- 7 -
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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