Report: Ford loses $445M judgment against IRS

[Ford_News]

Filed under: Government/Legal (http://www.autoblog.com/category/government-legal/), Ford (http://www.autoblog.com/category/ford/), Earnings/Financials (http://www.autoblog.com/category/earnings-financials/)

http://www.blogcdn.com/www.autoblog.com/media/2010/03/fordlogoopt.jpg (http://www.freep.com/article/20100604/BUSINESS01/100604049/1210/business01/Ford-loses-445M-case-against-IRS)

Toward the end of the last millennium, Ford (http://www.autoblog.com/make/ford) thought it might owe the IRS some money for possibly underpaying taxes between 1983 and 1994. To convince the IRS to halt the accrual of interest on any amount Ford might have underpaid, Ford gave the IRS a lump sum of cash.

However, turns out that Ford had overpaid its taxes, so the IRS had to return the lump sum of cash that Ford used to halt the interest. The IRS did so. But while the IRS held onto Ford's money, that money had gained $445 million in interest in the IRS account. When the IRS didn't pay Ford the interest, Ford sued to get it... and Ford lost. A U.S. district judge declared that the extra amount is not subject to refund. Not that it will make you feel any better, but now you know that it's not just the little guy who gets caught up in the arcanum of the U.S. tax code.

[Source: The Detroit Free Press (http://www.freep.com/article/20100604/BUSINESS01/100604049/1210/business01/Ford-loses-445M-case-against-IRS)]Report: Ford loses $445M judgment against IRS (http://www.autoblog.com/2010/06/09/report-ford-loses-445m-judgment-against-irs/) originally appeared on Autoblog (http://www.autoblog.com) on Wed, 09 Jun 2010 08:41:00 EST. Please see our terms for use of feeds (http://www.weblogsinc.com/feed-terms/).



Read (http://www.freep.com/article/20100604/BUSINESS01/100604049/1210/business01/Ford-loses-445M-case-against-IRS) | Permalink (http://www.autoblog.com/2010/06/09/report-ford-loses-445m-judgment-against-irs/) | Email this (http://www.autoblog.com/forward/19504951/) | Comments (http://www.autoblog.com/2010/06/09/report-ford-loses-445m-judgment-against-irs/#comments)

More... (http://www.autoblog.com/2010/06/09/report-ford-loses-445m-judgment-against-irs/)

[DNeinstadt]

That doesn't seem fair that Ford (or anyone) didn't get the interest they COULD have earned had the IRS not screwed up. So the IRS got to keep the $ that the NEVER deserved?? Wow..

[66gtk]

That's no different than what they already do to each of us. If/when we overpay we don't get interest on our refund either. Of course if you underpay you can expect to pay a penalty to the IRS. Of course it's not fair.

What's ironic is that perhaps a lot of that money was used to help bailout the other manufacturers that took a hand-out. - Doh!!!

[BlownSVT]

theya re still holding onto my 3000 bucks right now. they decided to reject my E filed return because i was off by 1 number on my 2008 gross income which was used as the pincode for my 09 filing. It was off becuase the IRS ammended my return last year. Now I have to refile. apparently talking to me on the phone with my return right infront of them is not sufficient. I have to refile a paper return, and wait another 6-8 weeks. The IRS is a joke.

[Doodler]

why am I not surprised. IRS is a complete scam. 12-month interest free loan forced upon the people. I know people that claim 999 on the w-2's. They have zero taxes taken out and just pay at the end of the year. I'm sure it's only a matter of time before that comes to a halt for them.