National Builders, Inc. v. Commissioner
United States Tax Court
Petitioner was a member of a joint venture which in 1942 and 1943, under a contract with the Government, constructed buildings at an Army base. Although the contract was substantially completed by the joint venture and its work accepted prior to the close of its first fiscal year on March 31, 1943, final payment of $ 362,778.33 was frozen by the Government pending renegotiation of the profits realized on the contract.
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Petitioner was a member of a joint venture which in 1942 and 1943, under a contract with the Government, constructed buildings at an Army base. Although the contract was substantially completed by the joint venture and its work accepted prior to the close of its first fiscal year on March 31, 1943, final payment of $ 362,778.33 was frozen by the Government pending renegotiation of the profits realized on the contract. The $ 362,778.33 was paid to the joint venture on August 16, 1943, and the joint venture, which was on the cash receipts and disbursements basis, reported that amount as income…
1Opinion of the Court
OPINION.
Arundell, Judge:
Respondent has reallocated contract costs of the joint venture of which petitioner was a member for the fiscal years ended March 31, 1943 and 1944, in direct proportion to its contract receipts in those years. In so doing, respondent relies upon the provisions of sections 41, 42, and 43 of the Internal Revenue Code and claims that the system used by him more clearly reflects the true income of the joint venture and the petitioner’s distributable share thereof.
The joint venture kept its books and filed its Federal income tax returns on the cash receipts and…
2Cases cited2 opinions
- Burnet v. Sanford & Brooks Co.Supreme Court of the United States · 1931
- Security Flour Mills Co. v. CommissionerSupreme Court of the United States · 1944
3Cited by6 opinions
- RACMP Enters. v. CommissionerUnited States Tax Court · 2000
- Albert & J. M. Anderson Manufacturing Co. v. United StatesUnited States Court of Claims · 1956
- National Builders, Inc. v. CommissionerUnited States Tax Court · 1949
- National Builders, Inc. v. ReynoldsDistrict Court, D. Minnesota · 1954
- RACMP Enterprises, Inc. v. CommissionerUnited States Tax Court · 2000
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