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the last days of the taxable years but before the due
dates of the returns as extended.
1. Held: pension contributions, based on units
of service worked after the close of TYE 8801 and
before Oct. 17, 1988, were not on account of P's TYE
8801, as required by sec. 404(a)(6), I.R.C., and are
therefore not deductible in that year. Lucky Stores,
Inc., & Subs. v. Commissioner, 107 T.C. 1 (1996),
supplemented by T.C. Memo. 1997-70, followed.
2. Held, further, vacation pay, based on units of
service worked after the close of TYE 8701 or TYE 8801
and before the due date of the return for such year as
extended, was not earned in TYE 8701 or TYE 8801, as
required by sec. 463(a)(1), I.R.C., and is therefore
not deductible in such year.
Frederick J. Gerhart, Thomas E. Doran, Stephen
DiBonaventura, and Scott D. Price, for petitioner.
Thomas R. Lamons, C. Glenn McLoughlin, and David L. Miller,
for respondent.
OPINION
NIMS, Judge: Respondent determined the following
deficiencies in petitioner's Federal income tax:
Taxable year ending (TYE) Deficiency
February 2, 1985 $3,704,320
February 1, 1986 726,452
January 31, 1987 43,266,274
January 30, 1988 29,480,791
Unless otherwise indicated, all section references are to
sections of the Internal Revenue Code in effect for the years at
issue, and all Rule references are to the Tax Court Rules of
Practice and Procedure.
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