The Deduction of Future Liabilities by Accrual-Basis Taxpayers: Premature Accruals, the All Events Test, and Economic Performance
Erik M. Jensen
Case Western Reserve University School of Law
University of Florida Law Review, Vol. 37, p. 433, 1985
Written during the Paleozoic era, this article considers the timing of deductions by accrual-basis taxpayers. The article considers timing problems under pre-1984 prior law, where the benefit of a deduction for a future obligation could provide grossly inflated tax benefits; the limitations of the all events test as the sole determinant of timing; and the effect of statutory changes made by the Tax Reform Act of 1984, which require that a deduction be deferred until "economic performance" has occurred.
Number of Pages in PDF File: 49
JEL Classification: K34Accepted Paper Series
Date posted: March 12, 2009
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