RIP Funeral Home, Inc. $($RIP$),$ your client, is an accrual basis taxpayer that sells

preneed funeral contracts. Under these contracts, the customer pays in advance for goods and services

to be provided at the contract beneficiary$$s death. These payments are refundable at the contract

purchaser$$s request, pursuant to state law, anytime until the goods and services are furnished. RIP,

consistent with its financial accounting reporting, includes the payments in income for the year the

funeral service is provided. The IRS agent insists that the payments be prepaid income subject to tax in

the year of receipt. Your client believes that the amounts involved are customer deposits. Write a letter

to RIP that contains your advice about how the issue should be resolved. Please submit your client

letter addressed to RIP Funeral Home, Inc. The client$$s address is $12345$ Hollywood Blvd$.,$ Beverly

Hills, CA $90210$