Annual Receipts Law and Legal Definition

Generally, receipts are averaged over a firm's latest 3 completed fiscal years for determining its average annual receipts. Receipts are the firm's gross or total income, along with cost of goods sold, as reported on the firm's Federal Income Tax return. Annual receipt does not include net capital gains or losses, taxes collected for and remitted to a taxing authority if it is already included in gross or total income. Travel, real estate and advertising agents, providers of conference management services, freight forwarders and customs brokers shall deduct amounts collected on behalf of another.