Bien v. Commissioner
United States Tax Court
1. Were the petitioners computed their net income upon the basis of the "hybrid" method of accounting regularly employed in keeping their books, held, the method employed does not clearly reflect income and the determination of the respondent is sustained. 2. Where petitioners failed to produce any evidence to substantiate their claimed deduction for expenses incurred in connection with the rental of a portion of their residence, held, the petitioners have failed in their…
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1. Were the petitioners computed their net income upon the basis of the "hybrid" method of accounting regularly employed in keeping their books, held, the method employed does not clearly reflect income and the determination of the respondent is sustained. 2. Where petitioners failed to produce any evidence to substantiate their claimed deduction for expenses incurred in connection with the rental of a portion of their residence, held, the petitioners have failed in their burden of proof and the determination of the respondent is sustained. 3. Where petitioners incurred expenses in connection…
1Opinion of the Court
OPINION.
Hill, Judge:
Section 41 of the Internal Revenue Code provides that net income shall be computed upon the basis of the taxpayer’s annual accounting period in accordance with the method of accounting regularly employed in keeping the books of such taxpayer, but if the method regularly employed does not clearly reflect net income it shall be computed in accordance with such method as in the opinion of the Commissioner does clearly reflect net income.
Section 42 of the Code requires that all items of gross income shall be included in the gross income of the taxpayer in the year in which it…
2Cases cited7 opinions
- Cohan v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1930
- Brown v. HelveringSupreme Court of the United States · 1934
- Stern Bros. & Co. v. CommissionerUnited States Tax Court · 1951
- Hygienic Products Co. v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1940
- Planet Line, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1937
2 more not listed; retrieve them via the Exa API.
3Cited by13 opinions
- Ft. Howard Paper Co. v. CommissionerUnited States Tax Court · 1967
- Sam W. Emerson Co. v. CommissionerUnited States Tax Court · 1962
- Hooper Constr. Co. v. Renegotiation BoardUnited States Tax Court · 1961
- King v. United StatesDistrict Court, E.D. Texas · 1963
- Bien v. CommissionerUnited States Tax Court · 1953
8 more not listed; retrieve them via the Exa API.