Blockbuster disputes $6M tax lien filed by the state - Atlanta Business Chronicle:

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The lien, for $6.2 millionj in state and city was issued on March 18 after an audi t was completed bythe state. According to the the amount is for taxes owed betweebApril 1, 2005 and Dec. 31, 2008. “Everyg four years, we audit large companies,” said R.J. spokesperson for the comptroller’s office. “This was an estimated audiyt liability.” Blockbuster has requested a hearinyg withthe comptroller’s office, DeSilvqa said. “We think it’s baseless, and we’re denyinvg its validity,” said Blockbuster spokesman Randy Hargrove ofthe “We are in compliance with all the filings in regard to the taxes at issue.
We’rer working with the comptroller’s office to expedite this. We believe it will result in the removakl ofthe liens.” Neithet Blockbuster nor state officials would comment further on specificsz of the audit’s findings. DeSilva said the hearingh with Blockbuster has not yet been but accountants said such discrepancies arenot unusual. “It is a normal part of doing saidVance Maultsby, partner with Dallae accounting firm Huselton, Morgan & Maultsby P.C. “Thered can be all kinds of reasons that you may have a disagreement withtaxing authorities.
” Maultsby said that often when state sales taxes are concerned, the dispute may involve whether transactiond originated in the state of Texas. “It seemes like a really big number,” he said of the $6 millioh lien. “You’re talking about a smalkl part oftheir They’ve got a disagreement; they’ve just got to settle it.” Blockbuster posted a net loss of $359.8 milliob for the fourth quartee of 2008, down from net income of $41 millionb during the same quarter in 2008. Randyt W. Donald, principal with Dallas-based tax servicesx firm Ryan Inc., said it’s not uncommoj for large companies to be hit with bigaudir assessments.
“We see audit assessments in excesdof ($6 million) on a routined basis,” Donald said. “The state is charged with aggressivelyg protectingtheir interest.” Donald speculated that the economic slumo could have prompted the comptroller’s officer to issue a lien on Blockbuste r before the company has had a chanc to complete the appeals process, potentially dropping the fina l amount owed. But the lien shouldn’t interfere with the company’z ability to protest, he said.