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Professional Tax Software News & Advice

IRS Clarifies Accounting Rules For Gift Card Redemption

The Internal Revenue Service has issued a revenue procedure allowing a taxpayer to defer recognizing in gross income certain advance payments received from the sale of gift cards that are redeemable for goods or services by an unrelated entity. This revenue procedure modifies and clarifies Rev. Proc. 2011-18, 2011-5 I.R.B. 443, which modified and clarified Rev. Proc. 2004-34, 2004-1 C.B. 991. [More]