Korea Times Los Angeles has been sued by the U.S. government for owing nearly $8 million in federal taxes.
The U.S. Attorney’s Tax Division filed a lawsuit against the Los Angeles-based Korean language news company in the U.S. District Court for the Central District of California on December 11 to pursue payment of the back taxes, Bloomberg reported.
The complaint cites that the newspaper failed to pay its 2011 income taxes and is due a total of about $7.96 million, including the principal, interest, fees, penalties, and collection costs, according to Bloomberg.
The U.S. government, the plaintiff, said in the complaint that the lawsuit was a joint effort between the U.S. Attorney’s Office, the Internal Revenue Service (IRS), and the Treasury Department.
It is speculated that the authorities decided to pursue the case after they were unable to come to a settlement with the defendant on the amount and schedule of payment in arrears.
The plaintiff noted that the IRS confirmed the overdue taxes by reviewing Korea Times’ income tax payment history as of November 19, 2012. It is believed that the IRS has been urging the defendants to comply with the overdue tax payments until recently.
The original 10-year statute of limitations was extended by 422 days following the taxpayer’s request for a hearing and mediation, according to the complaint.
As of November 14 this year, the company’s income tax liability totaled $7,961,701, and this sum could be revised upward if the payment is delayed, said the plaintiff in the complaint requesting the court’s prompt decision.
Korea Times Los Angeles has 21 days to respond to the lawsuit.
The company did not immediately comment on the allegations.
BY BRIAN CHOI, HOONSIK WOO [ichoi@koreadaily.com]
