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 ,

Will Your Tax Refund Be Delayed?

It’s only January, but because the calendar has turned to 2015, that means the tax season is officially here. While most people don’t file their taxes in January, there are a few early birds who go after the first worms of the year, so-to-speak. Although it’s often a good idea to make sure the IRS,…

Are You Looking To Invest for Growth?

What kind of investor are you? There are many types of investment strategies and each person will follow the strategy that best fits his or her plan. At GROCO, we can help all kinds of investors, including those who are investing for growth. When it comes to long-term growth, the total return on your investment…

Not Living on the Earth? You Still Have to Pay Your Taxes on Time

You gotta hand it to the IRS for being thorough. They’ll leave no stone unturned in an effort to make sure that every taxpayer files their return. That’s even true of very big stones, otherwise known as asteroids. In other words, even if an astronaut wanted to hide behind an asteroid or a moon rock,…

With Gas Prices Down, Could Gas Taxes Be Going Up?

Rich or poor, young or old, no one likes high gas prices – with the possible exception of oil and gas companies. In any case, the recent drop in gas prices around the country has no doubt brought some relief to just about everyone in America, including big corporations that own large fleets of vehicles.…