Revenue Ruling 2003-117
Rev. Rul. 2003-117
Rev. Rul. 2003-117, 2003-46 I.R.B. 1051, 2003-2 C.B. 1051
                      Internal Revenue Service (I.R.S.)
                                Revenue Ruling
    LOW-INCOME HOUSING CREDIT; SATISFACTORY BOND; “BOND FACTOR” AMOUNTS FOR
                   THE PERIOD OCTOBER THROUGH DECEMBER 2003
                         Published: November 17, 2003
 Section 42.–Low-Income Housing Credit
 Low-income housing credit; satisfactory bond; “bond factor” amounts for the period October through December 2003. 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 2003. This ruling also provides a summary of the bond factor amounts for dispositions occurring during the period January through September 2003.
 Low-income housing credit; satisfactory bond; “bond factor” amounts for the period October through December 2003. 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 2003. This ruling also provides a summary of the bond factor amounts for dispositions occurring during the period January through September 2003.
 In Rev. Rul. 90-60, 1990-2 C.B. 3, the Internal Revenue Service provided guidance to taxpayers concerning the general methodology used by the Treasury Department in computing the bond factor amounts used in calculating the amount of bond considered satisfactory by the Secretary under s 42(j)(6) of the Internal Revenue Code. It further announced that the Secretary would publish in the Internal Revenue Bulletin a table of bond factor amounts for dispositions occurring during each calendar month.
 Rev. Proc. 99-11, 1999-1 C.B. 275, established a collateral program as an alternative to providing a surety bond for taxpayers to avoid or defer recapture of the low-income housing tax credits under s 42(j)(6). Under this program, taxpayers may establish a Treasury Direct Account and pledge certain United States Treasury securities to the Internal Revenue Service as security.
 This revenue ruling provides in Table 1 the bond factor amounts for calculating the amount of bond considered satisfactory under s 42(j)(6) or the amount of United States Treasury securities to pledge in a Treasury Direct Account under Rev. Proc. 99-11 for dispositions of qualified low-income buildings or interests therein during the period October through December 2003. Table 1 also provides a summary of the bond factor amounts for dispositions occurring during the period January through September 2003.
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                                                      Table 1
     Rev. Rul. 2003-117 Monthly Bond Factor Amounts for Dispositions Expressed
——————————————————————————-
—————————————
 As a Percentage of Total Credits
—————————————
                Calendar Year Building Placed in
————————————————-
 Month of    1989  1990  1991  1992  1993
 Disposition
————————————————-
     Jan ‘03 16.23 30.04 41.83 51.93 60.50
     Feb ‘03 16.23 30.04 41.83 51.93 60.50
     Mar ‘03 16.23 30.04 41.83 51.93 60.50
     Apr ‘03 16.23 30.04 41.83 51.93 60.50
     May ‘03 16.23 30.04 41.83 51.93 60.50
     Jun ‘03 16.23 30.04 41.83 51.93  60.50
     Jul ‘03 16.23 30.04 41.83 51.93 60.50
     Aug ‘03 16.23 30.04 41.83 51.93 60.50
     Sep ‘03 16.23 30.04 41.83 51.93 60.50
     Oct ‘03 15.43 28.55 39.76 49.36 57.50
     Nov ‘03 15.43 28.55 39.76 49.36 57.50
     Dec ‘03 15.43 28.55 39.76 49.36 57.50
————————————————-
Service or, if Section 42(f)(1) Election Was Made, the Succeeding
          Calendar Year
———————————————————————
 1994  1995  1996  1997  1998  1999  2000  2001  2002  2003
———————————————————————
 60.24 60.12 60.11 60.18 60.39 60.62 60.89 61.55 62.49 62.68
 60.09 59.97 59.96 60.03 60.24 60.47 60.75 61.41 62.33 62.68
 59.94 59.82 59.82 59.89 60.10 60.33 60.62 61.27 62.19 62.68
 59.79 59.68 59.68 59.75 59.96 60.20 60.49 61.15 62.06 62.68
 59.65 59.54 59.54 59.61 59.83 60.07 60.37 61.04 61.96 62.68
 59.51 59.40 59.40 59.48 59.70 59.95 60.26 60.93 61.86 62.68
 59.37 59.27 59.27 59.35 59.58 59.83 60.15 60.83 61.77 62.68
 59.24 59.14 59.14 59.23 59.45 59.72 60.05 60.74 61.70 62.68
 59.11 59.01 59.02 59.10 59.34 59.60 59.95 60.65 61.63 62.68
 55.51 54.87 54.34 53.89 53.57 53.29 53.09 53.21 53.58 54.15
 55.39 54.76 54.23 53.78 53.47 53.20 53.01 53.15 53.54 54.15
 55.28 54.64 54.12 53.68 53.38 53.12 52.94 53.09 53.50 54.15
———————————————————————
 For a list of bond factor amounts applicable to dispositions occurring during other calendar years, see: Rev. Rul. 98-3, 1998-1 C.B. 248; Rev. Rul. 2001-2, 2001-1 C.B. 255; Rev. Rul. 2001-53, 2001-2 C.B. 488; and Rev. Rul. 2002-72, 2002-2 C.B. 759.
DRAFTING INFORMATION
 The principal author of this revenue ruling is Gregory N. Doran of the Office of Associate Chief Counsel (Passthroughs and Special Industries). For further information regarding this revenue ruling, contact Mr. Doran at (202) 622-3040 (not a toll-free call).
 Rev. Rul. 2003-117, 2003-46 I.R.B. 1051, 2003-2 C.B. 1051
Revenue Ruling 2003-126
Rev. Rul. 2003-126
Rev. Rul. 2003-126, 2003-52 I.R.B. 1249, 2003-2 C.B. 1249
                      Internal Revenue Service (I.R.S.)
                                Revenue Ruling
                INTEREST RATES; UNDERPAYMENTS AND OVERPAYMENTS
                          Released: December 17, 2003
                         Published: December 29, 2003
 Section 6621.–Determination of Interest Rate, 26 CFR 301.6621-1: Interest rate.
 Interest rates; underpayments and overpayments. The rate of interest determined under section 6621 of the Code for the calendar quarter beginning January 1, 2004, will be 4 percent for overpayments (3 percent in the case of a corporation), 4 percent for underpayments, and 6 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 1.5 percent.
 Section 6621 of the Internal Revenue Code establishes the rates for interest on tax overpayments and tax underpayments. Under section 6621(a)(1), the overpayment rate beginning January 1, 2004, is the sum of the federal short-term rate plus 3 percentage points (2 percentage points in the case of a corporation), except the rate for the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the sum of the federal short-term rate plus 0.5 of a percentage point for interest computations made after December 31, 1994. Under section 6621(a)(2), the underpayment rate is the sum of the federal short-term rate plus 3 percentage points.
