U.S Code last checked for updates: May 27, 2024
§ 455.
Prepaid subscription income
(a)
Year in which included
(b)
Where taxpayer’s liability ceases
In the case of any prepaid subscription income to which this section applies—
(1)
If the liability described in subsection (d)(2) ends, then so much of such income as was not includible in gross income under subsection (a) for preceding taxable years shall be included in gross income for the taxable year in which the liability ends.
(2)
If the taxpayer dies or ceases to exist, then so much of such income as was not includible in gross income under subsection (a) for preceding taxable years shall be included in gross income for the taxable year in which such death, or such cessation of existence, occurs.
(c)
Prepaid subscription income to which this section applies
(1)
Election of benefits
(2)
Scope of election
(3)
When election may be made
(A)
With consent
(B)
Without consent
(4)
Period to which election applies
(d)
Definitions
For purposes of this section—
(1)
Prepaid subscription income
(2)
Liability
(3)
Receipt of prepaid subscription income
(e)
Deferral of income under established accounting procedures
(Added Pub. L. 85–866, title I, § 28(a), Sept. 2, 1958, 72 Stat. 1625; amended Pub. L. 94–455, title XIX, §§ 1901(a)(67), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1775, 1834.)
cite as: 26 USC 455