Dingle-Clark Co. v. Commissioner
United States Tax Court
Petitioner, an accrual basis taxpayer, performed work on a long-term electrical construction contract for the National Tube Company during the years 1947, 1948, 1949, and 1950 on a basis of cost (subject to change order adjustments) plus a percentage fee based upon "estimated cost." Payment to petitioner was made periodically for material purchased and labor expense plus a portion of the fee.
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Petitioner, an accrual basis taxpayer, performed work on a long-term electrical construction contract for the National Tube Company during the years 1947, 1948, 1949, and 1950 on a basis of cost (subject to change order adjustments) plus a percentage fee based upon "estimated cost." Payment to petitioner was made periodically for material purchased and labor expense plus a portion of the fee. The balance of the fee (less penalty or plus bonus for "under" or "overestimation" of cost) became due upon completion of the work. Held, that portion of the base fee in the amount of $ 79,288.85…
1Opinion of the Court
OPINION.
BRUCE, Judge:
The deficiencies determined by respondent for the years 1950 and 1951, to the extent disputed, are attributable to the inclusion in petitioner’s income for 1950 of the amount of $79,288.85, the portion of the fees billed National during the years 1947, 1948, and 1949 and which did not become payable until 1950. The asserted overpayments for 1950 and 1951 are based on petitioner’s claim that an additional part of the base fee as well as part of the bonus payable under the contract with National which it included in its income for 1950 and which is attributable to work…
2Cases cited13 opinions
- Lucas v. American Code Co.Supreme Court of the United States · 1930
- Spring City Foundry Co. v. CommissionerSupreme Court of the United States · 1934
- Continental Tie & Lumber Co. v. United StatesSupreme Court of the United States · 1932
- United States v. Safety Car Heating & Lighting Co.Supreme Court of the United States · 1936
- Charles F. Dally and Sarafrancis Dally v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1955
8 more not listed; retrieve them via the Exa API.
3Cited by3 opinions
- Public Service Co. v. CommissionerUnited States Tax Court · 1982
- Dingle-Clark Co. v. CommissionerUnited States Tax Court · 1956
- Public Service Co. v. CommissionerUnited States Tax Court · 1982