Court Opinion

ID: 9444400
Source: CourtListenerOpinion
Date Created: 2023-08-03 20:59:53.780585+00
Date Added: 2024-06-11T17:29:51.506945
License: Public Domain

POPE, Circuit Judge.
I concur in ail that is said in Judge Bone’s opinion. I suggest there is an additional ground upon which it may be said that the reason assigned by the Tax Court for its decision cannot justify it. That reason was that “we do not know what the separate individual deductions of George Ford were for .1943 and 1944.” This alleged want of showing on the taxpayers’ part was not a reason advanced by the Commissioner in his deficiency notice. And paragraph 7 of the stipulation, quoted by Judge Bone, shows that this was not made an issue before the Tax Court. It cannot, therefore, sustain the decision below. Harbor Plywood Corp. v. Commissioner, 9 Cir., 143 F.2d 780, 783, citing Helver-ing v. Tex-Penn. Oil Co., 300 U.S. 481, 498, 57 S.Ct. 569, 81 L.Ed. 755.
The cases holding that where a taxpayer has an election between two methods of making returns, his choice, once made, is binding, such as Pacific National Co. v. Welch, 304 U.S. 191, 58 S.Ct. 857, 82 L.Ed. 1282; Binder v. Welch, 9 Cir., 107 F.2d 812; and Rose v. Grant, 5 Cir., 39 F.2d 340, 341, involve attempts to alter the amount of taxes owing for the very year in which the choice was made. The reason for holding the election binding is that otherwise the statutory period for filing returns would be enlarged to include the period allowed for recovering overpayments, with consequent administrative inconvenience. But here the computation in issue relates solely to 1945 taxes. As Judge Bone has pointed out, the amount of income received and taxes paid for 1943 and 1944 is not recomputed, but remains fixed. I see no reason why an election made in 1943 or 1944 relating to taxes for that year should have any effect on the computation of taxes for 1945, nor how the method proposed by the taxpayers in their return for that year would impose any burdensome uncertainties upon the administration of the revenue laws.