IRS: New Century Owes $400 Million

An adviser with the service reportedly told creditors that the company and several of its subsidiaries hadn't filed corporate and payroll-tax returns.
Stephen TaubMay 9, 2007

New Century Financial Corp., the crumbling subprime mortgage lender, owes the U.S. government at least $400 million in taxes, according to the Associated Press,

Mary Wright, an adviser with the Internal Revenue Service, told New Century creditors at a meeting on Tuesday that the company and several of its subsidiaries hadn’t filed corporate and payroll-tax returns and that her agency is looking into the matter, the wire service reported.

“We want to make sure we have accurate assessments” concerning New Century’s liabilities, Wright reportedly said, adding that the company would not return her agency’s phone calls.

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Holly Etlin, New Century’s crisis-management consultant, however, told the wire service that she offered to put Wright in touch with Michael Tinsley, the company’s interim controller. Tinsley and Etlin work for the restructuring firm AP Services LLC, the AP reported.