found that, because the parties had stipulated to the monetary value of each club point, the amount of the liability could be determined by multiplying this value by the number of accumulated points in accounts with more than the minimum number of points needed to claim a prize. Therefore the liability is capable of being determined with reasonable certainty. Significance This case demonstrates a court determining whether an accrual method taxpayer may deduct liabilities that may or may not be paid in the taxable year. The court applied the test found in Treas. Reg. § 1.461-1(a)(2)(i) to determine that the casino's liabilities were in fact fixed on the date when the minimum number of club points were acquired. The fact that certain club members may choose not to redeem their points does not mean that they did not have an enforceable right against the casino. The court also pointed out that this decision would not lead to the casino escaping tax liability, as the casino would recapture as income the liabilities that were not actually discharged. The decision helps accrual method taxpayers understand when a contingent future liabilities become deductible expenses, allowing them to both file more accurate returns and better anticipate the tax consequences of their actions. Notes External links United States Court of Appeals for the Ninth Circuit cases United States taxation and revenue case law United States gambling case law 1998 in United States case law