Copy Data, Inc. v. Commissioner
United States Tax Court
Petitioner was engaged in the business of sale and service of photocopying equipment. On its tax returns, petitioner deducted "sales exposure expense" relating to warranty obligations to its customers. The amount deducted each year was a composite of an adjustment to an established reserve account and actual expenses for the year. Petitioner acquiesced in respondent's disallowance of the method of determining expense.
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Petitioner was engaged in the business of sale and service of photocopying equipment. On its tax returns, petitioner deducted "sales exposure expense" relating to warranty obligations to its customers. The amount deducted each year was a composite of an adjustment to an established reserve account and actual expenses for the year. Petitioner acquiesced in respondent's disallowance of the method of determining expense. Held, discontinuance of petitioner's practice constituted a "change in method of accounting" within the meaning of sec. 481, I.R.C. 1954, as amended, and the remaining balance…
1Opinion of the Court
Copy Data, Inc., Petitioner v. Commissioner of Internal Revenue, Respondent
Copy Data, Inc. v. Commissioner
Docket No. 44846-86
United States Tax Court
91 T.C. 26; 1988 U.S. Tax Ct. LEXIS 88; 91 T.C. No. 3;
July 18, 1988. July 18, 1988, Filed
Decision will be entered for the respondent.
Petitioner was engaged in the business of sale and service of photocopying equipment. On its tax returns, petitioner deducted "sales exposure expense" relating to warranty obligations to its customers. The amount deducted each year was a composite of an adjustment to an established reserve account and actual expenses…
2Cases cited8 opinions
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- Graff Chevrolet Company v. Ellis Campbell, Jr., District Director of Internal RevenueCourt of Appeals for the Fifth Circuit · 1965
- Schuster's Express, Inc. v. CommissionerUnited States Tax Court · 1976
- Primo Pants Co. v. CommissionerUnited States Tax Court · 1982
- Peoples Bank & Trust Co. v. CommissionerUnited States Tax Court · 1968
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