Internal Revenue Bulletin: 2004-13
March 29, 2004
LIFO; price indexes; department stores. The January 2004 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, 2004.
Proposed regulations under section 368 of the Code clarify that a transferor may transfer, after a reorganization, assets or stock to a transferee controlled by the transferor. The regulations also make conforming changes relating to continuity of business enterprise and to the definition of a party to a reorganization.
Proposed regulations under section 446 of the Code relate to the inclusion into income or deduction of a contingent nonperiodic payment made pursuant to a notional principal contract. The regulations also contain rules relating to the character of payments made pursuant to notional principal contracts, bullet swaps, and forward contracts. In general, contingent nonperiodic payments are accounted for under the noncontingent swap method or under an elective mark-to-market regime. With respect to character, the regulations provide ordinary treatment for most notional principal contract payments. As a general exception to ordinary treatment, the regulations provide capital treatment for termination payments. The regulations also provide capital treatment for payments made pursuant to bullet swaps and forward contracts. A public hearing is scheduled for May 25, 2004.
Publication 1542, Per Diem Rates (For Travel Within the Continental United States), will now be revised each time new per diem rates are announced. All revisions will be available on the IRS website. Paper copies will be available by request only.
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