Leon L. Sicard and Eleanor Sicard - Page 16

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          that result by claiming that petitioner personally adopted a cash           
          method of accounting for the fees.  However, as discussed above,            
          the tax accounting treatment of a guaranteed payment is                     
          determined at the partnership level, and a partner’s method of              
          accounting does not control the time at which a guaranteed                  
          payment is includable in the partner’s income.2  Pratt v.                   
          Commissioner, supra at 212-214.  The partnership accounted for              
          the management fees represented by the $190,000 guaranteed                  
          payment using an accrual method, and petitioner was required to             
          include the fees in his income when they were included in cost of           
          goods sold by the partnership based upon the partnership’s method           
          for reporting the fees.  Moreover, even if petitioner had adopted           
          a cash method of accounting for the fees, that method was                   
          specifically proscribed pursuant to section 706(a) and section              
          1.707-1(c), Income Tax Regs., and petitioner was entitled to                
          abandon it without the Commissioner’s consent.  North Carolina              
          Granite Corp. v. Commissioner, 43 T.C. 149, 168 (1964) and cases            
          cited therein.  As was stated in Thomson-King-Tate, Inc. v.                 
          United States, 296 F.2d 290, 294 (6th Cir. 1961):                           



          2                                                                           
               Although petitioners contend that respondent should not be             
          allowed to rely on the accounting method argument because it was            
          not timely raised, we need not consider the question because we             
          reject the argument.  We also do not address petitioners’                   
          argument that the management fees were constructively received by           
          them in the years that they were accrued by the partnership.                





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