Centralia Federal Savings & Loan Ass'n v. Commissioner

These appeals, consolidated in the Tax Court for all purposes, present but one issue: whether the taxpayers’ methods of accounting for their bad-debt reserves complied with the requirements of § 593(c)(1) (26 U.S.C.A. § 593(c)(1)). The Commissioner appeals in both cases, urging that the Tax Court erred in finding and concluding that these taxpayers (Centralia and Evergreen) had substantially complied with the applicable statutes and regulations and were entitled to claim the bad-debt deductions. The findings and opinion of the Tax Court are reported at 66 T.C. 599 (June 1976). We have…