These are miscellaneous informational tax items of interest to tax
professionals. Some of the information is from the IRS, some from other
government agencies, and some are from public sources. You will find that
the items are very interesting, informative, and perhaps helpful to you
in your practice.
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| Files Already in the Internal Revenue Bulletin |
Bulletin |
IRB Date |
 |
| Notice 2002-77(PDF) |
IRB #2002-52(HTML) |
12/30/2002 |
| The Service and the Department of Treasury announce their intention to amend section 1.367(a)-3(d) of the regulations to provide specifically that a U.S. person's exchange of stock or securities of a corporation (the "acquired corporation") for stock or securities of a foreign acquiring corporation in a reorganization under section 368(a)(1)(D) of the Code in which the foreign acquiring corporation transfers part or all of the acquired corporation's assets to a subsidiary, controlled by the acquiring corporation pursuant to the plan of reorganization, constitutes an indirect transfer of stock or securities by the U.S. person to the foreign acquiring corporation. |
| Rev. Rul. 2002-86(PDF) |
IRB #2002-52(HTML) |
12/30/2002 |
| Combat zone-related deaths and deaths of victims of certain terrorist attacks. This ruling provides sample estate tax calculations, under section 2201 of the Code, for the estates of victims of specified terrorist attacks and members of the armed forces who died as a result of active service in a combat zone. Rev. Rul. 78 -361 modified and superseded. |
| Rev. Rul. 2002-85(PDF) |
IRB #2002-52(HTML) |
12/30/2002 |
| Section 368(a)(1)(D) reorganization. Guidance is provided as to whether a transaction otherwise qualifying under section 368(a)(1)(D) of the Code will be prevented from so qualifying when the acquiring corporation transfers the target corporation's assets to a subsidiary controlled by the acquiring corporation. Rev. Rul. 74-545 obsoleted. |
| Rev. Proc. 2002-74(PDF) |
IRB #2002-51(HTML) |
12/23/2002 |
| Insurance companies; loss discounting. This procedure clarifies that the composite method set forth in Notice 88-100 for discounting unpaid losses is permitted, but not required, for certain insurance companies subject to tax under section 831 of the Code. This document further provides an alternative method that is permitted for insurance companies not using the composite method, and sets forth a procedure for insurance companies to obtain automatic consent of the Commissioner to change to either method of accounting. Section V of Notice 88-100 obsolete to the extent it provides that the composite method is mandatory. Rev. Proc. 2002-9 modified and amplified. |
| Notice 2002-80(PDF) |
IRB #2002-51(HTML) |
12/23/2002 |
| Weighted average interest rate update. The weighted average interest rate for December 2002 and the resulting permissible range of interest rates used to calculate current liability for purposes of the full funding limitation of section 412(c)(7) of the Code are set forth. |
| Rev. Rul. 2002-82(PDF) |
IRB #2002-51(HTML) |
12/23/2002 |
| Viatical settlement providers; licensing. This ruling defines when a viatical settlement provider is required to be licensed by a state rather than meeting requirements imposed by the National Association of Insurance Commissioners. |
| Notice 2002-79(PDF) |
IRB #2002-50(HTML) |
12/16/2002 |
| Gross income; advance payments. This notice proposes a revenue procedure that, if finalized, will modify and supersede Rev. Proc. 71-21, 1971-2 C.B. 549, and allow taxpayers using an accrual method of accounting to defer the inclusion of advance payments in gross income for federal income tax purposes in certain limited situations. |
| Announcement 2002-110(PDF) |
IRB #2002-50(HTML) |
12/16/2002 |
| The Service has extended the time to apply to participate in the settlement initiative for Contingent Liability Transactions, the procedures for which were prescribed in Rev. Proc. 2002-67, 2002-43 I.R.B. 733. In order to allow taxpayers a longer opportunity to consider the settlement initiative, the settlement methodology they wish to select, and to assemble the necessary information, the Service has extended the application date from January 2, 2003, to March 5, 2003. |
| Announcement 2002-110(PDF) |
IRB #2002-50(HTML) |
12/16/2002 |
| The Service has extended the time to apply to participate in the settlement initiative for Contingent Liability Transactions, the procedures for which were prescribed in Rev. Proc. 2002-67, 2002-43 I.R.B. 733. In order to allow taxpayers a longer opportunity to consider the settlement initiative, the settlement methodology they wish to select, and to assemble the necessary information, the Service has extended the application date from January 2, 2003, to March 5, 2003. |
