The Internal Revenue Service has agreed to an offer presented by ThermoEnergy Corporation of Massachusetts to settle tax requirements on its payroll that led to a $2.3 million gain. The multimillion-dollar gain was recorded during the fourth quarter of 2010.
ThermoEnergy Corporation is a diversified technology company involved in finding solutions to air and water pollution issues. The company confirmed that the IRS accepted a compromise offer to pay all unpaid payroll taxes that should have been paid between the third quarter of 2005 and the third quarter of 2009. The total amount of taxes owed is $2.1 million, and it is to be paid in monthly installments. The Massachusetts-based company has organized a pay schedule that consists of 24 monthly installments in the amount of $89,000.
According to the company's president and chief executive officer, the company is happy that an appropriate settlement with the IRS could be agreed upon. He also announced that the settlement relieves the company of a significant burden. "We thank the IRS for realizing that the past issues were caused by a single individual who is no longer with the company..." he said. In the same statement, he thanked the IRS for recognizing that his company took swift action to mend the situation.
The settlement will abate about $2.3 million worth of interest and penalties. In exchange, the company has agreed to refrain from using its net operating losses of the same amount acquired between the years of 2010 and 2012. ThermoEnergy has begun paying back the money it owes and plans to have the balance paid in full by December of 2011.
Source: Citybizlist Boston, "ThermoEnergy Settles IRS Obligations," 30 March 2011