Coca-Cola has announced it will pay $6 billion in back taxes and interest to the Internal Revenue Service (IRS) while appealing a recent U.S. Tax Court ruling. According to the Associated Press, the decision comes in a long-running legal battle that dates back 17 years and involves taxes from the years 2007 to 2009.
The Atlanta-based beverage giant is contesting the IRS's reallocation of over $9 billion in income from its foreign affiliates to the U.S. parent company, arguing that the IRS changed its longstanding methodology without prior notice. Coca-Cola maintains that the IRS and the Tax Court misinterpreted the regulations and believes it will succeed on appeal. The company has 90 days to file its appeal with the U.S. Court of Appeals for the Eleventh Circuit.
