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determined the fact of the liability and (b) the amount of the
liability could be determined with reasonable accuracy. United
States v. Anderson, 269 U.S. 422, 437-438, 441 (1926). DEFRA
sec. 91(a), 98 Stat. 606, provided that the all events test is
not met before economic performance occurs. Sec. 461(h)(1). In
the case of liability to pay a person who provides goods or
services to the taxpayer, economic performance occurs as that
person provides the goods or services to the taxpayer. Sec.
461(h)(2)(A)(i).
In the legislative history accompanying enactment of the
economic performance rules, Congress described the pre-DEFRA law,
gave an overview of the House bill, discussed the economic
performance rules added by DEFRA, and described the predecessor
of the specified liability loss rule. The conference report for
DEFRA states in pertinent part:
G. Accounting Changes
1. Premature accruals
* * * * * * *
Economic Performance
* * * * * * *
Net operating loss carrybacks
The House bill provides a 10-year carryback
for net operating losses attributable to certain
liabilities deferred under these provisions. The
bill also provides a special carryback rule for
losses incurred in connection with the
decommissioning of a nuclear power plant. Such
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