| Rev. Rul. 2002-84(PDF) |
IRB #2002-50(HTML) |
12/16/2002 |
| Overpayment, offset and repayment. This ruling describes three situations where there are overpayments of benefits from a qualified plan within the meaning of section 401(a) of the Code, the tax consequences of those overpayments, and the subsequent offsets by the plan or repayment to the plan. |
| Rev. Proc. 2002-72(PDF) |
IRB #2002-49(HTML) |
12/9/2002 |
| This procedure sets forth the maximum face amount of Qualified Zone Academy Bonds that may be issued by each state, the District of Columbia, and the possessions of the United States during 2003. |
| Announcement 2002-108(PDF) |
IRB #2002-49(HTML) |
12/9/2002 |
| This document provides notice that the reporting of compensation resulting from employer-provided nonstatutory stock options in box 12 of the Form W-2, using Code V, is mandatory for Forms W-2 issued for the year 2003 and subsequent years. |
| Rev. Rul. 2002-83(PDF) |
IRB #2002-49(HTML) |
12/9/2002 |
| Related party like-kind exchanges. Under the facts described, a taxpayer who transfers relinquished property to a qualified intermediary in exchange for replacement property formerly owned by a related party is not entitled to nonrecognition treatment under section 1031(a) of the Code if, as part of the transaction, the related party receives cash or other non-like-kind property for the replacement property. |
| Rev. Rul. 2002-81(PDF) |
IRB #2002-49(HTML) |
12/9/2002 |
| Federal rates; adjusted federal rates; adjusted federal long-term rate and the long-term exempt rate. For purposes of sections 382, 1274, 1288, and other sections of the Code, tables set forth the rates for December 2002. |
| Rev. Proc. 2002-73(PDF) |
IRB #2002-49(HTML) |
12/9/2002 |
| Extensions. This procedure extends the time for amending pre-approved plans to comply with GUST to September 30, 2003, and also extends the time for making certain other plan amendments. Notice 2001-37; Rev. Procs. 2000-20, 2002-6, and 2002-35; and Rev. Ruls. 2001-62 and 2002-27 modified. |
| Notice 2002-76(PDF) |
IRB #2002-48(HTML) |
12/2/2002 |
| Gross income; disaster relief payments. This notice provides answers to frequently asked questions regarding the tax treatment of Residential Grant Program grants the Lower Manhattan Development Corporation makes to individuals and families who occupy rental units or owner-occupied units in areas near the site of the September 11, 2001, attack on the World Trade Center. |
| Rev. Rul. 2002-78(PDF) |
IRB #2002-48(HTML) |
12/2/2002 |
| CPI adjustment for below-market loans for 2003. The amount that section 7872(g) of the Code permits a taxpayer to lend to a qualified continuing care facility without incurring imputed interest is published and adjusted for inflation for years 1987-2003. Rev. Rul. 2001-64 supplemented and superseded. |
| Rev. Rul. 2002-79(PDF) |
IRB #2002-48(HTML) |
12/2/2002 |
| Section 1274A — inflation-adjusted numbers for 2003. This ruling provides the dollar amounts, increased by the 2003 inflation adjustment, for section 1274A of the Code. Rev. Rul. 2001-65 supplemented and superseded. |
| Notice 2002-74(PDF) |
IRB #2002-47(HTML) |
11/25/2002 |
| Weighted average interest rate update. The weighted average interest rate for November 2002 and the resulting permissible range of interest rates used to calculate current liability for purposes of the full funding limitation of section 412(c)(7) of the Code are set forth. |
| Rev. Rul. 2002-67(PDF) |
IRB #2002-47(HTML) |
11/25/2002 |
| Charitable contributions. This ruling addresses the tax consequences under section 170 of the Code (regarding the deduction allowed for contributions and gifts to charity) of a taxpayer's transfer of a used car to the authorized agent of a charity. |
| Notice 2002-75(PDF) |
IRB #2002-47(HTML) |
11/25/2002 |
| Annual accounting periods; automatic approval. This notice proposes a revenue procedure that, when finalized, will provide guidance for individuals to obtain automatic approval of the Commissioner to change their annual accounting period to the calendar year. Revenue Procedure 66-50 modified, amplified, and superseded. Revenue Procedure 81-40 modified and superseded. |
| Notice 2002-72(PDF) |
IRB #2002-46(HTML) |
11/18/2002 |
| Changes in annual accounting period. This notice clarifies and modifies certain provisions in Rev. Procs. 2002-37, 2002-38, and 2002-39, which provide procedures for obtaining approval of an adoption, change, or retention of an annual accounting period. |
| Notice 2002-73(PDF) |
IRB #2002-46(HTML) |
11/18/2002 |
