CACI International Inc (NYSE: CACI), announced today that it is providing information for its shareholders regarding erroneous federal tax liens against certain of its subsidiaries.
In August 2019, CACI learned that the Internal Revenue Service (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 $156 million 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.
CACI delivers enterprise and mission outcomes to government clients by leveraging expertise, innovation, and technology. A Fortune World’s Most Admired Company, CACI is a member of the Fortune 1000 Largest Companies, the Russell 1000 Index, and the S&P MidCap 400 Index. CACI’s sustained commitment to ethics and integrity defines its corporate culture and drives its success. With approximately 22,000 employees worldwide, CACI provides dynamic career opportunities to support the nation’s most critical missions. Join us! www.caci.com.
There are statements made herein which do not address historical facts, and therefore could be interpreted to be forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are subject to factors that could cause actual results to differ materially from anticipated results. The factors that could cause actual results to differ materially from those anticipated include, but are not limited to, the risk factors set forth in CACI’s Annual Report on Form 10-K for the fiscal year ended June 30, 2018, and other such filings that CACI makes with the Securities and Exchange Commission from time to time. Any forward-looking statements should not be unduly relied upon and only speak as of the date hereof.