Miller v. Commissioner
United States Tax Court
Section 3806 (a) (3). -- Petitioner received income of $ 77,313.83 in 1944 which was subject to renegotiation. In anticipation of the renegotiation petitioner set up a "Reserve for renegotiation expense" in the amount of $ 7,000 and deducted this amount in 1944 as a business expense. No part of the reserve was paid in 1944. Petitioner was on the cash basis. Petitioner contends that section 3806 (a) (3) permits him to do this.
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Section 3806 (a) (3). -- Petitioner received income of $ 77,313.83 in 1944 which was subject to renegotiation. In anticipation of the renegotiation petitioner set up a "Reserve for renegotiation expense" in the amount of $ 7,000 and deducted this amount in 1944 as a business expense. No part of the reserve was paid in 1944. Petitioner was on the cash basis. Petitioner contends that section 3806 (a) (3) permits him to do this. Held, section 3806 (a) (3) is limited to excessive profits and does not permit the deduction of amounts paid in a subsequent year relating to the renegotiation to be…
1Opinion of the Court
Albert Miller, Petitioner, v. Commissioner of Internal Revenue, Respondent
Miller v. Commissioner
Docket No. 29578
United States Tax Court
20 T.C. 280; 1953 U.S. Tax Ct. LEXIS 175;
April 30, 1953, Promulgated
Decision will be entered for the respondent.
Section 3806 (a) (3). -- Petitioner received income of $ 77,313.83 in 1944 which was subject to renegotiation. In anticipation of the renegotiation petitioner set up a "Reserve for renegotiation expense" in the amount of $ 7,000 and deducted this amount in 1944 as a business expense. No part of the reserve was paid in 1944. Petitioner was on the cash…
2Cases cited3 opinions
- Kurtzon v. CommissionerUnited States Tax Court · 1952
- Cramp Shipbuilding Co. v. CommissionerUnited States Tax Court · 1951
- Miller v. CommissionerUnited States Tax Court · 1953