Ford Motor Company Gets New Hearing In $445 Million Lawsuit Against IRS0
The U.S. Supreme Court has ordered a lower court to take another look at Ford Motor Company’s lawsuit against the IRS over overpaid taxes. As such, Ford will get a new hearing in its bid to collect $445 million in interest on the overpayment.
A federal appeals court had upheld the Internal Revenue Service’s methodology for calculating interest owed to Ford, and the Supreme Court told the appeals court on Monday to consider whether Ford’s suit should have been filed in a different court.
The legal proceedings are the result of money Ford deposited with the IRS to cover possible underpayments for nine tax years, from 1983 to 1994. Later, the automaker requested that the IRS handle the funds as an advance payment toward any additional taxes that it might owe. The agency later discovered that Ford had overpaid taxes for the years in question.
The point of contention stems from Ford’s notion that the interest on the money it deposited should have begun to accrue when it first deposited the funds to cover possible underpayments, while the IRS says that the starting date should be when Ford told it to treat the funds as advance payments. Notably, the two lower courts agreed with the IRS.