Lehman's $198.67 million tax settlement with IRS approved by court

By Lisa Kerner

Charlotte, N.C., April 14 - Lehman Brothers Holdings, Inc.'s tax refund dispute settlement with the Internal Revenue Service was approved by the U.S. Bankruptcy Court for the Southern District of New York at a hearing on Wednesday, according to an attorney close to the case.

As previously reported, Lehman will recover $125.67 million, or 63%, of the $198.67 million covered under the settlement.

Lehman said it claimed a refund from the IRS for taxes, penalties and deficiency interest it paid related to eight disputed tax issues reported on its 1997 through 2000 consolidated income tax returns, seven of which are also disputed in tax years from 2001 through 2008.

The company said it had paid $374.09 million in disputed taxes and penalties and $227.49 million in deficiency interest.

New York-based Lehman Brothers Holdings was the fourth-largest investment bank in the United States. The company filed for bankruptcy on Sept. 15, 2008. Its Chapter 11 case number is 08-13555.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.