Appeal of J. E. ASBURY

Appeal of J. E. ASBURY. Docket No. 6723. Decided September 30, 1926. Geo. M. Stanton, Esq., for the petitioner. M. N. Fisher, Esq., for the Commissioner. This appeal is from the determination of a deficiency of $1,165.87 in income tax for the year 1919. The only question involved is the correctness of the Commissioner’s action in including in the petitioner’s gross income for the calendar year 1919 his distributive share of a partnership’s income for its entire fiscal year end^d August 31, 1919. FINDINGS OF FACT. Petitioner is a resident of Elberton, Ga. During 1920 his tax liability was investigated by an internal revenue agent, who included in his income for the calendar year 1918 a proportionate part of the earnings for the period September 1, 1918, to December 31, 1918, of Elberton Cotton & Compress Co., a partnership of which the petitioner was a member, and which was on a fiscal year basis ended August-31. Based on such investigation, he paid an additional tax of $461.40 for the year 1918. The Commissioner has now included the petitioner’s distributive share of the earnings of the Elberton Cotton & Compress Co. for the entire fiscal year beginning September 1, 1918, and ending August 31, 1919, in his income for 1919. The petitioner renders his return on a calendar year basis. [MAJORITY — Morris:] OPINION. Morris: The adjustment, upon which the.petitioner alleges error, of his income for the calendar year 1919 from the partnership of which he was a member, having a fiscal year ended August 31, is in accordance with section 218 (a) of the Revenue Act of 1918. Appeal of J. H. Goadby Mills, 3 B. T. A. 1245. Judgment for the Commissioner.