| Revenue Rulings |
Bulletin |
Date of IRB |
 |
| Rev. Rul. 2002-91(PDF, 48K) |
IRB #2002-52(HTML) |
Dec. 30, 2002 |
| Captive insurance; group captive. This ruling sets forth circumstances under which amounts paid to a group captive of unrelated insureds are deductible as insurance premiums and in which the group captive qualifies as an insurance company. |
| Rev. Rul. 2002-90(PDF, 45K) |
IRB #2002-52(HTML) |
Dec. 30, 2002 |
| Captive insurance. This ruling considers circumstances under which payments for professional liability coverage by a number of operating subsidiaries to an insurance subsidiary of a common parent constitute insurance for federal income tax purposes.Rev.Rul.2001-31 amplified. |
| Rev. Rul. 2002-89(PDF, 49K) |
IRB #2002-52(HTML) |
Dec. 30, 2002 |
| Captive insurance. This ruling considers circumstances under which arrangements between a domestic parent corporation and its wholly owned insurance subsidiary constitute insurance for federal income tax purposes. Rev.Rul.2001-31 amplified. |
| Rev. Rul. 2002-88(PDF, 42K) |
IRB #2002-52(HTML) |
Dec. 30, 2002 |
| Duration of COBRA continuation coverage and divorce. This ruling provides guidance on when COBRA continuation coverage must commence if, in anticipation of divorce, an employee drops the coverage of a spouse under a group health plan of the employee 's employer. |
| Rev. Rul. 2002-87(PDF, 51K) |
IRB #2002-52(HTML) |
Dec. 30, 2002 |
| LIFO;price indexes;department stores. The October 2002 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to,October 31,2002. |
| Rev. Rul. 2002-86(PDF, 57K) |
IRB #2002-52(HTML) |
Dec. 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 Rul. 78 -361 modified and superseded.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, 61K) |
IRB #2002-52(HTML) |
Dec. 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. Rul. 2002-84(PDF, 31K) |
IRB #2002-50(HTML) |
Dec. 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. Rul. 2002-83(PDF, 22K) |
IRB #2002-49(HTML) |
Dec. 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. 2002-82(PDF, 20K) |
IRB #2002-51(HTML) |
Dec. 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. |
| Rev. Rul. 2002-81(PDF, 22K) |
IRB #2002-49(HTML) |
Dec. 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. Rul. 2002-80(PDF, 25K) |
IRB #2002-49(HTML) |
Dec. 9, 2002 |
| Advance reimbursement of medical expenses. This ruling amplifies Rev. Rul. 2002-3, 2002-3 I.R.B. 316, to clarify that amounts paid to an employee as "advance reimbursements" or "loans" without regard to whether the employee has suffered a personal injury or sickness or incurred medical expenses are not excludable from the employee's gross income under section 105(b), whether or not that employee incurs medical expenses during the year. |
| Rev. Rul. 2002-79(PDF, 21K) |
IRB #2002-48(HTML) |
Dec. 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. |
| Rev. Rul. 2002-78(PDF, 17K) |
IRB #2002-48(HTML) |
Dec. 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. 2002-77(PDF, 22K) |
IRB #2002-45(HTML) |
Nov. 12, 2002 |
| LIFO; price indexes; department stores. The September 2002 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, September 30, 2002. |
| Rev. Rul. 2002-76(PDF, 17K) |
IRB #2002-46(HTML) |
Nov. 18, 2002 |
| Biodiesel. Biodiesel is not taxable fuel for purposes of the tax imposed by section 4081(a)(1) of the Code. Subject to the exemptions in section 4082, tax is imposed by section 4081(b)(1) on the removal or sale of blended taxable fuel produced using biodiesel. Subject to the exemption in section 4041, tax is imposed by section 4041(a)(1) on biodiesel sold for use or used as a fuel in a diesel-powered highway vehicle or diesel-powered train. |
| Rev. Rul. 2002-75(PDF, 17K) |
IRB #2002-45(HTML) |
Nov. 12, 2002 |
| Tax-free exchange of annuity contracts. This ruling states that the transfer of an entire annuity contract into another pre-existing annuity contract qualifies as a tax-free exchange and defines the basis and investment in the contract for the surviving contract. |
| Rev. Rul. 2002-74(PDF, 15K) |
IRB #2002-45(HTML) |
Nov. 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. |
| Rev. Rul. 2002-73(PDF, 19K) |
IRB #2002-45(HTML) |
Nov. 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. 2002-72(PDF, 17K) |
IRB #2002-44(HTML) |
Nov. 4, 2002 |