 Section 6621(c) provides that for purposes of interest payable under section 6601 on any large corporate underpayment, the underpayment rate under section 6621(a)(2) is determined by substituting “5 percentage points” for “3 percentage points.” See section 6621(c) and section 301.6621-3 of the Regulations on Procedure and Administration for the definition of a large corporate underpayment and for the rules for determining the applicable date. Section 6621(c) and section 301.6621-3 are generally effective for periods after December 31, 1990.
 Section 6621(b)(1) provides that the Secretary will determine the federal short-term rate for the first month in each calendar quarter.
 Section 6621(b)(2)(A) provides that the federal short-term rate determined under section 6621(b)(1) for any month applies during the first calendar quarter beginning after such month.
 Section 6621(b)(2)(B) provides that in determining the addition to tax under section 6654 for failure to pay estimated tax for any taxable year, the federal short-term rate that applies during the third month following such taxable year also applies during the first 15 days of the fourth month following such taxable year.
 Section 6621(b)(3) provides that the federal short-term rate for any month is the federal short-term rate determined during such month by the Secretary in accordance with s 1274(d), rounded to the nearest full percent (or, if a multiple of 1/2 of 1 percent, the rate is increased to the next highest full percent).
 Notice 88-59, 1988-1 C.B. 546, announced that, in determining the quarterly interest rates to be used for overpayments and underpayments of tax under section 6621, the Internal Revenue Service will use the federal short-term rate based on daily compounding because that rate is most consistent with section 6621 which, pursuant to section 6622, is subject to daily compounding.
 Rounded to the nearest full percent, the federal short-term rate based on daily compounding determined during the month of October 2003 is 1 percent. Accordingly, an overpayment rate of 4 percent (3 percent in the case of a corporation) and an underpayment rate of 4 percent are established for the calendar quarter beginning January 1, 2004. The overpayment rate for the portion of a corporate overpayment exceeding $10,000 for the calendar quarter beginning January 1, 2004, is 1.5 percent. The underpayment rate for large corporate underpayments for the calendar quarter beginning January 1, 2004, is 6 percent. These rates apply to amounts bearing interest during that calendar quarter.
 The 4 percent rate also applies to estimated tax underpayments for the first calendar quarter in 2004 and for the first 15 days in April 2004.
 Interest factors for daily compound interest for annual rates of 1.5 percent, 3 percent, 4 percent, and 6 percent are published in Tables 56, 59, 61, and 65 of Rev. Proc. 95-17, 1995-1 C.B. 556, 610, 613, 615, and 619.
  Annual interest rates to be compounded daily pursuant to section 6622 that apply for prior periods are set forth in the tables accompanying this revenue ruling.
DRAFTING INFORMATION
 The principal author of this revenue ruling is Crystal Foster of the Office of Associate Chief Counsel (Procedure & Administration). For further information regarding this revenue ruling, contact Ms. Foster at (202) 622- 7326 (not a toll-free call).
                  TABLE OF INTEREST RATES
 PERIODS BEFORE JUL. 1, 1975 - PERIODS ENDING DEC. 31, 1986
               OVERPAYMENTS AND UNDERPAYMENTS
                                             In 1995-1 C.B.
PERIODÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â RATEÂ Â Â Â Â Â Â DAILY RATE TABLE
Before Jul. 1, 1975Â Â Â Â Â Â Â Â Â Â Â Â Â Â 6%Â Â Â Â Â Â Â Â Table 2, pg. 557
Jul. 1, 1975-Jan. 31, 1976Â Â Â Â Â Â Â 9%Â Â Â Â Â Â Â Â Table 4, pg. 559
Feb. 1, 1976-Jan. 31, 1978Â Â Â Â Â Â Â 7%Â Â Â Â Â Â Â Â Table 3, pg. 558
Feb. 1, 1978-Jan. 31, 1980Â Â Â Â Â Â Â 6%Â Â Â Â Â Â Â Â Table 2, pg. 557
Feb. 1, 1980-Jan. 31, 1982Â Â Â Â Â Â Â 12%Â Â Â Â Â Â Â Table 5, pg. 560
Feb. 1, 1982-Dec. 31, 1982Â Â Â Â Â Â Â 20%Â Â Â Â Â Â Â Table 6, pg. 560
Jan. 1, 1983-Jun. 30, 1983Â Â Â Â Â Â Â 16%Â Â Â Â Â Â Â Table 37, pg. 591
Jul. 1, 1983-Dec. 31, 1983Â Â Â Â Â Â Â 11%Â Â Â Â Â Â Â Table 27, pg. 581
Jan. 1, 1984-Jun. 30, 1984Â Â Â Â Â Â Â 11%Â Â Â Â Â Â Â Table 75, pg. 629
Jul. 1, 1984-Dec. 31, 1984Â Â Â Â Â Â Â 11%Â Â Â Â Â Â Â Table 75, pg. 629
Jan. 1, 1985-Jun. 30, 1985Â Â Â Â Â Â Â 13%Â Â Â Â Â Â Â Table 31, pg. 585
Jul. 1, 1985-Dec. 31, 1985Â Â Â Â Â Â Â 11%Â Â Â Â Â Â Â Table 27, pg. 581
Jan. 1, 1986-Jun. 30, 1986Â Â Â Â Â Â Â 10%Â Â Â Â Â Â Â Table 25, pg. 579
Jul. 1, 1986-Dec. 31, 1986Â Â Â Â Â Â Â 9%Â Â Â Â Â Â Â Â Table 23, pg. 577
                   TABLE OF INTEREST RATES
              FROM JAN. 1, 1987 - Dec. 31, 1998
                             OVERPAYMENTS     UNDERPAYMENTS
                           —————- —————–
                             1995-1 C.B.       1995-1 C.B.
