KapStone P&P (KS) to Reverse $63.6M of Gross Unrecognized Tax Benefits

KapStone Paper and Packaging Corporation (NYSE: KS) reports the Internal Revenue Service 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. The Street is currently looking for EPS of 29 cents and revs of $276.19 million.

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