Taxation Law

The United States of America brought a civil action against Korea Times Los Angeles, Inc. (KTLA) in the U.S. District Court for the Central District of California, seeking to enforce a long-standing debt for unpaid corporate federal income taxes from the 2011 tax year. The Internal Revenue Service (IRS) had initially assessed the outstanding tax and penalties, which the government claimed had grown to $7,961,701 by late 2023. The lawsuit, initiated in December 2023, aimed to reduce the mounting debt into a formal, enforceable court judgment. After filing their answer, which generally denied the specific amounts owed, KTLA and the government entered into extensive negotiations. This process culminated in a Stipulation, a formal agreement presented to Judge John A. Kronstadt. The judge formally entered a judgment in May 2025 stating the defendant owed a final amount of $9,112,918.66, which included all accumulated interest and penalties. However, the agreement stipulated that if KTLA completed payment of the negotiated $4,250,000 settlement amount, the entire $9.1 million judgment would be considered fully satisfied, concluding the complex tax dispute.