TaxGuided
United States IRC sections

Statute section

IRC section 1341

Computation of tax where taxpayer restores substantial amount held under claim of right

Country

United States

Section

1341

Updated

2026-05-20

Operative text

Section 1341 provides a tax computation benefit when a taxpayer who previously included an amount in gross income under a claim of right is later required to return all or part of it. The taxpayer may compute tax in the year of repayment using the more favorable of two methods.

Related citations

Computed from the cross-reference graph. Links open the related entity on this site.

Primary sources

Important disclaimer

This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.