[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1496 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                S. 1496

To clarify the accounting treatment for Federal income tax purposes of 
  deposits and similar amounts received by a tour operator for a tour 
                       arranged by such operator.


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                   IN THE SENATE OF THE UNITED STATES

                            October 3, 2001

  Mr. Graham introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To clarify the accounting treatment for Federal income tax purposes of 
  deposits and similar amounts received by a tour operator for a tour 
                       arranged by such operator.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Tour Operators Up-Front-Deposit 
Relief (TOUR) Act''.

SEC. 2. METHOD OF ACCOUNTING FOR DEPOSITS RECEIVED BY ACCRUAL BASIS 
              TOUR OPERATORS.

    In the case of a tour operator using an accrual method of 
accounting, amounts received from or on behalf of passengers in advance 
of the departure of a tour arranged by such operator--
            (1) shall be treated as properly accounted for under the 
        Internal Revenue Code of 1986 if they are accounted for under a 
        method permitted by section 3 of Revenue Procedure 71-21, and
            (2) for purposes of Revenue Procedure 71-21, shall be 
        deemed earned as of the date the tour departs.
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