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Manufacturing Co. v. Commissioner, 137 F.2d 290, 292 (4th Cir.
1943), revg. on the facts 1 T.C. 71 (1942); Corn Exch. Bank v.
United States, 37 F.2d 34, 35 (2d Cir. 1930); Harmont Plaza, Inc.
v. Commissioner, supra at 649-650; Chicago & N.W. Ry. v.
Commissioner, 29 T.C. 989, 996 (1958); Georgia School-Book
Depository, Inc. v. Commissioner, supra at 468-469; Atlantic
Coast Line R.R. v. Commissioner, 31 B.T.A. 730, 749 (1934), affd.
81 F.2d 309 (4th Cir. 1936); Johnson v. Commissioner, T.C. Memo.
1982-517, affd. without published opinion 729 F.2d 1447 (3d Cir.
1984); Cappuccilli v. Commissioner, T.C. Memo. 1980-347, affd.
668 F.2d 138 (2d Cir. 1981).
Mere financial difficulty of the debtor, however, or the
fact that a lapse of time is contemplated before payment is
possible will not be regarded as establishing the requisite
doubtful collectibility. Harmont Plaza, Inc. v. Commissioner,
supra at 650; Commercial Solvents Corp. v. Commissioner, 42 T.C.
455, 470 (1964); Automobile Ins. Co. v. Commissioner, 72 F.2d
265, 267-268 (2d Cir. 1934).
Accrual of income also may not be required if the right to
receive income is contingent upon the happening of a future
event. See Guarantee Title & Trust Co. v. Commissioner, 313 F.2d
225, 227 (6th Cir. 1963), revg. on the facts T.C. Memo. 1961-122.
Where receipt of income is contingent on realization of profits
or net income by the payor, the income may be regarded as
contingent and nonaccrual in the current year may be justified.
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