not include any amount deducted in an earlier tax year when the debt was only partly worthless. ... If you receive property in payment of a debt, you must reduce the debt by the fair market value of the property. ... method applies only to amounts to be received from the performance of services (accounts receivable), and may not be used if you require that interest or penalties be (paid for late payments.
|Title||:||Deduction for Bad Debts|
|Author||:||United States. Internal Revenue Service|