Court of Appeals for the Eighth Circuit August 14, 1998, 97-2693 (Wal-Mart Stores, Inc. & Subsidiaries v. Commissioner of Internal Revenue)

BEAM, Circuit Judge.

This case presents the question whether a retailer may account for unverified inventory shrinkage, and if so, whether the method used by Wal-Mart Stores, Inc. & Subsidiaries is permissible. The Commissioner of Internal Revenue (Commissioner) appeals from the tax court’s

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decision reversing the Commissioner’s determination of federal tax deficiencies. We affirm the tax court.