                           RATE TABLE PG  RATE TABLE  PG
Jan. 1, 1987-Mar. 31, 1987Â Â 8%Â Â Â 21Â Â Â 575Â Â 9%Â Â Â 23Â Â Â 577
Apr. 1, 1987-Jun. 30, 1987Â Â 8%Â Â Â 21Â Â Â 575Â Â 9%Â Â Â 23Â Â Â 577
Jul. 1, 1987-Sep. 30, 1987Â Â 8%Â Â Â 21Â Â Â 575Â Â 9%Â Â Â 23Â Â Â 577
Oct. 1, 1987-Dec. 31, 1987Â Â 9%Â Â Â 23Â Â Â 577Â 10%Â Â Â 25Â Â Â 579
Jan. 1, 1988-Mar. 31, 1988Â 10%Â Â Â 73Â Â Â 627Â 11%Â Â Â 75Â Â Â 629
Apr. 1, 1988-Jun. 30, 1988Â Â 9%Â Â Â 71Â Â Â 625Â 10%Â Â Â 73Â Â Â 627
Jul. 1, 1988-Sep. 30, 1988Â Â 9%Â Â Â 71Â Â Â 625Â 10%Â Â Â 73Â Â Â 627
Oct. 1, 1988-Dec. 31, 1988Â 10%Â Â Â 73Â Â Â 627Â 11%Â Â Â 75Â Â Â 629
Jan. 1, 1989-Mar. 31, 1989Â 10%Â Â Â 25Â Â Â 579Â 11%Â Â Â 27Â Â Â 581
Apr. 1, 1989-Jun. 30, 1989Â 11%Â Â Â 27Â Â Â 581Â 12%Â Â Â 29Â Â Â 583
Jul. 1, 1989-Sep. 30, 1989Â 11%Â Â Â 27Â Â Â 581Â 12%Â Â Â 29Â Â Â 583
Oct. 1, 1989-Dec. 31, 1989Â 10%Â Â Â 25Â Â Â 579Â 11%Â Â Â 27Â Â Â 581
Jan. 1, 1990-Mar. 31, 1990Â 10%Â Â Â 25Â Â Â 579Â 11%Â Â Â 27Â Â Â 581
Apr. 1, 1990-Jun. 30, 1990Â 10%Â Â Â 25Â Â Â 579Â 11%Â Â Â 27Â Â Â 581
Jul. 1, 1990-Sep. 30, 1990Â 10%Â Â Â 25Â Â Â 579Â 11%Â Â Â 27Â Â Â 581
Oct. 1, 1990-Dec. 31, 1990Â 10%Â Â Â 25Â Â Â 579Â 11%Â Â Â 27Â Â Â 581
Jan. 1, 1991-Mar. 31, 1991Â 10%Â Â Â 25Â Â Â 579Â 11%Â Â Â 27Â Â Â 581
Apr. 1, 1991-Jun. 30, 1991Â Â 9%Â Â Â 23Â Â Â 577Â 10%Â Â Â 25Â Â Â 579
Jul. 1, 1991-Sep. 30, 1991Â Â 9%Â Â Â 23Â Â Â 577Â 10%Â Â Â 25Â Â Â 579
Oct. 1, 1991-Dec. 31, 1991Â Â 9%Â Â Â 23Â Â Â 577Â 10%Â Â Â 25Â Â Â 579
Jan. 1, 1992-Mar. 31, 1992Â Â 8%Â Â Â 69Â Â Â 623Â Â 9%Â Â Â 71Â Â Â 625
Apr. 1, 1992-Jun. 30, 1992Â Â 7%Â Â Â 67Â Â Â 621Â Â 8%Â Â Â 69Â Â Â 623
Jul. 1, 1992-Sep. 30, 1992Â Â 7%Â Â Â 67Â Â Â 621Â Â 8%Â Â Â 69Â Â Â 623
Oct. 1, 1992-Dec. 31, 1992Â Â 6%Â Â Â 65Â Â Â 619Â Â 7%Â Â Â 67Â Â Â 621
Jan. 1, 1993-Mar. 31, 1993Â Â 6%Â Â Â 17Â Â Â 571Â Â 7%Â Â Â 19Â Â Â 573
Apr. 1, 1993-Jun. 30, 1993Â Â 6%Â Â Â 17Â Â Â 571Â Â 7%Â Â Â 19Â Â Â 573
Jul. 1, 1993-Sep. 30, 1993Â Â 6%Â Â Â 17Â Â Â 571Â Â 7%Â Â Â 19Â Â Â 573
Oct. 1, 1993-Dec. 31, 1993Â Â 6%Â Â Â 17Â Â Â 571Â Â 7%Â Â Â 19Â Â Â 573
Jan. 1, 1994-Mar. 31, 1994Â Â 6%Â Â Â 17Â Â Â 571Â Â 7%Â Â Â 19Â Â Â 573
Apr. 1, 1994-Jun. 30, 1994Â Â 6%Â Â Â 17Â Â Â 571Â Â 7%Â Â Â 19Â Â Â 573
Jul. 1, 1994-Sep. 30, 1994Â Â 7%Â Â Â 19Â Â Â 573Â Â 8%Â Â Â 21Â Â Â 575
Oct. 1, 1994-Dec. 31, 1994Â Â 8%Â Â Â 21Â Â Â 575Â Â 9%Â Â Â 23Â Â Â 577
Jan. 1, 1995-Mar. 31, 1995Â Â 8%Â Â Â 21Â Â Â 575Â Â 9%Â Â Â 23Â Â Â 577
Apr. 1, 1995-Jun. 30, 1995Â Â 9%Â Â Â 23Â Â Â 577Â 10%Â Â Â 25Â Â Â 579
Jul. 1, 1995-Sep. 30, 1995Â Â 8%Â Â Â 21Â Â Â 575Â Â 9%Â Â Â 23Â Â Â 577
Oct. 1, 1995-Dec. 31, 1995Â Â 8%Â Â Â 21Â Â Â 575Â Â 9%Â Â Â 23Â Â Â 577
Jan. 1, 1996-Mar. 31, 1996Â Â 8%Â Â Â 69Â Â Â 623Â Â 9%Â Â Â 71Â Â Â 625
Apr. 1, 1996-Jun. 30, 1996Â Â 7%Â Â Â 67Â Â Â 621Â Â 8%Â Â Â 69Â Â Â 623
Jul. 1, 1996-Sep. 30, 1996Â Â 8%Â Â Â 69Â Â Â 623Â Â 9%Â Â Â 71Â Â Â 625
Oct. 1, 1996-Dec. 31, 1996Â Â 8%Â Â Â 69Â Â Â 623Â Â 9%Â Â Â 71Â Â Â 625
Jan. 1, 1997-Mar. 31, 1997Â Â 8%Â Â Â 21Â Â Â 575Â Â 9%Â Â Â 23Â Â Â 577
Apr. 1, 1997-Jun. 30, 1997Â Â 8%Â Â Â 21Â Â Â 575Â Â 9%Â Â Â 23Â Â Â 577
Jul. 1, 1997-Sep. 30, 1997Â Â 8%Â Â Â 21Â Â Â 575Â Â 9%Â Â Â 23Â Â Â 577
Oct. 1, 1997-Dec. 31, 1997Â Â 8%Â Â Â 21Â Â Â 575Â Â 9%Â Â Â 23Â Â Â 577
Jan. 1, 1998-Mar. 31, 1998Â Â 8%Â Â Â 21Â Â Â 575Â Â 9%Â Â Â 23Â Â Â 577
Apr. 1, 1998-Jun. 30, 1998Â Â 7%Â Â Â 19Â Â Â 573Â Â 8%Â Â Â 21Â Â Â 575
Jul. 1, 1998-Sep. 30, 1998Â Â 7%Â Â Â 19Â Â Â 573Â Â 8%Â Â Â 21Â Â Â 575
Oct. 1, 1998-Dec. 31, 1998Â Â 7%Â Â Â 19Â Â Â 573Â Â 8%Â Â Â 21Â Â Â 575
            TABLE OF INTEREST RATES
        FROM JANUARY 1, 1999 - PRESENT
  NONCORPORATE OVERPAYMENTS AND UNDERPAYMENTS
                                1995-1 C.B.
