Treasury, IRS guidance on credit card fee income.

• Position: IRS News - Brief Article

The Treasury Department and IRS have issued three guidance items regarding credit card annual fees and late fees.

Revenue Ruling 2004-52 holds that credit card annual fees are not interest for federal income tax purposes. For more, visit www.irs.gov/pub/irs-drop/rr-04-52.

Revenue Procedure 2004-32 provides automatic consent procedures for taxpayers to change their method of accounting to the Ratable Inclusion Method for Credit Card Annual Fees described in the revenue procedure. Read more at www.irs.gov/pub/irs-drop/rp-04-32.

And Rev. Proc. 2004-33 provides...