Prepaid Dues Income [Internal Revenue] Law and Legal Definition

Pursuant to 26 CFR 1.456-5 (a) (1) [Title 26 Internal Revenue; Chapter I Internal Revenue Service, Department of the Treasury; Subchapter A Income Tax; Part 1 Income Taxes; Normal Taxes and Surtaxes; Deferred Compensation, Etc.; Methods of Accounting; Taxable Year for which Items of Gross Income Included], the term Prepaid Dues Income means “any amount for membership dues includible in gross income which is received by a membership organization in connection with, and is directly attributable to, a liability of the taxpayer to render services or make available membership privileges over a period of time which extends beyond the close of the taxable year in which such amount is received.”