                            RATE  TABLE  PAGE
Jan. 1, 1999-Mar. 31, 1999Â Â Â 7%Â Â Â Â Â 19Â Â Â Â 573
Apr. 1, 1999-Jun. 30, 1999Â Â Â 8%Â Â Â Â Â 21Â Â Â Â 575
Jul. 1, 1999-Sep. 30, 1999Â Â Â 8%Â Â Â Â Â 21Â Â Â Â 575
Oct. 1, 1999-Dec. 31, 1999Â Â Â 8%Â Â Â Â Â 21Â Â Â Â 575
Jan. 1, 2000-Mar. 31, 2000Â Â Â 8%Â Â Â Â Â 69Â Â Â Â 623
Apr. 1, 2000-Jun. 30, 2000Â Â Â 9%Â Â Â Â Â 71Â Â Â Â 625
Jul. 1, 2000-Sep. 30, 2000Â Â Â 9%Â Â Â Â Â 71Â Â Â Â 625
Oct. 1, 2000-Dec. 31, 2000Â Â Â 9%Â Â Â Â Â 71Â Â Â Â 625
Jan. 1, 2001-Mar. 31, 2001Â Â Â 9%Â Â Â Â Â 23Â Â Â Â 577
Apr. 1, 2001-Jun. 30, 2001Â Â Â 8%Â Â Â Â Â 21Â Â Â Â 575
Jul. 1, 2001-Sep. 30, 2001Â Â Â 7%Â Â Â Â Â 19Â Â Â Â 573
Oct. 1, 2001-Dec. 31, 2001Â Â Â 7%Â Â Â Â Â 19Â Â Â Â 573
Jan. 1, 2002-Mar. 31, 2002Â Â Â 6%Â Â Â Â Â 17Â Â Â Â 571
Apr. 1, 2002-Jun. 30, 2002Â Â Â 6%Â Â Â Â Â 17Â Â Â Â 571
Jul. 1, 2002-Sep. 30, 2002Â Â Â 6%Â Â Â Â Â 17Â Â Â Â 571
Oct. 1, 2002-Dec. 31, 2002Â Â Â 6%Â Â Â Â Â 17Â Â Â Â 571
Jan. 1, 2003-Mar. 31, 2003Â Â Â 5%Â Â Â Â Â 15Â Â Â Â 569
Apr. 1, 2003-Jun. 30, 2003Â Â Â 5%Â Â Â Â Â 15Â Â Â Â 569
Jul. 1, 2003-Sep. 30, 2003Â Â Â 5%Â Â Â Â Â 15Â Â Â Â 569
Oct. 1, 2003-Dec. 31, 2003Â Â Â 4%Â Â Â Â Â 13Â Â Â Â 567
Jan. 1, 2004-Mar. 31, 2004Â Â Â 4%Â Â Â Â Â 61Â Â Â Â 615
                   TABLE OF INTEREST RATES
               FROM JANUARY 1, 1999 - PRESENT
          CORPORATE OVERPAYMENTS AND UNDERPAYMENTS
                             OVERPAYMENTS     UNDERPAYMENTS
                           —————- —————–
                             1995-1 C.B.       1995-1 C.B.
                           RATE TABLE PG  RATE TABLE  PG
Jan. 1, 1999-Mar. 31, 1999Â Â 6%Â Â Â 17Â Â Â 571Â Â 7%Â Â Â 19Â Â Â 573
Apr. 1, 1999-Jun. 30, 1999Â Â 7%Â Â Â 19Â Â Â 573Â Â 8%Â Â Â 21Â Â Â 575
Jul. 1, 1999-Sep. 30, 1999Â Â 7%Â Â Â 19Â Â Â 573Â Â 8%Â Â Â 21Â Â Â 575
Oct. 1, 1999-Dec. 31, 1999Â Â 7%Â Â Â 19Â Â Â 573Â Â 8%Â Â Â 21Â Â Â 575
Jan. 1, 2000-Mar. 31, 2000Â Â 7%Â Â Â 67Â Â Â 621Â Â 8%Â Â Â 69Â Â Â 623
Apr. 1, 2000-Jun. 30, 2000Â Â 8%Â Â Â 69Â Â Â 623Â Â 9%Â Â Â 71Â Â Â 625
Jul. 1, 2000-Sep. 30, 2000Â Â 8%Â Â Â 69Â Â Â 623Â Â 9%Â Â Â 71Â Â Â 625
Oct. 1, 2000-Dec. 31, 2000Â Â 8%Â Â Â 69Â Â Â 623Â Â 9%Â Â Â 71Â Â Â 625
Jan. 1, 2001-Mar. 31, 2001Â Â 8%Â Â Â 21Â Â Â 575Â Â 9%Â Â Â 23Â Â Â 577
Apr. 1, 2001-Jun. 30, 2001Â Â 7%Â Â Â 19Â Â Â 573Â Â 8%Â Â Â 21Â Â Â 575
Jul. 1, 2001-Sep. 30, 2001Â Â 6%Â Â Â 17Â Â Â 571Â Â 7%Â Â Â 19Â Â Â 573
Oct. 1, 2001-Dec. 31, 2001Â Â 6%Â Â Â 17Â Â Â 571Â Â 7%Â Â Â 19Â Â Â 573
Jan. 1, 2002-Mar. 31, 2002Â Â 5%Â Â Â 15Â Â Â 569Â Â 6%Â Â Â 17Â Â Â 571
Apr. 1, 2002-Jun. 30, 2002Â Â 5%Â Â Â 15Â Â Â 569Â Â 6%Â Â Â 17Â Â Â 571
Jul. 1, 2002-Sep. 30, 2002Â Â 5%Â Â Â 15Â Â Â 569Â Â 6%Â Â Â 17Â Â Â 571
Oct. 1, 2002-Dec. 31, 2002Â Â 5%Â Â Â 15Â Â Â 569Â Â 6%Â Â Â 17Â Â Â 571
Jan. 1, 2003-Mar. 31, 2003Â Â 4%Â Â Â 13Â Â Â 567Â Â 5%Â Â Â 15Â Â Â 569
Apr. 1, 2003-Jun. 30, 2003Â Â 4%Â Â Â 13Â Â Â 567Â Â 5%Â Â Â 15Â Â Â 569
Jul. 1, 2003-Sep. 30, 2003Â Â 4%Â Â Â 13Â Â Â 567Â Â 5%Â Â Â 15Â Â Â 569
Oct. 1, 2003-Dec. 31, 2003Â Â 3%Â Â Â 11Â Â Â 565Â Â 4%Â Â Â 13Â Â Â 567
Jan. 1, 2004-Mar. 31, 2004Â Â 3%Â Â Â 59Â Â Â 613Â Â 4%Â Â Â 61Â Â Â 615
        TABLE OF INTEREST RATES FOR
       LARGE CORPORATE UNDERPAYMENTS
      FROM JANUARY 1, 1991 - PRESENT
                              1995-1 C.B.
