IRS Wants A Lot More Than a Coke and a Smile From Coca-Cola, Co.

The Coca-Cola, Co. wants everyone to share a Coke and a smile but the IRS just wants the soft drink company to share it’s profits with the government, in the form of it’s tax bill. The IRS claims that the company has skipped out on more than $3 billion in taxes and interest due from money it earned in foreign countries. According to reports, the IRS audited Coca-Cola for the tax years 2007, 2008 and 2009. The IRS claims that the results of that audit show that the soft drink maker owes $3.3 billion in missed taxes.

So far, the IRS has not threatened Cola-Cola with any penalties. However, the agency has reportedly informed the company that it has recommended to its top lawyer that the case be litigated. For its part, Coke says that the agency’s claims have no merit. Coke is not the first American company to face these kinds of charges from the IRS, as the agency continues to fight large U.S. corporations over tax dollars for profits earned overseas. Microsoft and Amazon are also facing similar claims form the IRS.

A Coca-Cola spokesperson said that the company plans to fight the allegations and do whatever it takes legally to resolve this matter with the IRS. U.S. Corporations must pay the IRS as much as 35 percent of their total profits from around the world in taxes. However, they do not have to pay the tax on foreign profits until they move the money to the U.S. But, because the U.S. charges so much in corporate taxes, many companies simply choose to leave their foreign profits in the countries where they were earned.

Posted in ,
Peter Adams

The Fundamental Purpose of Technology | Peter Adams

  About Peter Adams Peter Adams is Founder & CEO of Lighthouse, having launched the firm 33 years ago while working as a deployment specialist in the health care information systems arena. In a moment of epiphany, he realized that the primary goals of his complex projects were not to make some new IT technology…

Anthony Thompson

Anthony Thompson – United Business Bank

About Anthony Thompson Anthony is a Senior Vice President, Commercial Loan Officer at United Business Bank. Prior to his career in Banking Anthony was Vice President, Director of Marketing at Proudfoot Consulting/Phillip Crosby Associates. Anthony also worked as special assistant to US Senator David D. Karnes, and the first woman elected to the US Senate,…

David Brunner

ModuleQ | David Brunner

  About David Brunner In 2011 David Brunner founded ModuleQ, a SAS based company to prevent knowledge workers from being overloaded with information. Before founding ModuleQ, David received a PhD from Harvard University in Information, Technology & Management, a joint program integrating business and computer science. Upon Graduating from Harvard, he worked with the CIO…

Richard Swart; Social Investing

Social Investing | Richard Swart

  About Richard Swart Richard Swart is the Chief Strategy Officer of NextGen Crowdfunding. With more than 20 years of experience in the industry, he also serves as a member of the University of Cambridge’s Alternative Financing Industry Board. Richard is also a founding board member of the Crowdfunding Professional Association (CfPA) and the Crowdfunding…