Debt Collector Protests $192M IRS Deficiency Notice

Law360, Washington (October 30, 2014, 1:09 PM EDT) -- Consumer debt collector Portfolio Recovery Associates Inc. has asked the U.S. Tax Court to reverse an Internal Revenue Service finding that it owes $192.6 million in back taxes stemming from the defaulted consumer debt accounts it purchases, saying that the agency inappropriately recalculated its taxable income using different accounting methods.

Although PRA calculated its taxable income for tax years 2008 through 2012 using a cost recovery accounting method, the IRS told the company in a deficiency notice that it wasn't entitled to use that calculation, according...
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