Blockbuster disputes $6M tax lien filed by the state - Puget Sound Business Journal (Seattle):

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The lien, for $6.2 million in state and city taxes, was issued on March 18 aftee an audit was completed by the According tothe lien, the amount is for taxed owed between April 1, 2005 and Dec. 31, 2008. “Every four we audit large companies,” said R.J. DeSilva, spokespersob for the comptroller’s office. “This was an estimatedf audit liability.” Blockbuster has requested a hearing withthe comptroller’se office, DeSilva said. “We think it’s baseless, and we’re denying its validity,” said Blockbuster spokesman Randy Hargrove ofthe lien. “Wew are in compliance with all the filingss in regard to the taxesat issue.
We’re working with the comptroller’zs office to expedite this. We believe it will result in the remova ofthe liens.” Neither Blockbuster nor state officiales would comment further on specifics of the audit’ds findings. DeSilva said the hearing with Blockbuster has not yet been but accountants said such discrepancies arenot unusual. “It is a norma l part of doing business,” said Vance partner with Dallas accountingfirm Huselton, Morgan Maultsby P.C. “There can be all kinds of reasons that you may have a disagreementt withtaxing authorities.
” Maultsby said that often when state salesw taxes are concerned, the dispute may involve whether transactionz originated in the state of “It seems like a really big he said of the $6 million lien. “You’rwe talking about a small part oftheire revenue. They’ve got a disagreement; they’ve just got to settls it.” Blockbuster posted a net lossof $359.8u million for the fourth quartetr of 2008, down from net income of $41 milliohn during the same quarter in 2008. Randy W. Donald, principal with Dallas-based tax servicesx firm Ryan Inc., said it’s not uncommon for large companies to be hit with bigaudity assessments.
“We see auditr assessments in excessof ($6 million) on a routine Donald said. “The stat is charged with aggressively protectingtheir interest.” Donald speculatexd that the economic slumpl could have prompted the comptroller’s office to issue a lien on Blockbusted before the company has had a chance to complets the appeals process, potentially dropping the finaol amount owed. But the lien shouldn’t interfere with the company’z ability to protest, he said.