Textile Apron Co. v. Commissioner
United States Tax Court
Petitioner is a corporation created to take over the assets and business of three proprietorships. The predecessor proprietorships, in 1941, filed Form 970 requesting permission to use the last-in, first-out method of inventory valuation and, after approval thereof, used this method in computing income for the years 1942 through 1945. The petitioner continued to use this method of inventory valuation but failed to file Form 970 requesting permission to do so.
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Petitioner is a corporation created to take over the assets and business of three proprietorships. The predecessor proprietorships, in 1941, filed Form 970 requesting permission to use the last-in, first-out method of inventory valuation and, after approval thereof, used this method in computing income for the years 1942 through 1945. The petitioner continued to use this method of inventory valuation but failed to file Form 970 requesting permission to do so. Respondent required petitioner to abandon the last-in, first-out method and recompute its income for 1947, using the method prescribed…
1Opinion of the Court
OPINION.
Nice, Judge:
The first issue is whether the petitioner is entitled to use the Lifo method of inventory valuation without having specifically requested and obtained the permission of the respondent, on the theory that such permission had previously been secured by the predecessor proprietorships; and that, because of the tax-free exchange out of which the petitioner was formed, it has a continuing effect. Respondent’s contention is that the petitioner'is a new taxpaying entity and, as such, must obtain the approval of the Commissioner of Internal Revenue before adopting the Lifo method.1
2Cases cited9 opinions
- Commissioner v. South Texas Lumber Co.Supreme Court of the United States · 1948
- Commissioner of Internal Revenue v. DwyerCourt of Appeals for the Second Circuit · 1953
- William Hardy, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1936
- Commissioner of Internal Revenue v. Mellon. Commissioner of Internal Revenue v. ScaifeCourt of Appeals for the Third Circuit · 1950
- Northwestern States Portland Cement Co. v. HustonCourt of Appeals for the Eighth Circuit · 1942
4 more not listed; retrieve them via the Exa API.
3Cited by18 opinions
- Ezo Products Co. v. CommissionerUnited States Tax Court · 1961
- Dearborn Gage Co. v. CommissionerUnited States Tax Court · 1967
- Commissioner of Internal Revenue v. Joseph E. Seagram & Sons, Inc.Court of Appeals for the Second Circuit · 1968
- B. B. Margolis and Iris M. Margolis v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1964
- Joseph E. Seagram & Sons, Inc. v. CommissionerUnited States Tax Court · 1966
13 more not listed; retrieve them via the Exa API.