IRS Says New Century May Owe $400M

Law360, New York (May 9, 2007, 12:00 AM EDT) -- Following New Century Financial Corp.’s fall into bankruptcy, the subprime lender faces investigations from regulators, U.S. attorneys and the New York Stock Exchange. Now the U.S. Internal Revenue Service may be jumping on the bandwagon.

At a meeting of New Century’s creditors on Tuesday, Mary Wright, an advisor from the IRS, claimed that the lender could owe the government $400 million, Dow Jones newswires reported. Wright said that New Century and its subsidiaries had not filed the proper tax forms, and that the IRS was conducting...
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