General Electric seeks $658 million U.S. tax refund

WASHINGTON — General Electric (GE) is suing the Internal Revenue Service (IRS) for a $658 million tax refund related to a tax loss the company claimed over a decade ago.

In a civil complaint filed Friday in a Connecticut U.S. District Court, the company said that the IRS wrongly disallowed a $2.2 billion loss it claimed from the 2003 sale of a reinsurance subsidiary.

The complaint said GE is owed a $439.3 million federal income tax refund as well as $219 million in interest. No court date has been set.

In a statement, GE spokesman Seth Martin:

“The dispute involves a good-faith difference of opinion over the tax consequences of a restructuring done more than a decade ago. While we have paid the taxes in question, we believe it is in all parties’ interests to resolve this through a court decision.”

General Electric is arguing that it could carry back tax losses into years it had taxable gains because of the 2003 sale of struggling reinsurance business ERC Life Reinsurance, according ot the court filing.

The IRS disagreed with GE’s claims for losses and reversed a tentative tax refund to the company in 2004, according to the court filing.

The IRS declined to comment on the filing.

Source: Reuters


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