Change in Method of Accounting Sample Clauses

Change in Method of Accounting. In the case of any taxpayer who elected to have section 466 of the In- ternal Revenue Code of 1954 [now 1986] apply for such taxpayer’s last taxable year beginning before January 1, 1987, and is required to change its method of account- ing by reason of the amendments made by this section for any taxable year— (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 the Internal Revenue Code of 1986 to be taken into account by the taxpayer shall— ‘‘(i) be reduced by the balance in the suspense ac- count under section 466(e) of such Code as of the close of such last taxable year, and ‘‘(ii) be taken into account over a period not longer than 4 years.’’ (a) Accrual method on present value basis (1) the amount of the rent which accrues during such taxable year as determined under subsection (b), and (2) interest for the year on the amounts which were taken into account under this sub- section for prior taxable years and which are unpaid.