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when the services would be performed, but they could only be
performed within the same year, then the rule would be applied by
recognizing the entire cost for the year in which services were
performed. Here however, the services consist to a substantial
extent in the processing of breakdown claims and contract
cancellations, and hence are contingent in both timing and
amount. As a result, the amount of the liability properly
allocable to any of the years under the contract cannot be
accurately determined until the contract expires. Neither the
statute nor the regulations provide specific guidance for
handling these uncertainties.
The responsibility for developing fair and administrable
standards for implementing statutory requirements lies with the
Commissioner. Respondent acknowledges on brief the practical
difficulty of applying the economic performance requirement under
the circumstances of these cases. It appears to be respondent’s
position, at least for purposes of these cases, that where the
timing and amount of services to be provided to the taxpayer
cannot be determined before expiration of the service contract,
but the taxpayer can demonstrate “a reasonable manner in which to
estimate the amount and timing of the services that will be
required", respondent will permit the taxpayer to accrue its
liability over the term of the contract in accordance with the
taxpayer's estimates. Respondent determined that the Dealerships
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