State Says WorldCom Owes It $1 Billion

WorldCom Inc.’s former home state, Mississippi, claims that the phone company owes it $1 billion in back taxes.

WorldCom, which plans to emerge from bankruptcy protection and drop the WorldCom name in favor of MCI, already faces $500 million in claims from more than a dozen other states, along with a motion by the states to remove KPMG as its auditor.

Mississippi’s claim came to light when the U.S. Bankruptcy Court judge heard arguments on the states’ KPMG motion.

A WorldCom spokesman declined to comment.