Pusser v. COMMISSIONER OF INTERNAL REVENUE, 6589.
| Decision Date | 15 July 1953 |
| Docket Number | No. 6589.,6589. |
| Citation | 206 F.2d 68 |
| Parties | PUSSER v. COMMISSIONER OF INTERNAL REVENUE. |
| Court | U.S. Court of Appeals — Fourth Circuit |
Fred E. Youngman, Sp. Asst. to the Atty. Gen. (H. Brian Holland, Asst. Atty. Gen., and Ellis N. Slack, Sp. Asst. to the Atty. Gen., on brief), for respondent.
Before PARKER, Chief Judge, and SOPER and DOBIE, Circuit Judges.
This is a petition to review a decision of the Tax Court which redetermined deficiencies in federal income tax against taxpayer for the years 1943-1947 together with negligence penalties assessed in connection therewith. The facts are fully and correctly set forth in detail in the opinion of the Tax Court and need not be repeated here. During the tax years in question, taxpayer was conducting a small retail store in Chesterfield, S. C. and operating a small farm near that town. The books which he kept did not correctly mirror his income; and, upon the suggestion of the revenue agent examining his accounts that he procure the services of an accountant, he employed one Gregory, who calculated his income for the years in question upon the net worth basis. The revenue agent subsequently adopted to a large extent the net worth statement drawn up by Gregory. Taxpayer later employed other accountants who recommended that he accept the report of the revenue agent. We think it clear from the evidence that the net worth system was properly used in calculating taxpayer's income. The Tax Court gave careful consideration to his various contentions and there is nothing in the record which would justify us in setting aside the findings of that court or in holding that any of them are clearly wrong.
The most serious question presented by the appeal arises in connection with the inventories used in applying the net worth basis. It appears that to the inventories shown by taxpayer's books, which were taken at 50% of value or less, there was added the amount of accounts payable owing by him. This, of course, was no logical method of arriving at the value of the inventories. It appears, however, that it was the method adopted by taxpayer's accountant on the theory that the goods evidenced by the accounts were fresh and salable and that this addition to the inventories, taken at less than true value, would bring them into line with reality. While we do not approve of any such rough method of arriving at the value of the inventoried goods, we are not prepared to say that it was clearly wrong here, in view of the fact that it was adopted...
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Gonzalez v. Comm'r of Internal Revenue (In re Estate of Trompeter)
...Commissioner, T.C. Memo.1984–397; Pusser v. Commissioner, a Memorandum Opinion of this Court dated Dec. 7, 1951, affd. per curiam 206 F.2d 68 (4th Cir.1953); see also United States v. Keltner, 675 F.2d 602, 605 (4th Cir.1982). Respondent's reliance on this line of cases for a similar result......
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Suivski v. Commissioner, Docket No. 22495-89.
...v. Commissioner [Dec. 18,695(M)], a Memorandum Opinion of this Court dated Dec. 7, 1951, affd. per curiam [53-2 USTC ¶ 9508] 206 F.2d 68 (4th Cir. 1953). See further Blanton Coal Co. v. Commissioner, T.C. Memo. This rule has nothing to do with the situation presented in the instant case, wh......
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BLANTON COAL COMPANY, INC. v. Commissioner
...913 (1956); Pusser v. Commissioner Dec. 18,695(M), a Memorandum Opinion of this Court dated Dec. 7, 1951, affd. 53-2 USTC ¶ 9508 206 F. 2d 68 (4th Cir. 1953). We applied the same principle to a 1954 Code case concerning a net operating loss carryback and a late filing addition to tax under ......