November 22, 2006
$11 million -- That's a Lot of Pancakes!
IHOP Corp. announced that it has agreed to pay the IRS $11 million in taxes and interest, to settle a dispute about the company's federal income taxes from 2000-2003. The dispute involved the company's treatment of certain franchise fee income. As a result of this agreement, IHOP will also restate its income for 2004 and 2005, generating an expected tax refund of about $3.1 million, and thereby reducing the net cash impact of the deal to approximately $7.9 million.
Posted by franchiselawblog at November 22, 2006 11:12 AM