Frank's Casing Crew and Rental Tools, Inc. - Page 7

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               Petitioner relies primarily on Decision, Inc. v.                       
          Commissioner, 47 T.C. 58 (1966), for a contrary result.3  We find           
          petitioner's reliance misplaced.  In Decision, Inc. v.                      
          Commissioner, supra, the taxpayer's contracts provided that                 
          orders placed in 1963 would be billed on January 1, 1964.  The              
          Court held that the arrival of the 1964 billing date was                    
          necessary to fix the right to income, and that therefore the                
          income did not accrue during 1963.  In contrast with the present            
          case, performance of the taxpayer's contracts in that case was              
          not completed until February of 1964, after the billing date.  We           
          conclude that Decision, Inc. is distinguishable on that basis.              
               Petitioner also argues that respondent is barred from                  
          arguing that its method of accounting for the sales and services            
          is inappropriate, given the fact that she did not challenge this            
          method during prior audits.  We disagree.  Respondent's                     
          acquiescence in an accounting practice in prior years does not              
          prevent an adjustment in later years.  Meneguzzo v. Commissioner,           
          43 T.C. 824, 836 (1965); Massaglia v. Commissioner, 33 T.C. 379,            
          386-387 (1959), affd. 286 F.2d 258 (10th Cir. 1961).  Although              

          Commissioner, 78 T.C. 445 (1982); Hospital Corp. of America &               
          Subs. v. Commissioner, T.C. Memo. 1996-105.  In the instant case,           
          petitioner has presented no evidence to establish that its                  
          invoicing practice is regulated or widely accepted in the oil               
          field industry.                                                             
               3 Petitioner also relies on Jerry Lipps, Inc. v.                       
          Commissioner, T.C. Memo. 1990-293.  We do not read that case to             
          compel a result different than we reach herein.                             

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