Intel gets a break from the tax man
Intel won't have to pay as much in back taxes as originally thought, to the tune of $275 million, the company said Thursday.
The chipmaker had been accruing a tax settlement fund since the Internal Revenue Service announced that it was investigating Intel's tax returns from 1999 through 2005 in connection with a benefit Intel recorded from export sales. On Tuesday, the IRS closed its investigation and reached a settlement with Intel on the matter.
An Intel representative could not immediately confirm the total amount set aside to this point. But as a result of the settlement, Intel gets to subtract $275 million from the accrued amount, which will also lower its effective tax rate for 2007. My refund this year is expected to be somewhat less than that.
Tom Krazit writes about the ever-expanding world of Internet search, including Google, Yahoo, online advertising, and portals, as well as the evolution of mobile computing. He has written about traditional PC companies, chip manufacturers, and mobile computers, spending the last three years covering Apple. E-mail Tom.
