Magazine publisher Meredith sues IRS for $12 million refund
DES MOINES, Iowa (AP) — Magazine publisher Meredith Corp. is suing the federal government claiming the Internal Revenue Service forced it to overpay its income taxes by $12 million.
The publisher of Better Homes & Gardens and Martha Stewart Living asked the court to order a refund in a lawsuit filed Monday in federal court in Des Moines, where the company is headquartered.
The lawsuit says Meredith historically has claimed a deduction on income derived from production of its magazines and books. Last year the IRS disallowed the deduction and ordered payment of additional taxes for 2006 through 2012 saying Meredith didn’t maintain ownership of the publications while they were running through the contract printers’ presses.
Meredith says that’s a misinterpretation of the law.
An IRS spokesman says he can’t comment on individual taxpayer cases.