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

Ct. D. 2085, page 828. Itemized deductions, certain federal taxable income. The Supreme Court holds that investment advisory fees generally are subject to the 2% floor when incurred by a trust. Knight, Trustee of William L. Rudkin Testamentary Trust v. Commissioner of Internal Revenue.

T.D. 9388, page 832. REG–143468–07, page 848. Final, temporary, and proposed regulations under section 7701 of the Code add an entity to the list of foreign business entities that are always classified as corporations. This entity is not eligible to check the box to change its classification.

REG–119518–07, page 844. Proposed regulations under section 162 of the Code provide guidance regarding the deduction for deemed living expenses while away from home for a state legislator who makes an election under section 162(h).

EMPLOYEE PLANS

REG–110136–07, page 838. Proposed regulations under section 4980F of the Code provide guidance relating to a plan amendment that is permitted to be effective before the plan amendment’s applicable amendment date. The regulations would also reflect certain amendments made to section 4980F by the Pension Protection Act of 2006, Public Law 109–280 (120 Stat. 780). A public hearing is scheduled for July 10, 2008.

Finding Lists begin on page ii. Index for January through April begins on page vi.