Patchen v. Commissioner
United States Tax Court
1. Petitioners are members of a partnership which kept its books and filed its returns for 1946 and 1947 on the cash basis. In 1948, it installed, and thereafter maintained, an accrual system of accounting, but it continued to file its returns on the cash basis. The partnership's income would be clearly reflected for income tax purposes by use of either the cash or accrual system of accounting.
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1. Petitioners are members of a partnership which kept its books and filed its returns for 1946 and 1947 on the cash basis. In 1948, it installed, and thereafter maintained, an accrual system of accounting, but it continued to file its returns on the cash basis. The partnership's income would be clearly reflected for income tax purposes by use of either the cash or accrual system of accounting. Held, pursuant to section 41 of the 1939 Code, the partnership is required to report its income according to such system as it used in maintaining its books, and respondent's determination that…
1Opinion of the Court
OPINION.
Rice, Judge:
The principal issue to be decided is whether respondent can require a taxpayer,3 which has changed its method of accounting, to adopt a conforming change in the method by which it reports its income. The partnership whose returns are here in issue was formed on November 15,1946, to engage in the practice of professional engineering. During the period ended December 31,1946, and the year ended December 31, 1947, such books and records as were kept by it were extremely rudimentary. However, they appear to have been essentially on the cash basis, and the returns which it…
2Cases cited15 opinions
- Spring City Foundry Co. v. CommissionerSupreme Court of the United States · 1934
- Fuller v. CommissionerUnited States Tax Court · 1953
- Fuller v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1954
- Hartley v. CommissionerUnited States Tax Court · 1954
- Geometric Stamping Co. v. CommissionerUnited States Tax Court · 1956
10 more not listed; retrieve them via the Exa API.
3Cited by61 opinions
- Heuer v. CommissionerUnited States Tax Court · 1959
- Pigman v. CommissionerUnited States Tax Court · 1958
- Heman v. CommissionerUnited States Tax Court · 1959
- Canelo v. CommissionerUnited States Tax Court · 1969
- Bryan v. CommissionerUnited States Tax Court · 1959
56 more not listed; retrieve them via the Exa API.