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however, is that if a taxpayer in similar circumstances filed an
amended return, respondent would be obligated to accept it. The
cases hold otherwise: As a corollary to the annual accounting
principle, it is well established that where a transaction was
properly reported on the original return and the original filing
deadline has passed, the acceptance of an amended return that
alters the tax consequences of the transaction is generally
within the discretion of respondent. Goldstone v. Commissioner,
65 T.C. 113 (1975); Coons v. Commissioner, T.C. Memo. 1983-777;
see also Hillsboro Natl. Bank v. Commissioner, supra at 377 n.10.
Accordingly, Company's earnings and profits for its last
taxable year as a C corporation must be determined from Company's
reasonable estimate, as of October 31, 1988, of its costs to
complete construction contracts in progress. The parties have
stipulated that this amount is $251,650.13. The rules of
subchapter S precluded any adjustment to Company's earnings and
profits in the circumstances of this case. See sec. 1371(c)(1).
As a result, Company's earnings and profits remained $251,650.13
on December 31, 1989, and the dividend distributed to petitioners
in 1989 must be measured by reference to this amount. In
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