B. C. Cook & Sons, Inc. v. Commissioner
United States Tax Court
During its taxable year ended Sept. 30, 1965, petitioner corporation discovered that an employee-bookkeeper, through a series of fictitious fruit purchases had embezzled $ 872,212.50 from it over an 8-year period. The amounts embezzled were shown on petitioner's books as additional fruit purchases and included in cost of goods sold.
Read the full summary
During its taxable year ended Sept. 30, 1965, petitioner corporation discovered that an employee-bookkeeper, through a series of fictitious fruit purchases had embezzled $ 872,212.50 from it over an 8-year period. The amounts embezzled were shown on petitioner's books as additional fruit purchases and included in cost of goods sold. Thus petitioner's gross income for each of the taxable years ended Sept. 30, 1958, through Sept. 30, 1965, was reduced and its taxable income decreased by amounts corresponding to the amounts embezzled in each taxable year. In 1965 petitioner recovered $…
1Opinion of the Court
OPINION
Dawson, Judge:
Respondent determined the following Federal income tax deficiencies against the petitioner:
Taxable year ended Deficiency
Sept. 30, 1962_ $5, 270. 00
Sept. 30, 1963_ 56, 115. 00
Sept. 30, 1964_ 124, 250. 00
Sept. 30, 1965_ 5, 309. 50
Two adjustments made in respondent’s notice of deficiency have been conceded by petitioner. The only issue presented for our decision is whether the petitioner is entitled to deduct under section 165, I.R.C. 1954,1 its total embezzlement loss of $605,116.52 in its taxable year ended September 30, 1965, the year it discovered the loss, or whether…
2Cases cited11 opinions
- Lucas v. American Code Co.Supreme Court of the United States · 1930
- Brown v. HelveringSupreme Court of the United States · 1934
- United States v. Skelly Oil Co.Supreme Court of the United States · 1969
- Charles Ilfeld Co. v. HernandezSupreme Court of the United States · 1934
- Commissioner of Internal Revenue v. Mnookin's EstateCourt of Appeals for the Eighth Circuit · 1950
6 more not listed; retrieve them via the Exa API.
3Cited by29 opinions
- Coastal Petroleum Refiners, Inc. v. CommissionerUnited States Tax Court · 1990
- Unvert v. CommissionerUnited States Tax Court · 1979
- B. C. Cook & Sons, Inc. v. CommissionerUnited States Tax Court · 1975
- B. C. Cook & Sons, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1978
- La Croix v. CommissionerUnited States Tax Court · 1974
24 more not listed; retrieve them via the Exa API.