Article: Proposed regulations concerning the economic performance requirement under Section 461(h) of the Internal Revenue Code.

Proposed Regulations Concerning the Economic Performance Requirement under Section 461(h) of the Internal Revenue Code

On June 6, 1990, the Internal Revenue Service issued proposed regulations under section 461(h) of the Internal Revenue Code, relating to the requirement that "economic performance" occur in order for an amount to be incurred by a taxpayer using an accrual method of accounting. The proposed regulations (IA-258-84) were published in the Federal Register on June 7, 1990--55 Fed. Reg. 23235--and in the July 2, 1990, issue of the Internal Revenue Bulletin (1990-27 I.R.B. 22).

For simplicity's sake, the proposed regulations are generally ...

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