- 8 -
at 572-573. In Union Pac. R.R. Co. v. United States, supra at
1347-1348, the Court of Claims rejected the Commissioner’s
attempt to distinguish Cincinnati.
Petitioner contends that, like the taxpayers in Cincinnati
and Union Pacific, its method of accounting clearly reflected its
income within the meaning of section 446, and that respondent’s
attempt to change petitioner’s accounting method was an abuse of
discretion. Petitioner also contends that respondent cannot
change its method of accounting because petitioner has
consistently used an accounting method that clearly reflects
income.
3. Comparison of Facts in Cincinnati, Union Pacific, and
This Case
The following chart compares petitioner to the taxpayers in
Cincinnati and Union Pacific (to the extent a comparison can be
made based on the record in this case and the Court of Claims’
opinions in Cincinnati3 and Union Pacific):
Cincinnati Union Pacific Petitioner
(1947, 1948 and 1949) (1942) (1995 and 1996)
1. Disputed Items
Disputed $12,854
items 11,006 $467,944
24,715 $113,718 351,543
3 See Cincinnati, New Orleans & Tex. Pac. Ry. Co. v. United
States, 191 Ct. Cl. 572, 600 (1970). The numerical data from
Cincinnati can be found only in the Court of Claims reports.
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