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Focuses on the requirement of the tax court on cost capitalization and characterization of interest rate swaps involving tax-exempt bonds in the United States. Details on cases of cost capitalization victories; Character of payments on rate swaps; Conduit theory applied to Equity Swaps.

Focuses on tax accounting issues in banks in the United States. Denial of retroactive method change; Change in accounting method guidance; Credit card fees; Mark-to market developments.

Focuses on the rule changes on loan origination cost deductions and accumulated earnings tax. Capitalization of loan origination costs; Details on obsolete court holding rulings; Explanation on accumulated earnings tax.

Presents information on the regulations released by the United States Internal Revenue Service covering issues such as bad debts, banks' transferee liability and foreign tax credits. Regulations (TD 8763, 1/28/98) under Sections 166 and 1001; Notice 98-7, 1998-3 IRB 54; Notice 98-16, 1998-15 IRB 12.

Examines the US Internal Revenue Service's guidelines on the tax treatment of bond premiums and the annuity contract exception to the original issue discount rules. Original issue discount provisions; Rules for a convertible bond acquired on a transferred basis; Treatment of `grace period interest' on credit card receivables; Government crackdown on credit abuse.

Reports that taxpayers not under exam can file Forms 3115 anytime during the year of change in the United States. General filing requirements; Window periods; Clarification of definitions; Accounting method changes.

Focuses on rules governing identification of securities as exempt from the market-to-market rules of taxation. Securities held for investment, debt securities not held for sale and certain hedges; Identification in dealers' books and records.

Reports that the Internal Revenue Service has decided to apply the original issue discount provisions to allow deferral of certain interest on credit card receivables. Credit card agreements; Period of the deferral.

Reports on the hedging ruling issued by the Internal Revenue Service. Definition of hedging transaction; Identification of the hedge for the purpose of determining the character of income, deduction, loss or gain from transactions.

Reports that the Internal Revenue service has previewed its developed model to be used in determining the FMV of derivatives. Definition of dealer; Market-to-market concept; Auditing of taxpayers.