| The Service clarifies the circumstances in which a state or local bond is treated as issued by the New York City Water Finance Authority or the Metropolitan Transportation Authority for purposes of section 1400L(e)(2)(B) of the Code. |
| Rev. Proc. 2002-70(PDF) |
IRB #2002-46(HTML) |
11/18/2002 |
| Cost-of-living adjustments for 2003. This procedure provides cost-of-living adjustments for the tax rate tables for individuals, estates, and trusts, the standard deduction amounts, the personal exemption, and several other items that use the adjustment method provided for the tax rate tables. The Service also provides the adjustment for eligible long-term care premiums and another item that uses the adjustment method provided for eligible long-term care premiums. |
| Rev. Proc. 2002-69(PDF) |
IRB #2002-45(HTML) |
11/12/2002 |
| This procedure provides guidance on the classification for federal tax purposes of a qualified entity (described in section 3.02 of this procedure) that is owned solely by a husband and wife as community property under the laws of a state, a foreign country, or a possession of the United States. |
| Rev. Rul. 2002-66(PDF) |
IRB #2002-45(HTML) |
11/12/2002 |
| Effect of collars on qualified covered calls. Guidance is provided under section 1092 of the Code regarding the effect of collars upon qualified covered call options. |
| Rev. Rul. 2002-73(PDF) |
IRB #2002-45(HTML) |
11/12/2002 |
| Deductibility; timing. This ruling modifies Rev. Rul. 2002-46 to provide that the scope limitations imposed by Revenue Procedure 2002-9 (providing for automatic consent to change a method of accounting) are waived for taxpayers who wish to change their method of accounting to comply with the holding of Rev. Rul. 2002-46. This applies only for the taxpayers’ first taxable year ending on or after October 16, 2002, effective on that date. Rev. Rul. 2002-46 modified. Revenue Procedure 2002-9 modified and amplified. |
| Rev. Rul. 2002-74(PDF) |
IRB #2002-45(HTML) |
11/12/2002 |
| Federal rates; adjusted federal rates; adjusted federal long-term rate and the long-term exempt rate. For purposes of sections 382, 1274, 1288, and other sections of the Code, tables set forth the rates for November 2002. |
| Notice 2002-70(PDF) |
IRB #2002-44(HTML) |
11/4/2002 |
| This notice alerts taxpayers and their representatives about certain reinsurance transactions intended to shift income to offshore related companies purported to be insurance companies that are subject to little or no U.S. federal income tax. These transactions often do not generate the federal tax benefits that taxpayers claim are allowable for federal income tax purposes. This notice also alerts taxpayers, their representatives, and promoters of these transactions, to certain reporting and record keeping obligations and penalties that they may be subject to with respect to these transactions. |
| Rev. Rul. 2002-69(PDF) |
IRB #2002-44(HTML) |
11/4/2002 |
| Business expenses; interest; lease-in/lease-out transactions. A taxpayer may not deduct currently, under sections 162 and 163 of the Code, rent and interest paid or incurred in connection with a lease-in/lease-out (LILO) transaction that properly is characterized as conferring only a future interest in property. rr 99-14 modified and superseded. |
| Rev. Rul. 2002-71(PDF) |
IRB #2002-44(HTML) |
11/4/2002 |
| Notional principal contract (NPC). This ruling provides guidance on the timing of recognition of gain or loss on the termination of a notional principal contract that hedges a portion of the term of a debt instrument issued by the taxpayer. |
| Announcement 2002-96(PDF) |
IRB #2002-43(HTML) |
10/28/2002 |
| The Service announces that the Appeals settlement initiative with respect to broad-based leveraged corporate owned life insurance (COLI) plans purchased after June 20, 1986, will be terminated. The Service will vigorously defend or prosecute all future COLI litigation. There will be a 45-day window within which taxpayers will be permitted to enter into the current settlement arrangement by submitting to the Internal Revenue Service a formal written offer to settle. |
| Notice 2002-68(PDF) |
IRB #2002-43(HTML) |
10/28/2002 |
| Weighted average interest rate update. The weighted average interest rate for October 2002 and the resulting permissible range of interest rates used to calculate current liability for purposes of the full funding limitation of section 412(c)(7) of the Code are set forth. |
| Rev. Proc. 2002-68(PDF) |
IRB #2002-43(HTML) |
10/28/2002 |
| Optional election to make monthly 706(a) computations. This procedure allows certain partnerships that invest in assets exempt from taxation under section 103 of the Code to make an election that enables partners to take into account monthly the inclusions required under sections 702 and 707(c). Rev. Proc. 2002-16 modified and superseded. |
