Promises to Pay in the Future-A Modest Proposal for Reform

The author examines the law regarding tax treatment of promises to pay in the future and finds it in a state of confusion. After discussing the inequities arising from the differing treatment accorded cash and accrual basis taxpayers the author suggests a number of changes in the tax treatment of installment sales and annuities given in exchange for property. The author also makes suggestions for simplification of the concept of cash equivalence