IS I.R.S. BELIEVABLE?

Submitted by: Doris Parker

I.R.S. Says Coca-Cola Owes $3.3. Billion in Taxes

By THE ASSOCIATED PRESSSEPT. 18, 2015

Coca-Cola was notified by the Internal Revenue Service that it owes $3.3 billion more in federal taxes, and interest, for 2007 to 2009, the company said on Friday. The company said in a regulatory filing that it believed the assessments from the I.R.S. were without merit and planned to pursue “all administrative and judicial remedies necessary to resolve the matter.” Coca-Cola, the maker of Sprite, Dasani, Powerade and other drinks, said the disagreement was over how much it should report as taxable income in the United States in relation with licensing that allows its foreign affiliates to sell products overseas. In a filing with the Securities and Exchange Commission, Coca-Cola said it had been following the same method for determining its taxable United States income for nearly 30 years.

A version of this brief appears in print on September 19, 2015, on page B2 of the New York edition with the headline: I.R.S. Says Coca-Cola Owes $3.3. Billion in Taxes.