Tarrant Reaches Settlement With IRS

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Tarrant Apparel Group said Wednesday that it has reached a settlement and payment plan with the Internal Revenue Service relating to audits for fiscal years 1996 through 2002.


Under the settlement, the Los Angeles-based apparel company will owe $14 million, of which $4 million is due immediately, with an additional $250,000 per month until fully repaid, the company said in a statement.


“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,” Patrick Chow, Tarrant Apparel’s chief financial officer said. “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.”


Gary Nash, a spokesman for Tarrant, said that there is no additional comment outside of the press release.


Shares in Tarrant were down 1.7 percent to 59 cents in early trading Wednesday on the Nasdaq.

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