Coca-Cola Co. (KO) announced on Friday its decision to appeal to the U.S. Court of Appeals for the Eleventh Circuit, following the recent ruling in its ongoing case with the U.S. Internal Revenue Service (IRS). The ruling by the U.S. Tax Court entails an anticipated liability of $6 billion for the company.
The dispute originated when the IRS sought an additional $3.3 billion in federal income tax from Coca-Cola for the fiscal years 2007 to 2009, with plans to reallocate over $9 billion of income to the U.S. parent company.
Coca-Cola, headquartered in Atlanta, asserts that the IRS and the Tax Court have both misinterpreted and misapplied the relevant regulations. As part of the appellate proceedings, the company will remit the agreed-upon liability and corresponding interest to the IRS.
In the meantime, Coca-Cola's stock has risen by 1.02 percent, reaching $68.65 on the New York Stock Exchange.
