News
News
4/17/2006
07:01 PM
Connect Directly
RSS
E-Mail
50%
50%

IRS Claims Symantec Owes $900 Million In Back Taxes

Symantec also said the IRS is seeking approximately $100 million, excluding penalties and interest, from an unrelated audit of the vendor for fiscal years 2003 and 2004.

The U.S. Internal Revenue Service is asking Symantec to pay $900 million in back taxes from last year's $10.25 billion acquisition of storage software vendor Veritas, the Cupertino, Calif.-based vendor revealed today.

Symantec also said the IRS is seeking approximately $100 million, excluding penalties and interest, from an unrelated audit of the vendor for fiscal years 2003 and 2004.

In a Securities and Exchange Commission filing, Symantec indicated it believes the IRS's claims are out of line with current tax laws and Treasury regulations, and plans to file a petition with the tax court to challenge the assessment.

Symantec's shares have now lost nearly a third of their value since the Veritas acquisition, and the company recently announced the departure of three senior executives. Earlier this year, former Veritas CEO Gary Bloom and former Symantec CFO Greg Myers also left the company.

Shares of Symantec fell 66 cents to $15.73 in after hours trading Monday after closing the day at $16.39.

Comment  | 
Print  | 
More Insights
IT's Reputation: What the Data Says
IT's Reputation: What the Data Says
InformationWeek's IT Perception Survey seeks to quantify how IT thinks it's doing versus how the business really views IT's performance in delivering services - and, more important, powering innovation. Our results suggest IT leaders should worry less about whether they're getting enough resources and more about the relationships they have with business unit peers.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Government Oct. 20, 2014
Energy and weather agencies are busting long-held barriers to analyzing big data. Can the feds now get other government agencies into the movement?
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
A roundup of the top stories and trends on InformationWeek.com
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.