Collin v. Commissioner’s Empirical Analysis

Citation profile

6 federal appellate ·

Most-quoted passages

The sentences later courts lift from this opinion, ranked by how many decisions quote each — the parts of the opinion doing the work. These counts are smaller than the citation total above because most of the 59 citing decisions cite the case generally; a passage count includes only decisions quoting that exact language verbatim.

1. “* * * The statute prescribes that in order for a debt to be deducted from income as worthless it must be charged off within the taxable year. The query then resolves itself to the simple one of whether an item may be charged off which has never been charged on. A taxpayer is at liberty to keep his accounts in any way he chooses so long as his income is clearly and truly reflected thereby. If he chooses to account on an accrual basis, then it is his duty to account for all income accruing to him during the taxable year, and he may deduct all expenses incurred within such year whether paid or not. If at a later time an item theretofore accrued as income proves to be worthless, it is his privilege under the statute here being considered to deduct such item from income. In such case there can be no room for question because that which was charged off had been charged on. But is the situation any different in the ease of a taxpayer who accounts on a cash receipts and disbursements basis? The statute makes no distinction between such a case and that of accrual accountancy. The rule requiring that the debt be charged off within the taxable year is equally applicable to both. The connotation is irresistible that in using the words “charged off’ Congress referred to that which had been charged on.”

   1 later decision quote this exact passage
   e.g. W. L. Moody Cotton Co. v. Commissioner

2. ““The petitioner claims the right to deduct half that sum as a debt ‘ascertained to be worthless and charged off within the taxable year’ under the Revenue Act of 1926, c. 27, § 214(a) (7), 44 Stat. 9 , 27 ( 26 U.S.C.A. § 955 (a) (7). “It seems to us that the Circuit Court of Appeals sufficiently answered this contention by remarking that the debt was worthless when acquired. There was nothing to charge off.””

   1 later decision quote this exact passage
   e.g. Dexter v. Commissioner of Internal Revenue

3. “(a) That in tlie case of an individual the term “ net income ” means the gross income as defined in section 213, less the deductions allowed by section 214. (b) The net income shall be computed upon the basis of the taxpayer’s annual accounting period (fiscal year or calendar year, as the case may be) in accordance with the method of accounting regularly employed in keeping the books of such taxpayer; * * *”

   1 later decision quote this exact passage
   e.g. Davis v. Commissioner