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As of the end of each month, petitioner calculated the
amount that it was required to contribute to each CBA Plan
attributable to covered hours or weeks worked during such month.
Petitioner multiplied the number of hours or weeks of work in
such month by covered employees times a monetary rate set by the
collective bargaining agreement. Increases or decreases in the
number of covered employees along with increases or decreases in
the hours or weeks worked by covered employees required
petitioner (and each of the other contributing employers) to make
a separate calculation for its required contribution to each Plan
month by month.
For all taxable years ending before the Current Taxable
Year, petitioner computed its deduction for contributions to the
CBA Plans in the following manner: for each CBA Plan petitioner
added the 12 monthly contribution amounts attributable to covered
hours or weeks worked during a given taxable year and claimed
that total amount as a deduction for that year. For every
taxable year ending before the Current Taxable Year, the total
amount claimed as a deduction for a taxable year did not include
any contributions attributable to hours or weeks worked after the
end of such year.
For its Current Taxable Year, petitioner computed its
deduction for contributions to the CBA Plans claimed on its
return in the following manner: petitioner added together the 12
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Last modified: May 25, 2011