Caterpillar Faces IRS Challenge

May 6, 2014

After last month’s Senate investigative hearing on Caterpillar’s overseas tax practices, the Internal Revenue Service has challenged the company’s tax returns from 2007, 2008 and 2009, according to a Bloomberg report.

In April, the Senate's Permanent Subcommittee on Investigations released a report that says the company diverted profits from a parts business to a Swiss subsidiary, allowing Cat to avoid paying $2.4 billion in U.S. taxes. The report was led by Michigan Democrat Sen. Carl Levin.

Caterpillar disagrees with the IRS proposal and plans to "vigorously contest" the challenge, the report says.

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Source: Bloomberg