Ehret-Day Co. v. Commissioner

OPINION.

Tyson, Judge:

The first question presented is whether the income from the two construction contracts described in the findings of fact should be taxed as part of the petitioner’s income for the year 1938. Article 42-4 of Regulations 101, promulgated under the Revenue Act of 1938, permits the reporting of income from long term contracts “for the taxable year in which the contract is finally completed and accepted if the taxpayer elects as a consistent practice so to treat such income, provided such method clearly reflects the net income.” The provisions of that article, which have been…