Puklich & Swift, P.C. v. State Ex Rel. State Tax Commissioner

ERICKSTAD, Chief Justice.

The State, by and through the State Tax Commissioner, appeals from a district court judgment which reversed the Commissioner’s assessment against Puklich & Swift, P.C. We reverse.

Puklich & Swift is an accounting firm which operated as a partnership under various names during the years 1977 to 1980. The firm filed Business and Corporation Privilege Tax returns for the years 1977, 1978, 1979, and 1980, but did not include guaranteed payments made to partners in its reported net income.1 The Tax Commissioner conducted an audit of Puklich & Swift’s Business and…