L. E. Thompson, and Ruby Thompson v. Commissioner of Internal Revenue

WINTER, Circuit Judge:

The Tax Court decided that the amounts of $67,774.13 and $181,735.63, paid to L. E. Thompson in 1956 in settlement of his claims under his subcontract with Curtis Builders, Inc. (Curtis), which in turn had contracted to build two rocket launchers for the Department of the Navy, accrued and should have been included in the income reported jointly by him and Mrs. Thompson for the years 1953 and 1954. L. E. Thompson, 30 T.C.M. 1383, ¶ 71,321 P-H Memo TC (1971). We disagree, reverse, and remand for further proceedings.

I

The facts are fully stated in the Tax Court’s memorandum…