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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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Last modified: May 25, 2011