The Deduction of Future Liabilities by Accrual-Basis Taxpayers: Premature Accruals, the All Events Test, and Economic Performance

University of Florida Law Review, Vol. 37, p. 433, 1985

49 Pages Posted: 12 Mar 2009

See all articles by Erik M. Jensen

Erik M. Jensen

Case Western Reserve University School of Law

Abstract

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.

Keywords: Taxation

JEL Classification: K34

Suggested Citation

Jensen, Erik M., The Deduction of Future Liabilities by Accrual-Basis Taxpayers: Premature Accruals, the All Events Test, and Economic Performance. University of Florida Law Review, Vol. 37, p. 433, 1985. Available at SSRN: https://ssrn.com/abstract=1357681

Erik M. Jensen (Contact Author)

Case Western Reserve University School of Law ( email )

11075 East Boulevard
Cleveland, OH 44106-7148
United States
216-368-3613 (Phone)
216-368-2086 (Fax)

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