Wednesday, May 09, 2007

IRS Says New Century Owes $400M

From the Houston Chronicle:

WILMINGTON, Del. — Add the taxman to the list of government officials worried about the finances of New Century Financial Corp., the once-giant subprime mortgage lender that crashed into bankruptcy last month.

Mary Wright, an adviser with the Internal Revenue Service, said at a meeting of creditors Tuesday that New Century appears to owe the U.S. government at least $400 million. She said the Irvine, Calif., company and several of its subsidiaries hadn't filed corporate and payroll-tax returns.

She said the IRS is conducting an examination into the matter.

"We want to make sure we have accurate assessments," concerning New Century's liabilities, Wright said. The IRS has tried to get additional information from New Century, she said, but the company hasn't returned the agency's calls.

A New Century representative denied the company is behind on its taxes


Anonymous said...

New blog picks up the First NLC saga:

Rob Dawg said...

Oh hey. There's a great idea: IRS Ignore Mode.

Maybe they'll go away.

Anonymous said...

NEW YORK, May 6, 2007 /PRNewswire via COMTEX/ -- New Century Financial, the highest-profile casualty of the subprime lending meltdown to date, had an old-style bonus formula that may have fueled management's overstating of income and understating of risks for the subprime loans it was feeding into Wall Street's securitization machine, FinancialWeek reports in its May 7 issue.

The whole story is on