J, an accrual basis taxpayer, deducted an estimated expense for next year that she was required by law to pay.The principle that the IRS follows in disallowing this deduction is the

Question

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The Economic Performance Test requires that the expense has been actually incurred and provided, or services have been rendered, to the taxpayer. An estimated expense for the future fails to meet this requirement and is therefore not deductible until the expense has been actually incurred and economic performance has occurred.

J, an Accrual Basis Taxpayer, Deducted an Estimated Expense for Next