Gwinn Bros. & Co. v. Commissioner
United States Tax Court
In 1935 petitioner discovered that an employee had embezzled about $ 65,000 over 1932 to 1935 and an unknown period of prior years. Amounts embezzled in 1932-1935, inclusive, have been allowed as deductions.
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In 1935 petitioner discovered that an employee had embezzled about $ 65,000 over 1932 to 1935 and an unknown period of prior years. Amounts embezzled in 1932-1935, inclusive, have been allowed as deductions. In 1935 the petitioner set up the entire amount embezzled as an account receivable, credited thereto amounts recovered from the employee, determined the balance to be worthless, and charged it off in the amount of $ 54,077.47. Held, the $ 54,077.47 was properly deducted in 1935. Boston Consolidated Gas Co. v. Commissioner, 128 Fed. (2d) 473; Commissioner v. Wilcox, 327 U.S. 404; McKnight…
1Opinion of the Court
OPINION.
Disney, Judge'.
The controversy here involves income and declared value excess profits taxes for the calendar year 1935. Deficiences were determined as follows: in income tax, $853.57; in declared value excess profits tax, $310.39. The petitioner claims overpayment of $6,974.07. The only issue presented is whether petitioner is entitled in the taxable year to a deduction of $44,475.35 as a bad debt, or as a loss. A stipulation of facts was filed. We adopt same by reference, finding the facts therein set forth. Omitting formal parts, it reads as follows:
1. On or about the middle of the…
2Cases cited2 opinions
- Commissioner v. WilcoxSupreme Court of the United States · 1946
- Douglas County Light & Water Co. v. Commissioner of Int. Rev.Court of Appeals for the Ninth Circuit · 1930
3Cited by9 opinions
- Ramsay Scarlett & Co. v. CommissionerUnited States Tax Court · 1974
- Alison v. United StatesSupreme Court of the United States · 1952
- Leedy-Glover Realty & Ins. Co. v. CommissionerUnited States Tax Court · 1949
- Alison v. United StatesDistrict Court, W.D. Pennsylvania · 1951
- J. J. Dix, Inc. v. CommissionerUnited States Tax Court · 1953
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