Zellerbach Paper Co. v. Commissioner
United States Tax Court
1. Petitioners, with the approval of the Commissioner, used a reserve method of accounting for bad debts. The method provided for specific reserves, as well as for a general reserve, for bad debts.
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1. Petitioners, with the approval of the Commissioner, used a reserve method of accounting for bad debts. The method provided for specific reserves, as well as for a general reserve, for bad debts. During the years 1941 and 1942 cash payments were received in certain receivables which had been deemed uncollectible and written off the books prior to 1940. As to other accounts previously written off the books, the credit position of the customer was considered improved in 1941 and 1942 and the improvement in the financial position of the customer was reflected as a reduction in specific reserve…
1Opinion of the Court
OPINION.
HaRROn, Judge:
Issue I.—Recoveries of bad debts.—All the facts relating to this issue have been stipulated by the parties. The stipulations are incorporated herein by this reference and are adopted as the findings of fact.
Petitioners keep their books and file their returns on the basis of a fiscal year ending on April 30.. They first became subject to excess profits tax for the fiscal year ended April 30,1941.
Prior to the fiscal years here in controversy, petitioners received permission from the Commissioner of Internal Eevenue to employ the reserve method of accounting for bad debts…
2Cases cited6 opinions
- Commissioner v. Gooch Milling & Elevator Co.Supreme Court of the United States · 1944
- Virginian Hotel Corporation v. Helvering, Commissioner of Internal RevenueSupreme Court of the United States · 1943
- Rainier Brewing Co. v. CommissionerUnited States Tax Court · 1946
- Pacific Gas & Electric Co. v. CommissionerUnited States Tax Court · 1946
- Boyd-Richardson Co. v. CommissionerUnited States Tax Court · 1945
1 more not listed; retrieve them via the Exa API.
3Cited by19 opinions
- Leonard Refineries, Inc. v. CommissionerUnited States Tax Court · 1948
- Brown Paper Mill Co. v. CommissionerUnited States Tax Court · 1954
- Mercantile Nat'l Bank v. CommissionerUnited States Tax Court · 1958
- A B C Brewing Corp. v. CommissionerUnited States Tax Court · 1953
- Rosemary Mfg. Co. v. CommissionerUnited States Tax Court · 1947
14 more not listed; retrieve them via the Exa API.