Talley v. Commissioner
United States Tax Court
1. Where the method of accounting employed by the petitioners accurately reflects income, the Commissioner may not resort to the increase in net worth method to determine income. 2. Fraud penalties disallowed.
1Opinion of the Court
OPINION.
Arundell, Judge:
Petitioners’ income for the years in question was determined by respondent by the “increase in net worth method” because .the revenue agent could not reconcile the income reported on the returns with the income shown on the books of account.
Our findings of fact disclose that the petitioner kept his books of account on a completed contract basis, but the books did not carry separate accounts in which could be found the complete gross receipts of petitioner or the complete expenditures for labor and material. This type of information which was called for on the tax…
2Cases cited3 opinions
- Helvering v. TaylorSupreme Court of the United States · 1935
- Bechelli v. HofferbertDistrict Court, D. Maryland · 1953
- In Re SheinmanDistrict Court, E.D. Pennsylvania · 1926
3Cited by21 opinions
- Vassallo v. CommissionerUnited States Tax Court · 1955
- Hurley v. CommissionerUnited States Tax Court · 1954
- Parsons v. CommissionerUnited States Tax Court · 1964
- Bushnell v. CommissionerUnited States Tax Court · 1967
- Ragsdale v. PaschalDistrict Court, E.D. Arkansas · 1954
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