Federal rates; adjusted federal rates; adjusted federal long-term rate and the long-term exempt rate. For purposes of sections 382, 642, 1274, 1288, and other sections of the Code, tables set forth the rates for February 2004.

Final regulations under section 41 of the Code clarify the definition of qualified research contained in the credit for increasing research activities. In addition, the regulations adopt the recordkeeping requirements and the rules for excluded activities as set forth in the 2001 proposed regulations.

REG-126459-03

Final, temporary, and proposed regulations under sections 167, 446, and 1016 of the Code provide rules for changes in determining depreciation or amortization. The regulations also provide guidance as to whether certain changes in depreciation or amortization are changes in methods of accounting. The regulations apply to changes made for taxable years ending on or after December 30, 2003. A public hearing on the proposed regulations is scheduled for April 7, 2004.

Final regulations under section 6011 of the Code modify and clarify the rules relating to confidential transactions under regulations section 1.6011-4(b)(3), and make minor conforming changes to the list maintenance rules under regulations section 301.6112-1.

This notice announces a pilot program that permits large and mid-size business taxpayers to enter into research credit recordkeeping agreements.

This advance notice of proposed rulemaking (REG-153656-03) under section 41 of the Code invites comments relating to the definition of internal-use software contained in the credit for increasing research activities. In addition, the document provides guidance for taxpayers regarding the interim effective dates of the internal-use software rules.

Employee stock ownership plans; S corporations; listed transactions. A finding of synthetic equity owned by a disqualified person in a nonallocation year of an ESOP, as those terms are defined in section 409(p) of the Code and regulations section 1.409(p)-1T, takes place in three distinct situations. In addition, the transactions described in this ruling, as well as substantially similar transactions, are designated as “listed transactions.”

Electronic delivery of Form 1099 and Form 5498 payee statements. This notice permits the electronic delivery of Form 1099-R, Form 1099-MSA, Form 1099-Q, Form 5498, Form 5498-ESA, and Form 5498-MSA payee statements by their respective due dates.

Electronic delivery of Form 1099 and Form 5498 payee statements. This notice permits the electronic delivery of Form 1099-R, Form 1099-MSA, Form 1099-Q, Form 5498, Form 5498-ESA, and Form 5498-MSA payee statements by their respective due dates.

Final regulations under section 6011 of the Code modify and clarify the rules relating to confidential transactions under regulations section 1.6011-4(b)(3), and make minor conforming changes to the list maintenance rules under regulations section 301.6112-1.

Electronic delivery of Form 1099 and Form 5498 payee statements. This notice permits the electronic delivery of Form 1099-R, Form 1099-MSA, Form 1099-Q, Form 5498, Form 5498-ESA, and Form 5498-MSA payee statements by their respective due dates.

This announcement corrects the user fee in Appendix A of Rev. Proc. 2004-1 for a letter ruling request involving an extension of time to file Form 3115, Application for Change in Accounting Method. The correct user fee is $1,200, not $1,500.