Medical Transportation Management Corporation - Page 1

                                   127 T.C. No. 7                                     

                               UNITED STATES TAX COURT                                

            MEDICAL TRANSPORTATION MANAGEMENT CORPORATION, Petitioner v.              
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      
                      ZUNI TRANSPORTATION, INC., Petitioner v.                        
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      

               Docket Nos. 10699-04, 10700-04.   Filed September 19, 2006.            

                    Ps operated paratransit services during the                       
               taxable years in question.  Ps used sedans and vans to                 
               provide transportation to their clients.  Ps’ service                  
               was exclusively provided to disabled persons.  The                     
               routes Ps’ drivers traveled were determined with                       
               respect to daily manifests generated every evening that                
               accommodated the transportation needs of their clients.                
               Ps claimed a credit under sec. 34, I.R.C., for gasoline                
               taxes paid under sec. 4081, I.R.C.  R asserted                         
               deficiencies denying them the sec. 34, I.R.C. credit.                  
               R denied the credit because according to R’s notice of                 
               deficiency, Ps’ service did not meet the requirements                  
               under sec. 6421, I.R.C., which sec. 34, I.R.C. cross-                  
               references.  In order to qualify for the credit, Ps                    
               must demonstrate under sec. 6421, I.R.C., that (1) Ps                  
               provided transportation in an “automobile bus”, (2) Ps’                
               transportation was available to the general public, and                
               (3) Ps’ transportation was scheduled along regular                     

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