William O. McMahon, Inc. v. Commissioner
United States Tax Court
Held, petitioner's automotive price information service was not a "periodical" within the meaning of section 455, I.R.C. 1954, and petitioner must report income from sales thereof in the year of receipt or accrual, even though a substantial portion of the costs related to the income was not incurred until the following year. American Automobile Association v. United States, 367 U.S. 687 (1961), and Schlude v. Commissioner, 372 U.S. 128 (1963), followed.
1Opinion of the Court
Hoyt, Judge:
Respondent determined deficiencies in petitioner’s1 income tax as follows:
Period Deficiency
Sept. 6, 1957-Nov. 3.0, 1957_$71,157. 58
Fiscal year ended Nov. 30, 1958_ 2,124.11
Fiscal year ended Nov. 30, 1959_ 5, 273. 54
Total_ 78,555.23
The issue for decision is whether certain cash receipts were properly excluded from taxable income by petitioner in each of the periods here involved and income recognition properly deferred beyond the period of receipt. We must determine whether the receipts involved constituted “prepaid subscription income * * * from a subscription to a newspaper,…
2Cases cited11 opinions
- American Automobile Assn. v. United StatesSupreme Court of the United States · 1961
- Schulde v. CommissionerSupreme Court of the United States · 1963
- Avery v. CommissionerSupreme Court of the United States · 1934
- Interstate Commerce Commission v. Central Vermont Railway, Inc.Supreme Court of the United States · 1961
- Dole v. CommissionerUnited States Tax Court · 1965
6 more not listed; retrieve them via the Exa API.
3Cited by6 opinions
- Decision, Inc. v. CommissionerUnited States Tax Court · 1966
- T.F.H. Publications, Inc. v. CommissionerUnited States Tax Court · 1979
- Decision, Inc. v. CommissionerUnited States Tax Court · 1966
- T.F.H. Publications, Inc. v. CommissionerUnited States Tax Court · 1979
- Wide Acres Rest Home, Inc. v. CommissionerUnited States Tax Court · 1967
1 more not listed; retrieve them via the Exa API.