Griffith v. Commissioner
United States Tax Court
Ps, farmers who reported their income on the cash method, sold cotton in 1973 under a contract which deferred payment until later years. The purchaser's obligation under the contract was secured by a standby letter of credit. Held, Ps received in 1973 all the income from the sale, since the contractual rights and letter of credit were the equivalent of cash.
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Ps, farmers who reported their income on the cash method, sold cotton in 1973 under a contract which deferred payment until later years. The purchaser's obligation under the contract was secured by a standby letter of credit. Held, Ps received in 1973 all the income from the sale, since the contractual rights and letter of credit were the equivalent of cash. Held, further, Ps were not entitled to elect the installment method of reporting the income from the sale since, in the year of sale, they received a payment exceeding 30 percent of the price of the cotton. Sec. 453(b)(2), I.R.C. 1954.
1Opinion of the Court
Simpson, Judge:
The Commissioner determined the following deficiencies in the petitioners’ Federal income taxes for 1973:
Docket No. Petitioners Deficiency
4935-77 J. K. Griffith and Erma Griffith. $1,568,144.91
4936-77 Curtis C. Griffith and Cynthia A. Griffith.. 145,889.92
After concessions by the petitioners, the issue for decision is whether the petitioners received in 1973 all the income from their sale of cotton in that year under a sales contract which deferred payment until later years and which was secured by a standby letter of credit. If they did receive such income in such year, we…
Also in this document: Concurrence.
2Cases cited17 opinions
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Knetsch v. United StatesSupreme Court of the United States · 1960
- H. O. Williams and Mrs. Ada L. Williams v. United StatesCourt of Appeals for the Fifth Circuit · 1955
- Pozzi v. CommissionerUnited States Tax Court · 1967
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3Cited by15 opinions
- Willamette Indus. v. CommissionerUnited States Tax Court · 1989
- Vaughn v. CommissionerUnited States Tax Court · 1983
- Estate of Silverman v. CommissionerUnited States Tax Court · 1992
- Hyman v. CommissionerUnited States Tax Court · 1987
- Kenroy, Inc. v. CommissionerUnited States Tax Court · 1984
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