Mitigation of Statute of Limitations

§ 1312. Circumstances of adjustment The circumstances under which the adjustment provided in section 1311 is authorized are as follows:(1) Double inclusion of an item of gross incomeThe determination requires the inclusion in gross income of an item which was erroneously included in the gross income of the taxpayer for another taxable year or in the gross income of a related taxpayer. (2) Double allowance of a deduction or creditThe determination allows a deduction or credit which was erroneously allowed to the taxpayer for another taxable year or to a related taxpayer. (3) Double exclusion of an item of gross income(A) Items included in incomeThe determination requires the exclusion from gross income of an item included in a return filed by the taxpayer or with respect to which tax was paid and which was erroneously excluded or omitted from the gross income of the taxpayer for another taxable year, or from the gross income of a related taxpayer; or (B) Items not included in incomeThe determination requires the exclusion from gross income of an item not included in a return filed by the taxpayer and with respect to which the tax was not paid but which is includible in the gross income of the taxpayer for another taxable year or in the gross income of a related taxpayer. (4) Double disallowance of a deduction or creditThe determination disallows a deduction or credit which should have been allowed to, but was not allowed to, the taxpayer for another taxable year, or to a related taxpayer. (5) Correlative deductions and inclusions for trusts or estates and legatees, beneficiaries, or heirsThe determination allows or disallows any of the additional deductions allowable in computing the taxable income of estates or trusts, or requires or denies any of the inclusions in the computation of taxable income of beneficiaries, heirs, or legatees, specified in subparts A to E, inclusive (secs. 641 and following, relating to estates, trusts, and beneficiaries) of part I of subchapter J of this chapter, or corresponding provisions of prior internal revenue laws, and the correlative inclusion or deduction, as the case may be, has been erroneously excluded, omitted, or included, or disallowed, omitted, or allowed, as the case may be, in respect of the related taxpayer. (6) Correlative deductions and credits for certain related corporationsThe determination allows or disallows a deduction (including a credit) in computing the taxable income (or, as the case may be, net income, normal tax net income, or surtax net income) of a corporation, and a correlative deduction or credit has been erroneously allowed, omitted, or disallowed, as the case may be, in respect of a related taxpayer described in section 1313(c)(7).