- 39 -
Court of Appeals for the Fifth Circuit was not faced with the
issue herein of whether a taxpayer must figure the NIL
consistently under sections 613 and 4988. Rather, the issues in
Shell Oil Co. v. Commissioner, supra, concerned the attribution
and allocation of expenses for the calculation of the taxable
income from the taxpayer's oil and gas properties under section
1.613-5(a), Income Tax Regs., for purposes of the WPT NIL. As
discussed supra note 16, in the instant cases we never reach the
issue of whether petitioners' allocation method is defensible
under cost accounting principles, because we find based on
respondent's threshold argument that petitioners are bound by
their original computations.
Thus, based on the record and the facts discussed herein, we
hold that petitioners are not entitled to recompute Petroleum's
WPT NIL computations for the taxable periods of 1983, 1984, and
1985, where the recomputations do not follow the percentage
depletion calculations claimed on their original Federal income
tax returns.
To reflect the foregoing,
Decisions will be entered
under Rule 155.
Page: Previous 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 Last modified: May 25, 2011