Drafting Resources:
- Definitions
- Should there be definitions for terms such as hedging transactions, maturity, redemption, sale, exchange, loan, or "other disposition of cash or securities"?
- Accounts receivable
- Should sales (or other defined dispositions) of accounts receivable be included within the
definition of “receipts”?
- "Regular Course of Business"
- How should receipts that are received with varying regularity across lines of business be treated?
- Is a rule required to clarify how receipts from intangible (or other?) assets not held in the regular course of business should be included/excluded from the definition of receipts?
- Exclusions
- Should there be a definition of receipts that fit only the functional test (and therefore
would be excluded from the definition of receipts under the model)?
- Receipts of Brokers
- How should receipts of brokers (or sales of securities in the ordinary course of business) be treated in general?
- Should there be a specific rule for the treatment of such receipts in a combined return with other receipts of non-brokers?
- Are additional definitions required for the sale or other disposition of securities by brokers in the ordinary course of business?
- Are rules required to address the problem of churning and what should those rules be?
- What should the definition of receipts that are nonapportionable (that meet neither the functional or transactional test) be? Such receipts are excluded from the definition of receipts under the model.
- Recommendations to Uniformity on other issues (not within the scope of this group), such as regulations under Sections 17 or 18.
- Rule for including functional receipts when not doing so would distort (Sec. 18)
- Rule for churning when it comes to treatment of broker receipts (If to be addressed under Section 18 rather than Section 1). - Factoring receivables for accrual taxpayers.
Agendas from previous meetings, materials, and other project related information: