RACMP Enterprises, Inc. v. Commissioner

114 T.C. No. 16

UNITED STATES TAX COURT RACMP ENTERPRISES, INC., Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No. 23954-97. Filed March 30, 2000. P is a construction contractor that enters into contracts to construct, place, and finish concrete foundations, driveways, and walkways for real property developers. P uses the cash method to recognize income and to expense the cost of concrete and other materials. R determined that the material P uses in providing service to its clients is "merchandise" under sec. 1.471-1, Income Tax Regs., and that P must report its income on…