The issue of recording prepaid expenses is a large issue pertaining to accounting methods. From the standpoint of tax reporting, if a taxpayer is an accrual method taxpayer they may sell tickets in advance. Consider a performer, such as a musician, they may sell tickets for the next two years in advance. The performer wants to defer the income and not recognize it until the concerts take place, even if the concert is not scheduled to take place for three years. Can an accrual basis taxpayer do this? Do not base your answer here strictly on tax rules, as there is ample case law available on the topic. Support your answer based on case law.