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was responsible for arranging and contracting for the application
of pesticides. Mr. Duncan never requested information on the
amount of fuel used by the pesticide applicators with whom he
contracted.
Petitioner filed Forms 4136, Credit for Federal Tax Paid on
Fuels, with its 1995, 1996, and 1997 Forms 1120, U.S. Corporation
Income Tax Returns. Petitioner, however, did not secure formal
waivers of the fuel tax credits from its customers before filing
its returns. In the notice of deficiency, respondent determined
that petitioner was not entitled to credits for Federal tax on
fuels for the years in issue because petitioner failed to obtain
these waivers.
After receiving respondent’s notice of deficiency for the
1995, 1996, and 1997 taxable years, petitioner obtained a waiver
from Sunworld International relinquishing its rights to claim any
credit or payment for gasoline used by petitioner during the
years in issue and stating that it has not claimed any credits or
payments for that gasoline. After petitioning the Court for a
redetermination of the deficiencies, petitioner obtained
additional waivers from four other customers. The five waivers
obtained by petitioner together relate to approximately 70
percent of petitioner’s gross revenue during each of the years in
issue.
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