--- Current Status ---
The Draft Amendments to the Commission’s Model General Allocation and Apportionment Regulations were approved and commended to the Commission for adoption as a uniformity recommendation to the states by the Executive Committee on Oct. 4, 2016 (this triggers a survey of affected Commission states pursuant to Bylaw 7). The Executive Committee approved clarifying amendments necessary to reflect that interest and dividends are not included in the receipts factor (as recommended by the Uniformity Committee), and also approved inclusion of the mediation provision proposed by the ABA, but changing the word “shall” to “may.”
--- Original Documents ---
Agendas from previous meetings, materials, and other project related information:
Public Hearing on Proposed Amendments to Regulations
Wednesday, March 9, 2016 10:30 a.m. Eastern Time Hall of the States, Room 231 444 North Capitol Street, N.W. Washington, DC 20001
To participate by telephone, dial 1-719-457-1414 access code 258090#.
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.