Beech Trucking Company, Inc., Arthur Beech, Tax Matters Person - Page 23




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               As far as we can discern from the record, Beech Trucking               
          controlled the drivers’ activities, exercising discretion over              
          when and how long they worked.  Petitioner testified that Beech             
          Trucking drivers were dispatched out of Beech Trucking’s Little             
          Rock terminal; that Beech Trucking tried to keep all its 100 to             
          125 trucks manned so as to get “our drivers home most weekends”;            
          and that on a typical week, a Beech Trucking driver would leave             
          on a Sunday afternoon and “we would try to get him out as far as            
          we could in the early part of the week, and then start working              
          him back toward the house.”16  The record is silent as to any               
          control that ATS might have exercised over the Beech Trucking               
          drivers’ activities.                                                        
               ATS hired the drivers and provided them some orientation.              
          On its income tax returns for the years at issue, however, Beech            
          Trucking deducted (as part of “Other deductions”) a separate item           
          identified as “hiring cost–-drivers”, from which we infer that              
          Beech Trucking reimbursed ATS for the cost of hiring the Beech              
          Trucking drivers.  When ATS hired the Beech Trucking drivers,               
          they signed employment agreements wherein they agreed to be ATS             

               16 Most of the pertinent testimony regarding the Beech                 
          Trucking drivers’ activities came from petitioner.  As previously           
          noted, petitioner was both president of Beech Trucking and an               
          employee of ATS.  As reflected in the quotations in the text                
          above, his testimony often employed, ambiguously, first-person              
          plural pronouns.  On the basis of our careful review of                     
          petitioner’s testimony in the context of the entire record, we              
          conclude that the testimony described in the text is most                   
          reasonably understood to refer to petitioner’s activities as                
          president of Beech Trucking.                                                




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