IRS Reached 2.3 Billion Dollar Agreement

On Valentines day the IRS announced they had reached a 2.3 billion dollar deal to resolve several tax disputes with Merck & Co., Inc. and its subsidiaries. Among the issues resolved were a few issues that resulted from the company’s use of minority equity interest financing transactions. The 2.3 billion dollar payment to the United States federal government is said to resolve the tax issues for the tax years 1993-2001. Although the settlement is one of the largest in IRS history, it is 40% below the $3.8 billion the IRS originally said it was seeking in November. Source: MarketWatch.com.