Links to Official IRS Bulletin Documents listed below are in the Adobe Acrobat PDF Format, and require the appropriate Acrobat Reader to view and/or print.

INCOME TAX

Notice 2002-45(PDF, 38K)
This notice describes the tax treatment of an employerprovided medical care expense reimbursement plan called a health reimbursement arrangement (HRA). The notice explains that to maintain favorable tax treatment, HRAs may only reimburse employees or former employees for their medical care expenses and their spouses’ and dependents’. This notice also explains that the requirements for flexible spending arrangements (FSAs) stated in section 125 of the Code are generally not applicable to HRAs. In particular, an HRA may allow a plan participant to carry forward unused reimbursement amounts to be used for medical care expense reimbursements in later coverage periods. Also, this notice explains that to retain exemption from the section 125 FSA requirements, the HRA must be solely employer-funded and cannot be directly or indirectly paid for pursuant to salary reduction election.

Notice 2002-50(PDF, 22K)
Partnership straddle tax shelter. This notice advises taxpayers and their representatives that the described transaction, which uses a straddle, a tiered partnership, a transitory partner and the absence of a section 754 election to obtain a permanent non-economic loss, is subject to challenge by the Service on several grounds. The notice holds that the described transaction is now a “listed transaction” and warns of the potential penalties that may be imposed if taxpayers claim losses from such a transaction.

T.D. 9000(PDF, 44K)
REG-103735-00, REG-110311-98(PDF, 29K)
Final, temporary, and proposed regulations under sections 6011, 6111, and 6112 of the Code modify the disclosure, registration, and list maintenance requirements relating to tax shelters.

REG-107524-00(PDF, 41K)
Proposed regulations define whether an organization has a significant trade or business of lending money under section 6050P of the Code for purposes of reporting discharges of indebtedness. A public hearing is scheduled for October 8, 2002.

Rev. Rul. 2002-41(PDF, 23K)
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. 2002-44(PDF, 22K)
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.

T.D. 8999(PDF, 57K)
Final regulations under section 894 of the Code relate to the eligibility for treaty benefits of items of income paid by domestic entities that are not fiscally transparent under U.S. laws, but are fiscally transparent under the laws of the jurisdiction of the person claiming treaty benefits (domestic reverse hybrid entities). T.D. 9000

Notice 2002-45(PDF, 38K)
This notice describes the tax treatment of an employerprovided medical care expense reimbursement plan called a health reimbursement arrangement (HRA). The notice explains that to maintain favorable tax treatment, HRAs may only reimburse employees or former employees for their medical care expenses and their spouses’ and dependents’. This notice also explains that the requirements for flexible spending arrangements (FSAs) stated in section 125 of the Code are generally not applicable to HRAs. In particular, an HRA may allow a plan participant to carry forward unused reimbursement amounts to be used for medical care expense reimbursements in later coverage periods. Also, this notice explains that to retain exemption from the section 125 FSA requirements, the HRA must be solely employer-funded and cannot be directly or indirectly paid for pursuant to salary reduction election.

Notice 2002-46(PDF, 24K)
Optional forms of benefit; section 645 of EGTRRA; request for comments. This notice requests comments from the public on proposed regulations that will be issued concerning elimination of optional forms of benefit from defined benefit plans.

Notice 2002-47(PDF, 24K)
Application of employment taxes to statutory stock options. This notice provides that until Treasury and the Service issue further guidance, in the case of a statutory stock option, the Service will not assess the Federal Insurance Contributions Act (FICA) tax or Federal Unemployment Tax Act (FUTA) tax, or apply federal income tax withholding obligations, upon either the exercise of the option or the disposition of the stock acquired by an employee pursuant to the exercise of the option.

Rev. Rul. 2002-41(PDF, 23K)
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. 2002-42(PDF, 29K)
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.

EXCISE TAX

Rev. Rul. 2002-43(PDF, 28K)
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.

T.D. 9000(PDF, 44K)
REG-103735-00, REG-110311-98(PDF, 29K)
Final, temporary, and proposed regulations under sections 6011, 6111, and 6112 of the Code modify the disclosure, registration, and list maintenance requirements relating to tax shelters.

Rev. Proc. 2002-43(PDF, 53K)
Agent for the group. This procedure provides instructions relating to the determination of a substitute agent to act on behalf of a consolidated group, pursuant to sections 1.1502-77(d) or 1.1502-77A(d) of the regulations. Procedures are provided for automatic approval of requests by a terminating common parent to designate its qualifying successor as substitute agent.

Rev. Proc. 2002-46(PDF, 37K)
Changes in accounting method; non-life insurance companies; automatic consent. This procedure provides certain non-life insurance companies with a safe harbor method of accounting for premium acquisition expenses. This document also provides a procedure for these insurance companies to obtain automatic consent to change to this safe harbor method. Rev. Proc. 2002-9 modified and amplified.