- 15 -
deduction of $271,671.04 of accrued vacation pay on its 1996
return. However, to avoid the duplication of a deduction as a
result of the change in method of accounting, a section 481(a)
adjustment in the amount of $271,671.04 is appropriate.
An appropriate order will
be issued.11
11In his brief, respondent stated that because the parties
settled an issue before trial, a Rule 155 computation will be
required. Rule 155 contemplates only a “deficiency, liability,
or overpayment” and is not appropriate under these circumstances.
The Court does, however, anticipate that the parties will submit
a proposed decision document stating the adjustments to Color
Arts, Inc.’s 1996 income tax return.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Last modified: May 25, 2011