Von Euw & L.J. Nunes Trucking, Inc. - Page 5

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               Petitioner owns 20 hauling trucks which it uses to transport           
          the sand and gravel.  If petitioner’s customers order amounts of            
          sand and gravel exceeding petitioner’s transportation                       
          capabilities, petitioner hires third parties to meet customer               
               On the delivery date, petitioner’s employees travel to the             
          supplier’s storage site, load the sand and gravel purchased onto            
          petitioner’s trucks, and transport the sand and gravel to the               
          customer’s construction site.5  As to the Byron sand, once                  
          petitioner’s employees load it onto petitioner’s trucks and                 
          Unimin creates a “weighmaster certificate”, Unimin considers the            
          Byron sand to be petitioner’s property.  Because petitioner                 
          acquires and delivers the sand and gravel to its customers during           
          the same business day, petitioner does not possess any sand and             
          gravel at the beginning or end of its business day.                         
               On petitioner’s 1994 Federal corporate income tax return               
          (1994 tax return), petitioner described its business activity as            
          “sales” and its product as “construction materials”.  Petitioner            
          maintained its books and records on the accrual method of                   
          accounting and reported its income for Federal tax purposes on              
          the cash method.  On its 1994 tax return, petitioner reported               
          gross receipts of $3,483,206 and cost of goods sold of                      

               5  Petitioner’s employees perform similar tasks for                    
          customers who only request petitioner to transport (and not                 
          acquire) sand and gravel.                                                   

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Last modified: May 25, 2011