Tuesday, February 27, 2007
Chip maker Intel Corp. said Monday (Feb. 26) it was appealing an Internal Revenue Service tax adjustment related to export sales that could increase its tax due by $2.4 billion from 1999 through 2006.
The company said if it loses the appeal there is a "possibility of a material adverse impact on the results of operations" for the period when the matter is resolved, but added that management does not believe the outcome will affect its financial position, cash flow or results of operations.
Intel said its federal income tax for 1999 through 2005 would increase by about $2.2 billion plus interest if it loses its appeal against the IRS, the company said in its annual report filed at the Securities and Exchange Commission.
The IRS would also likely make a similar claim for 2006, potentially increasing Intel's tax due by about $200 million, plus interest, if it prevails, the company said.
Intel reported fourth-quarter revenue of $9.7 billion.
It said that the IRS formally assessed the adjustment in its regular examination of Intel's tax returns.
Intel shares were down 4 cents at $20.72 in morning trading on Nasdaq.
By: DocMemory
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