| Announcement 2002-97(PDF) |
IRB #2002-43(HTML) |
10/28/2002 |
| Under the terms of this announcement, taxpayers who have engaged in basis-shifting transactions will be given the opportunity to resolve this issue with minimal further examination or other administrative proceedings. Participating taxpayers will enter into a settlement with fixed terms that are specified in the announcement. |
| Notice 2002-69(PDF) |
IRB #2002-43(HTML) |
10/28/2002 |
| This notice provides interim guidance for determining interest rates and foreign loss payment patterns for certain foreign insurance companies under section 954(i) of the Code. Comments are requested by March 28, 2003. |
| Rev. Proc. 2002-67(PDF) |
IRB #2002-43(HTML) |
10/28/2002 |
| This document provides procedures for taxpayers who elect to participate in a settlement initiative aimed at resolving tax shelter cases involving “contingent liability transactions” that are the same or similar to those described in Notice 2001-17, 2001-1 C.B. 730. There are two resolution methodologies: a fixed concession procedure and a fast track dispute resolution procedure that includes binding arbitration. |
| Notice 2002-67(PDF) |
IRB #2002-42(HTML) |
10/21/2002 |
| Gain or loss; payments to peanut quota holders. Information is provided, in a question and answer format, to holders of peanut quotas regarding the tax treatment of federal payments made under section 1309 of the Farm Security and Rural Investment Act of 2002. |
| Notice 2002-66(PDF) |
IRB #2002-42(HTML) |
10/21/2002 |
| This notice extends through the end of calendar year 2002 the transitional documentation and reporting relief for foreign partnerships, Qualified Intermediaries (QIs), and U.S. withholding agents specified in Notice 2001-4. |
| Rev. Rul. 2002-62(PDF) |
IRB #2002-42(HTML) |
10/21/2002 |
| Substantially equal periodic payments; premature distributions. This ruling provides that a change to the required minimum distribution method of calculating substantially equal periodic payments within the meaning of section 72(t)(2)(A)(iv) of the Code will not generate additional income tax under section 72(t)(1). Notice 89-25 modified. |
| Rev. Proc. 2002-65(PDF) |
IRB #2002-41(HTML) |
10/15/2002 |
| Business expenses; capital expenditures; railroad track maintenance costs. This procedure provides a safe harbor method of accounting (track maintenance allowance method) for track structure expenditures paid or incurred by certain railroads. It also provides procedures for a qualifying taxpayer to obtain automatic consent from the Commissioner to change to the track maintenance allowance method. In addition, this procedure provides an option for certain qualifying taxpayers to settle the issue of track structure expenditures for open taxable years using the track maintenance allowance method. Rev. Procs. 2001-46 and 2002-9 modified and amplified. |
| Rev. Rul. 2002-28(PDF) |
IRB #2002-20(HTML) |
5/20/2002 |
| Private foundation transfer of assets; notification, filing, and other implications. This ruling addresses a private foundation's responsibilities relating to sections 507 and 4940 through 4945 of the Code and its tax return filing obligations in sections 6033 and 6043 when it transfers all of its assets to one or more effectively controlled private foundations. |
| Rev. Proc. 2002-27(PDF) |
IRB #2002-17(HTML) |
4/29/2002 |
| Depreciation of tires. This document provides a safe harbor method of accounting (the original tire capitalization method) for the cost of original and replacement tires for certain vehicles owned by taxpayers, procedures for a qualifying taxpayer to obtain automatic consent from the Commissioner to change to the original tire capitalization method, and an optional procedure for certain qualifying taxpayers to settle open taxable years using the original tire capitalization method. Rev. Proc. 2002-9 modified and amplified. |
| Notice 2002-29(PDF) |
IRB #2002-17(HTML) |
4/29/2002 |
| Section 469 and gain recognition election. This document explains the effect under section 469 of the Code of a deemed sale of property on January 1, 2001, pursuant to an election under section 311(e) of the Taxpayer Relief Act of 1997. |
| Notice 2002-24(PDF) |
IRB #2002-16(HTML) |
4/22/2002 |
| Section 6039D returns with respect to certain fringe benefits. This notice suspends the filing requirement imposed on specified fringe benefit plans by section 6039D of the Code. Notice 90-24 modified and superseded. |
| Notice 2002-28(PDF) |
IRB #2002-16(HTML) |
4/22/2002 |
| Weighted average interest rate update. The weighted average interest rate for April 2002 and the resulting permissible range of interest rates used to calculate current liability for purposes of the full funding limitation of section 412(c)(7) of the Code are set forth. |
| Rev. Rul. 2002-19(PDF) |
IRB #2002-16(HTML) |
4/22/2002 |
| Medical expenses. Uncompensated amounts paid by individuals for participation in a weight-loss program as treatment for a specific disease or diseases (including obesity) diagnosed by a physician are expenses for medical care under section 213 of the Code. The cost of purchasing diet food items is not deductible under section 213. Rev. Ruls. 55-261 and 79-151 distinguished. |
| Notice 2002-26(PDF) |
IRB #2002-15(HTML) |
4/15/2002 |
| Weighted average interest rate update. The weighted average interest rate for the first quarter of 2002 and the resulting permissible range of interest rates used to calculate current liability for purposes of the full funding limitation of section 412(c)(7) of the Code are set forth. |
| Notice 2002-25(PDF) |
IRB #2002-15(HTML) |
4/15/2002 |
| Charitable contributions, substantiation, relief. Due to the unique circumstances of the September 11th tragedy, taxpayers who made charitable contributions of $250 or more after September 10, 2001, and before January 1, 2002, are provided with partial relief from the "contemporaneous written acknowledgement" requirement of section 170(f)(8) of the Code with respect to those contributions. |
| Notice 2002-23(PDF) |
IRB #2002-15(HTML) |
4/15/2002 |
| Form 5500; DOL delinquent filer program. This notice provides relief from certain penalties under sections 6652 and 6692 of the Code for late filers of Form 5500 who are eligible for and satisfy the requirements of the Department of Labor's (DOL's) Delinquent Filer Voluntary Compliance (DFVC) program. |
| Announcement 2002-31(PDF) |
IRB #2002-15(HTML) |
4/15/2002 |
| Proposed class exemption; non-enforcement policy. This announcement describes the Service's position on the imposition of the prohibited transaction excise taxes during the pendency of a class exemption from the prohibited transaction rules (Application No. D-10933) proposed by the U.S. Department of Labor. |
| Rev. Proc. 2002-23(PDF) |
IRB #2002-15(HTML) |
4/15/2002 |
| This document describes new procedures under Article XVIII(7) of the U.S. -Canada income tax convention whereby U.S. taxpayers may elect to defer U.S. income taxation on income accruing in certain Canadian pension plans until a distribution is made from such plans. Rev. Proc. 89-45 superseded. |
| Notice 2002-22(PDF) |
IRB #2002-14(HTML) |
4/8/2002 |
| Guidance priority list. Public comments are requested about items that should be included in the Guidance Priority List for 2002-2003. All comments should be submitted by April 30, 2002. |
| Rev. Proc. 2002-20(PDF) |
IRB #2002-14(HTML) |
4/8/2002 |
| Guidance is provided to individuals who fail to meet the eligibility requirements of section 911(d)(1) of the Code because adverse conditions in a foreign country preclude the individual from meeting those requirements. A current list of countries and the dates those countries are subject to the section 911(d)(4) waiver is provided. Rev. Proc. 2001-27 supplemented. |
| Rev. Proc. 2002-22(PDF) |
IRB #2002-14(HTML) |
4/8/2002 |
| Undivided fractional interests in real estate. This procedure specifies the conditions under which the Service will consider a request for a ruling that an undivided fractional interest in rental real property (other than a mineral property as defined in section 614) is not an interest in a business entity within the meaning of section 301.7701-3 of the regulations. Rev. Proc. 2000-46 superseded. Rev. Proc. 2002-3 modified. |
| Rev. Rul. 2002-17(PDF) |
IRB #2002-14(HTML) |
4/8/2002 |
| Federal rates; adjusted federal rates; adjusted federal long-term rate and the long-term exempt rate. For purposes of sections 382, 1274, 1288, and other sections of the Code, tables set forth the rates for April 2002. |
| Notice 2002-21(PDF) |
IRB #2002-14(HTML) |
4/8/2002 |
| This notice addresses a transaction generating tax losses based on an inflated basis in assets acquired from another party. The inflated basis is claimed as a result of a transfer of assets in which a taxpayer becomes jointly and severally liable on indebtedness of the transferor, with the indebtedness having a stated principal amount substantially in excess of the fair market value of the assets transferred. The notice states that the taxpayer's basis in the assets transferred is equal to the fair market value of such assets upon their acquisition by the taxpayer rather than the stated principal amount of the indebtedness. |
