SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): December 17, 1996
CONTINENTAL AMERICAN TRANSPORTATION, INC.
Exact name of Registrant as specified in charter)
Colorado 0-18729 84-1089599
(State or other (Commission (IRS employee
jurisdiction of file number) identification
incorporation no.)
495 Lovers Lane Road, Calhoun, Georgia 30701
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(Address of principal executive office) Zip Code
Registration telephone number, including area code: (706) 629-8682
Item 5. Other Events.
On December 17, 1996, Registrant received written notice from
Transport Clearings, L.L.C. of St. Paul, Minnesota, one of its
lenders, that it was giving Carpet Transport, Inc.,
Registrant's subsidiary, a 30-day notice that it would cease
to continue its contract pursuant to which it advanced payment
on Carpet Transport, Inc.'s accounts receivable because of a
lien filed by the Internal Revenue Service against Carpet
Transport, Inc., a subsidiary of Registrant. Registrant's
management had been and continues to be in negotiations with
the Internal Revenue Service to remove the lien.
The subject lien was filed against Carpet Transport, Inc.
based upon corporate income tax liability arising out of
earnings generated during Carpet Transport, Inc.'s fiscal year
ended June 30, 1995. However, Carpet Transport, Inc.'s
corporate income tax return for the period July 1, 1995
through February 29, 1996, the short year immediately
preceding Registrant's acquisition of Carpet Transport, Inc.,
reflected a loss of almost $6.0 million. Accordingly,
Registrant has filed income tax refund claims for Carpet
Transport, Inc.'s fiscal years ended June 30, 1993, 1994 and
1995 which aggregate refund claims offset the approximate
$1,800,000 of income tax liability arising from the subject
fiscal year ended June 30, 1995.
The Internal Revenue Service has held in abeyance any
collection activity on the subject corporate income tax
liability pending further review. Registrant's management
believes that any attempt by the IRS to institute collection
is wholly unwarranted in veiw of the pending refund claims.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
CONTINENTAL AMERICAN TRANSPORTATION, INC.
By:s/Timothy Holstein
Timothy Holstein, President
Dated: December 30, 1996
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