Fischer Industries, Inc. v. Commissioner of Internal Revenue

Petitioner Fischer Industries, Inc. appeals a judgment of tax deficiency and additions to tax for the years 1975-80, totaling over $1 million, entered against it by the Honorable John Williams, Jr. of the United States Tax Court on November 24, 1986.

Fischer, an Ohio corporation, owned four subsidiaries during the relevant time period. Of these, three had made a practice of computing their annual tax returns by using a Last-in, First-out (LIFO) inventory system. However, Mayfran, Inc., the fourth subsidiary, used a First-in, First-out (FIFO) system prior to 1975. In 1975, Fischer decided that…