Rachel paid $1,000 for supplies in 2013. In 2014, the vendor finds a $200 mistake on the invoice and refunds the overpayment to Rachel. Which of the following doctrines or concepts is the least helpful in determining how the 2014 transaction should be reported for tax purposes?

Question

Quizplus · Accepted Answer

The Assignment of Income doctrine is least helpful in this context as it deals with who is taxed on income, not how to report a refund of an overpayment.

Rachel Paid $1,000 for Supplies in 2013