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Section 24685.5 Of Article 4. Year Of Deduction From California Revenue And Taxation Code >> Division 2. >> Part 11. >> Chapter 13. >> Article 4.
24685.5
. (a) The amendment made by Section 7001(a) of the Internal
Revenue Service Restructuring and Reform Act of 1998 (Public Law
105-206) to Section 404(a)(11) of the Internal Revenue Code,
regarding determinations relating to deferred compensation, shall
apply to taxable years beginning on or after January 1, 2002.
(b) In the case of any taxpayer required by enactment of this section to change its method of accounting, for that taxpayer's first taxable year beginning on or after January 1, 2002, each of the following shall apply for purposes of this part, Part 10 (commencing with Section 17001), and Part 10.2 (commencing with Section 18401):
(1) The change shall be treated as initiated by the taxpayer.
(2) The change shall be treated as made with the consent of the Franchise Tax Board.
(3) The net amount of the adjustments required to be taken into account by the taxpayer under Chapter 13 (commencing with Section 24631) shall be taken into account ratably over the three taxable year period beginning with that taxpayer's first taxable year beginning on or after January 1, 2002.
(b) In the case of any taxpayer required by enactment of this section to change its method of accounting, for that taxpayer's first taxable year beginning on or after January 1, 2002, each of the following shall apply for purposes of this part, Part 10 (commencing with Section 17001), and Part 10.2 (commencing with Section 18401):
(1) The change shall be treated as initiated by the taxpayer.
(2) The change shall be treated as made with the consent of the Franchise Tax Board.
(3) The net amount of the adjustments required to be taken into account by the taxpayer under Chapter 13 (commencing with Section 24631) shall be taken into account ratably over the three taxable year period beginning with that taxpayer's first taxable year beginning on or after January 1, 2002.
