Nemetschek North America, Inc. - Page 7

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               We disagree with petitioner that respondent’s determination            
          is an abuse of discretion.  Section 446(a) contains the general             
          rule for tax accounting.  Section 446(a) provides that the                  
          accounting method used to compute taxable income generally must             
          be based on the method of accounting used to compute book income.           
          When the accounting method used to compute taxable income does              
          not clearly reflect income, section 446(b) gives the Commissioner           
          broad authority to prescribe a method that does clearly reflect             
          income.  Thor Power Tool Co. v. Commissioner, 439 U.S. 522, 532             
          (1979); Commissioner v. Hansen, 360 U.S. 446, 467 (1959); see               
          also sec. 1.446-1(a)(2), Income Tax Regs. (“no method of                    
          accounting is acceptable unless, in the opinion of the                      
          Commissioner, it clearly reflects income”).  The Commissioner’s             
          exercise of authority under section 446(b) is given “much                   
          latitude” and cannot be disturbed unless “clearly unlawful”.                
          Thor Power Tool Co. v. Commissioner, supra at 532-533; Lucas v.             
          Am. Code Co., 280 U.S. 445, 449 (1930); see also United States v.           
          Catto, 384 U.S. 102 (1966); Schlude v. Commissioner, 372 U.S.               
          128, 133-134 (1963); Am. Auto. Association v. United States, 367            
          U.S. 687, 697-698 (1961); Auto. Club of Mich. v. Commissioner,              
          353 U.S. 180, 189-190 (1957); Brown v. Commissioner, 291 U.S.               
          193, 203 (1934).  Taxpayers challenging the Commissioner’s                  
          authority must prove that the Commissioner’s determination is               








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