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Current Taxable Year, respondent denied the deduction for the
grace period contributions.
Petitioner claims that it is entitled to deduct the grace
period contributions currently because they were "on account of"
its Current Taxable Year within the meaning of section 404(a)(6),
as explicated by Rev. Rul. 76-28, 1976-1 C.B. 106. In an
unexpected burst of candor, petitioner admits that it is
attempting to deduct, for the Current Taxable Year,
"contributions made over a 20-month period".
While section 404(a)(1)(A) states that pension plan
contributions are deductible "In the taxable year when paid",
section 404(a)(6) provides a grace period in that, in the words
of the section, "a taxpayer shall be deemed to have made a
payment on the last day of the preceding taxable year if the
payment is on account of such taxable year", subject to the
further condition that the payment be made "not later than the
time prescribed by law for filing the return for such taxable
year (including extensions thereof)."
Petitioner also argues that under section 413(b)(7) its
contributions were within the deductible limits of section 404(a)
because the "anticipated contributions" for all the CBA Plans for
their respective plan years did not exceed any maximum deduction
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