Government Being Sued by Procter & Gamble

[dollardaze]

Neither a spokesperson for the IRS, nor one from Procter & Gamble would comment on pending litigation concerning a lawsuit filed by P&G against the U.S. Government which was filed on September 10, in the U.S. Court for the Southern District of Ohio.

In the suit, P&G (maker of Tide laundry detergent and Gillette razors) is seeking nearly $435 million in taxes and interest that the company paid due to an IRS audit which the company is disagreeing with.

P&G says that the company paid more than $6 billion in federal income taxes from 2000-2005. An audit of P&G's tax returns, by the IRS began in 2005, with a notice from the IRS sending a notice of deficiency in June of this year, claiming that adjustments needed to be made to some items and assessing more tax for the year 2000.

The company says that the extra taxes and the interest was paid as required, even though company officials believe that "virtually all" of those adjustments that the IRS says were needed, were erroneous. Now the company wants a refund.

P&G said that the IRS looked into tax credits that the company claimed for technology which was donated to colleges and universities, as well as artwork that was donated to the Cincinnati Art Museum and the National Underground Railroad Freedom Center, and then the IRS asked for more money. The company says that the IRS also denied certain credits which were related to the expense of patent work and research, among other items.

[bigbux]

Good, someone speaking up.

We all need to pay taxes if we want services, but the law needs to be clear and fair for everyone.

[pennypinch]

I agree that we all have to pay taxes, from individuals to big corporations. It needs to be done in a fair way. I am so tired of hearing of big corporations avoiding paying taxes and getting away with it. If this one has paid and deserves the rebate, I hope it happens.