1 See Institute Memorandum to Accounting/Treasurers Members No. 14-98, Primary Contacts - Member
Complex No. 59-98, Tax Members No. 17-98 and Adviser/Distributor Task Force, dated June 25, 1998.
[10588]
December 21, 1998
TO: TAX COMMITTEE No. 39-98
ADVISER/DISTRIBUTOR TASK FORCE
RE: JANUARY 20, 1999 MEETING ON START-UP EXPENSE ISSUE
______________________________________________________________________________
Earlier this year, the US Tax Court held that the expenses incurred by FMR in starting up new
funds were required to be capitalized and could not be amortized.1 Recently, FMR filed with the First
Circuit Court of Appeals a notice of intent to appeal the Tax Court decision. The Institute intends to
file an amicus curiae brief with the First Circuit in support of FMR’s appeal.
On Wednesday, January 20, 1999, a meeting will be held to discuss a draft of the Institute’s
brief, which will be circulated in advance of the meeting. The meeting will begin at 10:00 a.m. in the
David Silver Conference Room, which is located on the 12th Floor of the Institute’s offices at 1401 H
Street, NW, Washington DC 20005. Lunch will be served following the meeting.
If you plan to attend the meeting, please complete the attached meeting response form and fax it
to my assistant, Trish Phillips, at 202-326-5841. Alternatively, you may contact her at 202-218-5560 or
pphillip@ici.org.
Any questions regarding the start-up issue, the Tax Court’s decision, the Institute’s brief or the
January meeting may be directed to the undersigned at 202-326-5832 or lawson@ici.org.
Keith D. Lawson
Senior Counsel
Attachment