Coca-Cola: IRS says we owe $3.3 billion in back taxes, but we disagree

Government And Institutions Associated Press

Coca-Cola says it was notified by the IRS that it owes $3.3 billion more in federal taxes, as well as interest, for 2007 to 2009.

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The Atlanta-based company says in a regulatory filing Friday that it believe the assessments are without merit and plans to pursue "all administrative and judicial remedies necessary to resolve the matter."

The maker of Sprite, Dasani, Powerade and other drinks says the disagreement is over how much of the money it makes from licensing products overseas should be considered be considered taxable income in the U.S.

Coca-Cola Co. says it was notified that a recommendation has been made to the IRS's chief counsel that the matter be designated for litigation.