Barnett Banks of Florida, Inc. and Subsidiaries - Page 20

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          21.  Section 3.02 permits the taxpayer to include the payments in           
          income "as earned through the performance of the services".                 
          Section 3.06 sets forth methods that may be used in determining             
          the amount of an advance payment that is earned in a taxable year           
          where the agreement requires the performance of contingent                  
          services.  Section 3.06 reads:                                              
                    In any case in which an advance payment is                        
               received pursuant to an agreement which requires the                   
               taxpayer to perform contingent services, the amount of                 
               an advance payment which is earned in a taxable year                   
               through the performance of such services may be                        
               determined (a) on a statistical basis if adequate data                 
               are available to the taxpayer; (b) on a straight-line                  
               ratable basis over the time period of the agreement if                 
               it is not unreasonable to anticipate at the end of the                 
               taxable year of receipt that a substantially ratable                   
               portion of the services will be performed in the next                  
               succeeding taxable year; or (c) by the use of any other                
               basis that in the opinion of the Commissioner, results                 
               in a clear reflection of income.                                       
          The language of section 3.06 instructs the taxpayer as to how to            
          report the payments from contingent service agreements; it does             
          not preclude such payments for contingent services from the                 
          application of Rev. Proc. 71-21.  Also, examples 4 and 5 given in           
          section 3.12 refer to contingent service providers and do not               
          require a matching of the service contract income with                      
          performance of specific services.                                           
               We have found that the annual credit card fees were payments           
          for services provided to or made available to the cardholders.              
          The period of the agreement covered by the fee was 12 months;               
          thus, all services would be performed within a 1-year period and            





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