- 2 - are to the Tax Court Rules of Practice and Procedure, unless otherwise indicated. After a concession,1 the issue for decision is: Whether respondent's determination that petitioner must change from the cash method of accounting to the accrual method of accounting was an abuse of discretion. We hold it was. Some of the facts have been stipulated and are so found. The stipulated facts and the accompanying exhibits are incorporated herein by this reference. At the time the petition in this case was filed, petitioner's principal place of business was located in Sandy, Oregon. FINDINGS OF FACT Petitioner is a corporation engaged in the business of providing asphalt paving services. A sister corporation, Mt. Hood Asphalt (Mt. Hood), manufactures asphalt. On an as-needed basis, petitioner purchases asphalt from Mt. Hood at approximately $19 per ton. Mt. Hood also sells asphalt to its other customers at approximately $23 per ton. When bidding on a contract or job, petitioner prices the asphalt at cost. Since petitioner can generally purchase asphalt at a lower cost, it has a competitive advantage over other paving 1 Respondent concedes a repairs expense adjustment for 1991 of $18,800 and related adjustments for depreciation expenses for 1991, 1992, and 1993. In light of this concession, and previously agreed adjustments set forth in the statutory notice of deficiency, a Rule 155 computation is necessary.Page: Previous 1 2 3 4 5 6 Next
Last modified: May 25, 2011