CICA Handbook Section 3465 Income Taxes, Application to Mutual Fund Corporations

In a previous newsletter, we summarized the status of a variety of important issues related to the application of CICA Handbook Section 1100 Generally Accepted Accounting Principles to investment funds. In that newsletter, we stated that we did not expect the Emerging Issues Committee (EIC) to extend to mutual fund corporations the exemption that mutual fund trusts have with respect to applying the principles of Section 3465 Income Taxes.

We continue to believe that the EIC will not extend this exemption to mutual fund corporations. Accordingly, we set forth below practical guidance related to the application of Section 3465 to mutual fund corporations.