Even the Big Guys Make Mistakes

Posted on 19. Apr, 2006 by in Taxes

But $900 million??

Symantec announced today that it owes the IRS a lot of money:

  • $900 million in back taxes from last year’s $10.25 billion acquisition of storage software vendor Veritas
  • $100 million, excluding penalties and interest, from an unrelated audit of the vendor for fiscal years 2003 and 2004

Of course, Symantec has denied the allegations and instead has said that it believes the IRS’s claims are “out of line with current tax laws and Treasury regulations” and will therefore file an appeal.

Now, I would understand if Symantec had miscalculated some depreciation or something, which gave them a tax figure different from the IRS of a few million – but $900 million is a pretty big chunk of change to be messing around with.

SYMC_stockchart.png

Can you tell when Symantec leaked the news of the $1 billion tax bill?

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