                           RATE TABLE PAGE
Jan. 1, 1991-Mar. 31, 1991Â 13%Â Â Â 31Â Â Â 585
Apr. 1, 1991-Jun. 30, 1991Â 12%Â Â Â 29Â Â Â 583
Jul. 1, 1991-Sep. 30, 1991Â 12%Â Â Â 29Â Â Â 583
Oct. 1, 1991-Dec. 31, 1991Â 12%Â Â Â 29Â Â Â 583
Jan. 1, 1992-Mar. 31, 1992Â 11%Â Â Â 75Â Â Â 629
Apr. 1, 1992-Jun. 30, 1992Â 10%Â Â Â 73Â Â Â 627
Jul. 1, 1992-Sep. 30, 1992Â 10%Â Â Â 73Â Â Â 627
Oct. 1, 1992-Dec. 31, 1992Â Â 9%Â Â Â 71Â Â Â 625
Jan. 1, 1993-Mar. 31, 1993Â Â 9%Â Â Â 23Â Â Â 577
Apr. 1, 1993-Jun. 30, 1993Â Â 9% Â Â Â 23Â Â Â 577
Jul. 1, 1993-Sep. 30, 1993Â Â 9%Â Â Â 23Â Â Â 577
Oct. 1, 1993-Dec. 31, 1993Â Â 9%Â Â Â 23Â Â Â 577
Jan. 1, 1994-Mar. 31, 1994Â Â 9%Â Â Â 23Â Â Â 577
Apr. 1, 1994-Jun. 30, 1994Â Â 9%Â Â Â 23Â Â Â 577
Jul. 1, 1994-Sep. 30, 1994Â 10%Â Â Â 25Â Â Â 579
Oct. 1, 1994-Dec. 31, 1994Â 11%Â Â Â 27Â Â Â 581
Jan. 1, 1995-Mar. 31, 1995Â 11%Â Â Â 27Â Â Â 581
Apr. 1, 1995-Jun. 30, 1995Â 12%Â Â Â 29Â Â Â 583
Jul. 1, 1995-Sep. 30, 1995Â 11%Â Â Â 27Â Â Â 581
Oct. 1, 1995-Dec. 31, 1995Â 11%Â Â Â 27Â Â Â 581
Jan. 1, 1996-Mar. 31, 1996Â 11%Â Â Â 75 Â Â Â 629
Apr. 1, 1996-Jun. 30, 1996Â 10%Â Â Â 73Â Â Â 627
Jul. 1, 1996-Sep. 30, 1996Â 11%Â Â Â 75Â Â Â 629
Oct. 1, 1996-Dec. 31, 1996Â 11%Â Â Â 75Â Â Â 629
Jan. 1, 1997-Mar. 31, 1997Â 11%Â Â Â 27Â Â Â 581
Apr. 1, 1997-Jun. 30, 1997Â 11%Â Â Â 27Â Â Â 581
Jul. 1, 1997-Sep. 30, 1997Â 11%Â Â Â 27Â Â Â 581
Oct. 1, 1997-Dec. 31, 1997Â 11%Â Â Â 27Â Â Â 581
Jan. 1, 1998-Mar. 31, 1998Â 11%Â Â Â 27Â Â Â 581
Apr. 1, 1998-Jun. 30, 1998Â 10%Â Â Â 25Â Â Â 579
Jul. 1, 1998-Sep. 30, 1998Â 10%Â Â Â 25Â Â Â 579
Oct. 1, 1998-Dec. 31, 1998Â 10%Â Â Â 25Â Â Â 579
Jan. 1, 1999-Mar. 31, 1999Â Â 9%Â Â Â 23Â Â Â 577
Apr. 1, 1999-Jun. 30, 1999Â 10%Â Â Â 25Â Â Â 579
Jul. 1, 1999-Sep. 30, 1999Â 10%Â Â Â 25Â Â Â 579
Oct. 1, 1999-Dec. 31, 1999Â 10%Â Â Â 25Â Â Â 579
Jan. 1, 2000-Mar. 31, 2000Â 10%Â Â Â 73Â Â Â 627
Apr. 1, 2000-Jun. 30, 2000Â 11%Â Â Â 75Â Â Â 629
Jul. 1, 2000-Sep. 30, 2000Â 11%Â Â Â 75Â Â Â 629
Oct. 1, 2000-Dec. 31, 2000Â 11%Â Â Â 75Â Â Â 629
Jan. 1, 2001-Mar. 31, 2001Â 11%Â Â Â 27Â Â Â 581
Apr. 1, 2001-Jun. 30, 2001Â 10%Â Â Â 25Â Â Â 579
Jul. 1, 2001-Sep. 30, 2001Â Â 9%Â Â Â 23Â Â Â 577
Oct. 1, 2001-Dec. 31, 2001Â Â 9%Â Â Â 23Â Â Â 577
Jan. 1, 2002-Mar. 31, 2002Â Â 8%Â Â Â 21Â Â Â 575
Apr. 1, 2002-Jun. 30, 2002Â Â 8%Â Â Â 21Â Â Â 575
Jul. 1, 2002-Sep. 30, 2002Â Â 8%Â Â Â 21Â Â Â 575
Oct. 1, 2002-Dec. 30, 2002Â Â 8%Â Â Â 21Â Â Â 575
Jan. 1, 2003-Mar. 31, 2003Â Â 7%Â Â Â 19Â Â Â 573
Apr. 1, 2003-Jun. 30, 2003Â Â 7%Â Â Â 19Â Â Â 573
Jul. 1, 2003-Sep. 30, 2003Â Â 7%Â Â Â 19Â Â Â 573
Oct. 1, 2003-Dec. 31, 2003Â Â 6%Â Â Â 17Â Â Â 571
Jan. 1, 2004-Mar. 31, 2004Â Â 6%Â Â Â 65Â Â Â 619
   TABLE OF INTEREST RATES FOR CORPORATE
      OVERPAYMENTS EXCEEDING $10,000
      FROM JANUARY 1, 1995 - PRESENT
                              1995-1 C.B.
