Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Ford Loses Bid for $445 Million in Interest on Income Tax

Don't Miss Out —
Follow us on:

Dec. 17 (Bloomberg) -- Ford Motor Co. can’t collect $445 million in interest on overpayment of income taxes, an appeals court ruled, saying the Internal Revenue Service didn’t improperly calculate what the company was owed.

Ford sued the U.S. in 2008, claiming that the government shortchanged the auto company on interest accrued on overpayment of corporate income taxes from 1983 to 1989 and in 1992 and 1994. A federal judge in Detroit rejected Ford’s claim in 2010, agreeing with the government that the U.S. had correctly calculated the interest Ford was due on the overpayment.

Ford asked the U.S. Court of Appeals in Cincinnati to overturn the decision, contending that U.S. revenue procedure required interest to accrue from the time the company deposited money with the Internal Revenue Service. The appeals court today ruled that revenue procedure couldn’t be used to support the company’s argument.

“We are unwilling to place so much weight upon an interpretive aid that binds neither IRS nor this court,” U.S. Circuit Judge Julia Smith Gibbons wrote. The procedure cited “does not even enjoy the status of an agency regulation,” she said.

Jay Cooney, Ford spokesman, declined to comment immediately on the court’s decision.

The case is Ford Motor Co. v U.S., 10-1934, U.S. Court of Appeals for the Sixth Circuit (Cincinnati).

To contact the reporter on this story: Margaret Cronin Fisk in Detroit at mcfisk@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.