Dixie Pine Products Co. v. Commissioner

Board of Tax Appeals

Dixie Pine Products Co. v. Commissioner

45 B.T.A. 286, 1941 BTA LEXIS 1147

CourtUnited States Board of Tax Appeals

DecidedOctober 7, 1941

DocketDocket No. 103015.

StatusPublished

Cited by1 cases

This text of 45 B.T.A. 286 (Dixie Pine Products Co. v. Commissioner) is published on Counsel Stack Legal Research, covering United States Board of Tax Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Dixie Pine Products Co. v. Commissioner, 45 B.T.A. 286, 1941 BTA LEXIS 1147 (bta 1941).

Pincite

Opinion

[289]*289OPINION.

Murdock :

This case is similar in some respects to J. A. Dougherty's Sons, Inc., 42 B. T. A. 892, and Estate of David Davies, 42 B. T. A. 965. The Dougherty's Sons, Inc., case has recently been reversed, 121 Fed. (2d) 700. However, the present case has points of difference from the Dougherty's case and is like some other cases of the Board which have been affirmed by other Circuit Courts. It is not a case of an unconstitutional tax, but one of mistake in thinking that a taxing act applied to this petitioner. Inland Products Co., 10 B. T. A. 235; affd., 31 Fed. (2d) 867. Cf. Mary W. Leach, 16 B. T. A. 781; affd., 50 Fed. (2d) 371. The tax was never due and the efforts to collect it were all a mistake, as the court finally decided the law did not apply. The collector admitted his doubt after the decision on the demurrer. The petitioner, believing that no tax was due, ceased and refused to pay, and only made a closing accrual upon advice of counsel. The Commissioner determined that the 1937 taxes were not deductible from income as a properly accrued expense of that year. We hold, upon authority of the cases cited above, that he did not err.

Reviewed by the Board.

Decision will be entered for the respondent.

Smith dissents.

Free access — add to your briefcase to read the full text and ask questions with AI

[289]*289OPINION.

Murdock :

This case is similar in some respects to J. A. Dougherty's Sons, Inc., 42 B. T. A. 892, and Estate of David Davies, 42 B. T. A. 965. The Dougherty's Sons, Inc., case has recently been reversed, 121 Fed. (2d) 700. However, the present case has points of difference from the Dougherty's case and is like some other cases of the Board which have been affirmed by other Circuit Courts. It is not a case of an unconstitutional tax, but one of mistake in thinking that a taxing act applied to this petitioner. Inland Products Co., 10 B. T. A. 235; affd., 31 Fed. (2d) 867. Cf. Mary W. Leach, 16 B. T. A. 781; affd., 50 Fed. (2d) 371. The tax was never due and the efforts to collect it were all a mistake, as the court finally decided the law did not apply. The collector admitted his doubt after the decision on the demurrer. The petitioner, believing that no tax was due, ceased and refused to pay, and only made a closing accrual upon advice of counsel. The Commissioner determined that the 1937 taxes were not deductible from income as a properly accrued expense of that year. We hold, upon authority of the cases cited above, that he did not err.

Reviewed by the Board.

Decision will be entered for the respondent.

Smith dissents.

Cite This Page — Counsel Stack

Bluebook (online)

45 B.T.A. 286, 1941 BTA LEXIS 1147, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dixie-pine-products-co-v-commissioner-bta-1941.

Opinion

Related

Cite This Page — Counsel Stack