On December 31, 2012, a taxpayer pays state income taxes by the following methods. Which one cannot be deducted on a 2012 return?
a. Incorrect. Because the taxpayer had sufficient funds to cover the check mailed before the end of the year, it is deductible in the year of mailing even though the check is cashed in the following year.
b. Incorrect. Personal delivery is payment on the date of delivery.
c. Incorrect. Because the bank statement shows the funds were paid on December 31, the payment is deductible in 2012.
d. Correct. The computer transfer is not treated as payment until it is reported on the account statement, which in this case was January 2, 2013.