| Rev. Proc. 2002-19(PDF) |
IRB #2002-13(HTML) |
4/1/2002 |
| Changes in method of accounting; prior consent; automatic consent. Rev. Procs. 97-27 and 2002-9 are modified to (1) allow certain taxpayers under examination or before appeals or a federal court to change their method of accounting prospectively without audit protection, (2) reduce from 4 years to 1 year the adjustment period for prospective changes resulting in a net negative adjustment under section 481(a) of the Code, and (3) make certain other conforming changes. Rev. Procs. 97-27 and 2002-9 modified and amplified. |
| Announcement 2002-37(PDF) |
IRB #2002-13(HTML) |
4/1/2002 |
| Methods of accounting. This announcement discusses some of the most significant and prevalent issues raised in comments received in connection with Notice 98-31 (1998-1 C.B. 1165), which proposed procedures for Service-imposed accounting method changes and the resolution of accounting method issues on a nonaccounting-method-change basis. |
| Announcement 2002-36(PDF) |
IRB #2002-13(HTML) |
4/1/2002 |
| Employee plans determinations letters; future of program. The Service extends the time, as stated in Announcement 2001-83 (2001-35 I.R.B. 205), for the submission of public comments on the future of the EP determination letter program from March 31, 2002, to July 1, 2002. |
| Announcement 2002-34(PDF) |
IRB #2002-13(HTML) |
4/1/2002 |
| Extension of time to file Forms 1042-S. The Service announces an extension of time to file 2001 Form(s) 1042-S from March 15, 2002, to May 15, 2002. |
| Rev. Proc. 2002-18(PDF) |
IRB #2002-13(HTML) |
4/1/2002 |
| Changes in method of accounting; examinations. Procedures are provided under section 446 of the Code for changes in method of accounting imposed by the Service. Procedures are also provided for resolving accounting method issues on a nonaccounting-method basis. |
| Notice 2002-18(PDF) |
IRB #2002-12(HTML) |
3/25/2002 |
| Loss duplication. The IRS announces that regulations will be issued to prevent duplication of losses within a consolidated group on dispositions of member stock. |
| Rev. Rul. 2002-12(PDF) |
IRB #2002-11(HTML) |
3/18/2002 |
| Insurance companies; interest rate tables. Prevailing state assumed interest rates are provided for the determination of reserves under section 807 of the Code for contracts issued in 2001 and 2002. Rev. Rul. 92-19 supplemented in part. |
| Announcement 2002-27(PDF) |
IRB #2002-11(HTML) |
3/18/2002 |
| This announcement requests comments regarding the development of an electronic filing system for exempt organization returns. Comments are due by April 18, 2002. |
| Rev. Rul. 2002-9(PDF) |
IRB #2002-10(HTML) |
3/11/2002 |
| Impact fees. This ruling provides that impact fees incurred by a taxpayer in connection with the construction of a new residential rental building are capitalized costs allocable to the building. Rev. Proc. 2002-9 modified and amplified. |
| Notice 2002-19(PDF) |
IRB #2002-10(HTML) |
3/11/2002 |
| The "differential earnings rate" under section 809 of the Code is tentatively determined for 2001 together with the "recomputed differential earnings rate" for 2000. |
| Announcement 2002-18(PDF) |
IRB #2002-10(HTML) |
3/11/2002 |
| The IRS will not assert that any taxpayer has understated his federal tax liability by reason of the receipt or personal use of frequent flyer miles or other in-kind promotional benefits attributable to the taxpayer's business or official travel. Any future guidance on the taxability of these benefits will be applied prospectively. The relief provided by this announcement does not apply to travel or other promotional benefits that are converted to cash, to compensation that is paid in the form of travel or other promotional benefits, or in other circumstances where these benefits are used for tax avoidance purposes. |
| Rev. Rul. 2002-10(PDF) |
IRB #2002-10(HTML) |
3/11/2002 |
| Federal rates; adjusted federal rates; adjusted federal long-term rate and the long-term exempt rate. For purposes of sections 382, 1274, 1288, and other sections of the Code, tables set forth the rates for March 2002. |
| Notice 2002-17(PDF) |
IRB #2002-09(HTML) |
3/4/2002 |
| This notice provides guidance, in a question and answer format, on the tax relief provided under Executive Order No. 13239 (2001-53 I.R.B. 632) for U.S. military and support personnel involved in the military operations in Afghanistan. |
| Rev. Proc. 2002-16(PDF) |
IRB #2002-09(HTML) |
3/4/2002 |
| Optional election to make monthly 706(a) computations. This procedure allows certain partnerships that invest in assets exempt from taxation under section 103 of the Code to make an election that enables money market fund partners to take into account monthly the inclusions required under sections 702 and 707(c). |
