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. 2008–47, page 760. Interest rates; underpayments and overpayments. The rates of interest determined under section 6621 of the Code for the calendar quarter beginning October 1, 2008, will be 6 percent for overpayments (5 percent in the case of a corporation), 6 percent for underpayments, and 8 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 3.5 percent.

T.D. 9420, page 750. Final regulations under section 42 of the Code, concerning the low-income housing tax credit, update the utility allowances regulations to provide new options for estimating tenant utility costs.

REG–120844–07, page 770. Proposed regulations under section 460 of the Code would amend the regulations as they apply to certain long-term construction contracts that qualify as home construction contracts under section 460(e)(6) and to certain changes in method of accounting for long-term contracts. A public hearing is scheduled for December 5, 2008.

REG–106251–08, page 774. Proposed regulations under section 423 of the Code provide the requirements that must be satisfied in order for a plan to meet the definition of an employee stock purchase plan. Section 423 also addresses the individual income tax treatment of stock acquired pursuant to an option granted under an employee stock purchase plan. The regulations update the existing regulations and provide additional guidance in certain areas.

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