When reporting gross revenues for an entity and the tax return for the entity is used, do we report the amount on line 1a Gross receipts or sales or do we report the amount on line 1c Balance. Subtract line 1b (Returns and allowances) from line 1a?

Any clarification would be greatly appreciated!

I have wondered the same thing, but have always dererred to line 1a. Our Analysts have the responsibility to identify the GAR amount and year used, and enter it on the Credit Analysis. To help ensure accuracy we use a matrix of the various tax forms involved with the appropriate line to use as a reference tool.

Try this:
http://www.ffiec.gov/cra/pdf/2010_CRA_Guide.pdf


Appendix B Interagency Q&A
Section 42(a)(4)

I use the top line, gross receipts/sales. If they have that many returns and allowances that it affects their classification as over/under $1million, that would be a one off case.

But whatever you do, always do the same thing!

I agree with Kathleen. We always use Gross receipts/sales prior to any returns or allowances. Also as Kathleen stated, always be consistent with where you are taking the revenue from.