Frank's Casing Crew and Rental Tools, Inc. - Page 8

                                        - 8 -                                         
          respondent's acquiescence in prior audits to a taxpayer's                   
          accounting method may be considered in determining whether she is           
          justified in changing that method currently, Public Serv. Co. v.            
          Commissioner, 78 T.C. 445, 456 (1982), we reject petitioner's               
          attempt to prevent respondent from changing its erroneous method            
          of accounting under the facts herein.  See Ezo Prods. Co. v.                
          Commissioner, 37 T.C. 385, 391 (1961); see also Thomas v.                   
          Commissioner, 92 T.C. 206, 225-226 (1989).        We hold for               
          respondent.  In so holding, we have considered all of                       
          petitioner's arguments for a contrary holding and, to the extent            
          not addressed above, find them to be irrelevant or without                  
          merit.4                                                                     
               To reflect concessions,                                                


          Decisions will be entered                                                   
          under Rule 155.                                                             








               4 In particular, we note that we have rejected petitioner's            
          argument concerning an abuse of discretion.  Simply stated,                 
          respondent's determination is within the broad discretion that              
          she is afforded with respect to matters of tax accounting.  See,            
          e.g., Thor Power Tool Co. v. Commissioner, 439 U.S. 522, 532-533            
          (1979); Commissioner v. Joseph E. Seagram & Sons, Inc., 394 F.2d            
          738, 743 (2d Cir. 1968), revg. 46 T.C. 698 (1966); Thomas v.                
          Commissioner, 92 T.C. 206, 220 (1989).                                      




Page:  Previous  1  2  3  4  5  6  7  8  

Last modified: May 25, 2011