Farrara v. Commissioner
United States Tax Court
Held, advance payments for merchandise to be selected and delivered at a later time received without restriction as to use and without obligation to refund are includable in income in the year of receipt. American Automobile Association v. United States, 367 U.S. 687, and Schlude v. Commissioner, 372 U.S. 128, followed.
1Opinion of the Court
OPINION
Raum, Judge:
Petitioner received weekly amounts from customers of the California Sport Shop as “suit club” payments. In return for these payments the customers became members of the suit club and would receive a certificate for merchandise either upon a weekly drawing or at the end of the club period; such certificate could be exchanged for merchandise at petitioner’s store. Cash refunds were not obtainable and petitioner meanwhile had unrestricted use of the funds thus paid in. Petitioner reported these receipts as income only when the certificates were exchanged for merchandise.
Petitio…
2Cases cited8 opinions
- American Automobile Assn. v. United StatesSupreme Court of the United States · 1961
- Schulde v. CommissionerSupreme Court of the United States · 1963
- Caldwell v. Commissioner of Internal Revenue. Commissioner of Internal Revenue v. CaldwellCourt of Appeals for the Second Circuit · 1953
- Ezo Products Co. v. CommissionerUnited States Tax Court · 1961
- Cox v. CommissionerUnited States Tax Court · 1965
3 more not listed; retrieve them via the Exa API.
3Cited by40 opinions
- Bay State Gas Co. v. CommissionerUnited States Tax Court · 1980
- Hagen Advertising Displays, Inc. v. CommissionerUnited States Tax Court · 1966
- Artnell Co. v. CommissionerUnited States Tax Court · 1967
- Hagen Advertising Displays, Inc., an Ohio Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1969
- MacDonald v. CommissionerUnited States Tax Court · 1969
35 more not listed; retrieve them via the Exa API.