BB&T to take $281 million tax charge
WINSTON SALEM, N.C. (AP) — BB&T Corp. said Tuesday that it will take a $281 million charge in the first quarter because the bank set aside money to help cover a disputed tax liability.
The bank said the decision to take the charge was spurred by a recent development in a case between the Bank of New York Mellon Corp. and the IRS involving foreign tax credits that was similar to BB&T's tax situation. On Feb. 11 the U.S. Tax Court ruled against the Bank of New York Mellon.
BB&T said it's currently in a dispute with the Internal Revenue Service to recover an $892 million assessment that asserted liability for taxes, penalties and interest related to disallowed tax credits and other deductions.
BB&T paid the $892 million assessment to the IRS in 2010 and filed a lawsuit in an attempt to get a refund. That trial is set to start Monday.