Sunoco, Inc. and Subsidiaries - Page 2

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             Petitioner disputes the above deficiencies and further                   
             claims to have overpaid income taxes for 1979, 1981, and                 
             1983 by at least $25,082,591, $6,881,055, and $14,137,211,               
                  After concessions, there are three issues for decision              
             in this case.  Each issue is the subject of a separate                   
             opinion.  The issue that is the subject of this opinion                  
             involves the deductions claimed on petitioner’s returns                  
             for 1983, 1984, and 1986 for certain expenses incurred in                
             removing the overburden at a strip mine.  Specifically,                  
             the issue is whether petitioner is entitled to change the                
             income tax treatment of the subject overburden removal                   
             expenses from the treatment applicable to development                    
             expenditures, as reported on petitioner’s returns, to the                
             treatment applicable to production costs.  This issue                    
             turns on whether that change is foreclosed because it is                 
             based upon a change of method of accounting as to which                  
             petitioner had not first secured the consent of the                      
             Secretary under section 446(e).  Unless stated otherwise,                
             all section references are to the Internal Revenue Code                  
             as in effect during the years in issue, and all Rule                     
             references are to the Tax Court Rules of Practice and                    
             Procedure.  For purposes of this opinion, the tax years                  
             in issue are 1983, 1984, and 1986.                                       

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