Chas. Schaefer & Son, Inc. v. Commissioner
United States Tax Court
1. Interest for prior years on cumulative debentures previously unpaid but eventually payable held not deductible by accrual basis taxpayer in subsequent years when payment made. 2. Failure to file excess profits tax return held not due to reasonable cause.
1Opinion of the Court
OPINION.
Opper, Judge:
Since the interest was payable by petitioner at all events in already settled amounts, it was properly accruable in the year for which payable. See Heer-Andres Investment Co., 17 T. C. 786; United States v. Anderson, 269 U. S. 422; cf. Pierce Estates, Inc. v. Commissioner (C. A. 3), 196 F. 2d 475. That payment may not have been presently due because the directors had not “declared” the interest could affect only the time, not the liability, for payment. That is a consideration applicable to cash rather than accrual basis taxpayers. Even if earnings were never sufficient…
2Cases cited11 opinions
- United States v. AndersonSupreme Court of the United States · 1926
- Hatfried, Inc. v. Commissioner of Internal Rev.Court of Appeals for the Third Circuit · 1947
- West Side Tennis Club v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1940
- P. Dougherty Co. v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1946
- Pearlman v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1946
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3Cited by4 opinions
- Southeastern Mail Transport, Inc. v. CommissionerUnited States Tax Court · 1992
- Chas. Schaefer & Son, Inc. v. CommissionerUnited States Tax Court · 1953
- Kay-Jones Furniture Co. v. CommissionerUnited States Tax Court · 1955
- Vita-Food Corp. v. CommissionerUnited States Tax Court · 1954