Ebix said it has resolved an IRS audit regarding five years of tax returns, and will take a hit on 2014 fourth quarter net income as a result.
The Georgia company, which offers software and E-commerce services for the insurance, financial and healthcare sectors, said it reached a deal with the Internal Revenue Service pertaining to an audit (previously disclosed) of income tax returns from 2008 through 2012. IRS officials stepped in based on questions concerning acquisitions Ebix made during that period.
Ebix said the resolution/assessment will force it to take a $1.4 million hit on its net income for the 2014 fourth quarter, after previous financial issues are factored in.
In December, Ebix added two new members to its board of directors after inking a deal with activist investor Barington Capital Group LP, which questioned issues at Ebix including its strategic direction, CEO compensation structure, and its focus on acquisitions in the face of modest organic revenue growth.
Source: Ebix