Tribune settles with IRS


Tribune Company announced a settlement of its long-running tax dispute with the IRS. Tribune had appealed a 2005 US Tax Court decision disallowing the tax-free reorganization of Matthew Bender, a former subsidiary of The Times Mirror Company, which was merged into Tribune Company. As a result of the settlement with the IRS, Tribune will receive a refund of federal income taxes and interest of approximately 344 million bucks. However, Tribune has to pay taxes right back to the IRS on the interest, so the company says the net cash proceeds will be about 286 million.