Jimmy D. and Marlene M. Morloc Weaver v. Commissioner

121 T.C. No. 14

UNITED STATES TAX COURT JIMMY D. WEAVER AND MARLENE M. MORLOC WEAVER, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No. 8262-01. Filed October 8, 2003. P owned 80-percent interests in an S corporation (CL) and a C corporation (J). CL is an accrual method, calendar year taxpayer. J is a cash method, fiscal year taxpayer with a July 31 yearend. On each of its 1996 and 1997 Federal income tax returns, CL deducted an amount owed to J for services which J rendered to CL during the corresponding year. J included in its gross income for its taxable years ended in…