American Felt Co. v. Burnet

MARTIN, Chief Justice.

The question involved herein is whether the appellant corporation is entitled to a deduction of $426,789.07, in its income tax re*531turns for the year 1919. The deduction is claimed as a “debt ascertained to- be worthless and charged off within the taxable year,” within section 234 (a) (5) of the Revenue Act of 1918, 40 Stat. 1057, 1078.

The claim was disallowed by the Commissioner of Internal Revenue, and his decision was sustained by the Board of Tax Appeals.

The American Felt Company, hereinafter called the felt company, was a Massachusetts corporation organized prior to…