Last month, with just days to go before heading to trial, Medical Device manufacturer Boston Scientific Corp. agreed to settle its existing tax dispute with the Internal Revenue Service (IRS) – a settlement valued at $275 million, plus interest.
Boston Scientific, which operates out of the Twin Cities and employs more than 7,000 people, stood accused of underpaying corporate taxes over the course of the last decade, which the IRS valued at roughly $1.16 billion. According to court documents, the dispute focused on “transfer pricing” and the value of tax owed to the U.S. for the transfer of intellectual property among domestic and foreign subsidiaries.
The medical device manufacturer’s settlement with the IRS also resolves notices of tax deficiency dating back to 2001 to 2006 regarding Guidant, a subsidiary, as well as similar notices specific to Boston Scientific in 2006 and 2007.
Although both parties reached an agreement with the settlement, securities filing revealed that it might require additional review by the congressional Joint Committee on Taxation in order to be finalized.
Notice of Deficiency (NOD)
When the IRS issues a Notice of Deficiency (NOD), sometimes known as a “90 Day Letter”, it can cause a bit of confusion for the recipient. Specifically, many who receive a NOD mistakenly assume that it means that the IRS has already assessed the tax. The reality is that they have not – the notice typically follows an audit, which generally involves an examiner proposing that you pay more tax.
Another facet of the NOD that many might not know is that, unless you are in complete agreement with the IRS audit examiner, you should never sign any documentation that indicates that you agree with the audit assessment. Many times, such documents include a Waiver of a Notice of Deficiency, which will assess any taxes outlined by the IRS, without providing the right to appeal.
Have You or Someone You Know Received a NOD or Related Tax Document?
In any situation where you receive a NOD, it is critical to consult with tax attorney immediately, because you only have a fixed amount of time – 90 days – to contest any tax assessed in the audit. The one thing you do not want to do is ignore a NOD from the IRS.
Tax Attorneys in Tyler, TX
For those residing in and around Tyler, Texas, the skilled tax attorneys at the Scammahorn Law Firm, P.C. can provide the sound counsel and guidance necessary when facing tax or other IRS-related issues. Our firm specializes in this area of law, and has built a successful history on handling these types of cases. From conducting investigations to working with you to find flaws in the IRS’ argument, our dedicated attorneys can help you address your tax issues quickly and effectively.
Do not delay – such tax matters require swift action. To schedule a free initial consultation with one of our tax attorneys, we invite you to call the Scammahorn Law Firm P.C. today at (903) 595-1000.