TN 13 (11-12)

A. Treatment of corporate directors beginning with tax year 1991

Beginning with tax year 1991, a corporate director must report fees earned from services as a director in the year he or she receives the earnings, rather than the year he or she performs the services; regardless of when he or she performed the services.

B. Treatment of corporate directors prior to tax year 1991

Prior to the change in the law, a corporate director was required to report earnings received for services as a director in the year he or she performed the services, rather than the year he or she was actually paid.