Crop Care Applicators, Inc. - Page 5

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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               
               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           

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Last modified: May 25, 2011