Client filing cash method A/R and Unearned Revenue?

[sandcare]

Have a new 990 client who is filing cash method. Has been reporting A/R on the B/S at varying levels for years. Has reported a static amount of Unearned Rev on the B/S for about 4 years. The difference between A/R and Unearned for FYE 2008 is only $1,733.

I want to clear those balances since they are cash filers. How should I report the difference?

[Snaggletooth]

Accounting Problems

Have a new 990 client who is filing cash method. Has been reporting A/R on the B/S at varying levels for years. Has reported a static amount of Unearned Rev on the B/S for about 4 years. The difference between A/R and Unearned for FYE 2008 is only $1,733.

I want to clear those balances since they are cash filers. How should I report the difference?

Granular one:

There's more to the story, not so much with tax problems as with accounting problems.

Summarily, if there are Receivables and Deferrals (Unearned Rev) on the books, they should not be removed, but they constitute a book-to-tax reconciliation every year. There would be no dollars associated with a tax calculation because there is no tax. But there will be dollars associated with a timing difference.

If the Receivables and Deferrals are improper they should be removed. My best guess is that if there is the same Unearned Revenue on the books for four years, it is probably improper and should be removed.