Coca-Cola Says 3M Ruling Applies to Tax Case and IRS Admitted It

The IRS has already acknowledged a recent appellate ruling rejecting the agency’s transfer-pricing position applies directly to Coca-Cola Co.‘s dispute over Brazilian royalty transfer restrictions, the beverage giant told the Eleventh Circuit.

Coca-Cola said a recent letter from the IRS “omits critical facts about the agency’s position on a case called 3M Co. v. Commissioner,” according to a March 13 filing with US Court of Appeals for the Eleventh Circuit. The IRS acknowledged that this case involves the same “blocked income” theory under Section 482 of the tax code—which governs transfer pricing rules—that the Eighth Circuit rejected in ...