Marquardt Corp. v. Commissioner
United States Tax Court
1. In 1951, petitioner entered into a cost-plus-fixed-fee contract with Boeing. Article 6(c) of that contract authorized petitioner to expend sums and record fees in the total amount of $ 1,400,000. It was provided that Boeing, in its sole discretion, might subsequently increase the foregoing amount.
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1. In 1951, petitioner entered into a cost-plus-fixed-fee contract with Boeing. Article 6(c) of that contract authorized petitioner to expend sums and record fees in the total amount of $ 1,400,000. It was provided that Boeing, in its sole discretion, might subsequently increase the foregoing amount. As of December 31, 1953, Boeing had increased this amount to $ 6,750,000. Notwithstanding the foregoing limitation, petitioner expended sums and recorded fees in excess of the authorized figure. The contract provided that Boeing would not be obligated to pay petitioner, either for reimbursement…
1Opinion of the Court
Train, Judge:
Respondent determined deficiencies in petitioner’s income tax for the calendar years 1952 and 1953 in the amounts of $362,847.34 and $424,893.38, respectively, and overassessments for the calendar years 1951 and 1954 in the amounts of $9,809.81 and $369,568.46, respectively.
The issues for decision are as follows:(1) Whether petitioner was required to accrue amounts which it had no fixed or unconditional right to;(2) Whether petitioner changed its method of accounting for certain retainages; and(3) Whether respondent erred in including the amount of certain termination claims in…
2Cases cited26 opinions
- North American Oil Consolidated v. BurnetSupreme Court of the United States · 1932
- Lucas v. American Code Co.Supreme Court of the United States · 1930
- Burnet v. Sanford & Brooks Co.Supreme Court of the United States · 1931
- Spring City Foundry Co. v. CommissionerSupreme Court of the United States · 1934
- Brown v. HelveringSupreme Court of the United States · 1934
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3Cited by25 opinions
- Hamilton Industries, Inc. v. CommissionerUnited States Tax Court · 1991
- S. Garber, Inc. v. CommissionerUnited States Tax Court · 1969
- RLC Indus. Co. v. CommissionerUnited States Tax Court · 1992
- Schneider v. CommissionerUnited States Tax Court · 1975
- Dorr-Oliver, Inc. v. CommissionerUnited States Tax Court · 1963
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