KapStone Paper and Packaging Corporation (NYSE: KS) ("KapStone") announced that the Internal Revenue Service ("IRS") has notified the company that the Joint Committee on Taxation approved KapStone's 2007-2009 examination reports as filed. As a result of the finalization of the IRS examination, KapStone will reverse in the fourth quarter $63.6 million of gross unrecognized tax benefits and accrued interest expense related to the company's position on alternative fuel mixture tax credits.
Upon reversal of this liability, KapStone's net income and diluted earnings per share for the fourth quarter of 2011 will reflect an increase of $63.6 million and $1.34, respectively.
SOURCE KapStone Paper and Packaging Corporation