§463 — Repealed. Pub. L. 100–203, title X, § 10201(a), Dec. 22, 1987, 101 Stat. 1330–387]
10 cases·1 followed·1 distinguished·2 questioned·6 cited—10% support
Statute Text — 26 U.S.C. §463
[§ 463. Repealed. Pub. L. 100–203, title X, § 10201(a), Dec. 22, 1987, 101 Stat. 1330–387] Section, added Pub. L. 93–625, § 4(a), Jan. 3, 1974, 88 Stat. 2109; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 98–369, div. A, title V, § 561(a), July 18, 1984, 98 Stat. 901; Pub. L. 99–514, title XI, § 1165(a), Oct. 22, 1986, 100 Stat. 2511, related to deduction allowable for accrual basis taxpayers under section 162(a) of this title with respect to vacation pay. Statutory Notes and Related Subsidiaries Effective Date of RepealRepeal applicable to taxable years beginning after Dec. 31, 1987, see section 10201(c)(1) of Pub. L. 100–203, set out as an Effective Date of 1987 Amendment note under section 404 of this title. Change in Method of Accounting Required by Pub. L. 100–203Pub. L. 100–203, title X, § 10201(c)(2), Dec. 22, 1987, 101 Stat. 1330–388, provided that: “In the case of any taxpayer who elected to have section 463 of the Internal Revenue Code of 1986 apply for such taxpayer’s last taxable year beginning before January 1, 1988, and who is required to change his method of accounting by reason of the amendments made by this section [amending sections 404, 419, and 461 of this title, repealing sections 81 and 463 of this title, and enacting provisions set out as a note under section 404 of this title]— “(A) such change shall be treated as initiated by the taxpayer, “(B) such change shall be treated as having been made with the consent of the Secretary, and “(C) the net amount of adjustments required by section 481 of such Code to be taken into account by the taxpayer—“(i) shall be reduced by the balance in the suspense account under section 463(c) of such Code as of the close of such last taxable year, and “(ii) shall be taken into account over the 4-taxable year period beginning with the taxable year following such last taxable year as follows: “In the case of the:The percentage taken intoaccount is: 1st year25 2nd year5 3rd year35 4th year35. Notwithstanding subparagraph (C)(ii), if the period the adjustments are required to be taken into account under section 481 of such Code is less than 4 years, such adjustments shall be taken into account ratably over such shorter period.”
10 Citing Cases
We are not convinced that Congress intended section 404(a)(6) to be read so expansively, or in a manner inconsistent with section 413(b)(7), - 38 - in furtherance of such a dubious goal.
Pursuant to section 463(b), the decision to be entered is not reviewable by any other court, and this opinion shall not be treated as precedent for any other case .
resolve in the present proceeding: (1) Whether petitioner, in its taxable year ending January 30, 1988 (tye 8801), properly deducted certain contributions to multiemployer pension plans attributable to services performed after the conclusion of that tax year, and (2) whether petitioner properly deducted certain vacation pay liabilities pursuant to section 463 in its taxable year ended January 31, 1987 (tye 8701) and in TYE 8801.
COMMISSIONS OF INTERNAL REVENUE, Respondent VASQUEZ, Judge: his case was heard'pursuant,to the provisions of section 463 of the Internal Revenue Code in effec t when the petition was fled.' Pursuant` to section 7463(b), the decision to be entered is°not reviewable by any other court, an d 1 Unless otherwis indicated, all'subsequent section references are to the Internal Revenue Code in effect for the year in issue, and all Rule references are to the'Tax C
Prior to 1987, section 404(a)(5) contained only the first sentence; the rules governing vacation pay were contained in section 463, which provided for a deduction based on the establishment of a reserve.
Prior to 1987, section 404(a)(5) contained only the first sentence; the rules governing vacation pay were contained in section 463, which provided for a deduction based on the establishment of a reserve.