Washington (May 20, 2003) -- The Senate-approved economic growth package includes a measure introduced by Sen. Chuck Grassley, chairman of the Committee on Finance, which would prevent companies from seeking tax refunds based on overstated earnings. Final passage of the economic growth bill last week means Grassley's measure will be included in the deliberations as the Conference Committee convenes later this month.
The Wall Street Journal reported earlier this month that MCI and the Enron Corp. are in the process of collecting or filing for tax refunds or credits from the Internal Revenue Service because of tax payments on billions of dollars they falsely claimed to have earned. Qwest Communications International Inc., which plans to restate $2.2 billion in revenue, also is likely to seek a refund, the newspaper reported. HealthSouth Corp,. accused of overstating its earnings by more than $2 billion, said it is considering a refund.
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