Tampa Bay Devil Rays, Ltd. v. Commissioner
United States Tax Court
T.C. Memo. 2002-248 (2002)
Relevant factsFree
The Devil Rays (plaintiff), using the accrual method of accounting, received advance ticket deposits for games scheduled the following year and reported that income only when the games were actually played; the IRS (defendant) determined the income should have been reported in the year the deposits were received.
IssueFree
Whether taxpayers using the accrual method of accounting have to report advance-payment funds in the year they were received if the services for which the funds were received will be performed in subsequent years.