Sunoco, Inc. and Subsidiaries - Page 21

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             credit pursuant to section 291(b)(2)(B)(ii).  In effect,                 
             petitioner now wants to change the manner in which the                   
             overburden removal costs incurred at the Gillette mine are               
             treated for tax purposes; and beginning with its return for              
             1983, petitioner wants to bring its tax accounting for                   
             overburden removal costs at the Gillette mine into                       
             conformity with its book accounting for those costs.                     

             The Issue for Decision                                                   
                  The parties disagree about whether petitioner is                    
             entitled to change the treatment of Cordero’s overburden                 
             removal costs on its returns for 1983, 1984, and 1986 from               
             development expenditures to production costs.  Respondent                
             asserts that the change is a change of accounting method                 
             and that petitioner is foreclosed from making the change by              
             reason of the fact that petitioner failed to secure the                  
             consent of the Secretary under section 446(e).  Therefore,               
             the issue is whether changing the treatment of Cordero’s                 
             overburden removal costs on petitioner’s returns for 1983,               
             1984, and 1986 from development expenditures to production               
             costs is subject to the consent requirement of section                   
             446(e).                                                                  










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