Google suing U.S. IRS for $83.5M tax refund

Google suing U.S. IRS for $83.5M tax refund

Summary: The search giant is hoping to reclaim about 20 hours worth of revenue in form of a tax refund from the U.S. taxman. But in doing so, it has to throw its weight behind a bunch of lawyers.

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TOPICS: Google
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Google is taking on the U.S. government for the second time this month. 

Read this

Google must change search business practices after FTC decision

Google must change search business practices after FTC decision

The FTC has issued a number of decisions in its complex investigation of Google, ranging from changes to search business practices to licensing Motorola-owned patents.

While the search giant is going after the Obama administration to lift the lid on how many requests the government makes through its secret FISA courts away from regular law enforcement requests, Google also wants words with the U.S. Internal Revenue Service.

According to Bloomberg`, which first reported the story on Thursday, the Mountain View, Calif.-based technology giant is suing the IRS over an $83.5 million refund it says it deserves, claiming it was improperly denied a deduction over an AOL-related stock transaction, dating back to 2004.

The complaint alleges the IRS incorrectly disallowed a $238.6 million deduction claimed for the difference between the price AOL paid "to exercise a warrant for Google stock and the value of the shares." 

The case is 014061-13 in the U.S. Tax Court in Washington, D.C.

Based on Google's Q2 sales a year ago, excluding traffic acquisition costs, the company generates roughly $83.5 million every 20 hours. 

Clearly for Google, it's a matter of principle.

Topic: Google

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5 comments
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  • I guess they might want the campaign donations back too

    stabbed in the back by the bamster, who saw that coming................
    everss02
  • 20 Hours?

    20 Hours or revenue? Dang, it takes me at least twice that long to make $83.5 mil.
    dsf3g
    • Best Job Ever

      what Dennis said I'm startled that people able to earn ($)83.5m in 20 hours on the internet. they just bought ferrari new for cash. did you look at this site..
      Little Old Man
      • lol

        lol, you win the internets today!
        dsf3g
  • Google's leaders could be sued for malfeasence

    If they knowingly pass on collecting money that they are owed by any entity, including the IRS.
    jnffarrell