Allied Waste May Owe $360 Million in Taxes

Allied Waste Industries Inc., the second-biggest U.S. trash hauler, said it may face a $360-million tax bill because the Internal Revenue Service questioned investment losses reported by a subsidiary.

The IRS is focusing on an investment loss reported by subsidiary Browning-Ferris Industries on the tax return filed July 30, 1999, Allied Waste Chief Financial Officer Tom Ryan said. Ryan wouldn’t disclose the amount of the loss, which he said arose from a Browning-Ferris stake in a private company, which he declined to identify.

Ryan said that the company plans to dispute any disallowance of the investment losses and that it hasn’t been presented with any findings or claims by the IRS.

Allied Waste shares dropped 54 cents to $13 on the NYSE.