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merchandise may only briefly be in the possession of the seller
is of no consequence. See, e.g., Addison Distrib., Inc. v.
Commissioner, T.C. Memo. 1998-289.
The conclusion that a product with a limited commercial life
cannot be merchandise defies reason. In Asphalt Prods. Co. v.
Commissioner, 796 F.2d 843 (6th Cir. 1986), affg. on this issue,
revg. in part, and remanding Akers v. Commissioner, T.C. Memo.
1984-208, revd. on another issue 482 U.S. 117 (1987), it was held
that a seller of asphalt to contractors like the one in Galedrige
Constr., Inc., should be on the accrual method because it held
merchandise/inventory to be for sale. Is the asphalt or concrete
less ephemeral for the person who supplies it? If a supplier of
asphalt or concrete also contracted to pour and place it for
customers, would it have to use differing methods of accounting
for each activity? If taxpayers sell products that spoil easily,
should those taxpayers be exempt from the section 471 or section
446 requirements if they otherwise fall within the statute’s
reach? The answer to these questions should be “no”, and the
Galedrige holding is in error.
(d) Osteopathic Med. Oncology & Hematology, P.C. v.
Commissioner, 113 T.C. 376 (1999), Is Factually Distinguishable
From the Circumstances in This Case--Osteopathic Med. Oncology &
Henatology, P.C., was a Court-reviewed opinion in which 10 of 16
participating Judges joined in the majority’s findings and
holding, and 4 of 16 joined in the dissent specifically
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