Indianapolis Power & Light Co. v. Commissioner
United States Tax Court
P, a regulated utility primarily engaged in the business of selling electricity to residential and commercial customers, required uncreditworthy customers to deposit funds which were refunded upon termination of service or upon P's determination that the customer met certain creditworthiness standards. A customer generally retained the right to determine whether his deposit would be returned to him or credited against his account.
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P, a regulated utility primarily engaged in the business of selling electricity to residential and commercial customers, required uncreditworthy customers to deposit funds which were refunded upon termination of service or upon P's determination that the customer met certain creditworthiness standards. A customer generally retained the right to determine whether his deposit would be returned to him or credited against his account. The deposits were in fact generally credited against an account, and the remainder was returned by check. Held, the deposits received by P were security deposits,…
1Opinion of the Court
SIMPSON, Judge-.
The Commissioner determined the following deficiencies in the petitioner’s Federal income taxes: $134,073 for 1974, $553,254 for 1975, $174,668 for 1976, and $18,446 for 1977. After concessions by the parties, the only issue for decision is whether, in the circumstances of this case, customer deposits received by a public utility are includable in income upon receipt as advance payments.
FINDINGS OF FACT
To the credit of both parties, many of the facts have been stipulated, and those facts are so found.
The petitioner, Indianapolis Power & Light Co., maintained its principal…
2Cases cited24 opinions
- North American Oil Consolidated v. BurnetSupreme Court of the United States · 1932
- Automobile Club of Mich. v. CommissionerSupreme Court of the United States · 1957
- American Automobile Assn. v. United StatesSupreme Court of the United States · 1961
- Schulde v. CommissionerSupreme Court of the United States · 1963
- BJR Corp. v. CommissionerUnited States Tax Court · 1976
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- Prestop Holdings, LLC v. United StatesUnited States Court of Federal Claims · 2010
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