Russell Milling Co. v. Commissioner
United States Board of Tax Appeals
A corporation making its returns on a fiscal year basis may not deduct income or excess-profits taxes imposed by the Revenue Act of 1917 for the portion of its fiscal year 1917 within the calendar year 1917, as having accrued at December 31, 1916. State, county, and municipal taxes paid or accrued within the fiscal year are allowable deductions from gross income in that year.
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A corporation making its returns on a fiscal year basis may not deduct income or excess-profits taxes imposed by the Revenue Act of 1917 for the portion of its fiscal year 1917 within the calendar year 1917, as having accrued at December 31, 1916. State, county, and municipal taxes paid or accrued within the fiscal year are allowable deductions from gross income in that year. Such taxes can be accrued only when they become due, and no part thereof can be accrued and deducted in ascertaining net income when the due date is not within the fiscal year. A reserve for depreciation accumulated on…
1Opinion of the Court
*195OPINION.
Marquette:
The taxpayer’s first contention is that it should be allowed to deduct, as accrued at December 31, 1916, one-half of the income and excess-profits taxes imposed by the ftevenue Act of 1917 for the portion of its fiscal year 1917 within the calendar year 1917. The theory upon which it bases this claim is that as it kept its accounts upon an accrual basis, and the 1916 Act permitted a deduction for all taxes for the calendar year 1916 or a fiscal year following thereafter, and as it was subjected to excess-profits taxes under the Act of 1917 upon the whole net income for the…
2Cited by5 opinions
- Bull v. CommissionerUnited States Board of Tax Appeals · 1927
- City Nat'l Bank v. CommissionerUnited States Board of Tax Appeals · 1925
- Mandel Bros. v. CommissionerUnited States Board of Tax Appeals · 1926
- Moraine Hotel Co. v. CommissionerUnited States Board of Tax Appeals · 1929
- Russell Milling Co. v. CommissionerUnited States Board of Tax Appeals · 1924