Overlakes Corp. v. Commissioner
United States Tax Court
1. Held, petitioner is not entitled to a deduction of $ 750,000 in 1952 for purposes of creating a reserve account in anticipation of a refund it may have to make under a Government contract since the liability is (1) contingent and not accruable, and (2) subject to a statutory scheme of mitigation under section 3806, I.R.C. 1939. 2. Held, further, section 3806 is applicable and provides for the computation of a tax credit to which petitioner is entitled, which credit is…
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1. Held, petitioner is not entitled to a deduction of $ 750,000 in 1952 for purposes of creating a reserve account in anticipation of a refund it may have to make under a Government contract since the liability is (1) contingent and not accruable, and (2) subject to a statutory scheme of mitigation under section 3806, I.R.C. 1939. 2. Held, further, section 3806 is applicable and provides for the computation of a tax credit to which petitioner is entitled, which credit is treated as an "overpayment" for the year in issue and should be so treated here in a computation under Rule 50. 3. Held,…
1Opinion of the Court
OPINION
Black, Judge:
Petitioner manufactured and sold Signal Corps field wire to a contracting agency of the Federal Government under two contracts, both of which were subject to price redeterminations with the contracting agency. Under the first contract, No. 8375, deliveries were made in 1951 and 1952 and proceeds were accrued in 1951 and 1952 by Overlakes. Deliveries under the second contract, No. 2704, were made in 1952 and 1953 and proceeds were also accrued by Overlakes in those years, the taxpayer being on the accrual system of accounting.
The price of wire under both contracts was later…
2Cases cited6 opinions
- United States v. AndersonSupreme Court of the United States · 1926
- Brown v. HelveringSupreme Court of the United States · 1934
- Sullenger v. CommissionerUnited States Tax Court · 1948
- Willis v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1932
- Standard Roofing & Material Co. v. United StatesCourt of Appeals for the Tenth Circuit · 1952
1 more not listed; retrieve them via the Exa API.
3Cited by14 opinions
- Krueger v. CommissionerUnited States Tax Court · 1967
- Poirier & McLane Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1976
- The Overlakes Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1965
- Gar Wood Industries, Inc. v. United StatesCourt of Appeals for the Sixth Circuit · 1971
- Martin-Marietta Corporation v. The United StatesUnited States Court of Claims · 1969
9 more not listed; retrieve them via the Exa API.