Caterpillar Ends Tax Saga With $740 Million IRS Settlement

Caterpillar Inc., one of the world’s largest machinery producers, has struck a deal with US tax authorities to end a dispute that stretches back to 2007.

“The company reached a settlement with the US Internal Revenue Service that resolves all issues for tax years 2007 through 2016, without any penalties,” Caterpillar said Thursday in its earnings statement. “The settlement was within the total amount of gross unrecognized tax benefits for uncertain tax positions and enables us to avoid the costs and burdens of further disputes with the IRS.”

The US machinery maker said it’s $490 million in taxes for ...