Sugar Creek Coal & Mining Co. v. Commissioner
United States Board of Tax Appeals
1. Estoppel does not support a belated assessment merely because the taxpayer has omitted income from his earlier returns and the statute of limitations has barred the correct assessment. 2. A taxpayer for many years received minimum royalties and mistakenly but innocently failed to include in gross income the part in excess of the ratable amount attributable to tonnage mined.
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1. Estoppel does not support a belated assessment merely because the taxpayer has omitted income from his earlier returns and the statute of limitations has barred the correct assessment. 2. A taxpayer for many years received minimum royalties and mistakenly but innocently failed to include in gross income the part in excess of the ratable amount attributable to tonnage mined. The Commissioner, although informed for some years of the facts and at no time misinformed, failed to assess upon such omitted amounts, but determined a deficiency in a later year upon the accumulated amounts after the…
1Opinion of the Court
OPINION.
Sternpiagen;
The respondent determined a deficiency of $67,535.47 in petitioner’s income tax for the fiscal year ended May 31, 1931, in part by including in income the aggregate amount of advanced royalties received in former years from a lessee obligated to pay an annual minimum mining royalty. By virtue of the cancellation, in July 1930, of the lessee’s right to apply such former advanced payments against future extractions of coal in excess of the minimum, respondent included all prior advances in 1931 income, on the ground that petitioner’s failure to report them when received now…
2Cases cited1 opinion
- Dupree v. MansurSupreme Court of the United States · 1909
3Cited by20 opinions
- Southern Pacific Transp. Co. v. CommissionerUnited States Tax Court · 1980
- Ross v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1948
- Commissioner of Internal Revenue v. Union Pac. R. Co.Court of Appeals for the Second Circuit · 1936
- The Crosley Corporation v. United StatesCourt of Appeals for the Sixth Circuit · 1956
- Saigh v. CommissionerUnited States Tax Court · 1961
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