# Economic performance.
**AGENCY:**
Internal Revenue Service (IRS), Treasury.
**ACTION:**
Correcting amendment.
**SUMMARY:**
This document contains a correction to TD 8408 which was published in the *Federal Register* on Friday, April 10, 1992 (57 FR 12411) relating to the requirement that economic performance occur in order for an amount to be incurred with respect to any item of a taxpayer using an accrual method of accounting.
**DATES:**
This correction is effective April 10, 1992.
**FOR FURTHER INFORMATION CONTACT:**
Robert M. Casey, (202) 622-4950 (not a toll-free number).
**SUPPLEMENTARY INFORMATION:**
**Background**
The final regulation (TD 8408) that is the subject of this correction is under section 461 of the Internal Revenue Code.
**Need for Correction**
As published, TD 8408, contains an error that may prove to be misleading and is in need of clarification.
**List of Subjects in 26 CFR Part 1**
Income taxes, Reporting and recordkeeping requirements.
**26 CFR Part 1**
**Correction of Publication**
Accordingly, 26 CFR Part 1 is corrected by making the following correcting amendment:
**PART 1—INCOME TAXES**
*Paragraph 1.* The authority citation for part 1 continues to read in part as follows:
**26 CFR Part 1**
**Authority:**
26 U.S.C. 7805 * * *
§ 1.461-4
*Par. 2.* Section 1.461-4(d)(4)(i) is amended by revising the first sentence to read as follows:
§ 1.461-4
(d) * * *
(4) * * * (i) *In general.* Except as otherwise provided in paragraph (d)(5) of this section, if the liability of a taxpayer requires the taxpayer to provide services or property to another person, economic performance occurs as the taxpayer incurs costs (within the meaning of § 1.446-1(c)(1)(ii)) in connection with the satisfaction of the liability. * * *
Cynthia Grigsby,
Acting Chief, Publications and Regulations Branch Legal Processing Division, Associate Chief Counsel, (Procedures and Administration).