GE Sues IRS For $658 Million Tax Refund

Tyler Durden's picture

As goes GE so goes...? Not satisfied with the increasing offshoring of taxation (amid the Double Irish with a Dutch Sandwich and so on), US corporations are increasingly digging elsewhere in the vain hope of finding "revenue" to keep the shareholder dream alive. While GE is not alone in this, its latest move perfectly summarizes the farce that US accounting (and tax) regulations have become (and Immelt's angelic position advising Obama on jobs and the economy). As Reuters reports, GE is suing the Internal Revenue Service for a $658 million tax refund related to a tax loss the company claimed as it exited the reinsurance market more than a decade ago.

 

Via Reuters,

In a civil complaint filed on Friday in U.S. District Court for Connecticut, GE said the IRS wrongly disallowed a $2.2 billion loss it claimed from the 2003 sale of a reinsurance subsidiary.

 

The complaint said GE, a large conglomerate that sells jet engines and financial products, is owed a $439.3 million federal income tax refund plus $219 million in interest. A court date has yet to be set.

 

"The dispute involves a good-faith difference of opinion over the tax consequences of a restructuring done more than a decade ago," GE spokesman Seth Martin said in a statement. "While we have paid the taxes in question, we believe it is in all parties' interests to resolve this through a court decision," he said.

 

GE is arguing that due to the 2003 sale of a struggling reinsurance business, ERC Life Reinsurance Corp, it could carry back tax losses into years it had taxable gains, according to GE's court filing.

 

The IRS had disagreed with GE's claims for losses and reversed a tentative tax refund to the company in 2004, the court filing said.

 

...

 

GE, based in Fairfield, Connecticut, has faced public scrutiny from watchdog groups for its low effective tax rate.

 

Chief Executive Jeff Immelt, a top adviser to President Barack Obama on jobs and the economy, has said repeatedly the United States ought to reform its corporate tax code.

We are sure Immelt has lots more to teach the President...

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johngaltfla's picture

Immelt, may you suffer from anal cancer one day. Tomorrow would be a good day to start, you douche scumbag.

TruthInSunshine's picture

658 million USD is chicken scratch, GE!

You should've invested in WhatsApp, PIKERS!!!

0b1knob's picture

I was under the impression the GE had not paid ANY taxes for decades.  Refund?

johngaltfla's picture

Re-read it. It's a refund for "tax credits" they believe they were due; on money their failed ABS company got form a bailout by taxpayers!!!!!!!

TruthInSunshine's picture

Immelt was a huge and very vocal supporter of Candidate Obama in 2008.

And the he "went to work" for President Obama.

Free markets, capitalism, and the entrepreneurial spirit USSA!

johngaltfla's picture

And oh does GE have all those juicy DoE and DHS contracts not counting their DoD goodies they have had for years. It as their home financing and appliance financing arms that got them the freebies on the backs of the taxpayers when shockingly enough broke people quit making payments.

flacon's picture

How much is the average DAILY Quantative Easing? BILLION$!!!

AlaricBalth's picture

GE made $88 billion over the last 11 years but used corporate tax loopholes and offshore tax havens (where it has stashed $108 billion) to reduce its federal income tax rate to just 2.4%. GE received a tax subsidy of nearly $29 billion over the 11 years.

In four of those years, GE reported more than $22 billion in U.S. profits, yet paid no federal income taxes and received $4.8 billion in tax rebates.
While dodging paying its fair share of federal income taxes, GE pocketed $21.8 billion in taxpayer-funded contracts from Uncle Sam between 2006 and 2012.

GE’s CEO plays a leading role in coalitions that want to cut corporate taxes, cut Social Security, and raise the retirement age from 67 to 70. His $59 million GE retirement account is enough to provide him with a $336,007 retirement check each month.

GE has eliminated more than 15,000 American jobs since 2004, while adding 30,000 jobs overseas during that time.

http://www.americansfortaxfairness.org/files/Corporate-Tax-Dodgers-Repor...

TheFourthStooge-ing's picture

Easy money for GE, because they can't lose. Their legal department wrote the tax code.

Four chan's picture

the big picture of what ge has done in its history = LOL!!!!

someone needs to fuku this company because it has always been tbtf.

onewayticket2's picture

it's all payolla (no taxes, refunds, etc) for the glidepath they and their NBC division gave to liberals over the last years.  they were front and center getting this idiocy elected and now it's time for a little more payback.

 

 

Nobody For President's picture

God damnit Alaric, my blood pressure is ALREADY high enough!

KickIce's picture

The parasites are running out of hosts so the're now forced to feed off one another.

TheFourthStooge-ing's picture

Hey, c'mon, be fair. GE pays its taxes. Sure, from 2008 to 2010 their tax rate was negative 45.3 percent, but over that same time period they paid taxes of negative 4.7 billion dollars, which is no small amount, and certainly non-zero.

http://www.sourcewatch.org/index.php/General_Electric

http://www.nytimes.com/2011/03/25/business/economy/25tax.html

 

LMAOLORI's picture

 

 

Damn Stooge it's even worst than I thought - now you have me pulling out my own hair!

libsareajoke's picture

I worked for this company years ago.  There was a time we made THE BEST PRODUCTS.  Now, from what I hear, the company is more concerned with diversity and hiring H1B's.  It IS an organ of the government.

TeamDepends's picture

Cannibalism, always interesting.

lakecity55's picture

Wait, I am confused. I thought GE was part of the government now!

nmewn's picture

I'm thinkin, GE should stop the manufacture & distribution of those little curly mercury filled lightbulbs from China. The fringe eco-populations of the major cities would go into an epileptic fit, rioting in the streets and pressuring the IRS, it would have to accede to GE's demands.

