The state of Alabama owes HealthSouth $886,000 in a tax refund, according to a ruling made today by the state supreme court. Source: WBRC videoBIRMINGHAM, AL (WBRC) -
The Alabama Supreme Court ruled today that the state owes HealthSouth some money.
HealthSouth was seeking a refund on taxes it paid between 1996 and 1998 because of fraudulent earnings reports.
It may seem hard to believe, but HealthSouth will be getting about $886,000 back from the state, and their successful argument boils down to this:
The company said it was making a lot more money than it actually was during those years in '96, '97, and '98, and because of that, it overpaid on state income tax.
But once those overstated earnings came to light in the federal corruption trials and SEC actions, the company asked the state to only charge it for the earnings it actually made, and refund the extra tax money with interest.
The Alabama Supreme Court ruling today says the company is entitled to the refund, but says the company recently changed its mind and agreed not to seek interest on that refund, a decision the state supreme court upheld.
HealthSouth released this statement to FOX6 News Wednesday afternoon: "We're pleased the court ruled in our favor, and we're still reviewing the opinion."
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