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Home / Knowledge / News / Apparel/Garments / Tarrant Apparel enters into final settlement with IRS

Tarrant Apparel enters into final settlement with IRS

22
Mar '08

Tarrant Apparel Group announced that it has entered into a final settlement agreement and payment plan with the Internal Revenue Service (IRS) relating to certain audits that were previously conducted and disclosed for fiscal years 1996 through 2002.

Under the settlement, which totals $14 million, including interest and penalties, the Company will pay the IRS $4 million immediately, and an additional $250,000 per month until repayment in full.

“We believe this settlement with the IRS removes a significant amount of financial uncertainty for Tarrant Apparel and resolves an issue that has required significant management attention for the past several years,” said Patrick Chow, Tarrant Apparel's Chief Financial Officer.

“The settlement with the IRS is within amounts previously reserved for in our financial statements, and we therefore do not anticipate the settlement to result in any additional charges to income other than interest on the outstanding balance” continued Mr. Chow.

Tarrant Apparel Group

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