Lacy Contracting Co. v. Commissioner
United States Tax Court
Bonuses paid by an accrual basis corporate petitioner to its controlling cash basis shareholder were not paid within the required 2 1/2-month period following the close of petitioner's taxable year. Further, the bonuses were not constructively received within said period. Held, all requirements of sec. 267(a)(2), I.R.C. 1954, being met the deductions for the bonuses in question are disallowed.
1Opinion of the Court
Steerett, Judge:
For the taxable years ended June 30, 1966, and June 30,1967, the respondent determined deficiencies in the petitioners' Federal income taxes of $3,371.56 and $1,226.84, respectively. Due to concessions by the petitioners the sole issue remaining for decision is whether the provisions of section 267 (a) (2) of the Internal Revenue Code of 19541 apply so as to prevent petitioner L. II. Lacy Co. from deducting bonuses which were accrued as of the close of its taxable year, June 30, but which were not paid until the following December.
FINDINGS OF FACT
Some of the facts were…
2Cases cited11 opinions
- E. J. Benes & Co. v. CommissionerUnited States Tax Court · 1964
- Geiger & Peters, Inc. v. CommissionerUnited States Tax Court · 1957
- Humacid Co. v. CommissionerUnited States Tax Court · 1964
- Platt Trailer Co. v. CommissionerUnited States Tax Court · 1955
- Hyland v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1949
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3Cited by11 opinions
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- Congleton v. CommissionerUnited States Tax Court · 1979
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