| Low-income housing credit; satisfactory bond; “bond factor” amounts for the period October through December 2002. This ruling announces the monthly bond factor amounts to be used by taxpayers who dispose of qualified low-income buildings or interests therein during the period October through December 2002. This ruling also provides a summary of the bond factor amounts for dispositions occurring during the period January through September 2002. |
| Rev. Rul. 2002-71(PDF, 26K) |
IRB #2002-44(HTML) |
Nov. 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. |
| Rev. Rul. 2002-70(PDF, 26K) |
IRB #2002-50(HTML) |
Dec. 16, 2002 |
| Interest rates; underpayments and overpayments. The rate of interest determined under section 6621 of the Code for the calendar quarter beginning January 1, 2003, will be 5 percent for overpayments (4 percent in the case of a corporation), 5 percent for underpayments, and 7 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 2.5 percent. |
| Rev. Rul. 2002-69(PDF, 39K) |
IRB #2002-44(HTML) |
Nov. 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. 2002-68(PDF, 21K) |
IRB #2002-45(HTML) |
Nov. 12, 2002 |
| 2002 base period T-bill rate. The "base period T-bill rate" for the period ending September 30, 2002, is published, as required by section 995(f) of the Code. |
| Rev. Rul. 2002-67(PDF, 23K) |
IRB #2002-47(HTML) |
Nov. 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. |
| Rev. Rul. 2002-66(PDF, 30K) |
IRB #2002-45(HTML) |
Nov. 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. 2002-65(PDF, 12K) |
IRB #2002-43(HTML) |
Oct. 28, 2002 |
| Low-income housing tax credit. This ruling advises taxpayers that rental assistance payments made to a building owner on behalf or in respect of a tenant under the Rent Supplement Payment program or the Rental Assistance Payments program are not grants made with respect to a building or its operation under section 42(d)(5) of the Code. |
| Rev. Rul. 2002-64(PDF, 15K) |
IRB #2002-41(HTML) |
Oct. 15, 2002 |
| LIFO; price indexes; department stores. The August 2002 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, August 31, 2002. |
| Rev. Rul. 2002-63(PDF, 18K) |
IRB #2002-45(HTML) |
Nov. 12, 2002 |
| Covered compensation tables; 2003. Covered compensation tables under section 401 of the Code for the year 2003 are provided for use in determining contributions to defined benefit plans and permitted disparity. |
| Rev. Rul. 2002-62(PDF, 30K) |
IRB #2002-42(HTML) |
Oct. 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. Rul. 2002-61(PDF, 20K) |
IRB #2002-40(HTML) |
Oct. 7, 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 October 2002. |
| Rev. Rul. 2002-60(PDF, 18K) |
IRB #2002-40(HTML) |
Oct. 7, 2002 |
| Mileage awards. This ruling illustrates the application of Notice 2002-63, in this I.R.B., when a foreign air carrier purchases mileage awards from a domestic air carrier. In addition, the revenue ruling concludes that rr 55-534, 1955-2 C.B. 665, does not hold that all payments between air carriers are exempt from the tax imposed by Section 4261 of the Code. rr 55-534 distinguished. |
| Rev. Rul. 2002-59(PDF, 26K) |
IRB #2002-38(HTML) |
Sept. 23, 2002 |
| Interest rates; underpayments and overpayments. The rate of interest determined under section 6621 of the Code for the calendar quarter beginning October 1, 2002, 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. |
| Rev. Rul. 2002-58(PDF, 17K) |
IRB #2002-38(HTML) |
Sept. 23, 2002 |
| This ruling clarifies that amounts reimbursed under a self-insured medical expense reimbursement plan for medical expenses incurred by an employee prior to the adoption of the plan are not excludable from the gross income of the employee under section 105(b) of the Code. |
| Rev. Rul. 2002-57(PDF, 16K) |
IRB #2002-37(HTML) |
Sept. 16, 2002 |
| LIFO; price indexes; department stores. The July 2002 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, July 31, 2002. |
| Rev. Rul. 2002-56(PDF, 9K) |
IRB #2002-37(HTML) |
Sept. 16, 2002 |
| Fringe benefits aircraft valuation formula. The Standard Industry Fare Level (SIFL) cents-per-mile rates and terminal charges in effect for the second half of 2002 are set forth for purposes of determining the value of noncommercial flights on employer-provided aircraft under section 1.61-21(g) of the regulations. |
| Rev. Rul. 2002-55(PDF, 19K) |
IRB #2002-37(HTML) |
Sept. 16, 2002 |
