[Code of Federal Regulations]
[Title 26, Volume 6]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.456-1]

[Page 154]
 
                       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]