Tenet Has Partial Tax Settlement

The company will pay the IRS $80 million.
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Tenet Healthcare

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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.