reached a partial settlement with the Internal Revenue Service in which the company will pay $80 million in taxes and interest in the fourth quarter following audits of its tax returns from 1995 to 1997.
The settlement, announced Wednesday, relates to the deductibility of a portion of a civil settlement the company paid to the federal government in 1994 and the amount of tax-depreciation expenses claimed during those fiscal years for certain capital expenditures.
Tenet doesn't expect the settlement to have a material impact on income from continuing operations or discontinued operations after accounting for the impact of the deferred tax-valuation allowance.
One matter with the IRS remains unresolved. The issue is associated with the timing of the deductibility of contributions to Tenet's health and welfare-benefit plans. The company expects to settle the issue with a payment of at most $5 million.
Shares of Tenet closed 12 cents higher Tuesday at $7.