GM Challenges IRS Request for $335 Million in Taxes

01/06/97

Reuters reported that the Wall Street Journal published an article saying that GM will challenge an IRS bill for $335 million in taxes from 1985. The IRS says GM had $4.96 billion in taxable income that year, rather than the $3.78 billion the carmaker claimed. The IRS says GM should have paid $1.05 billion in taxes in 1985, instead of the $714.8 million they did pay.

The IRS said GM's problem originated with a complex financing program whereby GM reimbursed dealers for offering financing rates lower than other lenders.

Paul Dever -- The Auto Channel