Wright Contracting Co. v. Commissioner
United States Tax Court
1. Accounting Method, Change in Method of Reporting Income. -- In accordance with the system of accounting regularly employed by petitioner in keeping its books throughout the taxable years, amounts of "retainage" withheld out of earnings for work done on long-term construction contracts were accrued by petitioner as income in the years the work was performed.
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1. Accounting Method, Change in Method of Reporting Income. -- In accordance with the system of accounting regularly employed by petitioner in keeping its books throughout the taxable years, amounts of "retainage" withheld out of earnings for work done on long-term construction contracts were accrued by petitioner as income in the years the work was performed. Such system clearly reflected income and, further, was used by petitioner as its method of reporting income consistently since its incorporation in 1942. Held, petitioner may not change its method of reporting income contrary to the…
1Opinion of the Court
OPINION.
Kern, Judge:
The first issue presents the question of whether the amounts withheld from petitioner as a retained percentage of its earnings for work performed on long-term construction contracts should be included in petitioner’s income in the years the work was performed, pursuant to the consistent and long-established system or practice of petitioner’s accounting and reporting of such earnings and as determined by respondent, or whether the inclusion of such re-tainage in income should be deferred to subsequent years upon the final completion and acceptance of the work, even though…
Also in this document: Concurrence.
2Cases cited15 opinions
- Massey Motors, Inc. v. United StatesSupreme Court of the United States · 1960
- Hertz Corp. v. United StatesSupreme Court of the United States · 1960
- Commissioner of Internal Revenue v. O. Liquidating CorporationCourt of Appeals for the Third Circuit · 1961
- Drazen v. CommissionerUnited States Tax Court · 1960
- Charles F. Dally and Sarafrancis Dally v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1955
10 more not listed; retrieve them via the Exa API.
3Cited by32 opinions
- Southern Pacific Transp. Co. v. CommissionerUnited States Tax Court · 1980
- Standard Oil Co. v. CommissionerUnited States Tax Court · 1981
- H. F. Campbell Co. v. CommissionerUnited States Tax Court · 1969
- American Can Co. v. CommissionerUnited States Tax Court · 1961
- Marquardt Corp. v. CommissionerUnited States Tax Court · 1962
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