26 U.S.C. § 455 — Prepaid subscription income

(a) Year in which included: Prepaid subscription income covered by this section is included in gross income across the tax years during which the liability described in (d)(2) exists. (b) Where the taxpayer's liability ends: For prepaid subscription income covered by this section — (1) If the liability described in (d)(2) ends, then any of that income not already included in gross income for earlier years must be included in gross income for the year the liability ends. (2) If the taxpayer dies or stops existing, then any of that income not already included must be included in gross income for the year that death, or cessation of existence, happens. (c) Prepaid subscription income this section covers: (1) Election of benefits: This section applies to prepaid subscription income only if the taxpayer elects it, for the specific trade or business the income relates to, in the manner regulations prescribe. No election may be made for a trade or business that already uses the cash-receipts-and-disbursements accounting method. (2) Scope of the election: Once made, an election covers all prepaid subscription income received in connection with that trade or business — except the taxpayer may, as regulations permit, include in gross income for the year of receipt the entire amount of any prepaid subscription income whose related liability will end within 12 months of receipt. An election does not apply to prepaid subscription income received before the first tax year the election is made for. (3) When the election may be made: (A) With consent — the taxpayer may make this election at any time, with the Secretary's consent. (B) Without consent — the taxpayer may make it, without consent, for the first tax year they receive prepaid subscription income in the trade or business, but must do so by the due date for filing that year's return, including extensions. (4) Period the election applies to: The election is effective for the tax year it's first made for, and for every year after, unless the taxpayer gets the Secretary's consent to revoke it. For tax purposes, using this election counts as a method of accounting. (d) Definitions — for this section: (1) "Prepaid subscription income" means any amount, includible in gross income, received in connection with, and directly attributable to, a liability extending beyond the close of the tax year received, that is income from a subscription to a newspaper, magazine, or other periodical. (2) "Liability" means the duty to furnish or deliver a newspaper, magazine, or other periodical. (3) "Receipt of prepaid subscription income" is treated as happening in the tax year it would be includible in gross income under section 451, ignoring this section. (e) Deferral of income under established accounting procedures: Despite this section, a taxpayer who, for tax years before this section first applied to them, reported income under an established and consistent method or practice of accounting for prepaid subscription income (that this section would apply to if elected) may keep reporting income that way for later tax years.