From our private database of 30,900+ case briefs...
American Automobile Association v. United States
United States Supreme Court
367 U.S. 687 (1961)
The American Automobile Association (AAA) (plaintiff) received its funding through annual membership dues. AAA enrolled members year-round. Current members could call upon AAA to provide services to them at any time during their membership period, which often spanned two different calendar tax years. AAA paid its taxes on the accrual accounting basis. For each tax year, AAA reported as gross income only the portion of each member’s prepaid annual dues attributable to that year. AAA accrued each member’s prepaid dues pro rata for each month of membership in order to offset liabilities associated with providing any services to that member during the subsequent tax year. The federal tax commissioner sought to tax AAA on the amount of membership dues that AAA actually received during each tax year, without regard to AAA’s expected future service expenses in the subsequent year. AAA filed suit against the United States government (defendant) in the United States Court of Claims, seeking a redetermination. The court of claims entered judgment in favor of the United States. The United States Supreme Court granted certiorari.
Rule of Law
Holding and Reasoning (Clark, J.)
Dissent (Stewart, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 551,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.Unlock this case briefRead our student testimonials
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.Learn about our approachRead more about Quimbee
Here's why 551,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 30,900 briefs, keyed to 984 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.