Caterpillar Inc. said the Internal Revenue Service has “proposed” tax increases and penalties of about $1 billion after examining its U.S. returns for 2007 to 2009, including a loss carryback to 2005.
The IRS has proposed taxing U.S. profits the company earned from certain parts transactions by its Caterpillar SARL unit based in Switzerland, Caterpillar said in a securities filing Tuesday. The IRS is also disallowing about $125 million of foreign tax credits from financings unrelated to the Swiss entity. The company received the IRS revenue agent’s report on Jan. 30.
