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The Notices of Deficiency
Following an audit, respondent issued notices of deficiency
to each of the petitioners in which respondent determined that
they must use the accrual method. The notices of deficiency
described respondent’s determination as follows: “It is
determined the accrual method of accounting more clearly reflects
income than your current ‘Cash Basis’ method of accounting.”
OPINION
Section 446(b) vests the Commissioner with broad discretion
in determining whether a particular method of accounting clearly
reflects income. See Knight-Ridder Newspapers, Inc. v. United
States, 743 F.2d 781, 788 (11th Cir. 1984); Ansley-Sheppard-
Burgess Co. v. Commissioner, 104 T.C. 367, 370 (1995); RLC Indus.
Co. v. Commissioner, 98 T.C. 457, 491 (1992), affd. 58 F.3d 413
(9th Cir. 1995). The Commissioner's determination is entitled to
more than the usual presumption of correctness. See Ansley-
Sheppard-Burgess Co. v. Commissioner, supra; RLC Indus. Co. v.
Commissioner, supra. Accordingly, the Commissioner's
interpretation of the "clear-reflection standard [of section
446(b)] 'should not be interfered with unless clearly unlawful.'"
Thor Power Tool Co. v. Commissioner, 439 U.S. 522, 532 (1979)
(quoting Lucas v. American Code Co., 280 U.S. 445, 449 (1930)).
The taxpayer bears "a 'heavy burden of * * * [proof],'" and the
Commissioner's determination "is not to be set aside unless shown
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