[Code of Federal Regulations]
[Title 26, Volume 18]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR301.6102-1]

[Page 37]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 301_PROCEDURE AND ADMINISTRATION--Table of Contents
 
                         Information and Returns
 
Sec. 301.6102-1  Computations on returns or other documents.

    (a) Amounts shown on forms. To the extent permitted by any internal 
revenue form or instructions prescribed for use with respect to any 
internal revenue return, declaration, statement, other document, or 
supporting schedules, any amount required to be reported on such form 
shall be entered at the nearest whole dollar amount. The extent to 
which, and the conditions under which, such whole dollar amounts shall 
be entered on any form will be set forth in the instructions issued with 
respect to such form. For the purpose of the computation to the nearest 
dollar, a fractional part of a dollar shall be disregarded unless it 
amounts to one-half dollar or more, in which case the amount (determined 
without regard to the fractional part of a dollar) shall be increased by 
$1. The following illustrates the application of this paragraph:

------------------------------------------------------------------------
                                                                 To be
                        Exact amount                           reported
                                                                 as--
------------------------------------------------------------------------
$18.49......................................................         $18
$18.50......................................................          19
$18.51......................................................          19
------------------------------------------------------------------------

    (b) Election not to use whole dollar amounts--(1) Method of 
election. Where any internal revenue form, or the instructions issued 
with respect to such form, provide that whole dollar amounts shall be 
reported, any person making a return, declaration, statement, or other 
document on such form may elect not to use whole dollar amounts by 
reporting thereon all amounts in full, including cents.
    (2) Time of election. The election not to use whole dollar amounts 
must be made at the time of filing the return, declaration, statement, 
or other document. Such election may not be revoked after the time 
prescribed for filing such return, declaration, statement, or other 
document, including extensions of time granted for such filing. Such 
election may be made on any return, declaration, statement, or other 
document which is filed after the time prescribed for filing (including 
extensions of time), and such an election is irrevocable.

    (3) Effect of election. The taxpayer's election shall be binding 
only on the return, declaration, statement, or other document filed for 
a taxable year or period, and a new election may be made on the return, 
declaration, statement, or other document filed for a subsequent taxable 
year or period. An election by either a husband or a wife not to report 
whole dollar amounts on a separate income tax return shall be binding on 
any subsequent joint return filed under the provisions of section 
6013(b).

    (4) Fractional part of a cent. For treatment of the fractional part 
of a cent in the payment of taxes, see section 6313 and Sec. 301.6313-
1.

    (c) Inapplicability to computation of amount. The provisions of 
paragraph (a) of this section apply only to amounts required to be 
reported on a return, declaration, statement, or other document. They do 
not apply to items which must be taken into account in making the 
computations necessary to determine such amounts. For example, each item 
of receipt must be taken into account at its exact amount, including 
cents, in computing the amount of total receipts required to be reported 
on an income tax return or supporting schedule. It is the amount of 
total receipts, so computed, which is to be reported at the nearest 
whole dollar on the return or supporting schedule.

    (d) Effect on accounting method. Section 6102 and this section have 
no effect on any authorized accounting method.

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