Cannon to Appeal $6 Million IRS Claim
by March 4, 2002 12:00 am 74 views
The Internal Revenue Service has notified Springdale’s Cannon Express Inc. that the truckload carrier owes $6 million in back taxes. It is appealing the decision.
Cannon Express revealed the IRS action in its a quarterly report filled with additional bad news, including a $2.5 million net loss and a cautionary note that raised “substantial doubt about the ability of the company to continue as a going concern.”
CEO Dean Cannon said the note did not warrant concern.
“I wouldn’t make any more assumption out of it than it is,” he said.
Cannon also downplayed the IRS bill, which covers 1994-1999, calling it totally unfounded.
Cannon said that since it did not derive revenue from the arrangement, Cannon Express should not have to pay the tax.
“There’s one [IRS agent] out of the whole nation that believes differently,” Cannon said.
Cannon Express has reported lower revenue than the previous year for three year.