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whether the Commissioner’s determination is without sound basis
in fact or law. See Ansley-Sheppard-Burgess Co. v. Commissioner,
104 T.C. 367, 371 (1995); Ford Motor Co. v. Commissioner, 102
T.C. 87, 91-92 (1994), affd. 71 F.3d 209 (6th Cir. 1995). The
reviewing court’s task is not to determine whether, in its own
opinion, the taxpayer’s method of accounting clearly reflects
income but to determine whether there is an adequate basis in law
for the Commissioner’s conclusion that it does not. See Ansley-
Sheppard-Burgess Co. v. Commissioner, supra at 371; Hospital
Corp. of Am. v. Commissioner, T.C. Memo. 1996-105. Consequently,
section 446 imposes a heavy burden on the taxpayer disputing the
Commissioner’s determination on accounting matters. See Thor
Power Tool Co. v. Commissioner, 439 U.S. 522, 532-533 (1979). To
prevail, a taxpayer must establish that the Commissioner’s
determination was "clearly unlawful" or "plainly arbitrary". Id.
Despite the broad language of section 471,3 the Secretary's
discretion to require inventory accounting is not unlimited. See
Hewlett-Packard Co. v. United States, 71 F.3d 398, 403 (Fed. Cir.
1995); Hallmark Cards, Inc. v. Commissioner, supra; see also
3Sec. 471(a) provides:
SEC. 471(a). General rule.--Whenever in the opinion of the
Secretary the use of inventories is necessary in order clearly to
determine the income of any taxpayer, inventories shall be taken
by such taxpayer on such basis as the Secretary may prescribe as
conforming as nearly as may be to the best accounting practice in
the trade or business and as most clearly reflecting the income.
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