Western Casualty & Surety Co. v. Commissioner
United States Tax Court
Held, petitioner, a stock fire and casualty insurance company taxable under sec. 831, I.R.C. 1954, is not entitled to include commissions on deferred premium installments in its computation of "expenses incurred" under sec. 832(b)(6), I.R.C. 1954. Held, further, respondent correctly adjusted petitioner's 1967 taxable income under sec. 481, I.R.C. 1954. Held, further, respondent's method of testing the reasonableness of petitioner's unpaid loss reserves, by which overstated…
Read the full summary
Held, petitioner, a stock fire and casualty insurance company taxable under sec. 831, I.R.C. 1954, is not entitled to include commissions on deferred premium installments in its computation of "expenses incurred" under sec. 832(b)(6), I.R.C. 1954. Held, further, respondent correctly adjusted petitioner's 1967 taxable income under sec. 481, I.R.C. 1954. Held, further, respondent's method of testing the reasonableness of petitioner's unpaid loss reserves, by which overstated reserves were reduced but understated reserves were not correspondingly adjusted upward, resulted in an unwarranted…
1Opinion of the Court
OPINION
During the taxable years at issue, petitioner was a stock fire and casualty insurance company subject to Federal income tax under section 831.2 For purposes of this tax, section 832(a) defines “taxable income” as “gross income,” as defined in section 832(b)( 1), less the deductions allowed by section 832(c).
Under section 832(b)(1), an insurance company’s “gross income” includes the gross amount earned during the taxable year from its “underwriting income” as well as from certain other amounts not relevant in the instant case. Section 832(b)(3) defines “underwriting income” as premiums…
2Cases cited20 opinions
- Commissioner v. HansenSupreme Court of the United States · 1959
- Ft. Howard Paper Co. v. CommissionerUnited States Tax Court · 1967
- Central Cuba Sugar Co. v. Commissioner of Internal Revenue. Commissioner of Internal Revenue v. Central Cuba Sugar CoCourt of Appeals for the Second Circuit · 1952
- Pursell v. CommissionerUnited States Tax Court · 1962
- Chicago, RI & P. Ry. Co. v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1931
15 more not listed; retrieve them via the Exa API.
3Cited by19 opinions
- Johnson v. CommissionerUnited States Tax Court · 1997
- North Cent. Life Ins. Co. v. CommissionerUnited States Tax Court · 1989
- Hanover Ins. Co. v. CommissionerUnited States Tax Court · 1977
- Home Group, Inc. v. CommissionerCourt of Appeals for the Second Circuit · 1989
- Gerling Int'l Ins. Co. v. CommissionerUnited States Tax Court · 1992
14 more not listed; retrieve them via the Exa API.