| Cooperative exempt from federal income tax. A cooperative exempt from federal income tax under section 501(c)(12) of the Code is not required to include income of its subsidiary for purposes of calculating the 85 percent member income test. |
| Rev. Rul. 2002-54(PDF, 27K) |
IRB #2002-37(HTML) |
Sept. 16, 2002 |
| Tax-exempt electric cooperatives. A tax-exempt electric co-operative’s distribution and sale of propane in tanks to members is not a tax-exempt activity under section 501(c)(12)(A) of the Code and may adversely affect its tax-exempt status under section 501(c)(12). If the tax-exempt status of the electric co-operative is not adversely affected, income derived from this activity is unrelated business income and subject to unrelated business income tax. The income is treated as nonmember income for purposes of calculating the 85 percent member income test under section 501(c)(12)(A). |
| Rev. Rul. 2002-53(PDF, 17K) |
IRB #2002-35(HTML) |
Sept. 3, 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 September 2002. |
| Rev. Rul. 2002-52(PDF, 18K) |
IRB #2002-34(HTML) |
Aug. 26, 2002 |
| LIFO; price indexes; department stores. The June 2002 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, June 30, 2002. |
| Rev. Rul. 2002-51(PDF, 16K) |
IRB #2002-33(HTML) |
Aug. 19, 2002 |
| Low-income housing credit; satisfactory bond; “bond factor” amounts for the period July through September 2002. This ruling announces the monthly bond factor amounts to be used by taxpayers who dispose of qualified low-income buildings or interests therein during the period July through September 2002. |
| Rev. Rul. 2002-50(PDF, 29K) |
IRB #2002-32(HTML) |
Aug. 12, 2002 |
| Tax-free sale of articles for use by the purchaser as supplies for vessels or aircraft. For purposes of section 4092, an aircraft that flies a person for hire between the United States and a foreign country is actually engaged in foreign trade within the meaning of section 4221(d)(3). That aircraft is also actually engaged in foreign trade when flying that person from a city in the United States to another city in the United States as part of the transportation between the United States and the foreign country. Rev. Rul. 69-259 modified and superseded. |
| Rev. Rul. 2002-49(PDF, 27K) |
IRB #2002-32(HTML) |
Aug. 12, 2002 |
| Spin offs. Guidance is provided under section 355(b) of the Code regarding the active trade or business requirement. Rev. Rul. 92-17 amplified. |
| Rev. Rul. 2002-48(PDF, 28K) |
IRB #2002-31(HTML) |
Aug. 5, 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 August 2002. |
| Rev. Rul. 2002-47(PDF, 22K) |
IRB #2002-29(HTML) |
July 22, 2002 |
| LIFO; price indexes; department stores. The May 2002 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, May 31, 2002. |
| Rev. Rul. 2002-46(PDF, 23K) |
IRB #2002-29(HTML) |
July 22, 2002 |
| Deductibility; timing. Contributions made during a grace period to a section 401(k) plan or as matching contributions to a qualified defined contribution plan are not deductible by the employer for a taxable year if the contributions are attributable to compensation earned by plan participants after the end of that taxable year. Rev. Proc. 2002-9 modified and amplified. |
| Rev. Rul. 2002-45(PDF, 23K) |
IRB #2002-29(HTML) |
July 22, 2002 |
| Restorative payments; nondiscrimination; deductions; qualified defined contribution plan. This ruling describes two situations in which certain payments, which are termed “restorative payments” in the ruling, to a qualified defined contribution plan are not treated as contributions for purposes of various sections of the Code. |
| Rev. Rul. 2002-44(PDF, 22K) |
IRB #2002-28(HTML) |
July 15, 2002 |
| Short sale of stock. This ruling provides guidance on the timing of recognition of gain or loss on a short sale when stock is purchased to close the short sale using a regular-way sale. |
| Rev. Rul. 2002-43(PDF, 28K) |
IRB #2002-28(HTML) |
July 15, 2002 |
| Prohibited transactions; first tier excise tax calculations. This ruling illustrates the calculation of the first tier prohibited transactions excise taxes in the instance of the use of money where there are multiple excise tax rates. |
| Rev. Rul. 2002-42(PDF, 29K) |
IRB #2002-28(HTML) |
July 15, 2002 |
| Merger or conversion; partial termination; notice. This ruling describes a situation where a merger or conversion of a money purchase pension plan into a profit-sharing plan is not a partial termination of the money purchase pension plan and also describes the type of notice that must be given to affected plan participants. Rev. Rul. 94-76 amplified. |
