Legal Opinion

Sam W. Emerson Co. v. Commissioner

United States Tax Court

Decided March 12, 1962No. Docket No. 86754PublishedCited by 46 opinions

Since 1920 the petitioner, a corporation engaged in the construction business, has filed its returns and kept its books on a completed-contract method of accounting with respect to all of its long-term construction contracts. The long-term contracts were of various types, including "lump-sum," "unit price," "cost plus a percentage of cost with a guaranteed maximum," "cost plus a fixed fee," and "cost plus a percentage of cost" contracts.

Read the full summary

Since 1920 the petitioner, a corporation engaged in the construction business, has filed its returns and kept its books on a completed-contract method of accounting with respect to all of its long-term construction contracts. The long-term contracts were of various types, including "lump-sum," "unit price," "cost plus a percentage of cost with a guaranteed maximum," "cost plus a fixed fee," and "cost plus a percentage of cost" contracts. For the years 1955, 1956, and 1957 respondent determined that with regard to cost-plus contracts there was no valid basis for disregarding the annual…

1Opinion of the Court

Fax, Judge:

The respondent has determined deficiencies in petitioner’s income tax for the taxable years 1955, 1956, and 1957 in the amounts of $98,413.60, $107,864.82, and $241,445.42, respectively. The only issue for decision in this proceeding is whether petitioner was entitled to use the completed-contract method of reporting its income from certain “cost plus a percentage of cost” construction contracts.

FINDINGS OF FACT.

Some of the facts were stipulated and they are incorporated herein by this reference.

The petitioner is a corporation organized under the laws of the State of Ohio. Since…

2Cases cited7 opinions

  1. Brown v. HelveringSupreme Court of the United States · 1934
  2. Jud Plumbing & Heating, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1946
  3. L. A. Wells Constr. Co. v. CommissionerUnited States Board of Tax Appeals · 1942
  4. Bien v. CommissionerUnited States Tax Court · 1953
  5. Bent v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1932

2 more not listed; retrieve them via the Exa API.

3Cited by46 opinions

  1. Madison Gas & Electric Co. v. CommissionerUnited States Tax Court · 1979
  2. Coors v. CommissionerUnited States Tax Court · 1973
  3. Ft. Howard Paper Co. v. CommissionerUnited States Tax Court · 1967
  4. Capitol Fed. Sav. & Loan Ass'n v. CommissionerUnited States Tax Court · 1991
  5. Van Raden v. CommissionerUnited States Tax Court · 1979

41 more not listed; retrieve them via the Exa API.

Showing a preview — retrieve the full document via the Exa API.

Powered by the Exa API