By Executive Order ;-)

happel's picture

I wish I could say I am shocked.

asteroids's picture

GE got billions of TARP money. They were is rough shape. I guess those days of gratitude are long gone. I bet all the primary dealers that took TARP money now feel the same. Hmmmm.

johngaltfla's picture

If you remember Tyler's posts, their various divisions also got special low to zero interest overnight loans from the Fed. GE is without a doubt the biggest steaming pile of crap I've ever seen.

Berspankme's picture

This fucking Jeffrey Immelt is a cunt, a fuckfaced little prick. Fuck You GE

oleander garch's picture

There is absolutely nothing wrong with these patriotic corporate citizens not suffering what afflicts the common man.  Http://www.youtube.com/watch?v/kYuYsblk8tg

Kirk2NCC1701's picture

Let's ALL offshore our assets and taxation.  Something that guys like Simon Black have been saying for years, but have been ridiculed by the USSA Stockholm Syndrome Serfs and by Gov trolls.

Mine is partial and WIP.  All focking legal too. [sticks tongue out]

The Gooch's picture

We bring great things to taxpayers.

Thrice.

Pseudonymous's picture

I would applaud GE's non-payment of taxes if it wasn't for all the other ways in which GE is fascist.

LMAOLORI's picture

 

 

+1 - That in a nutshell is the problem FASCISM. The same thing is happening with obummercare the latest surprise is with the dictators delays it is being reported there will be extended bail outs for the insurers who if you recall made the deal with the devil in the backroom.

Last of the Middle Class's picture

I got an idea how about you pay back the Billions with a B the government gave you. What an f'ing thief. His lawyers are paid for by US Government dollars given to the company so he sues the IRS. Someday, Somewhere, Somehow some people are going to have to pay for this nonsense.

Spungo's picture

"Somehow some people are going to have to pay for this nonsense."

Don't worry, we'll borrow the funds from social security.

Seal's picture

Eeehhhh, Eric will just sit down privately with Jeff and work stuff out - contributions to the O library, campaign stuff, the usual. 

Atomizer's picture

I wish you no harm. The people you fucked over will hunt you down till death. Thank God I never have to live in fear for rest of my life.. You have to be fucking kidding with me. Planted news story with GE?

 

Let’s just begin talking about Japan.  Low water reactor demands. Or high water expectations.

 

Listen clusterfucks. Too many know the back dealings of pretending to be rich while your ranching the FICO score and undertaking new debt to repackage to some moran to repay the casino debt obligation.

 

I wish you no harm. The people you fucked over society will be hunt you down till death. Thank God I never have to live in fear for rest of my life..

 

Fred Hayek's picture

(to the melody of their commercial theme but with updated lyrics)
G-EEEEEEEEEEEEE
Corruption brought to life!

LMAOLORI's picture

 

 

Thanks a lot Fred now I have an earworm :)

highwaytoserfdom's picture

This is actually good news for taxpayers...   Gary Wendt was forced to resign from GE in 91 due to a divorce.  Ironically Jack Welsh receive a divorce a year later.   Welsh financed power plants with GE Capital and profited greatly on locomotive business in shipping the "climate criminals" coal from Kentucky and West Virgina.   In the mean time the coal power producers were fined by the EPA climate criminals in the Northeast Blue states for acid rain.   The fines were to the tune of 1.7 b.... MIND YOU THIS WENT TO GENERAL FUNDS  not one cent was spent on scrubbing/ coal washing or did anything to help the environment.....    Yea you guys know the GE Enron connection and in the mean time CNBS was sprouting all this propaganda on Buffet & Welsh.......   

 

Pick up Stockman's  book and  read about the commercial    paper  theft by GE....  it is gladdens my heart that GE goes back 14 years in tax court....   What is good for the goose is good for the gander so to speak 

TARP recovery will come and GE's commercial paper rollover was another  NON MAN UP on leverage....  Have no fear TARP and the bankers  pay if we put vote in prosecutors DNC/RNC/MSM/NSA/MIC  educated in these thefts on the very corporate fascist..  Ron Paul is wrong about one thing calling this soft fascism .......  it is HARD HARD PAINFUL  fascism...    11 years IRS to go back    some hope for 2008.

LMAOLORI's picture

 

What happened to the DailyBail nothing new in months?

syntaxterror's picture

Ask S&P what happens when you fuck with BarackCo.

"(Reuters) - Standard & Poor's said on Tuesday the U.S. government filed a $5 billion fraud lawsuit against it in "retaliation" for its 2011 decision to strip the country of its "AAA" credit rating."

NuYawkFrankie's picture

re GE Sues IRS For $658 Million Tax Refund

To: Jeff Immelt, GE CEO / JOBS (for China) Czar

 This may come as something of a shock, so brace yourself: You actually have to have paid taxes before you can claim a refund.

Feel free to pass on this info. to the rest of your TBTF buddies - maybe at least they can save some legal fees. You're welcome - any time Jeffy, glad to be of assistance ;)

(PS Hey -almost forgot! Not that anyone needs the Pacific, but how's the cleanup of the GE reactor at Fukushima going? Forging ahead eh? Thought so - way to go Jeffy!)

 

Rising Sun's picture

Immelt suing his brother Barry.

 

Trouble in the "house of nazi"

JailBanksters's picture

I thought GE had deferred their Tax Payments until a time it suited them. Which was never, so they have probably never paid any tax and is hoping the IRS is too stupid to realize that.

 

Reader1's picture

Haven't they stolen enough?  They paid no taxes last time I heard...

Peanut Butter Engineer's picture

Out of two evil, one is a direct parasite and the other is indirect. I truly hope IRS dies and Ge suffers...but it probably won't happen.