IRS Can Access Irish Foreign Worker Records to Investigate Eaton

An IRS summons for the confidential performance evaluations of power management provider Eaton Corp.‘s foreign employees was enforced Thursday by an Ohio federal court that went against a magistrate judge’s recommendation.

Eaton’s performance evaluations likely detail project milestones that Irish employees reached while working with Eaton’s intellectual property once it was transferred to an affiliate in the country, according to the IRS. The agency is conducting a transfer pricing inquiry that examines the extent to which Eaton controlled the property after the transfer, in order to determine how much of its value should remain attributable to Eaton for US ...