Transp. Labor Contract/Leasing, Inc. v. Comm'r
United States Tax Court
P's wholly owned subsidiary S made payments to certain truck drivers whom S leased to certain trucking companies. S intended such payments to cover food and beverages expenses that such truck drivers paid while traveling away from home. Held, the parties' respective positions as to the import of Beech Trucking Co. v. Comm'r, 118 T.C. 428 (2002), rejected.
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P's wholly owned subsidiary S made payments to certain truck drivers whom S leased to certain trucking companies. S intended such payments to cover food and beverages expenses that such truck drivers paid while traveling away from home. Held, the parties' respective positions as to the import of Beech Trucking Co. v. Comm'r, 118 T.C. 428 (2002), rejected. Held, further, on the facts presented, S is the common law employer of the truck drivers to whom it made the payments at issue. Held, further, the limitation imposed by sec. 274(n)(1) applies to those payments.
1Opinion of the Court
Chiechi, Judge:
Respondent determined the following deficiencies in petitioner’s Federal income tax (tax):
TYEAug. 31 Deficiency
1993 . $330,320
1994 . 28,346
1995 . 1,694,076
1996 . 1,978,282
In an amendment to answer, respondent alleged increases of $460,999, $473,305, and $286,223 in the deficiencies in tax for petitioner’s taxable years ended August 31, 1994, August 31, 1995, and August 31, 1996, respectively, as a result of respondent’s disallowance of a net operating loss (nol) carryback to each such taxable year that petitioner claimed from its taxable year ended August 31, 1997.1
The issue…
2Cases cited21 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- New Hampshire v. MaineSupreme Court of the United States · 2001
- Nationwide Mutual Insurance v. DardenSupreme Court of the United States · 1992
- Tokarski v. CommissionerUnited States Tax Court · 1986
- Gladys T. Geiger v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1971
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3Cited by4 opinions
- Transport Labor Contract/leasing, Inc. & Subsidiaries v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 2006
- Transp. Labor Contract/Leasing, Inc. v. Comm'rUnited States Tax Court · 2004
- Transport Labor Contract/Leasing, Inc. & Subsidiaries v. CommissionerUnited States Tax Court · 2004
- Transport Labor v. CIRCourt of Appeals for the Eighth Circuit · 2006