United States Supreme Court Cases & Opinions

U.S. Supreme Court

Reinecke v. Gardner, 277 U.S. 239 (1928)

Reinecke v. Gardner

No. 471

Argued April 17-18, 1928

Decided May 14, 1928

277 U.S. 239

Syllabus

1. A trustee in bankruptcy of a domestic corporation was not subject, under the Revenue Act of 1917, to an excess profits tax on profits earned in his operation of the bankrupt's business which would have been so taxable if earned by the corporation. P. 277 U. S. 242.

2. The classes subject to the excess profits tax imposed by Title II, Revenue Act of 1917, were not enlarged by § 212 of that Title, which made administrative provisions of the Act of 1916 applicable in the collection of the tax. P. 277 U. S. 244.

3. Under the Revenue Act of 1916, and Treasury Regulations, a taxpayer was obliged to make all deductions from gross income as of the year when the payments were made, unless he kept his books on an accrual basis which accurately reflected his income, and actually made his return on that basis. Id.

4. A question propounded under Jud.Code § 239, need not be answered if the facts pertinent to it have not been certified. P. 277 U. S. 245.

Page 277 U. S. 240

Response to questions certified by the circuit court of appeals relative to a claim for additional income and excess profits taxes filed by the Commissioner of Internal Revenue in a bankruptcy proceeding and approved by the district court.