Lucky Stores, Inc. and Subsidiaries - Page 8

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          that petitioner made to the CBA Plans for hours or weeks worked             
          by its covered employees in the Current Taxable Year and deducted           
          on petitioner's return for the Current Taxable Year.  The                   
          $57,139,406 consists of $48,395,987 of contributions to the Six             
          Large CBA Plans and $8,743,419 to the 19 smaller plans.  In                 
          addition, out of the total $96,890,058 deduction claimed by                 
          petitioner in the Current Taxable Year, respondent did not                  
          disallow $3,089,123 of contributions to certain profit-sharing              
          plans.                                                                      
               Petitioner has never filed Form 3115 (Application for Change           
          in Accounting Method) concerning the method it used to arrive at            
          its deduction for contributions to the CBA Plans claimed on its             
          return for the Current Taxable Year.                                        
               The administrator of each CBA Plan was a party independent             
          of petitioner.  The administrator of each CBA Plan was appointed            
          by the Board of Trustees of the Plan, one-half of whom are                  
          selected by the employers and the other one-half of whom are                
          selected by the union locals.  Under the terms of the collective            
          bargaining agreements, the CBA Plans were entitled to collect               
          interest and/or late fees on delinquent contributions from                  
          employers.  At all times during the relevant periods, each CBA              
          Plan administrator had in place procedures to monitor the actual            
          dates of receipt of each contributing employer's required                   
          contribution.                                                               





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