Ford is suing the U.S. government’s Internal Revenue Service for $445,292,207 in interest on tax overpayments for 1983 to 1989, 1992 and 1994. Half a billion dollars isn’t much to the IRS, but it could prove very useful to cash-strapped Ford.
“We believe the IRS failed to pay the correct amount of interest,” Ford spokeswoman Marcey Evans told the Detroit News. “We tried to resolve it at the administrative level without success. Because of the size of the amount and the dispute, we had no choice but to file.”
Ford recently made a number of key moves to raise much needed capital. The recent sale of Aston Martin, Jaguar, and Land Rover brought ford billions of dollars, and rumors continue to suggest Volvo is next. Another $445 million would likely help Ford in its quest to return to profitability.
“The IRS’ calculation of [...] overpayment interest is not a simple matter of taking the tax underpayment [...] and computing interest on that amount,” the lawsuit contends.
“Rather, the IRS recomputes the taxpayer’s account for the specific tax year by sorting all of the transactions in order of the dates they are deemed to be effective and computing interest on the account balance as it is affected from transaction to transaction.”
07/12, 11:31 PM
posted by:
olds307
my milkshake brings all the boys to the yard
07/12, 11:34 PM
posted by:
justinhk2000
alrite this is the smartest thing Ford has ever done, now i haven’t read the article yet so i might b wrong about this someone correct me but they finally found a way to make money. perfect and they sue their own goverment for 445 mil again genius that’s the most profit they will ever earn (asumin they win the case) in the last 5 yrs
07/12, 11:34 PM
posted by:
justinhk2000
YESSSSSSS I AM RIGHT SCORE 1 FOR JUSTIN
07/12, 11:34 PM
posted by:
olds307
the IRS wants interest when YOUR late, so Ford has every right.
07/12, 11:40 PM
posted by:
johnnycanuck
This is great. It’s nice to know Ford’s accounting geniuses are even farther behind than their chassis department. If I was still chasing things owed to me from 1983 I’d probably still be stalking some college chick who’s now 300lbs looking for that blowjob I never got after a frat party. Be it myself or Ford, I fear neither of us is going to cum out ahead.
07/12, 11:47 PM
posted by:
F451
They are each in bed to with one another…I guess it wasn’t as good for one as it was for the other. Where’s my cigarette?
07/12, 11:47 PM
posted by:
TOZO
I don’t get the number dispute, but kudos to Ford for standing up to the evil feds.
07/13, 12:36 AM
posted by:
Impulsive
… and they’re like, it’s better than yours …
07/13, 1:12 AM
posted by:
elviososa
Go Ford! It’s about time to kick IRS’ ASS!!!
07/13, 1:22 AM
posted by:
zeeck
damn right it’s better than yours
and i wonder if this is just a scam to have the govt. “help” out ford, since it’s apparently illegal now
07/13, 1:48 AM
posted by:
Got Handling?
Desperate Moves
07/13, 3:12 AM
posted by:
Kaizen
Well, there goes that potential government buyout scenario. Don’t want to piss off big brother.
07/13, 5:15 AM
posted by:
josh
How fast would the head accountant be fired after this was found out??
Probably why ford hasn’t made any money in a while…
07/13, 8:47 AM
posted by:
tripleonefive
Well FoMoCo needs the cash and who else has more cash then they know what to do with but the US govts IRS
I hope Ford wins so they can use the $$$ to keep Volvo and develop some new cars for Lincoln and Turn Merc into the Euro division
Dont change the MKX front to make it look like the MKS and MKZ I think they are going to do that
07/13, 1:23 PM
posted by:
Impulsive
‘zeeck’’s da man.
07/13, 4:17 PM
posted by:
1c3d0g
Ford’s da man now!
07/13, 9:27 PM
posted by:
A4
this is a swift move… touche ford, screw the bastards if they wont help you.
07/14, 12:34 AM
posted by:
Carwatcher
Ford is trying every avenue including the government to get money they don’t have. Maybe the IRS will be an investor.
07/14, 7:14 AM
posted by:
JohnnyBlazE
zeecks right;
govt. and ford are in cahoots and this is the only way they can accomplish what has now been made illegal.
We are all Children of the Matrix
07/14, 8:13 AM
posted by:
ihustle
Are you guys crazy? Of the big 3 Ford is definately leading the way, and is the only one who is staying consistent with there sales #’s
07/14, 9:13 AM
posted by:
xyunya
This 25 to 15 years old tax credits! Companies pay estimated taxes every quarter and settle at the end of the year and refile even later when financial picture becomes clearer with time. Suffice to say that most companies have those credits and usually don’t mind them. Furthermore, book value of some companies are only those tax credits and they are being bought as means to offset tax. Generally speaking, if company plans to stay in business and stay or become profitable – those credits is like cash. I reckon, Ford does not see its way out of debt or there are plans to sell the whole FoMoCo if they starting this silly game.
07/14, 9:30 AM
posted by:
mayer_ray_nagin
Screw the federal government, and all the state and local jurisdictions too. I hope Ford wins. I hate governments, politicians, and anybody who depends too much on governments. I’ve said it before and I’ll say it again: “if osama had taken out congress while it was in full session, I’d have sent his ass a thank you card.” Dumb-ass politicians, all of them.
07/14, 9:45 AM
posted by:
xyunya
mayer_ray_nagin, politicians aren’t dumb. That is why Ford pays millions into PAC and creates PACs – to buy politicians. We have the best system money can bye.
07/14, 11:30 AM
posted by:
jumpoffit
i wonder if i can still sue McDonald’s for making their coffee TOO hot for me hmmmmmmmmm
07/14, 12:57 PM
posted by:
RaineMan
Wow… that is rediculous. You’d think they would have solved this issue years ago… then they could have made some more competent cars.
07/14, 1:54 PM
posted by:
Scarface03
mayer_ray_nagin,
Hmm, a country without government. That’s a good idea. Get rid of your federal, state, and local governments, and you won’t have to send Osama a thank-you card, you could just hand it to him as he bursts into your house to exterminate your devilish existence.
xyunya,
From what I remember about your self-made stature, you have a better grasp of this than I, but when your company is circling the drain, I would imagine it’s better to see a half billion on a bank statement and not an accountant’s mysterious credit column. Ford probably wishes they could have just not made the overpayments, which would have been more money to them than just the interest they’re suing for now.
07/14, 3:24 PM
posted by:
xyunya
Scarface03, cash in a bank or credit with IRS treated the same on the books. I am not an accountant, but if I remember correctly from graduate class, companies prefer tax credits then cash, since there are more possibilities with them. Cash is dead asset for corporation and looked upon negatively by investment community (it should be invested and making money). I guess situation is different at Ford, they are beyond investment community opinion.
07/14, 7:34 PM
posted by:
zoomzoomer
I can teach you, but I have to charge..
07/14, 7:54 PM
posted by:
Impulsive
… na-na, na-na-na …
07/15, 1:47 PM
posted by:
Scarface03
xyunya,
Isn’t it true that cash is at least investable, whereas a tax credit exists only in an accountant’s ether?