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Petitioner also included the yearend Star Markets
accumulated and nonaccumulated benefits when calculating the
claimed vacation pay accruals under section 463 for the relevant
period. Star Markets also applied inflation factor adjustments
to the yearend accumulated and nonaccumulated benefits when
calculating the claimed vacation pay accruals under section 463.
The parties agree that Star Markets may include the yearend
accumulated benefits and corresponding adjustments when
calculating its vacation pay accruals under section 463.
However, respondent disputes the inclusion of the nonaccumulated
benefits and adjustments when calculating accruals for TYE 8701
and TYE 8801.
Discussion
The issues we must decide are: (1) Whether petitioner
properly deducted contributions made to Multiemployer Plans
attributable to services performed after TYE 8801 on its return
for that year; and (2) whether petitioner properly deducted
certain nonvested or nonaccumulated vacation pay liabilities
pursuant to section 463 on its returns for TYE 8701 and TYE 8801.
For the following reasons, we hold that the timing of
petitioner's deductions was improper with respect to both issues.
Issue 1. The Deductions for Grace Period Contributions to
Multiemployer Plans
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