- 4 -
North Carolina. Colonial hauled freight in conventional van
trailers pulled by highway tractors.
Colonial held an operating authority granted by the
Interstate Commerce Commission (ICC) and an operating authority
granted by the State of North Carolina. These authorities
granted Colonial contract and common carrier status between
specified points and places within the United States and North
Carolina for the transportation of packaged freight.
When the trucking industry was deregulated at the Federal
level in the 1980's, Colonial was subjected to competition from
small individual truckers, with low overhead costs. As a result,
Colonial’s ICC operating authority became worthless, and the
company experienced significant business reversals.
Colonial operated at a loss in the late 1980's. On its
Federal income tax returns2 for 1987 and 1988, Colonial reported
ordinary losses from trade or business activities as follows:
Year Loss
1987 $1,291,408
1988 2,245,186
Total 3,536,594
In 1988, as a result of its financial losses, Colonial
stopped hauling freight and began selling its operating assets.
By December 31, 1990, Colonial had sold all of its operating
2Colonial elected S corporation status in 1985. At the end
of 1992, Colonial’s S corporation status was terminated pursuant
to sec. 1362(d)(3). Colonial was a C corporation in 1993.
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