Beacon Publishing Co. v. Commissioner
United States Tax Court
Petitioner, the publisher of a daily newspaper, for many years prior to 1947, entered in its books, kept on an accrual basis, and reported as income, amounts received for prepaid subscriptions. In 1947, without applying for or receiving the consent of the Commissioner, it deferred as taxable income the unexpired portions of the subscriptions. Held, that the full amount of the prepaid subscriptions constitutes taxable income in the year of receipt.
1Opinion of the Court
OPINION.
Johnson, Judge:
Concessions made by the petitioner leave at issue the single question involving the prepaid subscriptions, the amount of which is not in controversy. The difference between the parties is whether it is taxable in the year of receipt, as determined by the respondent, or whether the amount should be deferred for taxation in the unexpired periods of the subscriptions. Respondent’s theory is that the so-called “claim of right” doctrine applies, whereas petitioner says that under the accrual method of accounting maintained by it, the amount does not constitute taxable income…
2Cases cited18 opinions
- North American Oil Consolidated v. BurnetSupreme Court of the United States · 1932
- Lucas v. American Code Co.Supreme Court of the United States · 1930
- Old Colony Railroad v. CommissionerSupreme Court of the United States · 1932
- Spring City Foundry Co. v. CommissionerSupreme Court of the United States · 1934
- Brown v. HelveringSupreme Court of the United States · 1934
13 more not listed; retrieve them via the Exa API.
3Cited by32 opinions
- Beacon Publishing Company, a Kansas Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1955
- Automobile Club of New York, Inc. v. CommissionerUnited States Tax Court · 1959
- Underhill v. CommissionerUnited States Tax Court · 1966
- Mooney Aircraft, Inc. v. United StatesCourt of Appeals for the Fifth Circuit · 1970
- Simplified Tax Records, Inc. v. CommissionerUnited States Tax Court · 1963
27 more not listed; retrieve them via the Exa API.