Truck & Equipment Corp. v. Commissioner
United States Tax Court
Respondent disallowed deductions taken by petitioner for employee bonuses accrued in its fiscal year ended Jan. 31, 1986, but not paid within 2 1/2 months from the end of that fiscal year as required by sec. 1.404(b)-1T, Temporary Income Tax Regs. Petitioner contends that this temporary regulation is invalid or, in the alternative, that petitioner has met the requirements of the exception thereto in the permanent regulations, sec. 1.404(b)-1, Income Tax Regs.
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Respondent disallowed deductions taken by petitioner for employee bonuses accrued in its fiscal year ended Jan. 31, 1986, but not paid within 2 1/2 months from the end of that fiscal year as required by sec. 1.404(b)-1T, Temporary Income Tax Regs. Petitioner contends that this temporary regulation is invalid or, in the alternative, that petitioner has met the requirements of the exception thereto in the permanent regulations, sec. 1.404(b)-1, Income Tax Regs. Respondent asserts that the temporary regulation clarifies the existing regulation and is entitled to deference as a reasonable…
1Opinion of the Court
Parker, Judge:
By statutory notice of deficiency dated May 17, 1989, respondent determined a deficiency in petitioner's Federal income taxes and additions to tax as follows:
_Additions to tax_
Sec. Sec. Sec.
TYE Deficiency 6653(a)(1)(A) 6653(a)(1)(B) 6661
1/31/86 $64,117 $3,206.85 50 percent $16,029.25
of the interest due on underpayment of $1,097
Unless otherwise indicated, all section references are to the Internal Revenue Code in effect for the taxable year at issue, and all Rule references are to the Tax Court Rules of Practice and Procedure.
After concessions,1 the issue remaining for decision…
2Cases cited16 opinions
- Commissioner v. South Texas Lumber Co.Supreme Court of the United States · 1948
- United States v. CorrellSupreme Court of the United States · 1967
- Bingler v. JohnsonSupreme Court of the United States · 1969
- National Muffler Dealers Assn., Inc. v. United StatesSupreme Court of the United States · 1979
- Helvering v. R. J. Reynolds Tobacco Co.Supreme Court of the United States · 1939
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3Cited by50 opinions
- E. Norman Peterson Marital Trust, Chemical Bank, Trustee v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1996
- Peterson Marital Trust v. CommissionerUnited States Tax Court · 1994
- Miller v. CommissionerUnited States Tax Court · 2000
- Elizabeth N. Callaway v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 2000
- Schaefer v. CommissionerUnited States Tax Court · 1995
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