Medical Transportation Management Corporation - Page 6

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          times and locations of passengers’ pickups and dropoffs.  The               
          drivers of the paratransit vehicles were not required to follow             
          any particular route in servicing a run.                                    
               For the 1998 and 1999 taxable years, petitioner Medical                
          Transportation Management Corp. (MTMC) claimed income tax credits           
          of $58,673 and $62,000, respectively, for excise taxes it paid on           
          gasoline.  For the same taxable years, petitioner Zuni                      
          Transportation, Inc. (Zuni), claimed income tax credits of                  
          $32,758 and $21,852, respectively.  On March 25, 2004, respondent           
          timely mailed separate notices of deficiency denying petitioners            
          the entire gasoline credit amount, and provided the following               
          identical explanation:                                                      
               It is determined that you do not meet the requirements                 
               for the fuel credit for gasoline under section 6421(a)                 
               of the Internal Revenue Code because you did not                       
               operate qualified buses on scheduled or fixed routes,                  
               and the buses were not available to the general public.                
               Petitioners filed separate petitions with this Court seeking           
          a redetermination.  In their respective petitions, petitioners              
          asserted that they met all of the requirements set forth in                 
          section 6421(b) and therefore were entitled to the income tax               
          credit under section 34(a).                                                 
                                     Discussion                                       
          I.   Background on Section 34 Credit                                        
               Section 34 provides a credit against tax for the amount of             
          excise taxes included in the price of gasoline to the ultimate              






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