Eaton Seeks Redactions of EU Worker Docs Before IRS Disclosure

Eaton Corp. will try to shield information from its foreign employees’ performance evaluations after a court order deemed some of them relevant to an IRS audit of its international transfers, the company told a federal appeals court.

The IRS is investigating Eaton for allegedly paying inflated royalties to an Irish affiliate, lowering the power management company’s US income tax burden in violation of transfer pricing rules. Eaton sued the IRS to challenge its request for Irish employee records, which the company claims are protected by European Union data privacy regulations.

The US Court of Appeals for the Sixth Circuit last ...