Barbas v. Commissioner
United States Board of Tax Appeals
In the absence of evidence as to inventory value on March 1, 1913, or whether the cost of goods was paid and deducted as an expense prior to the change, a taxpayer changing from a cash receipts and disbursements basis to an accrual basis will take up in income in the year for which such change is made the inventory as of the beginning of the year.
1Opinion of the Court
OPINION.
Graupner :
The examining revenue agent in this appeal has added to income the sums of $1,532.89 and $24,920.99, being respectively the amounts of supplies and merchandise inventory as of January 1, 1920, as of which date the taxpayer changed from a cash receipts and disbursements basis to an accrual basis.
*591Section 212(a) of the Revenue Act of 1918, provides that the return of the taxpayer shall be made in accordance with the method of accounting regularly employed by him in keeping his books of account, but “if the method employed does not clearly reflect the income, the computation…
2Cited by6 opinions
- Pursell v. CommissionerUnited States Tax Court · 1962
- William Hardy, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1936
- Welp v. United StatesDistrict Court, N.D. Iowa · 1952
- Barbas v. CommissionerUnited States Board of Tax Appeals · 1925
- Lovallo v. CommissionerUnited States Tax Court · 1950
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