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That is a reasonable explanation for the nationwide average
requirement for each type of plant.
Accordingly, the corporation must meet the statute’s 2-year
threshold based on the nationwide weighted average preproductive
period for citrus trees. Though neither the Secretary nor
respondent has published guidelines, we are not in a position to
hold that the statute is “invalid” as petitioner suggests. In
that regard, the terms of the standard are not vague, and there
is reasonable justification for the statutory requirement that
the exception from section 263A be on a uniform or nationwide
basis for each type of crop.
Finally, we consider petitioner’s argument that respondent
is time barred from making any adjustments to the corporation’s
income for the years before the Court to prevent duplication of
amounts that had been deducted in the corporation’s 1991 year, a
year that the parties agree is closed. Respondent, admitting
that the corporation’s 1991 tax year was otherwise closed at the
time the notice was mailed, contends that the corporation’s 1991
choice no longer to capitalize its production costs constitutes a
change of accounting method that triggers section 481(a) and
permits adjustments in the 1992 tax year with respect to items
deducted in the 1991 year. Accordingly, respondent’s ability to
make an adjustment in the 1992 year for deductions taken in the
1991 year is solely dependent on whether the corporation’s 1991
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