The Gap Takes IRS to Court Over Denied Tax Credits for Research

Retailer The Gap Inc. is in court with the IRS in a dispute involving $50 million in alleged tax deficiencies and overpayments.

The company petitioned the US Tax Court over IRS determinations that had denied the company claimed research and development tax credits during five fiscal years from 2009 to 2013. While the IRS claims the company under-paid its taxes by $19.9 million during those years, The Gap claims it actually overpaid its taxes by $31.1 million.

The company, whose portfolio of brands includes Old Navy, Gap, Banana Republic and Athleta, disputed multiple IRS determinations in its petition served Dec. ...