Disallowances

The plural of 'disallowance,' referring to the act of refusing to allow, permit, or accept something. This can pertain to a wide range of situations, including, but not limited to, denying expenses claimed on a tax return, rejecting a modification to a contract, vetoing a legislative act, or refusing to grant access to a specific resource or privilege. The term highlights a formal or official act of denial, often based on specific rules, regulations, or agreements. The consequence of a disallowance is usually the non-implementation or revocation of the thing disallowed.

Disallowances meaning with examples

• The IRS issued several disallowances on the company's tax return, claiming various expenses, such as luxury car costs, were not legitimate business expenses. This led to a revised tax liability and a request for further supporting documentation. The company was forced to pay an extra amount along with penalties due to the IRS disallowances, which had to be paid on time.
• Following the audit, the insurance company issued disallowances on several submitted claims, citing incomplete paperwork and discrepancies in medical records. The patients were forced to cover the uncovered expenses. They were very upset because their medical bills were now their responsibility after the disallowances, which were unforeseen.
• The project manager implemented strict change controls, resulting in numerous disallowances of requested modifications that fell outside the project's scope. This protected the initial project's objectives. The frequent disallowances often lead to frustration. However, these disallowances helped keep costs and time under control.
• The bank's regulatory body imposed significant disallowances on certain loan loss provisions, requiring them to be adjusted downwards. This decision impacted the bank's reported profitability. These disallowances, which were related to an uncertain loan portfolio, caused the financial institution to show more financial difficulties.
• The referee's disallowances of several goals in the hockey game, based on perceived offside violations and high-sticking infractions, generated intense debate among fans. The disallowed goals changed the outcome of the match. Some of the fans thought the disallowances were a mistake, while others believed that they were accurate.