Page 573 - Large Business IRS Training Guides

Taxpayers without an AFS

Example (cont’d)

• G treats as earned for 2018 X percent as well as Z

percent.

• G is able to determine the extent to which the

payment is earned in the taxable year of receipt on a

statistical basis.

• For tax purposes, G must include the X percent and Z

percent of the advance payment in 2018, and Y

percent of the advance payments in gross income for

2019.

74