Carrier may owe IRS millions; Hunt says it will fight decision

| Wednesday, December 24, 2003

Arkansas-based carrier J.B. Hunt may owe up to $39 million if the IRS wins a case now under way, the company said recently in a statement.

The case involves tax benefits that Hunt received as part of a sale and leaseback transaction in 1999. The IRS has sent a Notice of Proposed Assessment to the carrier indicating the agency wants to disallow those tax benefits.

Hunt says it intends to fight the IRS over the benefits. The carrier said if all were disallowed, the company would owe the government the full $39 million.

“We believe the transactions conform with applicable tax law,” Hunt said in a statement. “We intend to vigorously defend against the IRS position using all administrative and legal processes available.”

The company has 30 days to respond to the IRS and appeal the agency’s decision.

Hunt is a $2 billion-a-year carrier that operates more than 10,750 trucks and roughly 46,000 trailers.

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