Sollitt Construction Co. v. United States

OPINION

COLAIANNI, Judge:

Sollitt Construction Company, Inc. (Sollitt or plaintiff) in this action alleges that federal income taxes were erroneously assessed and paid with respect to its taxable years ending March 31, 1972, March 31, 1973, and March 31, 1975. Plaintiff maintains that a debt, the retainage owed to it, in the amount of $217,890, under a contract for the construction of the Sacramento Plaza Apartments (SPA), which sum was originally taken into income under plaintiff’s completed contract method of accounting, became worthless as of March 31, 1975, and was thus properly deducted as…