DeNaples Brothers Owe $4.6M to IRS, Ruled at Federal Tax Court, Pennsylvania
As ruled by Arthur L. Nims III, the senior federal tax department judge of Pennsylvania, Casino Owner Louis DeNaples and brother Dominick has to pay $2.3 million each to the Internal Revenue Service.
This Tuesday, the senior judge has confirmed the charges against the DeNaples Brothers for inability to pay their federal income tax returns since 2003 through 2005. It stems from the interest on the payments of $40.6M, which they received from the Pennsylvania Department of Transportation in 2001 as a settlement cost.
PennDOT was involved in a dispute with the former Mount Airy Casino owners after PennDOT seized away their 100 acres land for the construction of Casey Highway. According to a statement by the officials at PennDOT, the actual value of that land exceeded only $1million.
In spite of this, the owners set the land value at $375 million. However, the whole issue ended up in the court when the land owners were granted $237 million in order to compensate the loss and finally, PennDOT came to a settlement agreement according to which they paid $24.6M as the principal amount and $16.2M in interest.
The DeNaples Brothers did not pay their tax returns properly for three years, i.e. from 2003 to 2005. In 2008, the court had sent a notice to the DeNaples regarding the underpayments. However, the DeNaples strictly indicated the fact that certain percentage of the payments, which they received, totally falls under Tax Exemptions and should have been considered as immunity by the federal tax department of Pennsylvania.
However, the court completely disapproved their point. The senior judge wrote that the interest computations will be made from the date when the former Pennsylvania casino owners have received the payment from PennDOT till the date when they will pay their owed tax interests to the IRS.
Popularity: 5% [?]
This is default description text on Padangan Themes, of course you can change this text via you profile administration.