In a SEC filing last Monday, IDT disclosed that the IRS had sent a notice that they finalized their audit and have found that IDT owes about 76 million (not including interest). While this may sound like a lot of money, it is actually much less than IDT anticipated. In fact it was about 56 million less, with IDT having stated that they had established a reserve of about 132 million for this purpose.
What does all this mean you ask... Well it means that since IDT had already put aside this money they have just found themselves a nice cash reserve of about 50 million or so (remember they still have to calculate the interest). This is a huge win for the company and most likely should help their business out (50 million could help anybody out!).
Monday, July 07, 2008
IDT Seems To Have Closure On Their Outstanding IRS Tax Issue
Writer: Phone Card Advertising:
Labels: IDT
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1 comment:
They should have had all their third party distributors sign resale certificates, before issue them a contract to sell their prepaid cards. They would have avoid having to pay for millions in tax debt, in the first place.
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