Dingle-Clark Co. v. Commissioner
United States Tax Court
Petitioner, an accrual basis taxpayer, performed work on a long-term electrical construction contract for the National Tube Company during the years 1947, 1948, 1949, and 1950 on a basis of cost (subject to change order adjustments) plus a percentage fee based upon "estimated cost." Payment to petitioner was made periodically for material purchased and labor expense plus a portion of the fee.
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Petitioner, an accrual basis taxpayer, performed work on a long-term electrical construction contract for the National Tube Company during the years 1947, 1948, 1949, and 1950 on a basis of cost (subject to change order adjustments) plus a percentage fee based upon "estimated cost." Payment to petitioner was made periodically for material purchased and labor expense plus a portion of the fee. The balance of the fee (less penalty or plus bonus for "under" or "overestimation" of cost) became due upon completion of the work. Held, that portion of the base fee in the amount of $ 79,288.85…
1Opinion of the Court
The Dingle-Clark Company, Petitioner, v. Commissioner of Internal Revenue, Respondent
Dingle-Clark Co. v. Commissioner
Docket No. 51364
United States Tax Court
26 T.C. 782; 1956 U.S. Tax Ct. LEXIS 136;
June 29, 1956, Filed
Decision will be entered under Rule 50.
Petitioner, an accrual basis taxpayer, performed work on a long-term electrical construction contract for the National Tube Company during the years 1947, 1948, 1949, and 1950 on a basis of cost (subject to change order adjustments) plus a percentage fee based upon "estimated cost." Payment to petitioner was made periodically for material…
2Cases cited14 opinions
- Lucas v. American Code Co.Supreme Court of the United States · 1930
- Spring City Foundry Co. v. CommissionerSupreme Court of the United States · 1934
- Continental Tie & Lumber Co. v. United StatesSupreme Court of the United States · 1932
- United States v. Safety Car Heating & Lighting Co.Supreme Court of the United States · 1936
- Charles F. Dally and Sarafrancis Dally v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1955
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