Treasury Regulations (26 C.F.R.)
26 CFR § 1.1312-4
Double disallowance of a deduction or credit.
# (a)
Paragraph (4) of section 1312 applies if the determination disallows a deduction or credit which should have been, but was not, allowed to the same taxpayer for another taxable year or to a related taxpayer for the same or another taxable year. This is one of the two circumstances in which the maintenance of an inconsistent position is not a requirement for an adjustment but the requirements in paragraph (b) of § 1.1311(b)-2 must be fulfilled (correction not barred at time of erroneous action).
# (b)
The application of paragraph (a) of this section may be illustrated by the following examples:
Example 1.
The taxpayer, A, who computes his income by use of the accrual method of accounting, deducted in his return for the taxable year 1951 an item of expense which he paid in such year. At the time A filed his return for 1951, the statute of limitations for 1950 had not expired. Subsequently, the Commissioner asserted a deficiency for 1951 based on the position that the liability for such expense should have been accrued for the taxable year 1950. In 1955, after the period of limitations on refunds for 1950 had expired, there was a determination by the Tax Court disallowing such deduction for the taxable year 1951. A is entitled to an adjustment for the taxable year 1950. However, if such liability should have been accrued for the taxable year 1946 instead of 1950, A would not be entitled to an adjustment, if a credit or refund with respect to 1946 was already barred when he deducted such expense for the taxable year 1951.
Example 2.
The taxpayer, B, in his return for 1951 claimed a deduction for a charitable contribution. The Commissioner asserted a deficiency for such year contending that 50 percent of the deduction should be disallowed, since the contribution was made from community property 50 percent of which was attributable to B's spouse. The deficiency is sustained by the Tax Court in 1956, subsequent to the period of limitations within which B's spouse could claim a refund with respect to 1951. An adjustment is permitted to B's spouse, a related taxpayer, since a refund attributable to a deduction by her of such contribution was not barred when B claimed the deduction.
[T.D. 6500, 25 FR 12034, Nov. 26, 1960]
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In this part (40 sections)
- 1.1297-1 · Definition of passive foreign investment company.
- 1.1297-2 · Special rules regarding look-through subsidiaries and…
- 1.1297-3 · Deemed sale or deemed dividend election by a U.S. person…
- 1.1297-4 · Qualifying insurance corporation.
- 1.1297-5 · [Reserved]
- 1.1297-6 · Exception from the definition of passive income for active…
- 1.1298-0 · Passive foreign investment company—table of contents.
- 1.1298-1 · Section 1298(f) annual reporting requirements for United…
- 1.1298-2 · Rules for certain corporations changing businesses.
- 1.1298-3 · Deemed sale or deemed dividend election by a U.S. person…
- 1.1298-4 · Rules for certain foreign corporations owning stock in…
- 1.1301-1 · Averaging of farm and fishing income.
- 1.1311(a)-1 · (a)-1 Introduction.
- 1.1311(a)-2 · (a)-2 Purpose and scope of section 1311.
- 1.1311(b)-1 · (b)-1 Maintenance of an inconsistent position.
- 1.1311(b)-2 · (b)-2 Correction not barred at time of erroneous action.
- 1.1311(b)-3 · (b)-3 Existence of relationship in case of adjustment by…
- 1.1312-1 · Double inclusion of an item of gross income.
- 1.1312-2 · Double allowance of a deduction or credit.
- 1.1312-3 · Double exclusion of an item of gross income.
- 1.1312-4 · Double disallowance of a deduction or credit.
- 1.1312-5 · Correlative deductions and inclusions for trusts or estates…
- 1.1312-6 · Correlative deductions and credits for certain related…
- 1.1312-7 · Basis of property after erroneous treatment of a prior…
- 1.1312-8 · Law applicable in determination of error.
- 1.1313(a)-1 · (a)-1 Decision by Tax Court or other court as a…
- 1.1313(a)-2 · (a)-2 Closing agreement as a determination.
- 1.1313(a)-3 · (a)-3 Final disposition of claim for refund as a…
- 1.1313(a)-4 · (a)-4 Agreement pursuant to section 1313(a)(4) as a…
- 1.1313(c)-1 · (c)-1 Related taxpayer.
- 1.1314(a)-1 · (a)-1 Ascertainment of amount of adjustment in year of…
- 1.1314(a)-2 · (a)-2 Adjustment to other barred taxable years.
- 1.1314(b)-1 · (b)-1 Method of adjustment.
- 1.1314(c)-1 · (c)-1 Adjustment unaffected by other items.
- 1.1321-1 · Involuntary liquidation of lifo inventories.
- 1.1321-2 · Liquidation and replacement of lifo inventories by acquiring…
- 1.1331-1 · Recoveries in respect of war losses.
- 1.1332-1 · Inclusion in gross income of war loss recoveries.
- 1.1333-1 · Tax adjustment measured by prior benefits.
- 1.1334-1 · Restoration of value of investments.