Palm Beach Mather Co. v. Commissioner

1. Upon change from the accrual to installment basis of accounting, double taxation does not result from the inclusion in gross income of amounts actually received in a taxable year on account of installment sales made and reported on an accrual basis of accounting as income in previous years. 2. Upon change from the accrual to installment basis of accounting, collections in a taxable year on account of accounts receivable representing sales in prior years are income in the taxable year and not a return of capital. 3. Upon change from the accrual to installment basis, mere bookkeeping entries…