Dayton Hudson Corp. v. Commissioner
United States Tax Court
P, a publicly held corporation primarily engaged in retailing, uses an estimate of shrinkage not verified by yearend physical count in computing its yearend inventory. R argues that the use of such estimate is prohibited by sec. 1.471-2(d), Income Tax Regs. (the regulation). Thus, R argues that P's use of such estimate causes its accounting method, as a matter of law, to fail clearly to reflect income.
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P, a publicly held corporation primarily engaged in retailing, uses an estimate of shrinkage not verified by yearend physical count in computing its yearend inventory. R argues that the use of such estimate is prohibited by sec. 1.471-2(d), Income Tax Regs. (the regulation). Thus, R argues that P's use of such estimate causes its accounting method, as a matter of law, to fail clearly to reflect income. P objects to R's motion for summary judgment on the ground that the regulation does not prohibit the estimate at issue, and that whether its accounting method clearly reflects income therefore…
1Opinion of the Court
OPINION
Halpern, Judge:
Respondent determined a deficiency in petitioner’s Federal income tax for the year ended January 28, 1984, based upon her determination that petitioner improperly computed ending inventory. Respondent moves for summary judgment that section 1.471-2(d), Income Tax Regs, (the regulation), prohibits certain adjustments to ending inventory made by petitioner. Specifically, respondent argues that the regulation prohibits petitioner from estimating shrinkage in computing its ending inventory.
Unless otherwise noted, all section references are to the Internal Revenue Code in…
2Cases cited4 opinions
- Thor Power Tool Co. v. CommissionerSupreme Court of the United States · 1979
- Espinoza v. CommissionerUnited States Tax Court · 1982
- Hamilton Industries, Inc. v. CommissionerUnited States Tax Court · 1991
- National Home Products, Inc. v. CommissionerUnited States Tax Court · 1979
3Cited by7 opinions
- Wal-Mart Stores, Inc. & Subsidiaries v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1998
- Dayton Hudson Corporation and Subsidiaries v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1998
- Dayton Hudson Corp. v. CommissionerUnited States Tax Court · 1993
- Dayton Hudson v. Commissioner IRCourt of Appeals for the Eighth Circuit · 1998
- Maxxam Group Inc. v. United StatesDistrict Court, S.D. Texas · 1995
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