INCOME TAX

Rev. Rul. 2007–24, page 1282. Section 1035; certain exchanges of insurance policies. A taxpayer’s receipt of a check issued by an insurance company under a non-qualified annuity contract is treated as a taxable distribution, even if the check is endorsed to a second insurance company for the purchase of a second annuity. The transaction is not characterized as a tax-free exchange under section 1035(a)(3) of the Code unless there is a direct exchange or assignment of the original contract.

Rev. Rul. 2007–30, page 1277. Income attributable to domestic production activities; qualifying in-kind partnerships. This ruling provides that a partnership engaged in the extraction and processing of minerals within the United States is a qualifying in-kind partnership for purposes of section 199 of the Code. Each partner of a qualifying in-kind partnership is treated as having manufactured, produced, grown, or extracted (MPGE) property MPGE by the partnership that is distributed to that partner.

Rev. Rul. 2007–31, page 1275. Contributions to the capital of a corporation; nonshare- holder contributions. This ruling provides that payments received by a corporation under the federal universal service support mechanisms do not represent a nonshareholder contribution to capital under section 118(a) of the Code. The federal universal service support mechanisms are funded by contributions from telecommunications carriers. Telecommunications carriers receive support payments to provide discounted telecommunications services or telecommunication services in high cost areas.

Finding Lists begin on page ii.