Cooper Communities, Inc. and Subsidiaries v. United States

MEMORANDUM OPINION

H. FRANKLIN WATERS, Chief Judge.

This is a suit for the refund of federal income taxes alleged to have been overpaid for the tax years 1979 and 1980. The overpayment was the result of a ruling of the Internal Revenue Service disallowing the deduction, as an accrued expense, of the commission expenses associated with the sale of lots.

Cooper Communities, Inc. (hereinafter CCI), is an accrual basis taxpayer with the exception of utilizing the installment method of reporting income from the sale of residential lots. CCI’s fiscal year ends in September. For the taxable years in…