- 41 -
Nonetheless, where a taxpayer's method of accounting does
clearly reflect income, respondent cannot require the taxpayer to
change to a different method even if the Commissioner's method
more clearly reflects income. Ford Motor Co. v. Commissioner, 71
F.3d at 213; Ansley-Sheppard-Burgess Co. v. Commissioner, 104
T.C. 367, 371 (1995); Molsen v. Commissioner, 85 T.C. 485, 498
(1985). Additionally, the Commissioner may not require a
taxpayer to adopt a method of accounting which does not clearly
reflect income. Rotolo v. Commissioner, 88 T.C. 1500, 1514
(1987). Our inquiry is limited to the question of whether the
accounting method in issue clearly reflects income, and we do not
decide whether a method is superior to other possible methods.
RLC Indus. Co. v. Commissioner, 98 T.C. 457, 492 (1992), affd. 58
F.3d 413 (9th Cir. 1995); see also Brown v. Helvering, 291 U.S.
193, 204-205 (1934).
Generally, a taxpayer's accounting method clearly reflects
income if it results in accurately reported taxable income under
a recognized method of accounting. Wilkinson-Beane, Inc. v.
Commissioner, 420 F.2d 352, 354 (1st Cir. 1970), affg. T.C. Memo.
1969-79; RLC Indus. Co. v. Commissioner, supra at 490; see also
Honeywell Inc. v. Commissioner, T.C. Memo. 1992-453, affd.
without published opinion 27 F.3d 571 (8th Cir. 1994).17 Whether
17
To determine whether an accounting method clearly reflects
income, the Court of Appeals for the Sixth Circuit, to which an
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