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Liberty House
Star-Bulletin staff
parent settles part
of IRS tax claim
Liberty House parent JMB Realty Corp. will pay a reduced $4.2 million tax claim to the Internal Revenue Service, answering a major tax question that has stalled the Liberty House bankruptcy since last year.
The IRS last week filed an amended claim in U.S. Bankruptcy Court, cutting its original bill from about $103 million to $4.2 million for 1992 through 1994.
The actual liability to Liberty House, then a member of a consolidated group whose taxes were paid by JMB affiliate Northbrook Corp., is expected to be about $500,000, attorneys in the case say. But even though the tax logjam has been unclogged, another IRS claim totaling about $35 million for the years 1995 through 1996 still remains.
JMB believes its tax payments for those years are in order. The IRS recently began an audit of Northbrook’s taxes, a process that could take several years.
JMB says it is working closely with the IRS to resolve the dispute as soon as possible.
