IRS seeks validation of Le-Nature's $32.5 million federal tax claim

By Caroline Salls

Pittsburgh, Nov. 6 - The Internal Revenue Service has requested a summary judgment in connection with Le-Nature's, Inc.'s objection to the IRS' $32.5 million federal tax claim, according to a Tuesday filing with the U.S. Bankruptcy Court for the Western District of Pennsylvania.

According to the motion, the IRS' claim is based on returns Le-Nature's filed, as well as a subsequent examination.

The IRS said Le-Nature's Chapter 11 trustee cannot prove that the agency's claim is erroneous.

In addition, the IRS said Chapter 11 trustee R. Todd Neilson cannot show what the company's tax liabilities should be.

The motion said the trustee's amended income tax returns claim that Neilson is conducting an investigation, and the search for supporting documentation from third parties is ongoing.

"It is clear therefore that the trustee cannot substantiate his amended returns and debtors' tax liabilities," the IRS said in the motion.

A hearing is scheduled for Jan. 9.

Le-Nature's, a Latrobe, Pa., manufacturer of flavored bottled water and other beverages, had an involuntary Chapter 7 bankruptcy case filed against it on Nov. 1, 2006. The case was converted to Chapter 11 on Nov. 3, 2006. The case number is 06-25454.

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