IRS Disputes $1.3 Billion ExxonMobil Tax Refund Claim

A district court was correct in denying a $1.3 billion tax refund ExxonMobil is seeking on overseas oil and gas ventures, because the company neither paid nor incurred taxes to deduct, the IRS said.

The agency is disputing the oil and gas giant’s refund claim on tax overpayments on transactions in Qatar and Malaysia, stating that the company’s reading of a tax credit for production of alternative fuels doesn’t satisfy it’s tax liabilities.

Of the $1.3 billion, about $1 billion is based on ExxonMobil’s amended position that certain oil and gas exploration contracts in those countries should be recharacterized ...