- 14 -
OPINION
During the relevant period, petitioner made monthly
contributions to 29 CBA Plans on behalf of its unionized
employees. For each CBA Plan, the amount of the monthly
contribution was the arithmetical result obtained by multiplying
the "covered hours worked" (the number of hours worked during the
month by employees covered under the respective collective
bargaining agreement (CBA)) by the "contribution rate", a dollar
amount set forth in the CBA.
For any given taxable year prior to the Current Taxable
Year, petitioner deducted the 12 monthly contributions that were
calculated from covered hours worked during such year. Then, as
to the Current Taxable Year, petitioner changed its method of
calculating its deduction. For the Current Taxable Year,
petitioner obtained an extension to October 15, 1986, of the time
within which to file its return. Between the date on which the
Current Taxable Year ended and the due date of the return, as
extended, petitioner made eight or in some cases nine monthly
contributions to the CBA Plans, and claimed these post-yearend
contributions (herein for convenience called "grace period
contributions") as a deduction for the Current Taxable Year, in
addition to the usual 12 monthly contributions. As to the
Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 NextLast modified: May 25, 2011