                           RATE TABLE PAGE
Jan. 1, 1995-Mar. 31, 1995Â 6.5%Â Â 18Â Â Â 572
Apr. 1, 1995-Jun. 30, 1995Â 7.5%Â Â 20Â Â Â 574
Jul. 1, 1995-Sep. 30, 1995Â 6.5%Â Â 18Â Â Â 572
Oct. 1, 1995-Dec. 31, 1995Â 6.5%Â Â 18Â Â Â 572
Jan. 1, 1996-Mar. 31, 1996Â 6.5%Â Â 66Â Â Â 620
Apr. 1, 1996-Jun. 30, 1996Â 5.5%Â Â 64Â Â Â 618
Jul. 1, 1996-Sep. 30, 1996Â 6.5%Â Â 66Â Â Â 620
Oct. 1, 1996-Dec. 31, 1996Â 6.5%Â Â 66Â Â Â 620
Jan. 1, 1997-Mar. 31, 1997Â 6.5%Â Â 18Â Â Â 572
Apr. 1, 1997-Jun. 30, 1997Â 6.5%Â Â 18Â Â Â 572
Jul. 1, 1997-Sep. 30, 1997Â 6.5%Â Â 18Â Â Â 572
Oct. 1, 1997-Dec. 31, 1997Â 6.5%Â Â 18Â Â Â 572
Jan. 1, 1998-Mar. 31, 1998Â 6.5%Â Â 18Â Â Â 572
Apr. 1, 1998-Jun. 30, 1998Â 5.5%Â Â 16Â Â Â 570
Jul. 1, 1998-Sep. 30, 1998Â 5.5%Â Â 16Â Â Â 570
Oct. 1, 1998-Dec. 31, 1998Â 5.5%Â Â 16Â Â Â 570
Jan. 1, 1999-Mar. 31, 1999Â 4.5%Â Â 14Â Â Â 568
Apr. 1, 1999-Jun. 30, 1999Â 5.5%Â Â 16Â Â Â 570
Jul. 1, 1999-Sep. 30, 1999Â 5.5%Â Â 16Â Â Â 570
Oct. 1, 1999-Dec. 31, 1999Â 5.5%Â Â 16Â Â Â 570
Jan. 1, 2000-Mar. 31, 2000Â 5.5%Â Â 64Â Â Â 618
Apr. 1, 2000-Jun. 30, 2000Â 6.5%Â Â 66Â Â Â 620
Jul. 1, 2000-Sep. 30, 2000Â 6.5%Â Â 66Â Â Â 620
Oct. 1, 2000-Dec. 31, 2000Â 6.5%Â Â 66Â Â Â 620
Jan. 1, 2001-Mar. 31, 2001Â 6.5%Â Â 18Â Â Â 572
Apr. 1, 2001-Jun. 30, 2001Â 5.5%Â Â 16Â Â Â 570
Jul. 1, 2001-Sep. 30, 2001Â 4.5%Â Â 14Â Â Â 568
Oct. 1, 2001-Dec. 31, 2001Â 4.5%Â Â 14Â Â Â 568
Jan. 1, 2002-Mar. 31, 2002Â 3.5%Â Â 12Â Â Â 566
Apr. 1, 2002-Jun. 30, 2002Â 3.5%Â Â 12Â Â Â 566
Jul. 1, 2002-Sep. 30, 2002Â 3.5%Â Â 12Â Â Â 566
Oct. 1, 2002-Dec. 31, 2002Â 3.5%Â Â 12Â Â Â 566
Jan. 1, 2003-Mar. 31, 2003Â 2.5%Â Â 10Â Â Â 564
Apr. 1, 2003-Jun. 30, 2003Â 2.5%Â Â 10Â Â Â 564
Jul. 1, 2003-Sep. 30, 2003Â 2.5%Â Â 10Â Â Â 564
Oct. 1, 2003-Dec. 31, 2003Â 1.5%Â Â Â 8Â Â Â 562
Jan. 1, 2004-Mar. 31, 2004Â 1.5%Â Â 56Â Â Â 610
 Rev. Rul. 2003-126, 2003-52 I.R.B. 1249, 2003-2 C.B. 1249
Revenue Ruling 2003-127
Rev. Rul. 2003-127
Rev. Rul. 2003-127, 2003-52 I.R.B. 1245, 2003-2 C.B. 1245
                      Internal Revenue Service (I.R.S.)
                                Revenue Ruling
                             HEDGE IDENTIFICATION
                         Published: December 29, 2003
 Section 446.–General Rule for Methods of Accounting, 26 CFR 1.446-4: Hedging transactions.
(Also ss 1221; 1.1221-2.)
 Hedge identification. This ruling holds that for purposes of the income timing rules in regulations section 1.446-4, the hedging
transaction definition in section 1.1221-2(b) is not modified by section 1.1221-2(g)(2), which deals with the effects on income characterization of a mis-identification or failure to identify a hedging transaction. If a taxpayer has used a method of accounting for a type of hedging transaction but, under section 1.446-4, that method is impermissible for those transactions, the taxpayer must obtain the Commissioner’s consent before changing to a method of accounting that is permitted.
 Hedge identification. This ruling holds that for purposes of the income timing rules in regulations section 1.446-4, the hedging transaction definition in section 1.1221-2(b) is not modified by section 1.1221-2(g)(2), which deals with the effects on income characterization of a mis-identification or failure to identify a hedging transaction. If a taxpayer has used a method of accounting for a type of hedging transaction but, under section 1.446-4, that method is impermissible for those transactions, the taxpayer must obtain the Commissioner’s consent before changing to a method of accounting that is permitted.
ISSUES
 (1) If a transaction satisfies the definitions of a hedging transaction in s 1221(b)(2)(A) of the Internal Revenue Code and s 1.1221-2(b) of the Income Tax Regulations but the taxpayer fails to identify the transaction under ss 1.1221-2(f) and 1.446-4(d)(2), must the taxpayer nevertheless account for the transaction using a method of accounting that is permissible under s 1.446-4?
 (2) If a taxpayer has used a method of accounting for a type of hedging transaction but, under s 1.446-4, that method is impermissible for that type of transaction, is the taxpayer required to obtain the Commissioner’s consent before changing to a method of accounting permitted by s 1.446-4?
FACTS
 In the normal course of H’s trade or business, H borrows money and enters into a contract to manage the risk of interest rate changes with respect to that borrowing. The contract is not a s 1256 contract as defined in s 1256(b) of the Code. H fails to identify the contract as a hedging transaction under s 1.1221-2(f). H’s failure to identify the contract as a hedging transaction does not satisfy the conditions for the application of either s 1.1221- 2(g)(2)(ii) (which addresses certain inadvertent errors) or s 1.1221- 2(g)(iii) (which provides an anti-abuse rule). In addition, H fails to comply with the identification requirements in s 1.446-4(d)(2). Section 1.446- 4(a)(1) and (2), which sets forth exceptions to the general rules in s 1.446-4, does not apply to the contract. H has previously established a method of accounting for hedging transactions of this type, but the method is not a permissible method under s 1.446-4.
