[Code of Federal Regulations]
[Title 26, Volume 6]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.456-1]

[Page 138]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1--INCOME TAXES--Table of Contents
 
Sec. 1.456-1  Treatment of prepaid dues income.

    Effective for taxable years beginning after December 31, 1960, a 
taxpayer which is a membership organization (as described in paragraph 
(c) of Sec. 1.456-5) and which receives prepaid dues income as described 
in paragraph (a) of Sec. 1.456-5 in connection with its trade or 
business of rendering services or making available membership privileges 
may elect under section 456 to include such income in gross income 
ratably over the taxable years during which its liability (as described 
in paragraph (b) of Sec. 1.456-5) to render such services or extend such 
privileges exists, if such liability does not extend over a period of 
time in excess of 36 months. If the taxpayer does not elect to treat 
prepaid dues income under section 456, or if such income may not be 
reported under section 456, as for example, where the income relates to 
a liability to render services or make available membership privileges 
which extends beyond 36 months, then such income is includible in gross 
income for the taxable year in which it is received (as described in 
paragraph (d) of Sec. 1.456-5).

[T.D. 6937, 32 FR 16394, Nov. 30, 1967]