26 C.F.R. § 1.481-4

Adjustments taken into account with consent

Read at: eCFRecfr.gov CornellLII GovInfogovinfo.gov CasesGoogle Scholar

(a) In addition to the terms and conditions prescribed by the Commissioner under § 1.446-1(e)(3) for effecting a change in method of accounting, including the taxable year or years in which the amount of the adjustments required by section 481(a) is to be taken into account, or the methods of allocation described in section 481(b), a taxpayer may request approval of an alternative method of allocating the amount of the adjustments under section 481. See section 481(c). Requests for approval of an alternative method of allocation shall set forth in detail the facts and circumstances upon which the taxpayer bases its request. Permission will be granted only if the taxpayer and the Commissioner agree to the terms and conditions under which the allocation is to be effected. See § 1.446-1(e) for the rules regarding how to secure the Commissioner's consent to a change in method of accounting.

(b) An agreement to the terms and conditions of a change in method of accounting under § 1.446-1(e)(3), including the taxable year or years prescribed by the Commissioner under that section (or an alternative method described in paragraph (a) of this section) for taking the amount of the adjustments under section 481(a) into account, shall be in writing and shall be signed by the Commissioner and the taxpayer. It shall set forth the items to be adjusted, the amount of the adjustments, the taxable year or years for which the adjustments are to be taken into account, and the amount of the adjustments allocable to each year. The agreement shall be binding on the parties except upon a showing of fraud, malfeasance, or misrepresentation of material fact.

[T.D. 8608, 60 FR 40079, Aug. 7, 1995]

Notes of Decisions

Cited in 4 cases, 1962–2010 · leading case: Falk v. Comm'r, 37 T.C. 1078 (Tax Ct. 1962).

Sort: Relevance Newest Treatment

Falk v. Comm'r, 37 T.C. 1078 (Tax Ct. 1962). · cites it 6× “adjustments asserted by the Commissioner shall be required to be made under the provisions of Section 481 , then the undersigned taxpayers elect to take the determined *185 adjustments into account in the 10 year period beginning with the first taxable year beginning after…”

Hosp. Corp. of Am. v. Comm'r, 107 T.C. 73 (Tax Ct. 1996). · cites it 2× “↩ 5. Sec. 448(d)(7) provides as follows: (7) Coordination with section 481 .”

Pursell v. Comm'r, 38 T.C. 263 (Tax Ct. 1962). · cites it 2× “, and Southeast Equipment Corporation, supra . However, that amendment added the last clause to the present section 481(a)(2) of the Code which retroactively permitted adjustments with respect to years prior to 1954 to be made if the adjustment "is attributable to a change in…”

Health Inv. Corp. v. Comm'r, 2010 T.C. Memo. 211 (Tax Ct. 2010). · cites it 2× “481-4, Income Tax Regs. , provide that the adjustment *285 required may be taken into account in determining taxable income in the manner and subject to the conditions agreed to by the Commissioner and the taxpayer or prescribed by regulations.”

Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.