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. 2011–32, page 904. Interest rates; underpayments and overpayments. The rates for interest determined under section 6621 of the Code for the calendar quarter beginning January 1, 2012, will be 3 percent for overpayments (2 percent in the case of a corporation), 3 percent for the underpayments, and 5 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 0.5 percent.

Notice 2011–101, page 932. This notice requests comments on proposed guidance concerning the income, gift, estate, and/or generation-skipping transfer tax consequences in situations in which transfers by a trustee from an irrevocable trust to another irrevocable trust (sometimes called “decanting”) results in a change of beneficial interests.

Rev. Proc. 2011–61, page 990. General rules and specifications for substitute forms and schedules. Requirements are set forth for privately designed and privately printed federal tax forms and conditions under which the Service will accept computer prepared, and computer-generated tax forms and schedules. It will be reproduced as the next revision of Publication 1167. Rev. Proc. 2010-21 superseded.