IRS loses on appeal, and announces there should be a one-year rule for prepaid expenses.

Authors :: Seago, W. Eugene
Schnee, Edward J.
Source :: The Journal of Taxation. March, 2002, Vol. 96 Issue 3, p153, 8 p.
Publication Year :: 2002
Abstract: A ruling of the 7th Circuit Court of Appeal in U.S. Freightways, rejecting the IRS's contention that the company could not deduct annual recurring expenses, such as fees, licenses, insurance and permits, when some benefits would be enjoyed in the following year, is analyzed.

Subjects :: Expense deductions -- Laws, regulations and rules
Tax administration and procedure -- Laws, regulations and rules
U.S. Freightways v. Commissioner (270 F.3d 1137 (7th Cir. 2001))

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