- Cullman, Alabama

November 23, 2012

Ala court cites with HealthSouth on tax refund

Associated Press

BIRMINGHAM, Ala. — The Alabama Supreme Court has let stand a court order requiring the state to repay more than $800,000 in taxes to the Birmingham-based HealthSouth Corp.

The rehabilitation company claims it overpaid taxes because of an accounting fraud in the 1990s. reports that the justices refused Wednesday to set aside a ruling by a Jefferson County judge.

HealthSouth went to court four years ago seeking refunds for the tax years 1996 through 1998. Revenue officials refused the request, citing the fraud.

A circuit judge in Birmingham sided with the company, and the Supreme Court has now let that ruling stand.

The company withdrew its request for interest payments on the overpayment.

Numerous HealthSouth executives pleaded guilty to fraud, but jurors acquitted former CEO Richard Scrushy.