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Spring 1999
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General Automation Inc. has announced that it has reached an agreement with the US Internal Revenue Service that closes a two-year long IRS tax audit.
The company's Form 10-K filing for the year ended September 30, 1998, had reported a potential tax liability of $250,000 as a result of the tax audit.
This agreement eliminates the potential liability and allows the company to file for refunds in prior years.
The audit, which had challenged the amount of Net Operating Loss Carry Forward (NOL) that General Automation could use to offset future earnings for tax reporting purposes, arose as a result of a technicality in IRS Regulations that affected the company's finances, beginning in 1994. The compromise with the IRS on this issue is important since it impacts future operating results of the company and represents a substantial financial settlement beneficial to General Automation.
"We believe the agreement is fair to both the IRS and GA," said Richard Nance, vice president and chief financial officer. "We are very pleased with the way the IRS handled this issue, and we appreciate the assistance from tax partners at McGladrey & Pullen LLP, who advised the company on this matter."
GA Mentor LimitedLast Updated: 30 June 1999