[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: 26CFR1.1312-8]

[Page 637]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.1312-8  Law applicable in determination of error.

    The question whether there was an erroneous inclusion, exclusion, 
omission, allowance, disallowance, recognition, or nonrecognition is 
determined under the provisions of the internal revenue laws applicable 
with respect to the year as to which the inclusion, exclusion, omission, 
allowance, disallowance, recognition, or nonrecognition, as the case may 
be, was made. The fact that the inclusion, exclusion, omission, 
allowance, disallowance, recognition, or nonrecognition, as the case may 
be, was in pursuance of an interpretation, either judicial or 
administrative, accorded such provisions of the internal revenue laws at 
the time of such action is not necessarily determinative of this 
question. For example, if a later judicial decision authoritatively 
alters such interpretation so that such action was contrary to such 
provisions of the internal revenue laws as later interpreted, the 
inclusion, exclusion, omission, allowance, disallowance, recognition, or 
nonrecognition, as the case may be, is erroneous within the meaning of 
section 1312.

[T.D. 6500, 25 FR 12036, Nov. 26, 1960. Redesignated by T.D. 6617, 27 FR 
10824, Nov. 7, 1962]