A federal judge has ordered the Internal Revenue Service to refund nearly $1.2 million plus interest to LP Ciminelli, a local construction company.

The judgment stems from a dispute over income taxes the IRS claimed were owed by Ciminelli in 2004 as a result of accounts payable held by Cowper Construction, a Ciminelli subsidiary that had previously closed.

Daniel C. Oliverio, a lawyer for Ciminelli, said the company was required to pay the tax bill before it could challenge the IRS’s position in federal court.

The matter went to trial last year and U.S. District John T. Curtin ruled in the company’s favor and ordered the government to refund the money Ciminelli had paid plus $219,537 in interest.