Power tool manufacturer Black & Decker Corporation announced that the United States District Court of Maryland has granted the corporation's motion for summary judgment on its complaint against the United States Internal Revenue Service (IRS) and the related IRS counterclaim.
Black & Decker had filed a complaint against the IRS seeking refunds of approximately U.S. $57 million, plus interest, and the IRS subsequently filed a counterclaim relating to the disallowance of certain capital loss deductions. According to the company, should the IRS prevail in its disallowance of these capital loss deductions and imposition of related interest, it would result in a cash outflow by the Black & Decker of approximately $140 million.
The Court ruled in Black & Decker's favor that the capital losses cannot be disallowed by the IRS. However, the IRS can appeal this decision, in which event a final resolution of the case may not occur until 2005 or later.
to Daily News