- 25 -
448(d)(7)(C) adopted, with certain modifications, applicable
provisions under temporary regulations, as amended, originally
promulgated in 1987. T.D. 8514, supra; see T.D. 8143, 1987-2
C.B. 121.12 Since Congress did not expressly delegate authority
to the Commissioner to fill the gaps left by Congress, the
Commissioner's authority is implicit rather than explicit. For
the reasons discussed below, we find reasonable the provision of
section 1.448-1(g)(3)(iii), Income Tax Regs., regarding the
acceleration of the balance of the adjustment not previously
taken into account upon a cessation of the respective businesses
to which the section 481 adjustment relates (hereinafter the
cessation-of-business acceleration provision).
Section 448(d)(7)(C) specifically coordinates section 448
with section 481(a). Section 448 effectuates Congress' intent to
require most large corporations to use an overall accrual method
of accounting. See H. Rept. 99-426, at 604-607 (1985), 1986-3
C.B. (Vol. 2) 1, 604-607. Section 448(d)(7)(C) generally is
effective for taxable years beginning after December 31, 1986.
11 (...continued)
set forth in 26 CFR Part 1 as revised on April 1,
1993), paragraphs (g) and (h) of this section will not
be adversely applied to a taxpayer with respect to
transactions entered into before December 27, 1993.
12 The temporary income tax regulations relating to sec. 448 as
originally promulgated in T.D. 8143, 1987-2 C.B. 121, were
amended by T.D. 8194, 1988-1 C.B. 186; T.D. 8329, 1991-1 C.B. 62;
and T.D. 8514, 1994-1 C.B. 141.
Page: Previous 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 NextLast modified: May 25, 2011