- 33 -
cases; the cases discussed above are those that most closely
resemble the instant case.
D. Conclusion
We hold that petitioner must have respondent's consent under
section 446(e) to change the year it reports payment of the
bonuses. Petitioner does not have respondent's consent. Thus,
petitioner may deduct its officers' bonuses only in the year in
issue as it reported on its return.
For the foregoing reasons, we conclude that petitioner is
liable for the tax under section 1374(a) on the $929,915 net
capital gain because the net capital gain is more than 50 percent
of petitioner's taxable income.
To reflect the foregoing and concessions,
Decision will be
entered under Rule 155.
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