Farrel-Birmingham Co. v. United States

In our decision of June 8, 1954, we interpreted Section 710 (a) (1) (B) of the Internal Eevenue Code as requiring a corporation taxpayer which made the election permitted by *334Section 736 (b), to recompute its surtax net income as if its regular method of computation of its income was based upon percentage of completion of its contracts. We did not quote Section 736 (b) in our former opinion. We now quote it, omitting irrelevant parts:(b) Election on Long-Term Contracts. — In the case of any taxpayer computing income from contracts the performance of which requires more than 12 months * * * it…