Beckwith & Associates, Inc. v. Kosydar

Tax Commissioner’s Rule TX-43-05 provides that the appropriate accounting period under R. C. 5733.05 for corporations in the circumstances of appellee, a business newly-incorporated in 1971, extends from the corporation’s incorporation date to December 31,1971.

Pursuant to R. C. 5733.05, a corporation’s annual report determines the value of the issued and outstanding shares of stock of the taxpayer, which is the base or measure of the franchise tax liability. Such determination is made as of the date shown by the report to have been the beginning of the corporation’s annual accounting period…