- Associated Press - Friday, March 18, 2016

LEXINGTON, Ky. (AP) - Lexmark International has spent $10.7 million trying to fix problems in the department formerly headed by Kentucky’s new revenue commissioner.

According to WFPL’s Kentucky Center for Investigative Reporting (https://bit.ly/1PhezoN) the Lexington-based printer and imaging systems company’s most recent report to the U.S. Securities and Exchange Commission says it had not resolved its income tax accounting issues as of Dec. 31. Because of that the company says it cannot be sure its financial reporting is correct.

Kentucky Revenue Commissioner Daniel Bork was Lexmark’s vice president of tax until last September.

Lexmark’s annual report states that “tax leadership and personnel changes” were among the fixes made in 2015.

Lexmark spokesman Jerry Grasso would not comment on Bork’s time with the company.

Both Bork and Gov. Matt Bevin declined the station’s request for an interview.

Lexmark said in its annual report that it has been making significant efforts to repair the problems with its accounting for income taxes. Those efforts cost the company $7.5 million in in 2015, contributing to a $40.4 million full-year net loss. Lexmark spent $3.2 million on the remediation in 2014.

Steps taken by Lexmark last year include clarifying the duties of tax accounting workers, revising the income tax review processes and instituting better income tax accounting controls.

The tighter controls led to the discovery of errors that required a restatement of earnings from the third and fourth quarters of 2014. Lexmark has not revised financial data for 2015 but said in the annual report the accounting remediation is ongoing. Lexmark plans to finish the remediation this year.

Bork is a certified public accountant who joined Lexmark as tax director in 1996 and previously served as president of the Kentucky chapter of the Tax Executives Institute.

Kentucky’s Revenue Cabinet administers tax laws and collects revenue, among other duties.

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