February 15, 2003 |
By
Keith Martin in Washington, DC
ADVANCE PAYMENTS FOR SERVICES do not necessarily have to be reported immediately as income, the IRS suggested.
The IRS proposed in December that companies would only have to report an advance payment for services in the year it is received to the extent the company treats the payment as book income that year. The rest of the payment could be reported the next year. The proposal is in Notice 2002-79.
