Boyd-Richardson Co. v. Commissioner
United States Tax Court
Excess Profits Net Income -- Exclusion for Recoveries of Bad Debts -- Reserve Method. -- Petitioner using reserve for bad debts, accompanied by uniform practice of accounting for subsequent recoveries by adjustments to reserve rather than additions to income, was entitled to exclude bad debt recoveries from normal tax net income in computing excess profits net income under section 711 (a) (1) (E).
1Opinion of the Court
OPINION.
Murdoch, Judge:
The Commissioner determined a deficiency of $1,362.68 in excess profits tax for the fiscal year ended January 31, 1941. The only is^ue is whether he erred in disallowing an exclusion of $5,378.19 under section Til (a) (1) (E) of the Internal Revenue Code in computing excess profits net income. The facts have been stipulated.
The petitioner is a corporation. It made its Federal tax reports upon an accrual basis for fiscal years ending January 31. It consistently used a reserve method for bad debts, with the permission of and without change by the Commissioner.
The…
2Cases cited2 opinions
- J.F. Johnson Lumber Co. v. CommissionerUnited States Tax Court · 1944
- Ohio Loan & Discount Co. v. CommissionerUnited States Tax Court · 1944
3Cited by13 opinions
- McCamant v. CommissionerUnited States Tax Court · 1959
- Mercantile Nat'l Bank v. CommissionerUnited States Tax Court · 1958
- Hotel Kingkade v. CommissionerUnited States Tax Court · 1949
- Zellerbach Paper Co. v. CommissionerUnited States Tax Court · 1947
- Ralphs-Pugh Co. v. CommissionerUnited States Tax Court · 1946
8 more not listed; retrieve them via the Exa API.