3M Transfer Pricing Dispute Rehearing Declined by Eighth Circuit

The US Department of Justice lost its bid to have the Eighth Circuit reconsider its decision rejecting an IRS “arms length” adjustment to 3M Co.‘s taxes in a case involving royalties from the company’s Brazilian subsidiary.

The US Court of Appeals for the Eighth Circuit on Thursday rejected DOJ’s request to have the case reheard by a three-judge panel or the full court.

The department contended the court’s October decision could degrade the US tax base because it misinterpreted Section 482 of the tax code. Under the arms-length transfer pricing principle, related-party transactions must be priced as if they ...