Gray Printing Co. v. Commissioner
United States Board of Tax Appeals
1. Additional salaries of officers for 1919 disallowed. 2. A loss by fire fully compensated by insurance does not affect invested capital. 3. In the absence of any evidence, a penalty assessment must be approved.
1Opinion of the Court
*1266OPINION.
Love: In this appeal we must decide whether or not the Commissioner erred in disallowing $4,500 as additional salaries for the year 1919, and in decreasing invested capital by $12,181.73.
It was the practice of the petitioner, as the books were kept on the accrual basis, to wait until after December 31 of the calendar year to fix the amount of the additional salaries and to charge it on the books as of December 31. Thus, in 1919, they drew nominal salaries with the understanding that, if the books at the end of the year showed a sufficient surplus, additional salaries would be fixed…
2Cited by3 opinions
- Globman v. CommissionerUnited States Tax Court · 1947
- Gray Printing Co. v. CommissionerUnited States Board of Tax Appeals · 1926
- Gross v. CommissionerUnited States Board of Tax Appeals · 1936