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Jan 2, 2008 7:11 pm US/Central
Northwest Airlines Slices Tax Bill By $380 Million
MINNEAPOLIS (AP) ―
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The IRS said in 2005 that Northwest owed $392 million in back taxes. (File)
CBS
Northwest Airlines did what a lot of taxpayers would like to do. It knocked $380 million off its tax bill.
The IRS said in 2005 that Northwest owed $392 million in back taxes. But bankruptcy court filings show Northwest got the IRS to settle for a $12.6 million claim in Northwest's bankruptcy.
Northwest has been settling the last of its bankruptcy claims since exiting Chapter 11 protection in May. Federal Bankruptcy Judge Allan Gropper has not yet ruled on the IRS settlement, although no one has objected.
Northwest says it doesn't want to talk about the settlement because it has not yet been heard by the judge. And he says discussions with the IRS are continuing.
IRS spokeswoman Carrie Resch declined to say why the agency settled for that amount, saying the IRS cannot comment on individual taxpayers.
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