Feeds

Intel frees up $275m after settling with the tax man

Audit saga continues

Choosing a cloud hosting partner with confidence

Intel will stash away an “extra” $275m this quarter after settling with the IRS.

The IRS (Internal Revenue Service) sent Intel a note this week, saying it has closed the books on an audit for the chip maker's 1999 to 2002 tax returns. As a result, Intel will fork over $275m less in tax payments than it had planned. In addition, Intel now says that its 2007 tax rate should end up below a previous forecast of 30 per cent.

Intel and the IRS have been sparring over taxes related to export sales. US tax law affords companies a break on manufactured goods sent out of the country. Intel has contended that the “value” of microprocessors and chipsets built in the US outweighs the value of testing and assembly work done on the parts overseas, while the Feds have taken an opposite stance.

(As an aside, you'll find the best book ever penned by a corporate tax attorney here.)

Giant that it is, Intel faces an ongoing IRS audit and has yet to settle remaining disputes over goods exported between 2003 and 2006, along with other issues.

The company sets aside funds for these kinds of problems and in effect put away $275m too much for the years 1999 to 2002 given its settlement with the IRS. ®

Internet Security Threat Report 2014

More from The Register

next story
Bono apologises for iTunes album dump
Megalomania, generosity and FEAR of irrelevance drove group to Apple deal
HBO shocks US pay TV world: We're down with OTT. Netflix says, 'Gee'
This affects every broadcaster, every cable guy
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
SCREW YOU, EU: BBC rolls out Right To Remember as Google deletes links
Not even Google can withstand the power of Auntie
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
America's super-secret X-37B plane returns to Earth after nearly TWO YEARS aloft
674 days in space for US Air Force's mystery orbital vehicle
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.