Legal Opinion

First Nat'l Bank v. Commissioner

United States Board of Tax Appeals

Decided March 22, 1927No. Docket No. 3213Published

1. Where the books of a bank are kept on the cash receipts and disbursements basis, bank discount neither earned nor received within the taxable year does not constitute income for that year. 2. All amounts which constitute income within the year under the method of accounting employed, must be returned for taxation in that year, even though a part thereof was improperly reported as income and the tax paid thereon in a prior year.

1Opinion of the Court

FIRST NATIONAL BANK OF SONORA, TEXAS, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.

First Nat'l Bank v. Commissioner

Docket No. 3213.

United States Board of Tax Appeals

6 B.T.A. 555; 1927 BTA LEXIS 3469;

March 22, 1927, Promulgated

1. Where the books of a bank are kept on the cash receipts and disbursements basis, bank discount neither earned nor received within the taxable year does not constitute income for that year.

2. All amounts which constitute income within the year under the method of accounting employed, must be returned for taxation in that year, even though a part thereof…

2Cases cited1 opinion

  1. First Nat'l Bank v. CommissionerUnited States Board of Tax Appeals · 1927

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