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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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