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Searing signed a corporate resolution stating what they decided
about their bonuses.
2. Timing of Petitioner's Bonus Payments
Petitioner paid the bonuses after the end of each of its
fiscal years before the year in issue, but not later than
September 15 of each year, except the year in issue. For those
years, the resolution authorizing the bonuses said:
NOW, THEREFORE, BE IT RESOLVED, that a bonus of
[amount for each year for each officer] * * * to each
of the * * * [officers] be and the same hereby is
granted and awarded, the same to be paid to said
persons as soon hereafter as the cash position of the
corporation reasonably permits, but in any event on or
before September 15, * * * [year bonuses are
authorized].
Petitioner paid the bonuses after the end of its fiscal
years ending on September 30 in 1986 and 1987 and before December
15 of those years.
Chasin, Hanson and Searing unanimously approved the
following resolution on September 16, 1987:
WHEREAS, the success and development of the
business of this corporation during the fiscal
year to end September 30, 1987 is largely the
result of the efforts of certain of the key
personnel of this corporation; and
WHEREAS, it is deemed to be to the best interests
of this corporation to provide for a special
reward for the efforts of said key personnel in
order that said key personnel be furnished with a
continuing incentive; and
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