Tunningley v. Commissioner
United States Tax Court
1. Held: (a) Petitioner, the sole proprietor of an automobile agency, maintained his books in accordance with an accrual method of accounting for 1949 and 1950 and must report his income on that accrual basis.
Read the full summary
1. Held: (a) Petitioner, the sole proprietor of an automobile agency, maintained his books in accordance with an accrual method of accounting for 1949 and 1950 and must report his income on that accrual basis. (b) Certain adjustments (unrelated to the method of accounting used) determined in petitioner's business net income as recorded in his books for those years. 2. Held, no books or records having been produced for 1946 or 1948, petitioner's automobile business net income is properly determined by applying to reported sales, for each of those years, the average percentage of net income to…
1Opinion of the Court
OPINION.
Black, Judge:
Respondent does not contend, as he might, that petitioner was required to use an accrual method of accounting for the 1949 and 1950 income from his automobile business.3 Rather, he argues that petitioner in fact did keep his books according to an accrual method and must report his net income for those years “in accordance with the method of accounting regularly employed in keeping the books” (Sec. 41, I. R. C. 1939) ,4 Diamond A Cattle Co., 21 T. C. 1.
Sometime in 1948 petitioner, who operated a dealership under a franchise from the Chrysler Corporation, De Soto Division,…
2Cases cited10 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- United States v. AndersonSupreme Court of the United States · 1926
- Spring City Foundry Co. v. CommissionerSupreme Court of the United States · 1934
- Burnet v. HoustonSupreme Court of the United States · 1931
- Halle v. CommissionerUnited States Tax Court · 1946
5 more not listed; retrieve them via the Exa API.
3Cited by12 opinions
- Patchen v. CommissionerUnited States Tax Court · 1956
- Josef C. Patchen and Aleyne E. Patchen v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1958
- Golden Nugget, Inc. v. CommissionerUnited States Tax Court · 1969
- Webb v. CommissionerUnited States Tax Court · 1966
- Colopy v. CommissionerUnited States Tax Court · 1984
7 more not listed; retrieve them via the Exa API.