Oklahoma Tax Commission v. Oven

JACKSON, Justice.

Is a traditional trust, which keeps its books on a cash basis, entitled, in computing its state income tax liability, to deduct Federal income taxes tendered and accepted prior to the close of the taxable year for which the taxes are paid.?

On December 31, 1954, prior to close of banking hours, plaintiff Trustee filed what purported to be a final Federal Fiduciary Income Tax Return with the Director of Internal Revenue reflecting a tax liability for the calendar year 1954 of $398,505.79. A check in that amount was attached to the return and a Teller delivered an initialled…