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. 2010–21, page 388. Interest rates; underpayments and overpayments. The rates for interest determined under section 6621 of the Code for the calendar quarter beginning October 1, 2010, will be 4 percent for overpayments (3 percent in the case of a corporation), 4 percent for underpayments, and 6 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 1.5 percent.

Rev. Rul. 2010–22, page 388. Fringe benefits aircraft valuation formula. The Standard Industry Fare Level (SIFL) cents-per-mile rates and terminal charge in effect for the second half of 2010 are set forth for purposes of determining the value of noncommercial flights on employer-provided aircraft under section 1.61–2(g) of the regulations.

Rev. Rul. 2010–23, page 388. Revenue ruling obsoleted. This ruling obsoletes Rev. Rul. 2003–102, 2003–2 C.B. 559, which provides guidance on employer reimbursements of amounts paid by an employee to purchase nonprescription medicines or drugs.

Notice 2010–59, page 396. This notice provides guidance on new section 106(f) of the Code, which requires that an over-the-counter medicine or drug be prescribed to be a medical expense for purposes of section 105. Notices 96–53, 2004–2, 2004–50, 2008–51, 2008–52 modified. Notice 2006–69 amplified.

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