W. S. Badcock Corporation v. Commissioner of Internal Revenue

GEE, Circuit Judge:

Taxpayer appeals from a judgment of the United States Tax Court which found deficiencies in its income tax. W. S. Badcock Corp., 59 T.C. 272 (1972). Involved are returns for its tax years ending in 1964 1 and 1966-68, aggregate additional taxes exceeding seven hundred thousand dollars, and something of a threat to accrual basis tax reporting. Since the facts of the case are painstakingly and accurately detailed in the Tax Court’s careful opinion, we will state only so much as is necessary for understanding our reversal.

For forty years taxpayer sold household furnishings in…