| Notice 2002-15(PDF) |
IRB #2002-08(HTML) |
2/25/2002 |
| This notice supplements the tax relief granted in Notices 2001-61 (2001-40 I.R.B. 305) and 2001-68 (2001-47 I.R.B. 504) for taxpayers affected by the September 11, 2001, terrorist attack by providing an additional postponement of time to apply for a tentative carryback adjustment under section 6411 of the Code. |
| Announcement 2002-17(PDF) |
IRB #2002-08(HTML) |
2/25/2002 |
| Changes in method of accounting; automatic consent. This announcement reflects corrections to Rev. Proc. 2002-9 (2002-3 I.R.B. 327), which provides procedures under which taxpayers may obtain automatic consent of the Commissioner to change certain methods of accounting. Rev. Proc. 2002-9 modified and clarified. |
| Rev. Proc. 2002-13(PDF) |
IRB #2002-08(HTML) |
2/25/2002 |
| This procedure provides a safe harbor method for valuing stock options under the golden parachute payment rules of section 280G of the Code. Generally, under the safe harbor valuation method described in the procedure, on the valuation date, the volatility of the underlying stock, the exercise price of the option, the value of the stock at the time of the valuation, and the maximum term of the option are taken into account. |
| Announcement 2002-19(PDF) |
IRB #2002-08(HTML) |
2/25/2002 |
| This announcement provides an extension of time to February 15, 2002, for employers to furnish Forms W-2 for the 2001 tax year to household employees. |
| Announcement 2002-13(PDF) |
IRB #2002-07(HTML) |
2/19/2002 |
| This announcement contains a correction to Table 6 of Rev. Rul. 2002-2 (2002-2 I.R.B. 271), the January 2002 Applicable Federal Rates. Table 6 contains the "Deemed Rate for Transfers to New Pooled Income Funds During 2002." under section 642(c)(5) of the Code. |
| Rev. Proc. 2002-11(PDF) |
IRB #2002-07(HTML) |
2/19/2002 |
| Dealer in securities futures contracts. This procedure provides guidelines for an exchange to follow in order to obtain a letter ruling regarding whether certain persons trading on that exchange qualify as "dealers" in securities futures contracts (or options on such contracts) for purposes of section 1256(g)(9) of the Code. Also, after issuance of a specific letter ruling determining dealer status, the Service expects to publish the same conclusion in a revenue ruling. |
| Notice 2002-12(PDF) |
IRB #2002-07(HTML) |
2/19/2002 |
| Patriots' Day 2002 in Massachusetts and Maine. Because Patriots' Day falls on April 15, this notice provides individual taxpayers residing in Massachusetts, Michigan, New York (all counties except Nassau, Rockland, Suffolk, Westchester, and New York City), Rhode Island, and Maine an additional day to file their federal income tax returns and make their payments (until April 16, 2002). This includes the payment of the first installment of estimated tax for 2002. |
| Notice 2002-11(PDF) |
IRB #2002-07(HTML) |
2/19/2002 |
| Loss disallowance. This notice sets forth the Service's new position with regard to consolidated return loss disallowance rules. |
| Rev. Proc. 2002-15(PDF) |
IRB #2002-06(HTML) |
2/11/2002 |
| This procedure provides guidance under section 7701 of the Code for a newly formed entity that requests relief for a late initial classification election filed within 6 months of the due date of the initial election. |
| Notice 2002-7(PDF) |
IRB #2002-06(HTML) |
2/11/2002 |
| Minimum funding standards; terrorist attack relief. This notice provides certain relief for all plans subject to the minimum funding standards of section 412 of the Code and additional relief from the minimum funding standards for certain plans affected by the terrorist attack of September 11, 2001. |
| Rev. Rul. 2002-5(PDF) |
IRB #2002-06(HTML) |
2/11/2002 |
| Federal rates; adjusted federal rates; adjusted federal long-term rate and the long-term exempt rate. For purposes of sections 382, 1274, 1288, and other sections of the Code, tables set forth the rates for February 2002. |
| Notice 2002-10(PDF) |
IRB #2002-06(HTML) |
2/11/2002 |
| This document clarifies the application of sections 145(a)(2) and 514 of the Code to the investment of gross proceeds of qualified 501(c)(3) bonds. |
| Rev. Rul. 2002-6(PDF) |
IRB #2002-06(HTML) |
2/11/2002 |
| Insurance companies; change in computation of life insurance reserves to use NAIC Actuarial Guideline 33. A change in the computation of existing life insurance reserves for annuity contracts to take into account specific factors set forth by the National Association of Insurance Commissioners (NAIC) Actuarial Guideline 33 is a change in basis subject to section 807(f) of the Code. |
| Announcement 2002-8(PDF) |
