Originally Posted by
n0+4c|u3
Not in California. Not allowed.
This is because vendors or stores were issuing gift cards that were good for one year (or less) or started charging "fees" on the cards so that the card would be useless over time. They got the cash and left the holder of the card high and dry.
The liability has to stay on the books forever, sort of. As the liability ages (just like Account Receivables), it gets less "valuable" and collectible. You can write off AR at a specific rate, but I don't remember the rules for "writing off" liabilities, if they exist at all.