Ford Gets New Court Hearing on $445 Million Interest Bid

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Ford Motor Co. (F) will get a new hearing
in its bid to collect $445 million in interest on overpaid
taxes, as the U.S. Supreme Court told a lower court to take a
fresh look at the case.

A federal appeals court had upheld the Internal Revenue
Service
’s method of calculating the interest owed to Ford, the
second-largest U.S. automaker.

The Supreme Court today told the appeals court to consider
whether Ford’s bid for interest should have been filed in a
different court.

The fight stems from money Ford deposited with the IRS to
cover possible underpayments for nine tax years from 1983 to
1994. Ford later requested that the IRS treat the money as
advance payments toward any additional taxes the automaker might
owe. The agency eventually decided that Ford had overpaid its
taxes for those years.

Ford contends that the interest on the overpayments should
have begun to accrue when the company deposited the money. The
IRS says the starting date should be when Ford told the agency
to treat the money as advance payments. Two lower courts agreed
with the IRS.

The case is Ford v. United States, 13-113.

To contact the reporter on this story:
Greg Stohr in Washington at
gstohr@bloomberg.net

To contact the editor responsible for this story:
Steven Komarow at
skomarow1@bloomberg.net

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