IRB #2002-05(HTML) |
2/4/2002 |
| This announcement provides notice that the deadline for written comments to Notices 2001-72 (2001-49 I.R.B. 548) and 2001-73 (2001-49 I.R.B. 549) has been extended from February 14, 2002, to April 23, 2002. Notices 2001-72 and 2001-73 contain proposed rules regarding the application of the Federal Insurance Contributions Act (FICA), the Federal Unemployment Tax Act (FUTA), and income tax withholding to the exercise of statutory stock options. A public hearing is rescheduled for May 14, 2002. |
| Notce 2002-8(PDF) |
IRB #2002-04(HTML) |
1/28/2002 |
| Split-dollar life insurance arrangements. This notice announces that the Treasury and the Service intend to publish proposed regulations providing comprehensive guidance on the Federal tax treatment of split-dollar life insurance arrangements. In addition, this notice indicates that any regulations will not be effective until the publication date of the final regulations, and provides information on the tax treatment of split-dollar life insurance arrangements entered into prior to the effective date of final regulations. Notice 2001–10 revoked. Rev. Rul. 55–747 revoked, Rev. Ruls. 64–328 and 66–110 modified. |
| Rev. Proc. 2002-10(PDF) |
IRB #2002-04(HTML) |
1/28/2002 |
| Opinion letters; prototype SEPs, SIMPLEs, and IRAs. This revenue procedure describes the opinion letter program for all prototype plans within the meaning of sections 408(a), (b), (k), and (p) and 408A of the Code. Rev. Proc. 87-50 modified. |
| Notice 2002-6(PDF) |
IRB #2002-03(HTML) |
1/22/2002 |
| This document clarifies that, although tax return preparers may be subject to the privacy provisions of the Gramm-Leach-Bliley Act, those provisions do not supersede, alter, or affect the preexisting requirements of section 7216 of the Code restricting the disclosure or use of tax return information by a tax return preparer. |
| Rev. Proc. 2002-12(PDF) |
IRB #2002-03(HTML) |
1/22/2002 |
| Materials and supplies; restaurant smallwares. A safe harbor method of accounting for "smallwares" is provided for taxpayers engaged in the trade or business of operating a restaurant or tavern. Under this safe harbor method, such taxpayers may account for smallwares in the same manner as materials and supplies that are not incidental under section 1.162-3 of the regulations. |
| Rev. Rul. 2002-3(PDF) |
IRB #2002-03(HTML) |
1/22/2002 |
| Health insurance premiums. This ruling provides guidance on the application of sections 106(a) and 105(b) of the Code to reimbursements of employees for salary reduction amounts previously excluded from gross income under section 106(a). Rev. Rul. 61-146 distinguished. |
| Rev. Proc. 2002-9(PDF) |
IRB #2002-03(HTML) |
1/22/2002 |
| Methods of accounting; automatic consent. Procedures are provided under which a taxpayer may obtain automatic consent of the Commissioner to change certain methods of accounting. Rev. Proc. 99-49 modified and superseded. |
| Notice 2002-3(PDF) |
IRB #2002-02(HTML) |
1/14/2002 |
| Safe harbor explanation; certain qualified plan distributions. This document provides an updated Safe Harbor Explanation that plan administrators may use for recipients of eligible rollover distributions from qualified plans in order to satisfy section 402(f) of the Code. Notice 2000-11 obsoleted. |
| Notice 2002-4(PDF) |
IRB #2002-02(HTML) |
1/14/2002 |
| EGTRRA; section 401(k) distributions; section 414(v) contributions. This document provides guidance with respect to the changes made by the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) which pertain to hardship distributions, severance of employment, and the availability of catch-up contributions. |
| Announcement 2002-2(PDF) |
IRB #2002-02(HTML) |
1/14/2002 |
| Waiver of penalties. To encourage taxpayers to disclose their tax treatment of certain tax shelters, the IRS will waive the accuracy-related penalty under section 6662 of the Code. |
| Rev. Rul. 2002-1(PDF) |
IRB #2002-02(HTML) |
1/14/2002 |
| Options and spin-off. This ruling provides guidance for the income tax treatment of employee stock options and restricted stock in certain spin-offs. |
| Rev. Rul. 2002-2(PDF) |
IRB #2002-02(HTML) |
1/14/2002 |
| Federal rates; adjusted federal rates; adjusted federal long-term rate and the long-term exempt rate. For purposes of sections 382, 1274, 1288, and other sections of the Code, tables set forth the rates for January 2002. |
| Announcement 2002-1(PDF) |
IRB #2002-02(HTML) |
1/14/2002 |
| User fees. This announcement allows for the temporary use of a draft Form 8717 in lieu of the Form 8717 described in Q&A-15 of Notice 2002-1 in this Bulletin. |
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