AMREP makes announcement.NEW YORK--(BUSINESS WIRE)--Sept. 28, 1995--AMREP Corp. (NYSE NYSE See: New York Stock Exchange : AXR) today announced that the United States Tax Court The United States Tax Court is a Federal court of record established under Article I of the Constitution of the United States which specializes in adjudicating disputes over federal income tax assessments. has ruled in favor of the Internal Revenue Service in a case with another corporate taxpayer which addressed the same Internal Revenue Code The Internal Revenue Code is the body of law that codifies all federal tax laws, including income, estate, gift, excise, alcohol, tobacco, and employment taxes. These laws constitute title 26 of the U.S. Code (26 U.S.C.A. § 1 et seq. section and regulations as those involved in AMREP's dispute with the Internal Revenue Service. AMREP AMREP American Realty and Petroleum Corporation AMREP Aircraft/Missile Maintenance Compression Report AMREP Aircraft Missile Reporting System has previously reported that at issue with the IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. is an approximate $20 million deferred tax liability arising from the accounting for amounts related to the return of periodicals by its Kable News Company subsidiary which is presently recorded as such in the company's financial statements but which the IRS maintains is a current obligation along with interest thereon of approximately $17 million which has not been recorded. The company and its counsel believe the decision of the Tax Court to be erroneous. The Tax Court ruling can be appealed to the United States Court of Appeals The United States courts of appeals (or circuit courts) are the intermediate appellate courts of the United States federal court system. A court of appeals decides appeals from the district courts within its federal judicial circuit, and in some instances from other , and AMREP assumes it will be. The company and its counsel believed, and continue to believe, that the company's position is correct. The company intends to vigorously litigate the issue, assuming, as it does, that the IRS will pursue the matter against it. The company's counsel is of the view that, if the Tax Court ruling in the other corporation's case is reversed on appeal, the company most probably will prevail, but that, if the ruling is sustained, the chances of the company ultimately prevailing are not large. The company is exploring various potential sources of funds should the IRS prevail. The company is advised that it will be a number of months before any litigation between it and the IRS could commence. CONTACT: AMREP Corp. Mohan Vachani, 212/705-4700 or KCSA Herbert L. Corbin/Leslie A. Schupak 212/682-6300, ext. 200/207 |
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