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powers in determining whether accounting methods used by a
taxpayer clearly reflect income. Commissioner v. Hansen, 360
U.S. 446, 467 (1959).
Where accrual method taxpayers have received advance
payments for services and have unrestricted access to those
funds, courts have upheld respondent's determinations that these
payments are to be included in income in the year of receipt.
Schlude v. Commissioner, 372 U.S. 128 (1963); American Automobile
Association v. United States, 367 U.S. 687 (1961); Automobile
Club of Michigan v. Commissioner, 353 U.S. 180 (1957); RCA Corp.
v. United States, 664 F.2d 881 (2d Cir. 1981); Angelus Funeral
Home v. Commissioner, 407 F.2d 210 (9th Cir. 1969), affg. 47 T.C.
391 (1967); S. Garber, Inc. v. Commissioner, 51 T.C. 733 (1969);
Popular Library, Inc. v. Commissioner, 39 T.C. 1092 (1963). But
cf. Artnell Co. v. Commissioner, 400 F.2d 981 (7th Cir. 1968),
revg. and remanding 48 T.C. 411 (1967); Boise Cascade Corp. v.
United States, 208 Ct. Cl. 619, 530 F.2d 1367 (1976); Collegiate
Cap & Gown Co. v. Commissioner, T.C. Memo. 1978-226. While
respondent focuses on such cases, particularly the Supreme
Court's Schlude-American Automobile Association-Automobile Club
of Michigan trilogy, petitioner does not challenge them.
Petitioner instead relies upon exceptions thereto that respondent
has chosen to make administratively.
Petitioner's case is squarely based on Rev. Proc. 71-21,
1971-2 C.B. 549, the use of which it says should be available to
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