Timing difference in wage provisions prevents double disallowance; actual payment deductible after reversal. Where provisions for wages and salaries are reversed in the return and actual payments are later made and evidenced, those entries represent a timing ... Summary
Timing difference in wage provisions prevents double disallowance; actual payment deductible after reversal.
Where provisions for wages and salaries are reversed in the return and actual payments are later made and evidenced, those entries represent a timing difference rather than inherently bogus expenditure; treating the same item as disallowable in the earlier year and again disallowing the later payment would result in double disallowance contrary to the taxation of real income.
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TaxTMI 
TaxTMI 
