WORCESTER, Mass., March 30, 2011 /PRNewswire/ -- ThermoEnergy Corporation (OTC Bulletin Board: TMEN), a diversified technologies company engaged in the municipal and industrial wastewater treatment and power generation technologies, today announced that the IRS has accepted its offer to settle the Company's payroll tax obligations resulting in a $2.3 million gain recorded in the fourth quarter of 2010.
On March 25, 2011, the IRS accepted the Company's offer in compromise to pay all outstanding payroll taxes due between the third quarter of 2005 and the third quarter of 2009 totaling $2.1 million over 24 monthly installments of $89,000 beginning in January 2010, and abating approximately $2.3 million in penalties and interest due in exchange for the Company agreeing not to use net operating losses incurred in 2010 through 2012 of the same amount at some point in the future. As of the present time, the Company has already paid $1.3 million in monthly installments leaving a balance of approximately $800,000 which it plans to pay off by December 2011.
Mr. Cary Bullock, President and Chief Executive Officer of ThermoEnergy said, "We are very pleased that the IRS has accepted our settlement offer. This is a tremendous load off of the Company's shoulders. We thank the IRS for realizing that the past issues were caused by a single individual who is no longer with the Company and that the Company acted quickly and properly to rectify the situation once it was aware of the situation."
For additional details, please see our Form 8-K filed with the SEC today.
Founded in 1988, ThermoEnergy is a diversified technologies company engaged in the worldwide development, sales and commercialization of patented and/or proprietary municipal and industrial wastewater treatment and power generation technologies. Additional information on the Company and its technologies can be found on its website at www.thermoenergy.com.
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SOURCE ThermoEnergy Corporation