Ford loses $445M case against IRS
Ford has lost a federal court challenge against the U.S. Internal Revenue Service in which the automaker was owed $445 million in interest from a tax dispute.
The ruling involves an arcane corporate tax law allowing businesses to avoid steep interest payments if they’re found to have underpaid taxes on returns going back decades.
In the early 1990s, Ford had paid the IRS to stop the clock on any interest due for taxes it might have owed between 1983 and 1994, and later asked the IRS to consider that money a tax payment. When the IRS later found that Ford had overpaid its taxes, it gave the automaker a refund with interest.
Ford contended the IRS withheld $445 million in interest on the stop-the-clock money that the automaker was owed. The IRS argued, and U.S. District Judge Patrick Duggan agreed, that federal rules don’t allow for interest in such cases.
Related posts:
- Is Ford Focus the right choice? Ford Focus is one of those rare cars who have...
- Toyota forecasts higher full-year profit amid U.S. recovery Toyota forecast profit will rise 48 percent this fiscal year...
- EU to review Spykar-Saab Deal Before Spyker can purchase troubled Saab from General Motors, European...