Mnookin v. Commissioner
United States Tax Court
1. Decedent in 1942 and in all prior years after opening business books in 1920 kept his books on the accrual basis of accounting. His income tax returns in 1942 and in all prior years after 1920 were made on the accrual basis, except that income from credit sales was reported on the cash basis.
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1. Decedent in 1942 and in all prior years after opening business books in 1920 kept his books on the accrual basis of accounting. His income tax returns in 1942 and in all prior years after 1920 were made on the accrual basis, except that income from credit sales was reported on the cash basis. For 1942 respondent determined that income from credit sales should also be reported on the accrual basis and included in decedent's gross income for 1942 the credit sales for prior years of $ 103,456.73, which were evidenced by accounts receivable as of January 1, 1942, and which were never…
1Opinion of the Court
OPINION.
Harlan, Judge:
Petitioner’s first contention is that respondent erred in including in decedent’s gross income for 1942 the accounts receivable as of January 1,1942. It maintains that, since respondent was determining Samuel Mnookin’s income for 1942, he had no right to include this item, which represented credit sales of prior years.
It is our opinion that on this issue the case at bar is controlled by Greene Motor Co., 5 T. C. 314. In that case the taxpayer had consistently followed an accrual method of accounting. It had, in the years prior to 1939, improperly set up certain so-called…
2Cases cited11 opinions
- Heiner v. MellonSupreme Court of the United States · 1938
- Guaranty Trust Co. v. CommissionerSupreme Court of the United States · 1938
- Greene Motor Co. v. CommissionerUnited States Tax Court · 1945
- Ford v. Comm'rUnited States Tax Court · 1946
- Edwards v. ThomasSupreme Court of Missouri · 1877
6 more not listed; retrieve them via the Exa API.
3Cited by53 opinions
- Fruehauf Trailer Co. v. CommissionerUnited States Tax Court · 1964
- Iley v. CommissionerUnited States Tax Court · 1952
- Frame v. CommissionerUnited States Tax Court · 1951
- B. C. Cook & Sons, Inc. v. CommissionerUnited States Tax Court · 1972
- Heer-Andres Inv. Co. v. CommissionerUnited States Tax Court · 1951
48 more not listed; retrieve them via the Exa API.