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the language of section 461(d) contains no ambiguity or anomaly,
and we therefore apply it according to its terms. United States
v. Ron Pair Enters, Inc., 489 U.S. 235, 241 (1989); Burke v.
Commissioner, 105 T.C. 41, 59 (1995). Accordingly, petitioner is
not entitled to the claimed California franchise tax deduction
for its 1989 tax year.
Petitioner claimed California franchise tax deductions for
the years under consideration on the basis of the pre-1972
California franchise tax rules (i.e., January 1 accrual for
franchise tax for the income year (year before the taxable
year)). On the basis of petitioner’s argument that section
461(d) did not apply because double deductions were not being
taken, petitioner sought increased franchise tax deductions from
those originally claimed on its returns. The increase results
from treating December 31 as the accrual date instead of the
succeeding January 1, which was the accrual date under the pre-
1972 California franchise tax statute. Because we have decided
that section 461(d) proscribes a taxpayer’s use of the 1972
amendments to accelerate the accrual of California franchise tax,
petitioner’s claim for increased franchise tax deductions must
fail for all years before the Court.
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