North Cent. Life Ins. Co. v. Commissioner
United States Tax Court
Petitioner, a stock life insurance company, contracted with various financial institutions and automobile dealerships to pay them commissions and retroactive rate credits for placing credit insurance. Held, petitioner may deduct retroactive rate credits as compensation under sec. 809(d)(11), I.R.C. 1954. Held, further, petitioner's reserve for retroactive rate credits may not be taken into consideration in computing the amount of the deduction for retroactive rate credits.
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Petitioner, a stock life insurance company, contracted with various financial institutions and automobile dealerships to pay them commissions and retroactive rate credits for placing credit insurance. Held, petitioner may deduct retroactive rate credits as compensation under sec. 809(d)(11), I.R.C. 1954. Held, further, petitioner's reserve for retroactive rate credits may not be taken into consideration in computing the amount of the deduction for retroactive rate credits. Held, further, the disallowance of the reserve for retroactive rate credits constitutes a change in method of accounting…
1Opinion of the Court
OPINION
COHEN, Judge:
This matter was assigned to Special Trial Judge Pate, for consideration and ruling pursuant to the provisions of section 7456(d) (redesignated as section 7443A(b) by the Tax Reform Act of 1986, Pub. L. 99-514, 100 Stat. 2755) and Rules 180, 181, and 183.1 The Court agrees with and adopts her opinion which is set forth below.
OPINION OF THE SPECIAL TRIAL JUDGE
PATE, Special Trial Judge: Respondent determined deficiencies in petitioner’s Federal income taxes for the years 1972 through 1976 in the following amounts:2
Year Deficiency
1972. $39,195.91
1973 . 4,473.56
1974. 538,531.96
1…
2Cases cited38 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- United States v. AndersonSupreme Court of the United States · 1926
- James v. United StatesSupreme Court of the United States · 1961
- Frank Lyon Co. v. United StatesSupreme Court of the United States · 1978
33 more not listed; retrieve them via the Exa API.
3Cited by14 opinions
- Johnson v. CommissionerUnited States Tax Court · 1997
- Anchor Nat'l Life Ins. Co. v. CommissionerUnited States Tax Court · 1989
- Continental Bankers Life Ins. Co. v. CommissionerUnited States Tax Court · 1989
- Modern American Life Ins. Co. v. CommissionerUnited States Tax Court · 1989
- USAA Life Ins. Co. v. CommissionerUnited States Tax Court · 1990
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