Meta’s $16 Billion Tax Fight Can’t Involve Interest, IRS Urges

The US Tax Court lacks the authority to compute statutory interest, and thus should dismiss any allegations relating to interest in Meta Platforms Inc.‘s $16 billion transfer pricing challenge, the IRS told the court.

The IRS took issue with Meta’s December petition alleging the agency didn’t abide by federally declared disaster rules when it determined the amount of interest and penalties it assessed for tax years 2017, 2018, and 2019. But the notice of determination didn’t reference statutory interest for those years, the agency said in its motion to dismiss Wednesday.

The Facebook parent company asserted that the IRS ...