Company A, a calendar year taxpayer, has always used the cash method of accounting. It completed an engagement for a major client in November 2016 and submitted a bill for its $160,000 fee. Because Company A didn’t receive payment before year-end, it recognized no income from the engagement on its 2016 tax return. In January 2017, Company A received permission from the IRS to change from the cash method to the accrual method. This change is effective for 2017. On February 2, 2017, Company A received a $160,000 check from the client in payment of the bill.

Identify the tax issue or issues suggested by the above situations, and state each issue in the form of a question.