Alabama Courts Affirm Tax Assessments Performed by Revenue Discovery Systems

A Montgomery Circuit Court judge has upheld tax assessments administered by PRA Government Services, LLC (d/b/a Revenue Discovery Systems (RDS)) and granted summary judgments in two cases affirming taxes owed to the cities of Florala and Andalusia by a local pharmacy. Judge Eugene W. Reese ruled Wednesday, Feb. 10, 2010 that the tax ordinances under which RDS had issued assessments on behalf of the two cities were "plain and unambiguous and therefore … valid on their face.” The two cases made various claims against the cities and RDS including challenges to the constitutionality of the local business tax ordinance, violations of due process, violations of the Taxpayer Bill of Rights (TBOR) and allegations of improper contingency fee billing by RDS. Judge Reese dismissed each action in its entirety.

"We are pleased that the taxes we assisted our client cities to assess were determined to be clearly due and owing in such a forceful and clear manner,” said Kennon Walthall, President of PRA Government Services d/b/a RDS.

About RDS:

Based in Birmingham, Ala., RDS is a government services company providing revenue enhancement support services to state and local government in the areas of tax administration, revenue discovery & recovery, and compliance audit examination.

Each year RDS processes billions of dollars in business taxes, licenses and fees and has simultaneously discovered and recovered millions in unpaid revenues. For nearly 30 years, RDS has been committed to delivering government solutions based on outstanding value, competitive pricing, exceptional customer service and compliance with the highest professional standards. RDS currently provides tax administration services for more than 450 state and local government clients and manages 700+ professional service contracts.

RDS is a wholly owned subsidiary of Portfolio Recovery Associates, Inc. (Nasdaq: PRAA). For more information, please visit www.revds.com.