Fiduciary Accounting Income

In this report, Blattmachr and Gans explain how new regulations promulgated in January make reaching and fundamental changes to some tax rules that are dependent on the concept of fiduciary accounting income (FAI) under local law.

In January 2004, the Treasury Department issued extensive new regulations about the meaning of "income" in a fiduciary accounting sense. Fiduciary accounting income, even though it is a state law concept, has vast impact under the Federal…