Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 58-12

1958-1 C.B. 317

Sec. 1312

Full Text

Rev. Rul. 58-12

Taxpayer, employing the accrual method of accounting, failed to deduct the amount of certain accrued expenses on his 1951 calendar-year return, but deducted such amounts for 1952, when paid. On February 15, 1956, the taxpayer filed an amended return for the calendar year 1952 excluding therefrom the deduction for such expenses attributable to 1951 and paid the additional tax due. At the same time the taxpayer filed an untimely claim for refund for 1951 resulting from the deduction for accrued expenses for such year which were erroneously deducted in 1952. Held , the acceptance by the Commissioner of Internal Revenue of the amended return for 1952, in which the item of accrued expenses was correctly treated by the taxpayer, resulted in a deficiency for 1952 which was paid on February 15, 1956. Under such circumstances, the year 1952 remains an open year to effectuate a determination under section 1311 of the Internal Revenue Code of 1954, as limited by section 6511 thereof, at least until February 15, 1958. A determination made during such period would permit an adjustment for accrued expenses which should properly have been taken into account on the original Federal income tax return for 1951, but which was erroneously taken into account in the return for 1952.