The all-events test for income determines the period in which income will be recognized for tax purposes.

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The all-events test for income is a requirement of the Internal Revenue Code to determine the period in which income will be recognized for tax purposes. It requires that all events have occurred to establish the fact of liability, the amount of the liability can be determined with reasonable accuracy, and economic performance has occurred. Only then can the income be recognized for tax purposes.

The All-Events Test for Income Determines the Period in Which