CACI responds to 'erroneous' IRS tax liens
CACI International announced that it is providing information for its shareholders regarding "erroneous" federal tax liens against certain of its subsidiaries. In a statement,t he company said: "In August 2019, CACI learned that the IRS had filed tax liens against seven CACI subsidiaries related to the purported failure of these entities to pay certain employment-related taxes during 2018. After reviewing the matter internally, CACI is providing our shareholders with facts regarding these federal tax liens and confirming that the tax liens are the result of administrative errors and that CACI and each of our subsidiaries have paid all taxes in a timely manner. In 2017, CACI reorganized internally, resulting in the transfer of employees in several CACI subsidiaries to CACI, Inc. - Federal. As a result, those subsidiaries ceased to employ personnel as of December 31, 2017 and were no longer required to pay certain employment-related taxes during 2018. Instead, CACI, Inc. - Federal was responsible for payment of the employment-related taxes and did in fact make timely payment of those taxes. The fact that these subsidiaries ceased to employ personnel was not immediately recognized by the IRS, nor was the fact that CACI, Inc. - Federal had paid the employment- related taxes. As a result, the IRS filed $156M in tax liens against these subsidiaries for certain employment-related taxes which the IRS expected that those subsidiaries would have paid in 2018. CACI is in communication with the IRS to resolve the misunderstanding, and we have provided evidence to the IRS that CACI and each of our subsidiaries have paid the appropriate employment-related taxes for their personnel during the period in question. CACI will continue to work with the IRS to facilitate the resolution of this matter and the release of the tax liens. CACI is highly confident that the matter will be resolved favorably and without financial consequence."