3M Appeals Tax Court Loss Over Brazil Entity Income Reporting

3M Co. on Friday appealed to the Eighth Circuit a US Tax Court decision that allowed the IRS to reallocate about $23.7 million in royalty income from its Brazilian subsidiary to the US parent for tax purposes.

Millions of dollars in taxes are at stake in the conglomerate’s case, and its appeal could have implications for a similarly structured $3.4 billion tax case involving Coca-Cola Co. The Tax Court ruled in the government’s favor in both cases earlier this year.

Seven of the nine Tax Court judges who ruled for the IRS said that the agency held authority to ...