Apparently, the IRS is concerned that many funds maintain their books and records in several different locations, so that the address shown on the 1120 RIC may not necessarily be where the audit can be performed. Miscellaneous Rumor has it that Bob Dole is expected to introduce some sort of flat tax proposal to revive his campaign, so the debate may not yet be over. A new exam manual is close to being completed. They will probably continue the practice of not granting exit interviews after conducting an examination. Financials - The SEC is moving ahead with their plans to require money market funds to include a bar graph in their financial statements.
Mutual funds are specifically exempt from making the quantitative and qualitative disclosures.
It appears that the required disclosures are not significantly different from the disclosures that mutual funds are currently making. The SEC is working on a project to simplify mutual fund financial statements. The SEC is hoping to make several modifications to Rule 18f-3 in the next few months. The most significant change contemplated relates to daily distribution funds. The original release required a money market fund or a daily distribution fund to use either the relative net assets or settled share method.