LAW AND ANALYSIS
Issue (1)
 Section 1221 defines a capital asset as property that is not described in s 1221(a)(1) through s 1221(a)(8). Among the excluded classes of property are the transactions described in s 1221(a)(7) that are clearly identified as hedging transactions before the close of the day on which they are acquired, originated, or entered into. Thus, to be excluded from treatment as a capital asset under s 1221(a)(7), a transaction must fall within the definition of a hedging transaction and must be properly identified as a hedging transaction.
 The term “hedging transaction” is defined in s 1221(b)(2)(A) and s 1.1221-2(b) as any transaction entered into by a taxpayer in the normal course of the taxpayer’s trade or business primarily to manage the risks specified in s 1221(b)(2)(A)(i) through (iii).
Because the contract is entered into in the normal course of H’s business primarily to manage the risk of interest rate changes with respect to a borrowing, the contract falls within the definition of a hedge set forth in s 1221(b)(2)(A)(i) and s 1.1221-2(b)(2).
 The general requirements for a proper identification, as required by s 1221(a)(7), are set forth in s 1.1221-2(f). Additional identification requirements are set forth in s 1.446-4(d)(2). Furthermore, s 1221(b)(2)(B) specifically directs the Secretary to prescribe regulations that properly characterize any income, gain, expense, or loss arising from a transaction that (1) is a hedging transaction but is not properly identified under s 1221(a)(7) or (2) is not a hedging transaction but is so identified.
Section 1.1221-2(g)(2) generally provides that a failure to make a proper identification under s 1.1221-2(f)(1) “establishes that a transaction is not a hedging transaction” and that the rules of s 1.1221- 2(a)(1) and (2) (providing special rules for the character of gain or loss) do not apply. Consequently, because H fails to identify the contract as a hedging transaction under s 1.1221-2(f), and because the exceptions set forth in ss 1.1221-2(g)(2)(ii) or (iii) do not apply, then s 1.1221-2(a)(1) and (2) do not apply to the contract.
 Section 1.446-4(a) provides that “a hedging transaction as defined in s 1.1221-2(b) (whether or not the character of the gain or loss from the transaction is determined under s 1.1221-2) must be accounted for under the rules of [s 1.446-4].” Because s 1.1221-2(g) causes H’s contract to fail to be a hedging transaction for purposes of s 1.1221-2(a)(1) and (2), the question arises whether H’s contract also fails to be a hedging transaction for purposes of s 1.446-4(a).
 H’s contract is a hedging transaction for purposes of s 1.446-4. First, the definitions of a hedging transaction set forth in s 1221(b)(2)(A) and s 1.1221-2(b) do not contain an identification requirement. In fact, s 1221(b)(2)(B) refers to a transaction “which is a hedging transaction but which was not identified as such in accordance with [s 1221(a)(7)] … .” This language indicates that, even though s 1221(a)(7) does not cause the transaction to give rise to ordinary income or loss unless it is properly identified, that transaction may nevertheless be a hedging transaction.
 Second, s 1.446-4(a) refers only to the definition of a hedging transaction in s 1.1221-2(b) and does not refer to the additional rules contained in s 1.1221-2(g)(2) regarding the treatment of unidentified transactions.
 Third, the purpose of ss 1221(a)(7) and 1221(b) is to address the character of income or loss. Specifically, these sections match the character of the hedge to that of the hedged item in a manner that is generally advantageous to taxpayers. The purpose of s 1.446-4 is to clearly reflect income by matching the timing of income, gain, loss, and deductions of a hedging transaction to income, gain, loss and deductions of a hedged item. This purpose is independent of character of income and loss. Thus, s 1.1221-2(g)(1) and (2) affects the character of income or loss but does not modify the definition of a hedging transaction under s 1221(b)(2)(A) and s 1.1221- 2(b). Despite H’s failure to identify the contract as a hedging transaction under s 1.1221-2(f)(1), H’s failure to identify the hedged item, items, or aggregate risk under s 1.1221-2(f)(2), and H’s failure to comply with the
identification requirements in s 1.446-4(d)(2), H must account for income, deduction, gain, or loss on the contract using a method of accounting that clearly reflects income under s 1.446-4.
Issue (2)
 Section 1.446-4 provides guidance regarding methods of accounting that clearly reflect income from hedging transactions. See s 1.446-4(b), which states that “[t]o clearly reflect income, the method used must reasonably match the timing of income, deduction, gain, or loss from the hedging transaction with the timing of the income, deduction, gain, or loss from the item or items being hedged.” Each method of accounting used by a taxpayer must clearly reflect income.
 Section 1.446-4(c) generally permits a taxpayer to adopt a method of accounting that clearly reflects the taxpayer’s income from a particular type of transaction. Different methods of accounting may be used for different types of hedging transactions and for transactions that hedge different types of items. Once a taxpayer adopts a method of accounting, however, that method must be applied consistently and may only be changed with the consent of the Commissioner, as provided by s 446(e) and the applicable regulations and procedures.
  Rev. Rul. 90-38, 1990-1 C.B. 57, holds that in determining gross income or deductions, the treatment of a material item in the same way for two or more consecutively filed tax returns represents consistent treatment of that item for purposes of s 1.446-1(e)(2)(ii)(a). If a taxpayer treats an item properly in the first return that reflects the item, however, the taxpayer need not have treated the item consistently in two or more consecutive tax returns to have adopted a method of accounting. If a taxpayer has adopted a method of accounting, the taxpayer may not change the method by amending its prior income tax returns.
 Despite H’s failure to identify the contract as a hedging transaction under s 1.1221-2(f) and H’s failure to comply with the identification requirements in s 1.446-4(d)(2), H must account for the gain or loss on the contract using a method of accounting that clearly reflects income under s 1.446-4. See s 1.446-1(b)(1) (which provides that if the taxpayer does not regularly employ a method of accounting which clearly reflects income, the computation of taxable income shall be made in a manner which, in the opinion of the Commissioner, does clearly reflect income). Because H has previously adopted a method of accounting for the same type of hedging transaction, H must use that method to account for the gain or loss on the contract unless H obtains the consent of the Commissioner to change to a method that satisfies s 1.446-4. See s 1.446-1(e)(2)(i) (which provides that a taxpayer must obtain the consent of the Commissioner before changing its method of accounting, whether or not its method of accounting is permissible) and s 446(f) (which provides that failure to file a request to change the method of accounting does not prevent the imposition, or diminish the amount of, any penalties or additions to tax). See Rev. Proc. 97-27, 1997-1 C.B. 680, for the procedure to obtain the Commissioner’s consent to change to a permissible method.
