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26 USC § 463 - Repealed. Pub. L. 100–203, title X, § 10201(a), Dec. 22, 1987, 101 Stat. 1330–387] 

---
identifier: "/us/usc/t26/s463"
source: "usc"
legal_status: "official_prima_facie"
title: "26 USC § 463 - Repealed. Pub. L. 100–203, title X, § 10201(a), Dec. 22, 1987, 101 Stat. 1330–387]"
title_number: 26
title_name: "INTERNAL REVENUE CODE"
section_number: "463"
section_name: "Repealed. Pub. L. 100–203, title X, § 10201(a), Dec. 22, 1987, 101 Stat. 1330–387]"
chapter_number: 1
chapter_name: "NORMAL TAXES AND SURTAXES"
subchapter_number: "E"
subchapter_name: "Accounting Periods and Methods of Accounting"
part_number: "II"
part_name: "METHODS OF ACCOUNTING"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
status: "repealed"
---

# [§ 463. Repealed. Pub. L. 100–203, title X, § 10201(a), Dec. 22, 1987, 101 Stat. 1330–387]

Section, added , , ; amended , , ; , , ; , , , related to deduction allowable for accrual basis taxpayers under  with respect to vacation pay.

## Statutory Notes and Related Subsidiaries

### Effective Date of Repeal

Repeal applicable to taxable years beginning after , see , set out as an Effective Date of 1987 Amendment note under .

### Change in Method of Accounting Required by Pub. L. 100–203

> **“(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—
> 
> 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.”
> 
> **“(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 year | 25 |
> | 2nd year | 5 |
> | 3rd year | 35 |
> | 4th year | 35. |

, , , provided that: