1406019 Informal Interpretation

From: Walsh, Kathryn E. [mailto:kwalsh@ftc.goy]
Sent: Monday, June 30, 2014 8:50AM
To: (Redacted)
Cc: Verne, B. Michael

Subject: RE:: Brokerage Statements/Investment Account Statements

Not regularly prepared (Redacted). It can be something that' s prepared internally (the language you quote),but not tax documents and not something prepared in the context of a transaction.

From: (Redacted)
Sent: Monday, June 30, 2014 8:33AM
To: Walsh, Kathryn E.
Subject: RE: Brokerage Statements/Investment Account Statements

Hi Kate.

Thanks again for the advice below.

I assume that annual 1065s- information statements filed by non-corporate entities with the IRS each year-would also not qualify as regularly prepared balance sheets for size-of-person test purposes.

I know that tax returns are not regularly prepared financial statements. I ask about 1065s, however, because the new PNPM states the following: "The regular preparation of the financial statements, and not the specific purposes for which they were prepared, is relevant in assessing whether the financial statements can (and must) be used to determine if the size of person test is satisfied. A balance sheet prepared annually in accordance with the accounting procedures normally used by a company for purposes of determining that company's contributions to an employee profit-sharing plan, for example, could qualify as the company's 'last regularly prepared' balance sheet, at least until the next regular annual statements or other regularly prepared balance sheets (if any) are prepared."