TD 8426 - Certain Returned Magazines, Paperbacks or Records (IA-195-78)

The final regulations provide rules relating to an exclusion from gross income for certain returned merchandise. The regulations provide that in addition to physical return of the merchandise, a written statement listing certain information may constitute evidence of the return. Taxpayers who receive physical evidence of the return may, in lieu of retaining physical evidence, retain documentary evidence of the return. Taxpayers in the trade or business of selling magazines, paperbacks, or records, who elect to use a certain method of accounting, are affected.

The latest form for TD 8426 - Certain Returned Magazines, Paperbacks or Records (IA-195-78) expires 2021-04-30 and can be found here.