Background: Your Texas Band, Inc., is a calendar year corporation. The corporation is a Texas corporation that is based in Dallas, Texas. The band recently sold tickets ($1,000,000) for concerts scheduled in the United States for next year and the following year. For financial statement purposes, Your Texas Band will recognize the income from the ticket sales when it performs the concerts. For tax purposes, the corporation uses the accrual method and would prefer to defer the income from the ticket sales until after the concerts are performed. This is the first time that it has sold tickets one or two years in advance. Their manager, Russell Crowe has asked your advice.

Write a memo to Mr. Crowe explaining your findings. Your responsibility: Prepare a tax research memo addressing the question that has been raised. You will need to support your conclusion using primary sources of tax law.

Your textbook is NOT primary authority. You must use proper citation form in your memo (see Chapter 2 for help with citation form). The form for this communication should be professional and in the form of a tax research memo. Do yourself a favor and look at the grading rubric before you submit. This memo should be whatever length you feel is appropriate to resolve the issues. We do NOT use a bibliography or list of references in a tax research memo. You will see that citations are within the text of the document in the example. Once a court case has been cited in full, it can be referred to using simply the name in italics. You are required to INDIVIDUALLY prepare this document. The grading rubric for Tax memos is posted in Blackboard. For this assignment, points are distributed as follows: