United States v. Mitchell, 271 U.S. 9 (1926)

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United States v. Mitchell

No. 470

Argued March 18, 19, 1926
Decided April 12, 1926
271 U.S. 9

APPEAL FROM THE COURT OF CLAIMS

Syllabus

1. In calculating the income tax on an estate during administration, under the Revenue Act of 1918, federal estate taxes are deductible from gross income. United States v. Woodward, 256 U.S. 632. P. 11.

2. But where the estate tax, though it accrued during the income tax year, was not paid until later, and the taxpayer’s books were kept upon the basis of actual receipts and disbursements -- not the "accrual" basis -- and the return showed such income only as was received during the tax year, the estate tax was not deductible in computing the taxable income of that year. United States v. Anderson, 269 U.S. 422. Woodward case, supra, distinguished. Id.

3. Where claimants’ right to recover money paid as income taxes depended on their books’ having been kept on the accrual basis, the burden was on them to prove that the books were so kept. P. 12.

4. A question not raised by counsel or discussed in the opinion is not to be regarded as decided merely because it might have been raised and decided on the record. P. 14.

5. The inheritance tax imposed by Texas, and paid by executors, held deductible in computing the federal income tax of the estate under Revenue Law of 1918. Keith v. Johnson, ante, p. 1. P.1 144.

60 Ct.Cls. 451 reversed.

Appeal from a judgment of the Court of Claims for an amount paid as income tax.