Ford sueing IRS for 445 million dollars

Posted on Monday, 14 July 2008 , 16:07:02 byEmil

Filed under fordsueirsmilliondollarFord

Ford sueing IRS for 445 million dollars

Ford is suing now the Internal Revenue Service of the U.S. government for 445,292,207 dollars in interest on the tax overpayments for the 1983 to 1989, 1992, 1994. Half billion dollars is not much for the IRS, but this could be very useful to the cash-strapped Ford.

“We believe the IRS failed to pay the correct amount of interest,” Marcey Evans - Ford spokeswoman told the Detroit News. “We tried to resolve it at the administrative level without success. Because of the size of the amount and the dispute, we had no choice but to file.”

Ford made recently some key moves for raising capital. The sale of Jaguar, Land Rover and Aston Martin brought billions of dollars for Ford; rumors suggest that Volvo is next. So, another 445 million dollars would help Ford likely in the quest of returning to profitability.

“The IRS’ calculation of [...] overpayment interest is not a simple matter of taking the tax underpayment [...] and computing interest on that amount,” this lawsuit contends.

“Rather, the IRS recomputes the taxpayer’s account for the specific tax year by sorting all of the transactions in order of the dates they are deemed to be effective and computing interest on the account balance as it is affected from transaction to transaction.”