By: Editorial Staff
THE INTERNAL REVENUE Service is asking Cox Enterprises and two members of the family that owns the Atlanta-based media company to pay additional taxes totaling $33 million.
Sisters Anne Cox Chambers and Barbara Cox Anthony are contesting IRS claims they owe an additional $4 million each.
The company, which owns the Atlanta Journal and Constitution, WSB radio and television and other properties, has been asked to pay an additional $25 million. The company also is contesting the tax claim.
The dispute was detailed in the Atlanta Business Chronicle, which obtained copies of the various petitions and counterpetitions filed in U.S. Tax Court in Washington.
The issue centers on payments Cox Enterprises made to the sisters’ children and grandchildren, the newspaper reported Jan. 10. The heirs are to eventually repay Cox in company stock they will inherit. The IRS claims that the company’s payments to family members should be recognized as income to the sisters themselves.
The IRS also is challenging various tax deductions Cox Enterprises has taken over the years.
?(AP/J. Scott Applewhite) [Caption]
?(President Clinton gestures in a meeting Jan. 13 at the White House with Louis D. Boccardi, president/CEO of the Associated Press, left, and Donald E. Newhouse, AP chairman and president of Newhouse Newspapers. The meeting, including first dog Buddy, coincides with yearlong events celebrating AP’s 150th birthday.) [Caption]
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?(copyright: Editor & Publisher January 24,1998) [Caption]