Court Opinion

ID: 9448047
Source: CourtListenerOpinion
Date Created: 2023-08-03 23:21:24.905279+00
Date Added: 2024-06-11T17:31:16.134981
License: Public Domain

FORMAN, Circuit Judge
(dissenting).
I cannot agree with the majority that there was any change in the accounting method of a material item of the taxpayer’s income. I find with the Tax Court that the treatment by the taxpayer of its *232dividend income in years previous to 1953 “was an erroneous treatment and inconsistent with the method of accounting regularly employed by [taxpayer] in keeping its books.” It did not reflect in its 1953 return anticipated 1954 dividends to which it had no claim of right in 1953. In doing so it was correctly applying the accrual method of accounting which it had adopted and the change it effected did not require the consent of the Commissioner. Cf. Beacon Publishing Co. v. Commissioner of Internal Revenue, 10 Cir., 1955, 218 F.2d 697.
I would affirm the decision of the Tax Court.