The Central Bank Company v. Commissioner of Internal Revenue

Petitioner, Central Bank Company, appeals from a decision of the Tax Court of the United States in The Central Bank Company v. Commissioner, 39 T.C. 856. Widespread interest in banking circles in the outcome of this appeal occasioned the filing of briefs amicus curiae by Pullman Bank and Trust Company of Chicago, Illinois, and the Ohio Bankers Association.

The controversy in this case pertains to what amounts may be charged by a bank in a given year as additions to its reserve for bad debts, and, hence, deducted from its income for purposes of income taxation.

On this point the Internal Revenue…