Posted by: David Kiley on July 14, 2008
I don’t want to say Ford is turning over the couch cushions looking for cash to see it through the Recession that former Senator Phil Gramm says in out heads…But the automaker is suing the IRS to try and get $445 million for interest on overpayment of income taxes.
How far back has Ford been looking for loose change? The overpayments occurred in 1983-1989, 1992 and 1994, according to the lawsuit. Ford filed in Detroit’s U.S. District Court last week. Companies pay the IRS taxes ahead of earnings, with overpayments returned. Ford says the dispute centers on when its tax deposits began to accrue interest all those years ago.
Ford has been losing money for several years, and now says it won’t turn a profit until 2010 at the earliest. Meantime, the U.S. government is in deep deficit and debt, as well. Perhaps both Ford and Uncle Sam could ask Toyota for a loan.