CirTran and IRS agree on federal tax liability

0 Comments | Deseret News (Salt Lake City), Nov 23, 2004 | by Deseret Morning News

Salt Lake-based contract electronics manufacturer CirTran Corp. said Monday its offer to compromise federal tax liability issues has been accepted by the Internal Revenue Service.

The IRS said the company owed about $2.3 million. A company appeal, resolved through an agreement with the IRS Appeals Office, will allow the company to file an offer in compromise for all liabilities based on the company's ability to pay.

Under the offer, CirTran is required to pay $500,000 no later than Feb. 3. Also, the Utah State Tax Commission has entered into an agreement to allow the company to pay the liability owing to the state of Utah in equal monthly installments of $4,000 over a two- year period running through December 2005.

The company also on Monday reported that its net loss for the quarter ended Sept. 30 was down 23.1 percent from the year-ago quarter, and that the loss from the first nine months of 2004 was down 22.2 percent over the prior-year period. The 2004 nine-month figure includes a $315,000 expense for acquisition and organizational costs for the start-up of the CirTran-Asia division.

Revenue for the quarter totaled $2.6 million, up 882 percent from a year ago. Revenue for the first nine months of 2004 was $5.2 million, up 448 percent from a year earlier.

The company's three core divisions are involved in electronics, cables and harnesses, and fitness equipment and household products. Its wholly owned subsidiaries are Racore Technology Corp. and CirTran- Asia.

The company's stock rose less than a penny Monday to close at 3 cents per share. During the past year, the price has ranged from 3 cents to 3.4 cents.