Taxable Net Income of the Estate and Amendment of ITR

September 3, 1958 BIR RULING NO. 487-58 Mr. Lope Salvarino Kabankalan, Negros Occidental S i r : This has reference to your letter dated August 8, 1958, requesting opinion on the following queries: cdll "1. Suppose an Estate has a gross income of P70,000.00. Expenses and allowable deductions amounted to P35,000.00. During the taxable year, the administrator of the Estate distributed P25,000.00 to the heirs of the Estate. How much is the taxable net income of the Estate? "2. If a taxpayer has innocently erred in the filing and presentation of his income tax return such that significant amount and information that will materially affect his true income was not disclosed, how will he correct his filed income tax return? Can a taxpayer file an amended income tax return? How?" In reply thereto, I have the honor to inform you as follows: As regards query No. 1, the net taxable income of the estate is computed as follows (Sec. 209, Revenue Regulations No. 2): Gross income of the estate P70,000.00 Less: Allowable expenses and deductions 35,000.00 Net income P35,000.00 Less: Exemption allowed to estate 1,800.00 Net taxable income P33,200.00 ======== With respect to query No. 2, a taxpayer who filed an income tax return erroneously can correct his mistake by filing an amended income tax return and such amended return supersedes the original return filed. Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue