J.B. Hunt rejects inland revenue findings on sale/leaseback tax

J.B. Hunt rejects inland revenue findings on sale/leaseback tax    J.B. Hunt Transport Services, Inc., the Nasdaq-listed trucking and intermodal company, said that it rejects views on the tax treatment of sale/leaseback transactions in its accounts contained in a recent report by the U.S. Internal Revenue Service.
   The maximum tax correction at stake could be $39 million, according to estimates made by J.B. Hunt.
   On Dec. 15, J.B. Hunt received from the Internal Revenue Service a revenue agent’s report summarizing adjustments proposed by the IRS arising from its audit of the company’s 1999 and 1998 income tax returns. The IRS report mentioned the tax treatment of a portion of certain sale/leaseback transactions, which were executed at the end of 1999, and proposes to disallow the tax benefits associated with the transactions, J.B. Hunt reported.
   “We believe the transactions conform with applicable tax law and we intend to vigorously defend against the IRS position using all administrative and legal processes available,” the company said in a statement. The company has 30 days to appeal the IRS finding.