Section 355; stock distribution. This ruling examines whether a distribution that is expected to increase aggregate stock value satisfies the business purpose requirement of section 355 of the Code when the increased value is expected to serve both a corporate business purpose and a shareholder purpose.

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 March 2004.

Interest rates; underpayments and overpayments. The rate of interest determined under section 6621 of the Code for the calendar quarter beginning April 1, 2004, 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.

Reduction in stated principal amount of a recourse note issued by employee to employer to acquire employer stock. This ruling provides guidance in cases where an employer and employee reduce the stated principal amount of a recourse note issued by an employee to the employer to acquire employer stock. This ruling holds that the employee recognizes compensation income equal to the amount of the reduction.

Final regulations provide for the voluntary electronic furnishing of statements on Forms W-2, Wage and Tax Statement, under sections 6041 and 6051 of the Code, and statements on Forms 1098-T, Tuition Statement, and Forms 1098-E, Student Loan Interest Statement, under section 6050S.

This notice provides that benefits received under the Smallpox Emergency Personnel Protection Act of 2003 (SEPPA) are exempt from income and employment taxes.

This notice withdraws Notice 98-5, but announces that the IRS will continue to scrutinize abusive transactions that are designed to generate foreign tax credits and will challenge the claimed tax consequences of such transactions under principles of existing law. The notice also describes the approach that Treasury and the IRS are using to address transactions involving inappropriate foreign tax credit results. Notice 98-5 withdrawn and Notice 2003-76 modified.

This notice describes a transaction involving the purported acquisition of stock of a foreign target corporation, an election under section 338, and a prearranged plan to sell the target corporation's assets in a transaction that gives rise to foreign tax without corresponding income for U.S. tax purposes. The notice identifies this transaction, and substantially similar transactions, as listed transactions that are subject to reporting, registration, and list maintenance requirements.

Low-income housing tax credit; private activity bonds. Resident populations of the 50 states, the District of Columbia, Puerto Rico, and the insular areas are provided for purposes of determining the 2004 calendar year (1) state housing credit ceiling under section 42(h) of the Code, (2) private activity bond volume cap under section 146, and (3) private activity bond volume limit under section 142(k)(5).

A list is provided of organizations now classified as private foundations.

Reduction in stated principal amount of a recourse note issued by employee to employer to acquire employer stock. This ruling provides guidance in cases where an employer and employee reduce the stated principal amount of a recourse note issued by an employee to the employer to acquire employer stock. This ruling holds that the employee recognizes compensation income equal to the amount of the reduction.

This notice provides that benefits received under the Smallpox Emergency Personnel Protection Act of 2003 (SEPPA) are exempt from income and employment taxes.

This notice requests public comment regarding the proper treatment of capitalized amounts that facilitate an acquisition of a trade or business, change in the capital structure of a business entity, and certain other transactions.