Spang Industries, Inc. v. The United States

FRIEDMAN, Circuit Judge.

This tax refund case, here on appeal from a judgment of the United States Claims Court in favor of the United States, involves the propriety of the method of accounting the taxpayer used in determining profits and losses for the particular tax year in which it completed contracts that required more than a year to perform. The Claims Court, 6 Cl.Ct. 38 upheld the Commissioner’s rejection of the taxpayer’s method of accounting. We reverse.

I

A. The taxpayer, Spang Industries, Inc. (Spang), manufactured and fabricated steel and electric products under long-term contracts…