This preview shows page 1. Sign up to view the full content.
Unformatted text preview: is not recognized in year 1 because the cash is actually received which is in January. Publication 334 talks about the cash method of income recognition and it states that include in your gross income all items of income you actually or constructively receive during your tax year. Even though Connie performed the services in December (year 1), it is the actual or constructive receipt of income that is the critical event for the cash method taxpayer Reg. §1.451-1(a). http://www.irs.gov/publications/p334/ch02.html#en_US_publink100025090 http://taxguide.completetax.com/text/Q11_2206.asp http://taxalmanac.org/index.php/Treasury_Regulations%2C_Subchapter_A %2C_Sec._1.446-1...
View Full Document
This note was uploaded on 11/09/2010 for the course ACCY 261 taught by Professor James during the Spring '08 term at CSU Sacramento.
- Spring '08