| Rev. Rul. 2002-41(PDF, 23K) |
IRB #2002-28(HTML) |
July 15, 2002 |
| Health reimbursement arrangements (HRAs). This ruling describes an employer-provided medical care expense reimbursement plan called a health reimbursement arrangement (HRA), in which reimbursements for medical care expenses made from the plan are excludable from employee gross income. Among other things, the HRA described retains favorable tax treatment because it only reimburses employees or former employees for medical care expenses of the employee or former employee and their spouses and dependents; is solely employer-funded and not paid for directly or indirectly from salary reduction; and although it allows participants to carry forward unused amounts for use in later coverage periods, these amounts may never be used for anything but reimbursements for qualified medical care expenses. |
| Rev. Rul. 2002-40(PDF, 18K) |
IRB #2002-27(HTML) |
July 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 July 2002. |
| Rev. Rul. 2002-39(PDF, 28K) |
IRB #2002-27(HTML) |
July 8, 2002 |
| Accidental death benefits. This ruling concludes that the accidental death benefits payable pursuant to New York City and New York State pension laws to specified beneficiaries of a deceased New York City firefighter or police officer who died in the line of duty are not includible in either one’s gross estate, except to the extent the benefits represent a return of the decedent’s contributions to the pension fund. The ruling will clarify that the portion of the death benefit not attributable to employee contributions is not includible in the gross estate, thus alleviating the necessity, in most cases, for filing an estate tax return. |
| Rev. Rul. 2002-38(PDF, 31K) |
IRB #2002-26(HTML) |
July 1, 2002 |
| REIT noncustomary service income. Guidance is provided under sections 856 and 857(b)(7) of the Code for the situation when a REIT forms a taxable REIT subsidiary (TRS) to provide noncustomary services to tenants of the REIT and no service charges are separately stated from the rents paid by the tenants to the REIT. |
| Rev. Rul. 2002-37(PDF, 16K) |
IRB #2002-24(HTML) |
June 17, 2002 |
| LIFO; price indexes; department stores. The April 2002 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, April 30, 2002. |
| Rev. Rul. 2002-36(PDF, 19K) |
IRB #2002-24(HTML) |
June 17, 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 June 2002. |
| Rev. Rul. 2002-35(PDF, 22K) |
IRB #2002-23(HTML) |
June 10, 2002 |
| Wages subject to federal employment tax. This ruling clarifies that payments to employees for equipment they are required to provide as a condition of employment are wages for federal employment tax purposes, unless paid under an accountable plan. Rev. Rul. 68-624 revoked. |
| Rev. Rul. 2002-34(PDF, 15K) |
IRB #2002-24(HTML) |
June 17, 2002 |
| Segment Tax. This ruling provides guidance on how to calculate the tax under section 4261(b) of the Code on domestic segments if an aircraft is chartered and one or more persons are transported on that aircraft. |
| Rev. Rul. 2002-33(PDF, 23K) |
IRB #2002-25(HTML) |
June 24, 2002 |
| Interest rates; underpayments and overpayments. The rate of interest determined under section 6621 of the Code for the calendar quarter beginning July 1, 2002, 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. |
| Rev. Rul. 2002-32(PDF, 20K) |
IRB #2002-23(HTML) |
June 10, 2002 |
| Cafeteria plans. In an asset sale, transferred employees who have elected to participate in health flexible spending arrangements (FSAs) under the seller's cafeteria plan may continue to exclude salary reduction amounts and medical reimbursements from gross income without interruption at the same level of coverage after becoming employees of the buyer. |
| Rev. Rul. 2002-31(PDF, 33K) |
IRB #2002-22(HTML) |
June 3, 2002 |
| Contingent convertible debt instruments. This ruling provides guidance on the tax treatment of a debt instrument that is convertible into stock of the issuer and that also provides for one or more cash contingent payments. |
| Rev. Rul. 2002-30(PDF, 19K) |
IRB #2002-21(HTML) |
May 28, 2002 |
