IRS claims Motorola owes $500 million in back taxes
Wednesday, August 11th 2004, 10:51 am
By: News On 6
WASHINGTON (Dow Jones/AP) _ Motorola Incorporated says the Internal Revenue Service claims the cellphone maker owes 500 (M) million dollars in additional tax liability for the years 1996 through 2000.
According to Motorola's second-quarter report, the I-R-S completed a field examination of the company's 1996 through 2000 tax returns in June and told Motorola of proposed adjustments -- primarily related to transfer pricing.
Transfer pricing refers to prices at which individual units within a company sells goods or services to one another.
The Schaumburg-based company says it disagrees with these proposed adjustments and intends to dispute the matter.