The U.S. Supreme Court has ordered the appeals court to
Ford Motor Co.
) case of whether the automaker is entitled to $445 million in
interest on overpaid taxes. The Supreme Court also asked the
appeals court to hold a hearing to determine whether the case
should have earlier been tried in the U.S. Court of Federal
Claims instead of a district court.
Ford is demanding an interest of $445 million for the payment it
made to Internal Revenue Service (IRS) to cover the possible
underpayments of taxes during the nine taxable years starting
from 1983 to 1994. Ford had made a payment of $875 million to IRS
to make up for the possible underpayment.
However, the IRS agency later discovered that Ford had actually
overpaid the taxes during the period. As a result, in 1994, the
automaker appealed to IRS to consider the payment as advance
payment for the future taxes. Ford is demanding interest on the
over payment of taxes from the date it made the payment.
However, IRS considers that the interest should be calculated
from the date the automaker requested the amount to be treated as
advance payment. Two lower courts have abided by the IRS
Ford posted a 12.5% rise in earnings per share to 45 cents in the
third quarter of 2013 from 40 cents in the same quarter of 2012
(all excluding special items). Earnings also outpaced the Zacks
Consensus Estimate of 38 cents.
Revenues in the quarter grew 12.2% to $36 billion, exceeding the
Zacks Consensus Estimate of $33.8 billion. The improvement was
attributable to increased wholesale volumes in automotive
business and higher market share in all regions.
Ford is one of the largest automobile producers in the world
General Motors Co.
Tesla Motors, Inc.
Toyota Motor Corp.
). Currently, Ford retains a Zacks Rank #1 (Strong Buy).
FORD MOTOR CO (F): Free Stock Analysis Report
GENERAL MOTORS (GM): Free Stock Analysis
TESLA MOTORS (TSLA): Free Stock Analysis
To read this article on Zacks.com click here.