[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: 26CFR1.1312-1]

[Page 631]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.1312-1  Double inclusion of an item of gross income.

    (a) Paragraph (1) of section 1312 applies if the determination 
requires the inclusion in a taxpayer's gross income of an item which was 
erroneously included in the gross income of the same taxpayer for 
another taxable year or of a related taxpayer for the same or another 
taxable year.
    (b) The application of paragraph (a) of this section may be 
illustrated by the following examples:

    Example 1. A taxpayer who keeps his books on the cash method 
erroneously included in income on his return for 1947 an item of accrued 
rent. In 1952, after the period of limitation on refunds for 1947 had 
expired, the Commissioner discovered that the taxpayer received this 
rent in 1948 and asserted a deficiency for the year 1948 which is 
sustained by the Tax Court of the United States in 1955. An adjustment 
in favor of the taxpayer is authorized with respect to the year 1947. If 
the taxpayer had returned the rent for both 1947 and 1948 and by a 
determination was denied a refund claim for 1948 on account of the rent 
item, a similar adjustment is authorized.
    Example 2. A husband assigned to his wife salary to be earned by him 
in the year 1952. The wife included such salary in her separate return 
for that year and the husband omitted it. The Commissioner asserted a 
deficiency against the wife for 1952 with respect to a different item; 
she contested that deficiency, and the Tax Court entered an order in her 
case which became final in 1955. The wife would therefore be barred by 
section 6512(a) from claiming a refund for 1952. Thereafter, the 
Commissioner asserted a deficiency against the husband on account of the 
omission of such salary from his return for 1952. In 1955 the husband 
and the Commissioner enter into a closing agreement for the year 1952 in 
which the salary is taxed to the husband. An adjustment is authorized 
with respect to the wife's tax for 1952.

[T.D. 6500, 25 FR 12033, Nov. 26, 1960]