CirTran completes compromise settlement with IRS
Feb 01, 2005
CirTran Corporation (OTCBB:CIRT) said it has completed a compromise settlement with the Internal Revenue Service, taking what it called "a major step forward" in restructuring its balance sheet.
Iehab J. Hawatmeh, founder, president and CEO of CirTran, an international full-service contract manufacturer of IT, consumer and consumer electronics products, said the agreed-to $500,000 was sent to the IRS "on-schedule and in accordance" with a the settlement reached late last year (see "CirTran's Offers in Compromise Accepted by the Internal Revenue Service," Business Wire, Nov. 22, 2004).
"CirTran has now satisfied all of its outstanding federal tax liabilities, thus taking a major step forward in restructuring our balance sheet," he said.
The IRS said it was owed $2.3 million by CirTran as of September 30, 2004, when the company began the appeals process. In November 2004, it notified CirTran that its offer in compromise had been accepted.
Concurrent with announcing its settlement with the IRS in November, CirTran also said it had reached agreement with Utah State Tax Commission, allowing it to pay its liability in equal monthly installments through December 2005. Mr. Hawatmeh said CirTran is "on-schedule " with these payments as well.
"The difficult times endured by the IT industry worldwide took their toll on CirTran as well," said Mr. Hawatmeh. "Now we see light at the end of the tunnel, and believe that all these problems will soon be behind us. CirTran had a strong second half of fiscal 2004 (see "CirTran Sites New Consumer Manufacturing Business for 'Dramatic Increases' in Q4 and 2004 Year-end Results," Business Wire, Jan. 14, 2004) and are about the progress made in the early days of 2005."