Burke & Herbert Bank & Trust Co. v. Commissioner
United States Tax Court
The taxpayer indicated on its tax return an election to include tax-free interest in excess profits tax net income and by section 720 (b), Internal Revenue Code, thereby gained the right to include in invested capital the bonds and obligations producing such interest. By oversight or error it omitted a part of its tax-free interest; the Commissioner added it, and because of this adjustment the tax consequences of the election were disadvantageous.
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The taxpayer indicated on its tax return an election to include tax-free interest in excess profits tax net income and by section 720 (b), Internal Revenue Code, thereby gained the right to include in invested capital the bonds and obligations producing such interest. By oversight or error it omitted a part of its tax-free interest; the Commissioner added it, and because of this adjustment the tax consequences of the election were disadvantageous. The election indicated, held, valid and binding, notwithstanding the unanticipated tax consequences, and the determined adjustment within its…
1Opinion of the Court
OPINION.
Johnson, Judge:
The Commissioner determined a deficiency of $3,529.32 in petitioner’s excess profits tax for 1942 by adding to excess profits tax net income tax-free interest on bonds of the Home Owners Loan Corporation. Petitioner indicated on its return an election to include tax-free interest in such net income, thereby gaining the right to reflect such bonds in invested capital, and did in fact include other tax-free interest in the net income. It assails the determination on the ground that the election, intended as a relief measure, was indicated without full knowledge of the tax…
2Cases cited5 opinions
- J. E. Riley Investment Co. v. CommissionerSupreme Court of the United States · 1940
- William W. Bierce, Ltd. v. HutchinsSupreme Court of the United States · 1907
- Schenck v. . State Line Telephone Co.New York Court of Appeals · 1924
- Snow v. AlleyMassachusetts Supreme Judicial Court · 1892
- Colson Corp. v. CommissionerUnited States Tax Court · 1945
3Cited by31 opinions
- Wilbur v. CommissionerUnited States Tax Court · 1964
- Estate of Stamos v. CommissionerUnited States Tax Court · 1970
- Thorrez v. CommissionerUnited States Tax Court · 1958
- Meyer v. CommissionerUnited States Tax Court · 1950
- Grynberg v. CommissionerUnited States Tax Court · 1984
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