with respect to taxpayers claiming to be bona fide residents of the U.S. Virgin Islands (USVI). The notice also provides a new annual information reporting requirement for U.S. citizens and resident aliens with $75,000 or more of gross income who claim bona fide residency status in the USVI. Taxpayers may rely on this notice until regulations are issued.

Finding Lists begin on page ii.