Business Group, Firms Say IRS Acted Improperly in Coca-Cola Case

An appeals court should reverse a big US Tax Court judgment against Coca-Cola Co. because the IRS acted arbitrarily in switching the transfer-pricing method the company had to use, accounting firms and a business group argued Wednesday.

The IRS shouldn’t be allowed to “pull the rug out” from under Coca-Cola by requiring the company to swap the method it needed to use and thus leading to billions of dollars in liability, the National Foreign Trade Council said in an amicus brief filed with the US Court of Appeals for the Eleventh Circuit.

In a separate joint amicus brief also filed ...