Cook v. Commissioner
United States Board of Tax Appeals
1. Commissions earned by a partnership which kept its books of account and made its returns on an accrual basis became income for the years in which earned and were a part of the distributive shares of the partners in those years, regardless of the year in which the commissions were collected. 2. Petitioners, not being on an accrual basis, are not subject to tax on salaries until received. 3. Commissioner's adjustment of inventory approved. 4. The Board has no jurisdiction…
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1. Commissions earned by a partnership which kept its books of account and made its returns on an accrual basis became income for the years in which earned and were a part of the distributive shares of the partners in those years, regardless of the year in which the commissions were collected. 2. Petitioners, not being on an accrual basis, are not subject to tax on salaries until received. 3. Commissioner's adjustment of inventory approved. 4. The Board has no jurisdiction to determine questions relating to a year for which an overassessment has been found by the Commissioner. Appeal of…
1Opinion of the Court
*920OPINION.
Aeundell:
In asserting the deficiencies here involved the Commissioner tabes the position that the books of the partnership were kept on an accrual basis and that commissions on orders shipped by the corporations in 1919 and 1920 were accruable items of income for those years. If the Commissioner’s contention is correct the distributive share of each of the petitioners should be increased to reflect this income of the partnership. The petitioners say that the partnership books were not kept on a strictly accrual basis; that under the agreement with the corporations commissions on…
2Cited by4 opinions
- American Can Co. v. CommissionerUnited States Tax Court · 1961
- American Can Co. v. CommissionerUnited States Tax Court · 1961
- Cook v. CommissionerUnited States Board of Tax Appeals · 1926
- Smith v. CommissionerUnited States Board of Tax Appeals · 1926