First Security Bank of Idaho, N. A. v. Commissioner of Internal Revenue, First Security Bank of Utah, N. A. v. Commissioner of Internal Revenue

KILKENNY, Circuit Judge:

In 1966 the appellees deducted as an ordinary and necessary business expense under the provisions of the Internal Revenue Code, 26 U.S.C. § 162(a), (I.R.C.1954),1 an assessment fee paid to BankAmericard Service Corporation [BSC]. The Commissioner disallowed $12,500.00 of each bank’s deductions, holding that the payment was for a franchise right of indefinite duration which must be capitalized. On review of the Commissioner’s decision, the tax court found the assessment currently deductible and entered judgment for the appellees. 63 T.C. 644 (1975). The Commissioner…