HOLDINGS
 (1) If a transaction satisfies the definitions of a hedging transaction in s 1221(b)(2)(A) and s 1.1221-2(b), the taxpayer must account for the transaction using a method of accounting that is permissible under s 1.446- 4, even if the taxpayer fails to identify the transaction under ss 1.1221- 2(f) and 1.446-4(d)(2).
 (2) If a taxpayer has used a method of accounting for a type of hedging transaction but, under s 1.446-4, that method is impermissible for those transactions, the taxpayer must obtain the Commissioner’s consent before changing to a method of accounting permitted by s 1.446-4.
DRAFTING INFORMATION
 The principal author of this revenue ruling is Arturo Estrada of the Office of Associate Chief Counsel (Financial Institutions and Products). For further information regarding this revenue ruling, contact Mr. Estrada at (202) 622- 3900 (not a toll-free call).
 Rev. Rul. 2003-127, 2003-52 I.R.B. 1245, 2003-2 C.B. 1245
Revenue Ruling 2003-128
Rev. Rul. 2003-128
Rev. Rul. 2003-128, 2003-52 I.R.B. 1247, 2003-2 C.B. 1247
                      Internal Revenue Service (I.R.S.)
                                Revenue Ruling
                    LIFO; PRICE INDEXES; DEPARTMENT STORES
                         Published: December 29, 2003
 Section 472.–Last-in, First-out Inventories, 26 CFR 1.472-1: Last-in, first-out inventories.
 LIFO; price indexes; department stores. The October 2003 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, 2003.
 LIFO; price indexes; department stores. The October 2003 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, 2003.
 The following Department Store Inventory Price Indexes for October 2003 were issued by the Bureau of Labor Statistics. The indexes are accepted by the Internal Revenue Service, under s 1.472-1(k) of the Income Tax Regulations and Rev. Proc. 86-46, 1986-2 C.B. 739, for appropriate application to inventories of department stores employing the retail inventory and last-in, first-out inventory methods for tax years ended on, or with reference to, October 31, 2003.
 The Department Store Inventory Price Indexes are prepared on a national basis and include (a) 23 major groups of departments, (b) three special combinations of the major groups — soft goods, durable goods, and miscellaneous goods, and (c) a store total, which covers all departments, including some not listed separately, except for the following: candy, food, liquor, tobacco, and contract departments.
   BUREAU OF LABOR STATISTICS, DEPARTMENT STORE INVENTORY PRICE INDEXES BY
                              DEPARTMENT GROUPS
                 (January 1941 = 100, unless otherwise noted)
                     Groups               Oct. 2002   Oct. 2003   Percent
                                                                     Change
                                                                    from Oct.
                                                                     2002 to
                                                                    Oct. 2003
                                                                      [FN1]
——————————————————————————-
1.        Piece Goods …………………… 485.7       487.3         0.3
2.        Domestics and Draperies ………… 581.6       556.5        -4.3
3.        Women’s and Children’s Shoes ……. 660.4       657.4        -0.5
4.        Men’s Shoes …………………… 895.6       844.9        -5.7
5.        Infants’ Wear …………………. 628.9       609.1        -3.1
6.        Women’s Underwear ……………… 544.2       520.2        -4.4
7.        Women’s Hosiery ……………….. 339.8       352.3         3.7
8.        Women’s and Girls’
            Accessories …………………. 551.6       578.0         4.8
9.        Women’s Outerwear and Girls’
            Wear ……………………….. 388.2       387.8        -0.1
10.       Men’s Clothing ………………… 573.0       552.3        -3.6
11.       Men’s Furnishings ……………… 599.3       592.1        -1.2
12.       Boys’ Clothing and
            Furnishings …………………. 459.4       441.9        -3.8
13.       Jewelry ………………………. 897.1       883.7        -1.5
14.       Notions ………………………. 808.9       786.9        -2.7
15.       Toilet Articles and Drugs ………. 975.1       984.0         0.9
16.       Furniture and Bedding ………….. 626.4       618.8        -1.2
17.       Floor Coverings ……………….. 592.6       589.4        -0.5
18.       Housewares ……………………. 745.8       714.3        -4.2
19.       Major Appliances ………………. 223.7       210.2        -6.0
20.       Radio and Television ……………. 47.6        44.4        -6.7
21.       Recreation and Education
            [FN2] ……………………….. 85.2        82.1        -3.6
22.       Home Improvements [FN2] ………… 124.6       125.3         0.6
23.       Automotive Accessories [FN2] ……. 111.3       111.8         0.4
Groups 1-15: Soft Goods ………………….. 582.7Â Â Â Â Â Â Â 574.9Â Â Â Â Â Â Â Â -1.3
Groups 16-20: Durable Goods ………………. 407.4Â Â Â Â Â Â Â 390.0Â Â Â Â Â Â Â Â -4.3
Groups 21-23: Misc. Goods [FN2] ……………. 95.7Â Â Â Â Â Â Â Â 93.8Â Â Â Â Â Â Â Â -2.0
          Store Total [FN3] ……………… 518.1       507.8        -2.0
FN1. Absence of a minus sign before the percentage change in this column
 signifies a price increase.
FN2. Indexes on a January 1986 = 100 base.
FN3. The store total index covers all departments, including some not listed
 separately, except for the following: candy, food, liquor, tobacco and
 contract departments.
DRAFTING INFORMATION
 The principal author of this revenue ruling is Denise Carmichael of the Office of Associate Chief Counsel (Income Tax and Accounting). For further information regarding this revenue ruling, contact Ms. Carmichael at (202) 622- 6888 (not a toll-free call).
 Rev. Rul. 2003-128, 2003-52 I.R.B. 1247, 2003-2 C.B. 1247
Revenue Ruling 2003-117
Rev. Rul. 2003-117
Rev. Rul. 2003-117, 2003-46 I.R.B. 1051, 2003-2 C.B. 1051
                      Internal Revenue Service (I.R.S.)
                                Revenue Ruling
    LOW-INCOME HOUSING CREDIT; SATISFACTORY BOND; “BOND FACTOR” AMOUNTS FOR
                   THE PERIOD OCTOBER THROUGH DECEMBER 2003
                         Published: November 17, 2003
 Section 42.–Low-Income Housing Credit
 Low-income housing credit; satisfactory bond; “bond factor” amounts for the period October through December 2003. 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 2003. This ruling also provides a summary of the bond factor amounts for dispositions occurring during the period January through September 2003.
 Low-income housing credit; satisfactory bond; “bond factor” amounts for the period October through December 2003. 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 2003. This ruling also provides a summary of the bond factor amounts for dispositions occurring during the period January through September 2003.
 In Rev. Rul. 90-60, 1990-2 C.B. 3, the Internal Revenue Service provided guidance to taxpayers concerning the general methodology used by the Treasury Department in co

























