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. 2007–56, page 668. Interest rates; underpayments and overpayments. The rates of interest determined under section 6621 of the Code for the calendar quarter beginning October 1, 2007, will be 8 percent for overpayments (7 percent in the case of a corporation), 8 percent for underpayments, and 10 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 5.5 percent.

T.D. 9349, page 668. This document removes temporary regulations under section 125 of the Code relating to benefits that may be offered to participants under a cafeteria plan.

Rev. Proc. 2007–60, page 679. This procedure corrects the inflation adjusted amounts set forth in Rev. Proc. 2006–53, 2006–48 I.R.B. 996, that apply to taxpayers who elect to expense certain depreciable assets under section 179 of the Code. This correction reflects statutory changes enacted subsequent to the publication of Rev. Proc. 2006–53. Rev. Proc. 2006–53 modified.

EMPLOYEE PLANS

REG–142695–05, page 681. Proposed regulations under section 125 of the Code provide guidance on cafeteria plans. EE–16–79, EE–130–86, REG–243025–96, and REG–117162–99 withdrawn. Rev. Ruls. 69–141, 2002–41, 2003–102, 2005–24, 2006–36,

Finding Lists begin on page ii. Index for July through September begins on page v.