Arheit v. Commissioner
United States Tax Court
Sec. 23 (b) -- Deductibility of Interest: Year of Payment: Suspense Account Deposit. -- In 1952, prior to any formal determinations or assessments of deficiencies in income tax for the years 1945-1950, inclusive, petitioner made a remittance to a collector of estimated tax deficiencies and interest thereon up to the date of the remittance for the purpose of stopping the running of interest upon proposed deficiencies.
Read the full summary
Sec. 23 (b) -- Deductibility of Interest: Year of Payment: Suspense Account Deposit. -- In 1952, prior to any formal determinations or assessments of deficiencies in income tax for the years 1945-1950, inclusive, petitioner made a remittance to a collector of estimated tax deficiencies and interest thereon up to the date of the remittance for the purpose of stopping the running of interest upon proposed deficiencies. Petitioner's estimate of deficiencies was based upon information received informally from agents of the Commissioner about their reports recommending determinations of…
1Opinion of the Court
OPINION.
Harron, Judge:
The question is whether petitioner’s remittance to the collector on April Y, 1952, of interest on proposed tax deficiencies, prior to the assessment of taxes and interest, constituted payment of interest for the purpose of a deduction under section 23 (b), 1939 Code.1 The amount tendered in advance of assessment was deposited to a suspense account.
The respondent’s position is that the remittance prior to assessments of the deficiencies and interest did not constitute payment of taxes and interest, but was a mere deposit pending the determination and defining of…
2Cases cited9 opinions
- Rosenman v. United StatesSupreme Court of the United States · 1945
- Lewyt Corp. v. CommissionerSupreme Court of the United States · 1955
- Lewyt Corp. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1954
- United States v. Dubuque Packing Company, a Corporation, Dubuque Packing Company, a Corporation v. United StatesCourt of Appeals for the Eighth Circuit · 1956
- Budd Company v. United StatesCourt of Appeals for the Third Circuit · 1957
4 more not listed; retrieve them via the Exa API.
3Cited by19 opinions
- Commissioner of Internal Revenue v. Fifth Avenue Coach Lines, Inc., Fifth Avenue Coach Lines, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1960
- Keith v. CommissionerUnited States Tax Court · 1961
- Perkins v. CommissionerUnited States Tax Court · 1989
- Shubert v. CommissionerUnited States Tax Court · 1963
- Fortugno v. CommissionerUnited States Tax Court · 1963
14 more not listed; retrieve them via the Exa API.