Huntsman Corp. Disputes IRS Tax Charge for Foreign Transactions

Chemicals company Huntsman Corp. is urging a tax judge to review a $7.7 million deficiency on its 2017 taxes after it discounted an accounting move it made on its foreign corporations.

The dispute arises from the IRS’s determination that Huntsman couldn’t apply a “hovering deficit” of one of its Dutch subsidiaries to reduce the denominator of its deemed paid foreign tax credit under IRC Section 960, which resulted in a higher tax burden.

The petition to the US Tax Court comes after Huntsman failed to reach an agreement with the IRS in a dispute resolution process outside of a ...