Page 572 - Large Business IRS Training Guides

Taxpayers without an AFS

Rev. Proc. 2004-34 Example

• G is in the business of operating video arcades.

• G receives payments for game tokens used by

customers to play the video games.

• G completed a study on a statistical basis, based on

adequate data available to G, and concluded that for

payments received in the current year,

• X percent of tokens are expected to be used in the

current year,

• Y percent of tokens are expected to be used in the next

year, and

• the remaining Z percent of tokens are expected to never

be used.

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