Schlude v. Commissioner

Schlude v. Commissioner
Argued December 10, 1962
Decided February 18, 1963
Full case nameSchlude, et ux. v. Commissioner of Internal Revenue
Citations372 U.S. 128 (more)
83 S. Ct. 601; 9 L. Ed. 2d 633; 1963 U.S. LEXIS 2583
Case history
Prior32 T.C. 1271 (1959); reversed, 283 F.2d 234 (8th Cir. 1960); cert. granted, vacated, and remanded, 367 U.S. 911 (1961); rehearing denied, 368 U.S. 873 (1961); Tax Court affirmed on remand, 296 F.2d 721 (8th Cir. 1961); cert. granted, 370 U.S. 902 (1962).
Holding
Under the accrual method, taxpayers must include as income in a particular year advance payments by way of cash, negotiable notes, and contract installments falling due but remaining unpaid during that year.
Court membership
Chief Justice
Earl Warren
Associate Justices
Hugo Black · William O. Douglas
Tom C. Clark · John M. Harlan II
William J. Brennan Jr. · Potter Stewart
Byron White · Arthur Goldberg
Case opinions
MajorityWhite, joined by Warren, Black, Clark, Brennan
DissentStewart, joined by Douglas, Harlan, Goldberg
Laws applied
Internal Revenue Code

Schlude v. Commissioner, 372 U.S. 128 (1963), is a decision by the United States Supreme Court in which the Court held that, under the accrual method, taxpayers must include as income in a particular year advance payments by way of cash, negotiable notes, and contract installments falling due but remaining unpaid during that year. In doing so, the Court tossed aside the matching principle in favor of the earlier-of test.