Osteopathic Med. Oncology & Hematology, P.C. v. Commissioner
United States Tax Court
P, a professional service corporation, specializes in the treatment of cancer through chemotherapy. P uses drugs and ancillary pharmaceuticals (collectively, the drugs) during its treatment. The chemotherapy treatments are prescribed by P's professional staff, and patients do not select the type or quantity of drugs used during the treatments. P uses the cash method to expense the cost of the drugs.
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P, a professional service corporation, specializes in the treatment of cancer through chemotherapy. P uses drugs and ancillary pharmaceuticals (collectively, the drugs) during its treatment. The chemotherapy treatments are prescribed by P's professional staff, and patients do not select the type or quantity of drugs used during the treatments. P uses the cash method to expense the cost of the drugs. R determined that the drugs were "merchandise" under sec. 1.471-1, Income Tax Regs., and that P must use an accrual method to report all amounts attributable to the drugs. HELD: The inherent…
1Opinion of the Court
OSTEOPATHIC MEDICAL ONCOLOGY AND HEMATOLOGY, P.C., Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Osteopathic Med. Oncology & Hematology, P.C., v. Commissioner
No. 11551-98
United States Tax Court
113 T.C. 376; 1999 U.S. Tax Ct. LEXIS 53; 113 T.C. No. 26;
November 22, 1999, Filed
Decision will be entered for petitioner.
P, a professional service corporation, specializes
in the treatment of cancer through chemotherapy. P
uses drugs and ancillary pharmaceuticals (collectively,
the drugs) during its treatment. The chemotherapy
treatments are prescribed by P's professional staff,
and patients do…
Also in this document: Concurrence.
2Cases cited23 opinions
- Indopco, Inc. v. CommissionerSupreme Court of the United States · 1992
- Thor Power Tool Co. v. CommissionerSupreme Court of the United States · 1979
- Abbott Laboratories v. Portland Retail Druggists Assn., Inc.Supreme Court of the United States · 1976
- Knight-Ridder Newspapers, Inc. v. United StatesCourt of Appeals for the Eleventh Circuit · 1984
- Commissioner v. Asphalt Products Co.Supreme Court of the United States · 1987
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