- 3 -
RUWE, Judge: Respondent determined a deficiency in Archie
L. and Louise B. Honbarrier’s Federal income tax for 1993 in the
amount of $2,090,149. Respondent determined a deficiency in
Colonial Motor Freight Line, Inc.’s (Colonial) Federal income tax
for 1993 in the amount of $27,374.
The sole issue for decision is whether the merger of
Colonial into Central Transport, Inc. (Central), on December 31,
1993, qualifies as a tax-free reorganization within the meaning
of section 368(a)(1)(A).1
FINDINGS OF FACT
Some of the facts have been stipulated and are so found.
The stipulation of facts, first supplemental stipulation of
facts, and the attached exhibits are incorporated herein by this
reference. Mr. and Mrs. Honbarrier resided in High Point, North
Carolina, at the time they filed their petition. At the time
Central filed its petition as successor to Colonial, its
principal place of business was High Point, North Carolina.
Colonial
Colonial was incorporated in 1941. Colonial was a trucking
company that operated as a common carrier of packaged freight.
The company principally transported furniture manufactured in
1Unless otherwise indicated, all section references are to
the Internal Revenue Code and income tax regulations in effect
for the year in issue, and all Rule references are to the Tax
Court Rules of Practice and Procedure.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011