The US Court of Appeals ruled that Ford cannot collect $445 million in interest on overpayment of income taxes.
In 2008 Ford sued the US government, claiming that it shortchanged the company on interest accrued on overpayment of corporate income taxes between 1983 and 1989, 1992 and 1994. In 2010 a federal judge in Detroit rejected the automaker’s claim, saying that the Internal Revenue Service has correctly calculated the interest Ford was due on the overpayment.
But Ford requested the US Court of Appeals in Cincinnati, to overturn the decision. Today, December 18th, the court ruled that Ford cannot collect the required $445 million and that the revenue could not be used to support the automaker’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.