Brainard v. Commissioner
United States Tax Court
1. Interest payments owing by accrual basis taxpayer which were not likely to be paid because of petitioner's financial condition, held, on the facts, not allowable deductions, Zimmerman Steel Co., 45 B. T. A. 1041, notwithstanding that a different ground for the disallowance was specified by respondent in the statement attached to the notice of deficiency.
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1. Interest payments owing by accrual basis taxpayer which were not likely to be paid because of petitioner's financial condition, held, on the facts, not allowable deductions, Zimmerman Steel Co., 45 B. T. A. 1041, notwithstanding that a different ground for the disallowance was specified by respondent in the statement attached to the notice of deficiency. Edgar M. Carnrick, 21 B. T. A. 12, and Raoul H. Fleischmann, 40 B. T. A. 672, followed. 2. Dividends on pledged securities received by creditor, pursuant to dividend order, held, to be payment of interest, under applicable law, in the…
1Opinion of the Court
OPINION.
Opper, Judge-.
After having granted permission to petitioner to change his accounting system from cash to accrual in 1935, respondent in 1941 purported to revoke the permission so granted and to direct the petitioner to employ the cash system, on the ground that to do otherwise would fail properly to reflect his income. This, petitioner refused to do, and the propriety of certain deductions accrued but not paid in cash in the year 1941 is the subject of this controversy. We find it unnecessary to pass upon the propriety of respondent’s action in revoking his prior approval of…
2Cases cited3 opinions
- Pearlman v. CommissionerUnited States Tax Court · 1944
- Butler Consol. Coal Co. v. CommissionerUnited States Tax Court · 1946
- Bowen v. CommissionerUnited States Tax Court · 1943
3Cited by4 opinions
- Estate of Gordon v. CommissionerUnited States Tax Court · 1978
- Kellogg v. United States (In Re Southwestern States Marketing Corp.)District Court, N.D. Texas · 1994
- Brainard v. CommissionerUnited States Tax Court · 1946
- Estate of Gordon v. CommissionerUnited States Tax Court · 1978