S.Amdt. 1735

SA 1735. Mr. ROUNDS (for himself, Mr. Hatch, Mr. Perdue, and Mr.
Crapo) submitted an amendment intended to be proposed to amendment SA
1618 proposed by Mr. McConnell (for Mr. Hatch (for himself and Ms.
Murkowski)) to the bill H.R. 1, to provide for reconciliation pursuant
to titles II and V of the concurrent resolution on the budget for
fiscal year 2018; which was ordered to lie on the table; as follows:

On page 171, beginning with line 17, strike all through
page 172, line 17, and insert the following:
``(b) Inclusion Not Later Than for Financial Accounting
Purposes.--
``(1) Income taken into account in financial statement.--
``(A) In general.--In the case of a taxpayer the taxable
income of which is computed under an accrual method of
accounting, the all events test with respect to any item of
gross income (or portion thereof) shall not be treated as met
any later than when such item (or portion thereof) is taken
into account as revenue in--
``(i) an applicable financial statement of the taxpayer, or
``(ii) such other financial statement as the Secretary may
specify for purposes of this subsection.
``(B) Exception.--This paragraph shall not apply to--
``(i) a taxpayer which does not have a financial statement
described in clause (i) or (ii) of subparagraph (A) for a
taxable year, or
``(ii) any item of gross income in connection with a
mortgage servicing contract.
``(C) All events test.--For purposes of this section, the
all events test is met with respect to any item of gross
income if all the events have occurred which fix the right to
receive such income and the amount of such income can be
determined with reasonable accuracy.
``(2) Coordination with special methods of accounting.--
Paragraph (1) shall not apply with respect to any item of
gross income for which the taxpayer uses a special method of
accounting provided under any other provision of this
chapter, other than any provision of part V of subchapter P
(except as provided in clause (ii) of paragraph (1)(B)).
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