Carver v. Commissioner
United States Tax Court
Taxpayer, on July 1, 1925, changed his method of keeping books of his printing business from the cash to the accrual basis. He continued, however, to compute his net income for income tax purposes on the cash basis.
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Taxpayer, on July 1, 1925, changed his method of keeping books of his printing business from the cash to the accrual basis. He continued, however, to compute his net income for income tax purposes on the cash basis. Upon audit of the 1941 return the Commissioner recomputed business net income on the accrual basis and made certain adjustments to effect the transition in reporting income from the cash to the accrual basis, increasing reported income of $ 43,826.89 to $ 83,211.18. His action in so doing is approved.
1Opinion of the Court
OPINION.
Van Fossan, Judge:
The difficulty in which petitioner finds himself and of which he complains is of his own making. He changed the method of keeping his books and accounts from the cash to the accrual method in 1925, but for 16 years thereafter continued to prepare and make his tax returns on the cash basis. He never asked permission of the Commissioner to change the method of reporting income to the accrual basis. He admits that the cash method of reporting did not conform to his books and that the Commissioner was within his rights in insisting on the accrual basis in making returns.…
2Cases cited3 opinions
- Lucas v. American Code Co.Supreme Court of the United States · 1930
- Brown v. HelveringSupreme Court of the United States · 1934
- Niles Bement Pond Co. v. United StatesSupreme Court of the United States · 1930
3Cited by28 opinions
- Commissioner of Internal Revenue v. Mnookin's EstateCourt of Appeals for the Eighth Circuit · 1950
- Standard Paving Co. v. Commissioner of Internal Revenue. Standard Paving Co. v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1951
- Ferrer v. CommissionerUnited States Tax Court · 1961
- Mnookin v. CommissionerUnited States Tax Court · 1949
- Iley v. CommissionerUnited States Tax Court · 1952
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