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131 STAT. 2115 PUBLIC LAW 115–97—DEC. 22, 2017 Commission, but only if there is no statement of the tax- payer described in subparagraph (A), or ‘‘(C) a financial statement filed by the taxpayer with any other regulatory or governmental body specified by the Secretary, but only if there is no statement of the taxpayer described in subparagraph (A) or (B). ‘‘(4) ALLOCATION OF TRANSACTION PRICE.—For purposes of this subsection, in the case of a contract which contains multiple performance obligations, the allocation of the transaction price to each performance obligation shall be equal to the amount allocated to each performance obligation for purposes of including such item in revenue in the applicable financial state- ment of the taxpayer. ‘‘(5) GROUP OF ENTITIES.—For purposes of paragraph (1), if the financial results of a taxpayer are reported on the applicable financial statement (as defined in paragraph (3)) for a group of entities, such statement shall be treated as the applicable financial statement of the taxpayer.’’. (b) TREATMENT OF ADVANCE PAYMENTS.—Section 451, as amended by subsection (a), is amended by redesignating subsections (c) through (j) as subsections (d) through (k), respectively, and by inserting after subsection (b) the following new subsection: ‘‘(c) TREATMENT OF ADVANCE PAYMENTS.— ‘‘(1) IN GENERAL.—A taxpayer which computes taxable income under the accrual method of accounting, and receives any advance payment during the taxable year, shall— ‘‘(A) except as provided in subparagraph (B), include such advance payment in gross income for such taxable year, or ‘‘(B) if the taxpayer elects the application of this subparagraph with respect to the category of advance pay- ments to which such advance payment belongs, the tax- payer shall— ‘‘(i) to the extent that any portion of such advance payment is required under subsection (b) to be included in gross income in the taxable year in which such payment is received, so include such portion, and ‘‘(ii) include the remaining portion of such advance payment in gross income in the taxable year following the taxable year in which such payment is received. ‘‘(2) ELECTION.— ‘‘(A) IN GENERAL.—Except as otherwise provided in this paragraph, the election under paragraph (1)(B) shall be made at such time, in such form and manner, and with respect to such categories of advance payments, as the Secretary may provide. ‘‘(B) PERIOD TO WHICH ELECTION APPLIES.—An election under paragraph (1)(B) shall be effective for the taxable year with respect to which it is first made and for all subsequent taxable years, unless the taxpayer secures the consent of the Secretary to revoke such election. For pur- poses of this title, the computation of taxable income under an election made under paragraph (1)(B) shall be treated as a method of accounting. ‘‘(3) TAXPAYERS CEASING TO EXIST.—Except as otherwise provided by the Secretary, the election under paragraph (1)(B) shall not apply with respect to advance payments received 26 USC 451. VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00063 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS