GE Says IRS Overtaxed By Disallowing $2B Restructuring Loss

Law360, New York (February 14, 2014, 7:52 PM EST) -- General Electric Co. is claiming it overpaid its 2000 taxes by $658 million after the Internal Revenue Service blocked its attempt to declare a capital loss of $2.2 billion, according to a complaint filed Friday in Connecticut federal court.

GE alleges it restructured its reinsurance business in 2002 in response to financial and regulatory pressures. The restructuring affected the tax basis of one of GE’s subsidiaries, which impacted GE’s capital loss when most of the subsidiary was sold in 2003, according to the complaint. The IRS...
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