C. Ludwig Baumann & Co. v. Marcelle, Collector of Internal Revenue

SWAN, Chief Judge.

This is an action brought against a collector of internal revenue and the United States to recover some $64,000, plus interest, paid as a deficiency in income tax resulting from the disallowance of a deduction taken in the plaintiff’s tax return for 1942. The case was tried to the court without a jury upon stipulated facts. In an opinion reported in 105 F.Supp. 780, the trial court dismissed the complaint. The taxpayer, which kept its books on the accrual basis, in the year 1942 accrued on its books and claimed as a deduction in its income tax return, an obligation of…