26 U.S.C. § 1341
Definition
A provision of the Internal Revenue Code of 1954 that states that if a taxpayer repays money that was included in gross income in a previous tax year because at the time it appeared that the taxpayer had an unrestricted right to the income and if the repayment is deductible, then the taxpayer may deduct all or part of the amount for the year in which it is repaid or take a refundable credit against tax for that year.