| Notional principal contract. This ruling provides that where a nonperiodic payment made pursuant to a notional principal contract is comprised of noncontingent and contingent components, the parties must recognize the noncontingent component of the nonperiodic payment over the term of the notional principal contract. |
| Rev. Rul. 2002-29(PDF, 17K) |
IRB #2002-20(HTML) |
May 20, 2002 |
| LIFO; price indexes; department stores. The March 2002 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, March 31, 2002. |
| Rev. Rul. 2002-28(PDF, 47K) |
IRB #2002-20(HTML) |
May 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. Rul. 2002-27(PDF, 30K) |
IRB #2002-20(HTML) |
May 20, 2002 |
| Cafeteria plans. Cafeteria plans may use an automatic enrollment process whereby the employee's salary is reduced each year to pay for a portion of the group health coverage under the plan unless the employee affirmatively elects cash. In addition, employers may treat all participants as being in the cafeteria plan for section 415 purposes even though the plan mandates salary reduction and coverage for uninsured participants. |
| Rev. Rul. 2002-27(PDF, 30K) |
IRB #2002-20(HTML) |
May 20, 2002 |
| Cafeteria plans. Cafeteria plans may use an automatic enrollment process whereby the employee's salary is reduced each year to pay for a portion of the group health coverage under the plan unless the employee affirmatively elects cash. In addition, employers may treat all participants as being in the cafeteria plan for section 415 purposes even though the plan mandates salary reduction and coverage for uninsured participants. |
| Rev. Rul. 2002-26(PDF, 14K) |
IRB #2002-19(HTML) |
May 13, 2002 |
| Special use value; farms; interest rates. The 2002 interest rates to be used in computing the special use value of farm real property for which an election is made under section 2032A of the Code are listed for estates of decedents. |
| Rev. Rul. 2002-25(PDF, 21K) |
IRB #2002-19(HTML) |
May 13, 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 May 2002. |
| Rev. Rul. 2002-24(PDF, 13K) |
IRB #2002-19(HTML) |
May 13, 2002 |
| Low-income housing credit; satisfactory bond; "bond factor" amounts for the period April through June. This ruling announces the monthly bond factor amounts to be used by taxpayers who dispose of qualified low-income buildings or interests therein during the period April through June 2002. |
| Rev. Rul. 2002-23(PDF, 21K) |
IRB #2002-18(HTML) |
May 6, 2002 |
| The Service will accept, as timely filed, a federal tax return, claim for refund, statement, or other document required or permitted to be filed with the Service that is mailed from and officially postmarked in a foreign country on or before the last date prescribed for filing, including any extension of time for filing. This ruling also sets forth the position that a federal return, claim for refund, statement, or other document required or permitted to be filed with the Service or with the United States Tax Court given to a designated international private delivery service before midnight on the last date prescribed for filing shall be deemed timely filed pursuant to section 7502 of the Code. Rev. Rul. 80-218 superseded. |
| Rev. Rul. 2002-22(PDF, 33K) |
IRB #2002-19(HTML) |
May 13, 2002 |
| Gross income; transfers of property incident to divorce. A taxpayer who transfers interests in nonstatutory stock options and nonqualified deferred compensation to the taxpayer's former spouse incident to divorce is not required to include an amount in gross income upon the transfer. Rather, the former spouse is required to include an amount in gross income when the former spouse exercises the stock options or when the deferred compensation is paid or made available to the former spouse. Rev. Rul. 87-112 clarified. |
| Rev. Rul. 2002-21(PDF, 20K) |
IRB #2002-17(HTML) |
April 29, 2002 |
| Low-income housing credit; tax-exempt bond financing. Amounts received from investing proceeds of tax-exempt bonds are counted toward satisfying the 50-percent aggregate basis test under section 42(h)(4)(B) of the Code. |
| Rev. Rul. 2002-20(PDF, 19K) |
IRB #2002-17(HTML) |
April 29, 2002 |
| Charitable remainder trusts; qualified charitable remainder unitrusts; recipient trusts. This ruling provides that, in three situations, a charitable remainder unitrust may pay the unitrust amounts to a second trust for the life of an individual, who is financially disabled as defined in section 6511(h)(2)(A) of the Code. In each situation, the use of the unitrust amounts by the second trust is consistent with the manner in which the individual's own assets would be used, and the individual is, therefore, considered to have received the unitrust amounts directly from the charitable remainder unitrust for purposes of section 664(d)(2)(A). Rev. Rul. 76-270 amplified and superseded. |
| Rev. Rul. 2002-19(PDF, 18K) |
IRB #2002-16(HTML) |
April 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. |
| Rev. Rul. 2002-18(PDF, 16K) |
IRB #2002-16(HTML) |
April 22, 2002 |
| LIFO; price indexes; department stores. The February 2002 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, February 28, 2002. |
| Rev. Rul. 2002-17(PDF, 16K) |
IRB #2002-14(HTML) |
April 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. |
| Rev. Rul. 2002-16(PDF, 19K) |
IRB #2002-15(HTML) |
April 15, 2002 |
| This ruling confirms that the Netherlands investment yield tax is a tax for which a credit may be allowed under Article 25(4) of the U.S.-Netherlands income tax convention because, under Article 2(2), it is substantially similar to a prior Dutch tax that was a covered tax under the convention. |
| Rev. Rul. 2002-15(PDF, 12K) |
IRB #2002-13(HTML) |
April 1, 2002 |
| Fringe benefits aircraft valuation formula. The Standard Industry Fare Level (SIFL) cents-per-mile rates and terminal charges in effect for the first half of 2002 are set forth for purposes of determining the value of noncommercial flights on employer-provided aircraft under section 1.61-21(g) of the regulations. |
| Rev. Rul. 2002-14(PDF, 14K) |
IRB #2002-12(HTML) |
March 25, 2002 |
| LIFO; price indexes; department stores. The January 2002 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, January 31, 2002. |
| Rev. Rul. 2002-13(PDF, 25K) |
IRB #2002-12(HTML) |
March 25, 2002 |
| Interest rates; underpayments and overpayments. The rate of interest determined under section 6621 of the Code for the calendar quarter beginning April 1, 2002, 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. |
| Rev. Rul. 2002-12(PDF, 19K) |
IRB #2002-11(HTML) |
March 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. |
| Rev. Rul. 2002-11(PDF, 30K) |
IRB #2002-10(HTML) |
March 11, 2002 |
| Election in respect of losses attributable to a disaster. This ruling lists the areas declared by the President to qualify as major disaster or emergency areas during 2001 under the Disaster Relief and Emergency Assistance Act. |
| Rev. Rul. 2002-10(PDF, 17K) |
IRB #2002-10(HTML) |
March 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. |
| Rev. Rul. 2002-9(PDF, 25K) |
IRB #2002-10(HTML) |
March 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. |
| Rev. Rul. 2002-8(PDF, 13K) |
IRB #2002-9(HTML) |
March 4, 2002 |
| Low-income housing credit; satisfactory bond; "bond factor" amounts for the period January through March 2002. This ruling announces the monthly bond factor amounts to be used by taxpayers who dispose of qualified low-income buildings or therein during the period January through March 2002. |
| Rev. Rul. 2002-7(PDF, 16K) |
IRB #2002-8(HTML) |
Feb. 25, 2002 |
| LIFO; price indexes; department stores. The December 2001 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, December 31, 2001. |
| Rev. Rul. 2002-6(PDF, 18K) |
IRB #2002-6(HTML) |
Feb. 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. |
| Rev. Rul. 2002-5(PDF, 15K) |
IRB #2002-6(HTML) |
Feb. 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. |
| Rev. Rul. 2002-4(PDF, 23K) |
IRB #2002-4(HTML) |
Jan. 28, 2002 |
| LIFO; price indexes; department stores. The November 2001 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, November 30, 2001. |
| Rev. Rul. 2002-4(PDF, 23K) |
IRB #2002-1(HTML) |
Jan. 7, 2002 |
| Rulings and information letters; issuance procedures. Revised procedures are provided for furnishing ruling letters, information letters, etc., on matters related to sections of the Code currently under the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division. Rev. Proc. 2001-4 superseded. |
| Rev. Rul. 2002-3(PDF, 19K) |
IRB #2002-3(HTML) |
Jan. 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. Rul. 2002-2(PDF, 15K) |
IRB #2002-2(HTML) |
Jan. 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. |
| Rev. Rul. 2002-1(PDF, 26K) |
IRB #2002-2(HTML) |
Jan. 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. |
