The Transportation Services Index for freight decreased 0.9 points in January to 119.8 from December’s record high of 120.9, the Bureau of Transportation Statistics reported. The January 2004 index, however, was 2.3 points higher than the January 2003 level. The overall TSI for January reached its highest level in the 14 years covered on the strength of the TSI passenger index.
Internal Revenue Service, following a string of recent convictions and court rulings involving employment tax schemes, alerted business owners last month to be wary of eight types of tax schemes or practices in which federal employment taxes are not properly withheld or paid by employers from their employees’ paychecks. For more information, visit www.irs.gov and search for IR-2004-47.
Congress enacted legislation increasing lending authority for the Small Business Administration’s 7(a) loan program by more than $3 billion and raised the $750,000 cap on 7(a) loans to the previous $2 million. The new law also gives lenders the option to make SBA Express loans of up to $2 million, and it once again allows piggyback loans.
IRS reported that in the past year, the U.S. Tax Court imposed nearly $136,000 in penalties on 23 taxpayers for pursuing frivolous cases in an effort to delay tax collections. Penalties are higher than in the past. From 2001 through March 2003, the court imposed $126,000 in penalties on 38 taxpayers. Taxpayers who misuse their right to a court review face up to $25,000 in fines.
First Quarter Operating Income
ABF Freight System
$8.3 million, down 15.9 percent from the first quarter 2003.
Con-Way Transportation Services
$51.1 million, up 37 percent
Covenant Transport
$3.06 million, down 13 percent from the first quarter 2003.
