W. S. Young & Co. v. Commissioner

*1164 Before IVINS ¹ and MORRIS.

This appeal is from the determination of a deficiency in income and profits taxes for the fiscal year ended June 30, 1920, amounting to less than $10,000.

*1165 FINDINGS OF FACT.

The taxpayer is a Montana corporation with principal office in Helena. The Commissioner disallowed as deductions for the fiscal year ended June 30, 1920:

The state license tax was the usual corporation tax imposed by the State and was actually paid August 26, 1920, in the amount of $33.17.

The county tax covered assessment upon property held by the taxpayer on March 1, 1920, and was for county and city purposes. There was actually paid on October 9, 1920, $311.40 as county tax, and on January 24, 1921, $161.05 as city tax. The reserve of $125 was an estimate for one-third of the year as to both those taxes.

The taxpayer made its return on an accrual basis.

The Commissioner disallowed the deductions*2138 on the ground that the taxes were not due and owing at the close of the taxable year, and determined a deficiency in tax in an amount less than $10,000.

The taxes in question were not due and payable until dates subsequent to June 30, 1920.

DECISION.

The determination of the Commissioner is approved. .