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article imageCoca-Cola hit with $3.3 billion tax bill from the IRS

By Owen Weldon     Sep 20, 2015 in Business
The Internal Revenue Service notified Coca-Cola that it owes $3.3 billion in federal taxes, as well as interest for 2007 to 2009.
Coca-Cola, based in Atlanta, said it believes the assessments from the IRS are without merit. The company, which makes Sprite, Powerade, Dasani and other drinks, said it plans to pursue all judicial remedies necessary to resolve the matter.
The company said that the disagreement is over how much Coca-Cola should report as taxable income in the United States, in relation to licensing that allows affiliates overseas to sell product such as soft drink concentrates to bottlers overseas.
The company said it followed the methodology for the licenses outlined in an agreement, which dates back to 1996, with the IRS. Coke added that its compliance with the agreement was confirmed by a number of audits covering the subsequent years through 2006, with the most recent audit being completed in 2009.
Coke said it wasn't until two weeks before the notice was issued when the IRS notified the company that it owed those taxes. The company said the IRS has recommended the matter be designated for litigation.
As of now, Coca-Cola has not been hit with any penalties, and the company said it has requested a meeting with the tax agency's chief counsel.
More about Irs, Coca cola, Taxes, owes taxes
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