Company Fights $28.6 Million Tax Bill From Cut to Loss Carryover

The IRS incorrectly assessed a $28.6 million income tax deficiency on a global manufacturing and research and development corporation by reducing a carried-over capital loss from a prior year, the company told the US Tax Court.

Huntsman Corporation and Subsidiaries filed a petition Dec. 1 arguing that the IRS wrongly slashed $167 million from a $271 million capital loss in 2020 that the company carried forward and applied to its 2021 long-term capital gain. The IRS disallowed the capital loss carry-forward after an examination of the company’s 2020 tax year found the unused capital loss carryover from 2020 to 2021 ...