Ezo Products Co. v. Commissioner
United States Tax Court
Petitioner corporation was organized on January 1, 1956, by receiving in a tax-free exchange the assets and liabilities of a partnership. Petitioner, as had the partnership, manufactured and sold dental cushions and had inventories of finished cushions and supplies. Most of petitioner's customers paid for products billed them in 30 days.
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Petitioner corporation was organized on January 1, 1956, by receiving in a tax-free exchange the assets and liabilities of a partnership. Petitioner, as had the partnership, manufactured and sold dental cushions and had inventories of finished cushions and supplies. Most of petitioner's customers paid for products billed them in 30 days. The partnership had filed its returns of income on the cash receipts and disbursements basis and upon examination respondent had not changed the partnership's accounting basis. Petitioner filed its returns for 1956 and subsequent years on the cash receipts…
1Opinion of the Court
Scott, Judge:
Respondent determined deficiencies in petitioner’s income tax for the years 1956 and 1957 in the amounts of $27,980.77 and $3,528.73, respectively.
The issues for decision are:(1) Whether respondent correctly determined that petitioner’s income for the years 1956 and 1957 should be reported on an accrual basis of accounting in lieu of the cash receipts and disbursements basis upon which petitioner kept its books and filed its returns.(2) If an accrual basis is the proper method of accounting, whether respondent was correct in not deducting inventory as of January 1, 1956, acquired…
2Cases cited17 opinions
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Moline Properties, Inc. v. CommissionerSupreme Court of the United States · 1943
- Caldwell v. Commissioner of Internal Revenue. Commissioner of Internal Revenue v. CaldwellCourt of Appeals for the Second Circuit · 1953
- Commissioner of Internal Revenue v. SansomeCourt of Appeals for the Second Circuit · 1932
- Drazen v. CommissionerUnited States Tax Court · 1960
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3Cited by56 opinions
- Electric & Neon, Inc. v. CommissionerUnited States Tax Court · 1971
- Knight-Ridder Newspapers, Inc. v. United StatesCourt of Appeals for the Eleventh Circuit · 1984
- Ft. Howard Paper Co. v. CommissionerUnited States Tax Court · 1967
- G. Douglas Burck and Marjorie W. Burck v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1976
- Peninsula Steel Products & Equipment Co. v. CommissionerUnited States Tax Court · 1982
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