Latrobe Steel Co. v. Commissioner
United States Tax Court
In addition to its regular vacation plan, petitioner adopted an extended vacation plan that entitled each qualifying employee to not more than 13 weeks of paid vacation once in each 5-year period. The right to designate when a qualifying employee could take his extended vacation was reserved to the petitioner.
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In addition to its regular vacation plan, petitioner adopted an extended vacation plan that entitled each qualifying employee to not more than 13 weeks of paid vacation once in each 5-year period. The right to designate when a qualifying employee could take his extended vacation was reserved to the petitioner. Held: The extended vacation plan was not a deferred compensation plan within the intendment of sec. 404(a). Amounts paid or accrued within the taxable year for such vacations are deductible under sec. 162.
1Opinion of the Court
Wiles, Judge:
Respondent has determined the following deficiencies in petitioner’s Federal income taxes:
Years Deficiencies
1964 -$275, 5$5. 35
1965 - 460,435.40
The only issue remaining for our decision is whether that part of the vacation plan provided for in the labor agreement between petitioner and a labor union whereby petitioner’s employees were entitled to extended vacation benefits constituted a plan deferring the receipt of compensation within the meaning of section 404(a).
FINDINGS OF FACT
Some of the facts have been stipulated and are found accordingly.
Petitioner Latrobe Steel Co.…
2Cases cited5 opinions
- Helvering v. New York Trust Co.Supreme Court of the United States · 1934
- Dougherty v. CommissionerUnited States Tax Court · 1973
- New York Post Corp. v. CommissionerUnited States Tax Court · 1963
- New York Seven-Up Bottling Co. v. CommissionerUnited States Tax Court · 1968
- Barnes Transp. Co. v. CommissionerUnited States Tax Court · 1950
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- Grant-Jacoby, Inc. v. CommissionerUnited States Tax Court · 1980
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