Ward AG Products, Inc. - Page 16

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          Court of Appeals indicated that a grain elevator or feed store              
          that sells grain or feed to farmers, and that has no control or             
          management of the farm operation, does not qualify as a farm or             
               Petitioner cites several other cases which it contends                 
          support its position that it is a farmer.  However, in none of              
          these cases were the taxpayers in the business of making retail             
          sales to farmers.  The taxpayers owned or operated a cattle-                
          feeding or feed lot business in Frysinger v. Commissioner, 645              
          F.2d 523 (5th Cir. 1981), affg. T.C. Memo. 1980-89; Hi-Plains               
          Enters., Inc. v. Commissioner, supra; Packard v. Commissioner, 85           
          T.C. 397 (1985); and Van Raden v. Commissioner, 71 T.C. 1083                
          (1979), affd. 650 F.2d 1046 (9th Cir. 1981).  The taxpayers                 
          raised poultry or livestock in United States v. Chemell, 243 F.2d           
          944 (5th Cir. 1957); Duggar v. Commissioner, 71 T.C. 147 (1978);            
          and Maple Leaf Farms, Inc. v. Commissioner, supra.                          
               We conclude that petitioner was not a farmer for purposes of           
          section 448(b)(1) and sections 1.471-6(a) and 1.61-4, Income Tax            
          D.   Whether Respondent Should Have Compared Petitioner's Income            
               Under the Cash and Accrual Methods for More than 3 Years               
               Petitioner contends that respondent's determination that it            
          must use the accrual method of accounting was an abuse of                   
          discretion because respondent considered petitioner's income for            
          only 3 years (1990, 1991, and 1992).                                        

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