US Government Secures $4.25 Million Deal in Tax Debt Case
Table of Contents
Case Background
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. The government initiated the lawsuit in December 2023 to secure a judicial declaration and enforcement of a long-standing debt. The core of the matter involved corporate federal income taxes that the Los Angeles-based media company had originally failed to pay over a decade prior.
The lawsuit represented the government’s formal attempt to reduce years of unpaid taxes, along with the accumulated interest and penalties, into a single, enforceable Court order. This process became necessary because the government sought to establish a definitive claim against the Defendant’s assets to ensure the payment of the overdue tax bill.
Cause
The root of the legal challenge stemmed from the Defendant’s failure to fully pay its corporate federal income tax liabilities, specifically those reported on Form 1120 for the 2011 tax year. After the tax year ended, the Internal Revenue Service (IRS) had completed the required review, formally calculating and recording the tax and penalty amounts the company owed. The IRS had issued timely notices and demands for payment, but despite these repeated official communications, KTLA had not satisfied the debt, leading to the escalating balances that the government pursued in the federal Court.
Injury
The primary injury belonged to the United States Treasury, which lost the revenue necessary to fund federal programs and operations. The government argued that the Defendant's p
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