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would have been available under the pre-1972 California franchise
tax regime. Respondent also points out that pre-1972 California
law, not the 1972 amendments, permitted petitioner a deduction
for its 1988 short Federal tax year. It was that chain of events
that caused a gap in petitioner’s annual accrual of California
franchise tax. We agree with respondent.
Section 461(d) explicitly addresses the type of legislation
enacted by California in the form of the 1972 amendments to its
franchise tax law. Epoch Food Serv., Inc v. Commissioner, supra
at 1054. The effect of the 1972 amendments was to accelerate the
accrual of franchise tax to an earlier tax year. If a
corporation was fully operational in California for years prior
to the 1972 amendments, but for section 461(d), that corporation
would have been entitled to two franchise tax accruals in the
first effective year of the 1972 amendments. Petitioner’s
idiosyncratic circumstances occurred because of the convergence
of its 1987 short year and the December 31, 1988, accrual of its
1988 short Federal tax year. Those unique circumstances do not
support different treatment for petitioner than would be afforded
to other California corporate franchise taxpayers for the taxable
years following petitioner’s unique initial circumstances for
1987-89. There is nothing in section 461(d) or the underlying
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