Replying to make sure that I understand you correctly -
You're saying that I should strictly follow the IRS procedures for cash method reporting --
Using the example of an insurance policy that is renewed every September, has a down payment, and has 9 consecutive monthly payments. The down payment is paid in September, then monthly payments starting in October for 9 months (October to June). Are you saying that I should include only the payments made in the specific tax year? If so, I would include all of the payments from January to June, plus the renewal down payment in September, and then the payments made October - December. Did I understand you correctly?
