Bosamia v. COMMISSIONER OF INTERNAL REVENUE

EMILIO M. GARZA, Circuit Judge:

This case presents a question of first impression under the Internal Revenue Code, 26 U.S.C. § 1 et seq. (“the Code”): 1 whether the Commissioner of Internal Revenue effects a change in a taxpayer’s method of accounting for the purposes of § 481 when he requires that taxpayer to postpone a deduction from gross income pursuant to § 267(a)(2). Because we conclude that a § 267(a)(2) disallowance constitutes a change in a taxpayer’s method of accounting under § 481, we AFFIRM the judgment of the Tax Court.

I

Petitioners-Appellants, Ramesh and Pragati Bosamia, are the…