[Code of Federal Regulations]
[Title 26, Volume 11]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.1311(b)-2]

[Page 630-631]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.1311(b)-2  Correction not barred at time of erroneous action.

    (a) An adjustment under the circumstances stated in paragraph (b) of 
Sec. 1.1312-3 (relating to the double exclusion of an item of gross 
income) which would result in an additional assessment, is authorized 
only if assessment of a deficiency against the taxpayer or related 
taxpayer for the taxable year in which the item is includible was not 
barred by any law or rule of law at the time the Commissioner first 
maintained, in a notice of deficiency sent pursuant to section 6212 (or 
section 272(a) of the Internal Revenue Code of 1939) or before the Tax 
Court of the United States, that the item described in paragraph (b) of 
Sec. 1.1312-3 should be included in the gross income of the taxpayer in 
the taxable year to which the determination relates.
    (b) An adjustment under the circumstances stated in Sec. 1.1312-4 
(relating to the double disallowance of a deduction or credit), which 
would result in the allowance of a credit or refund, is authorized only 
if a credit or refund to the taxpayer or related taxpayer, attributable 
to such adjustment, was not barred by any law or rule of law when the 
taxpayer first maintained in writing before the Commissioner or the Tax 
Court that he was entitled to such deduction or credit for the taxable 
year to which the determination relates. The taxpayer will be considered 
to have first maintained in writing before the Commissioner or the Tax 
Court that he was entitled to such deduction

[[Page 631]]

or credit when he first formally asserts his right to such deduction or 
credit as, for example, in a return, in a claim for refund, or in a 
petition (or an amended petition) before the Tax Court.
    (c) Under the circumstances of adjustment with respect to which the 
conditions stated in this section are applicable, the conditions stated 
in Sec. 1.1311(b)-1 (maintenance of an inconsistent position) are not 
required. See paragraph (b) of Sec. 1.1312-3 and Sec. 1.1312-4 for 
examples of the application of this section.

[T.D. 6500, 25 FR 12032, Nov. 26, 1960]