Pierce Butler

“ The government did not contend that, if deductible at all, the estate taxes could not be deducted in that case because the return was made on the basis of income actually received in 1918, whereas the estate tax, accruing in that year, was not paid until 1919. That question was not presented to the court for decision, and no such question was considered or decided. It is not to be thought that a question not raised by counsel or discussed in the opinion of the court has been decided merely because it existed in the record and might have been raised and considered. ”

“ The burden is on the executors to establish the invalidity of the tax. United States v. Anderson, supra. They have not shown that their books were kept on the accrual basis. Assuming, as we must, that the accounts of the estate were kept on the basis of actual receipts and disbursements, the executors were required to make return on that basis. Notwithstanding the option given taxpayers, it is the purpose of the Act to require returns that clearly reflect taxable income. That purpose will not be accomplished unless income received and deductible disbursements made are treated consistently. ”

“ St. 1918, § 6336 1/2 bbb) .↑ Act Feb. 24, 1919, c. 18, title II, §§ 210, 214, 219, 40 Stat. 1057, 1062, 1067, 1071 (Comp. St. Ann. Supp. 1919, §§ 6336 1/8 e, 6336 1/8 g, 6336 1/8 ii) .↑ Vernon's Sayles' Texas Civil Statutes (1914 Ed.) arts. 7487-7502, as amended by chapter 166, Laws 1917.↑ 271 U.S. 1. ”