Raybestos Manhattan, Inc. v. United States

Section 404 of the Internal Revenue Code allows a taxpayer-employer to deduct contributions to certain employee retirement, pension, and profit-sharing plans in "the taxable year when paid.” See I.R.C. § 404(a). For such taxpayers on the accrual method section 404(a)(6) provides a grace period, allowing the taxpayer to deduct contributions made after the tax year “if the payment is on account of such taxable year and is made not later than the time prescribed by law for filing the return for such taxable year (including extensions thereof).”1 Plaintiff Raybestos Manhattan, Inc. is an accrual…