[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: 26CFR1.1312-2]

[Page 631-632]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.1312-2  Double allowance of a deduction or credit.

    (a) Paragraph (2) of section 1312 applies if the determination 
allows the taxpayer a deduction or credit which

[[Page 632]]

was erroneously allowed the same taxpayer for another taxable year or 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 in his return for 1950 claimed and was allowed 
a deduction for destruction of timber by a forest fire. Subsequently, it 
was discovered that the forest fire occurred in 1951 rather than 1950. 
After the expiration of the period of limitations for the assessment of 
a deficiency for 1950, the taxpayer filed a claim for refund for 1951 
based upon a deduction for the fire loss in that year. The Commissioner 
in 1955 allows the claim for refund. An adjustment is authorized with 
respect to the year 1950.
    Example 2. The beneficiary of a testamentary trust in his return for 
1949 claimed, and was allowed, a deduction for depreciation of the trust 
property. The Commissioner asserted a deficiency against the beneficiary 
for 1949 with respect to a different item and a final decision of the 
Tax Court of the United States was rendered in 1951, so that the 
Commissioner was thereafter barred by section 272(f) of the Internal 
Revenue Code of 1939 from asserting a further deficiency against the 
beneficiary for 1949. The trustee thereafter filed a timely refund claim 
contending that, under the terms of the will, the trust, and not the 
beneficiary, was entitled to the allowance for depreciation. The court 
in 1955 sustains the refund claim. An adjustment is authorized with 
respect to the beneficiary's tax for 1949.

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