As such, moving average crossovers should be confirmed with other signals to avoid
whipsaws and false readings.
Eliminating Whipsaws Arising from the Interest-Rate Differential Is the Goal Regardless of the Label
Hence, the Institute urges the Department of the Treasury and IRS to reconsider their administrative interpretations of sections 6402 and 6601(f) to permit comprehensive netting in a much wider variety of situations to eliminate the whipsaws that taxpayers may face from the interest-rate differential.
Although an identification requirement for the hedge transaction or property is justified to prevent whipsaws against the government, TEI questions whether identification of the hedged item is necessary.
Neither form of error should trigger an ordinary gain/capital loss whipsaw against the taxpayer?
To avoid
whipsaws against the government when a taxpayer's internal cost of funds falls below the selected AFR, the election should be deemed an accounting method requiring consent of the Commissioner to change.
