Page 570 - Large Business IRS Training Guides
P. 570
Example 5
Membership Fees (cont’d)
• In its AFS, J includes
• 1/12 of the payment in revenue for 2018
• 11/12 of the payment in revenue for 2019
• J uses the deferral method under Rev. Proc.
2004-34 so for federal income tax purposes, J
must include
• 1/12 of the payment in gross income for 2018
• the remaining 11/12 of the payment in gross
income for 2019
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