Rev. Rul. 57-13

Taxpayer, a corporation employing the accrual method of accounting, has, for 1953 and prior calendar years, erroneously deducted New Jersey property taxes in the year of payment instead of the year of assessment, as required by G.C.M. 15305, C.B. XIV-2, 80 (1935). During the year 1953, the taxpayer paid and deducted the taxes for 1952 (a year now barred by the statute of limitation). Under authority of G.C.M. 15305, supra , the taxpayer also deducted the taxes assessed and therefore accruable in the year 1953. Held , the deduction for the New Jersey property tax which accrued in 1952, is not a proper deduction for 1953, when paid and, therefore, is not allowable. However, since a credit or refund attributable to the deduction for such tax for 1952 was not barred by the statute of limitations, at the time such deduction was originally claimed in 1953, the wrong year, and since 1953 is not barred by the statute of limitation, an adjustment for 1952 is permissible under section 3801(b)(6) of the Internal Revenue Code of 1939, provided the provisions of section 3801 are otherwise complied with.